With the on-going uncertainty over the production tax credit (PTC) extension, many factors are indicating that the American wind manufacturing industry is picking up speed to cope with a rush of orders in 2012.
In 2011, an additional 31% of wind capacity was installed compared to 2010, totalling a massive 1.6GW.
This dramatic increase in project commissioning has widely been attributed to the uncertainty surrounding the PTC extension, a topic being hotly debated throughout the industry and government.
The PTC, worth $0.022 per kWh for a projects’ first ten years of operation is a key driver in the continued planning and commissioning of wind installations. It is also widely seen to be responsible for the creation of thousands of jobs throughout the renewable energy sector, and its expiration will undoubtedly have an adverse effect on the future renewable power industries.
However, the fear of a PTC expiration is currently having the reverse effect on manufacturing companies. With the danger of commissioning projects with no tax incentive looming, developers are looking to fast-track projects to commissioning stage, which is having the knock-on effect of pushing manufacturers’ capacity to the limit.
This increase in competition has resulted in turbine manufacturers seeking the best possible terms of collaboration with a supplier, often in a strategic mid-term partnership.
