Congress allowed the production tax credit (PTC) for wind energy to expire on January 1, 2014. However, projects under construction at the end of 2013 may still qualify for the PTC. Therefore, we expect a significant number of new wind projects to come online in 2014 and 2015.
Since more than 5,100 MW of wind capacity was under construction as the PTC expired on January 1 (Source: SNL), the change in eligibility requirements assures a pipeline of projects coming online over the next two years. Consequently, the industry is likely to experience a long glide down moving forward. This contrasts the precipitous decline in installations experienced in 2013 following a record 13.2 GW installed in 2012. Without the painful cliff of prior years, this may take pressure off lawmakers to renew the PTC each year as they have in the past.
Additional details on the PTC: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US13F&re=1&ee=1
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