Bloomberg is predicting a 2013 wind market “crash” as a federal incentive for wind energy is set to expire at the end of 2012.
Bloomberg is predicting a market boom prior to the end of the Production Tax Credit and believes more than 9 gigawatts of turbines may be constructed in the U.S. by the close of 2012.
The American Wind Energy Assocation (AWEA) reported that U.S. wind installations rose 31 percent in 2011, installing a capacity of 6,810 megawatts as they rushed to qualify for a federal tax grant that expired in December. Worldwide, about 40 to 43 gigawatts may have been installed last year, including offshore projects, says Bloomberg.
The AWEA is pressing Congress to extend the Production Tax Credit of 2.2 cents a kilowatt-hour for wind power to prevent manufacturers from laying off workers in the U.S. Denmark-based Vestas Wind Systems A/S (VWS), the world’s biggest turbine manufacturer, has said that it may cut 1,600 U.S.-based jobs unless the government extends the credit.
Dean Zerbe, former advisor to the Senate Finance Committee, believes that the U.S. will extend the incentives for wind energy whether the Democrats or Republicans win the election, Bloomberg reports. President Obama urged Congress to pass clean energy tax credits to support renewable energy in his State of Union address this week.
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