Wind Energy Works: We Need a PTC Extension

Matt Jennings, Green America
October 29, 2012 | 4 Comments

On December 31st of this year, the Production Tax Credit (PTC) for renewable energy is set to expire. If we wake up on January 1st without an extension, we will be throwing away years of hard work setting up important renewable energy industries that help provide clean electricity, energy independence and, most importantly, jobs.

A recent DOE report indicates that over $14 billion was invested in wind power project installations just in 2011. The current wind power capacity in the US is 50,000 MW (enough to power 13 million homes) and six states now get over 10% of their electricity from wind power. But the most important fact to take away from the report is that the wind industry is a legitimate player in the US job market. Business has been booming; just ask states like Iowa, California, Texas and Oregon. They all rely on the wind industry to provide jobs to wind turbine manufacturers, installers and regulators. Even farmers are getting in on the profits by leasing their land to install wind turbines. Combine all of this with the fact that 70% of wind power equipment is being provided by American manufacturers, not foreign competitors, and we have the beginnings of a prosperous, domestic clean energy economy.

But if the PTC expires, this foundation will go to waste. Companies will be forced to shut down and layoff hardworking Americans. The DOE report estimates that around half of the nation’s 75,000 wind industry employees will lose their jobs. The companies that have enough money to survive will be outsourced to the highest bidder. Jobs and revenue will be sent overseas to countries that are willing to acknowledge that renewable energy is here to stay, something that our government has been hesitant to do. While we would rather support proven, reliable, and often toxic sources of energy, countries like China and Germany are investing record amounts of money into wind and solar projects. But by letting the PTC expire, opponents say, it will create a level playing field where the most efficient providers of energy will eventually win out.

However, allowing our home grown companies to compete against the likes of coal, oil and natural gas is not a fair fight. Those industries are also heavily subsidized by the government, often in the name of creating energy independence through our domestic fuel sources. Government subsidies allowed fossil fuels to become the power source of choice, so why not give wind power the same chance?

The Clean Energy Victory Bonds Act of 2012, recently introduced by Rep. Bob Filner of California, would extend the PTC and aim to give American citizens the opportunity to buy bonds that will give wind power and other renewable solutions the chance that they deserve. The bonds would be available for as little as $25 and would have a very competitive rate of return. In order to support the burgeoning domestic renewable energy market, pieces of legislation like this will be essential.

Abandoning American companies that have worked for years to build their businesses would be devastating for thousand of American families and the American economy. In a time when we need stability the most, throwing away competitive American jobs and a blossoming clean energy economy is not the answer. Extending the PTC and supporting renewable energy projects like the Clean Energy Victory Bonds Act will show workers in the wind and solar industries that the American government is serious about creating a clean energy economy and the jobs and revenue that it provides.

Lead image: Wind turbines via Shutterstock

4 Comments

Sherry Hellmuth
November 1, 2012

For too many decades the American taxpayer has funded a failure of epic proportions, called wind energy. The PTC is more crony corporate welfare and must be ended. Of course without the subsidies wind will die because it is not efficient, effective or profitable. Not one proponent of renewables will speak about the horrendous pollution on the front end of the process from the mining of the ton of rare earth minerals required for each and every turbine. AWEA won't talk about the incredible pollution caused by the manufacture of the steel and the cement (one of the worst pollution sources) that are required for each turbine tower. Let the private sector decide if wind is viable--we know it's not by the whining for PTC extension by AWEA and it's crony lobbyists. Even a one year extension will cost taxpayers $12 billion dollars and do nothing to further the wind energy industry. It is a mature and totally failed idea whose end had already come in the 1940's when farmer's stopped using windmills to pump water.

Andrew Bond
November 1, 2012

I agree that the PTC should be applicable to other forms of energy avoidance and renewables. But, when discussing a level playing field and "letting wind stand on its own," please note the subsidies paid to fossil fuel energies (paid by taxpayers indirectly). And, please recognize the inherent long term costs that taxpayers make towards dwindling nonrenewable fuel sources versus directing that cost towards true energy independence. Also note the long term environmental costs not paid now by fossil fuel polluters that will be paid directly and indirectly by future generations.

Oil and gas will no doubt be a major part of the US energy mix into the foreseeable future even with major investment in renewables - the industy is entrenched. Our opportunity to be world leaders in wind and solar was sadly missed in the late 70's after the oil embargo. Now, it's just playing catch up and damage conrol. It's clear that big oil dominates our economy and insidiously will continue to do so whether we like it or not. For these reasons, any movment towards true energy indpendence must be supported.

To truly let wind stand on its own, please remove the subsidies to oil and gas. Then, we may actually have a level playing field where renewables would be more cost effective. It's funny to me when people hem and haw over subsidies to renewable energy, but let their tax dollars continue to subsidize oil and gas....funny and sad at the same time.

Steve Giles
November 1, 2012

I disagree. It is time for wind to stand on its own. There are other projects, such as combined heat and power and waste heat recovery that do no get the level of incentives that wind does. These project are more energy efficient and should be on a level playing field for all incentives. They are often complex and capital intensive and we would certainly see many more installations if there was an equivalent PTC.

Additionally wind in many areas of the country is 70%+ off peak energy - which we do not need. The PTC, if extended, should only be applicable to energy produced during peak periods based on a two tier delineation.

ANONYMOUS
October 29, 2012

Sadly, come January 1st, expiration of the federal PTC is the least concern for US income tax payers. On January 1st, the average annual federal income taxes paid by a US taxpayer will increase by about $2000. There also is the huge jump in payroll taxes, which for a self-employed person like me will amount to another $2500 per year.

In light of this, I hope you all will understand if I can't get too worked up about loss of the PTC.

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Matt Jennings

Matt Jennings is Green America’s Clean Energy Victory Bonds Outreach Fellow. He graduated from the University of North Carolina – Chapel Hill this May with a degree in Geography and a minor in Environmental Studies.