According to a report released January 18 by Bloomberg New Energy Finance, the US installed a 5.5 GW of wind energy in December 2012 to cap off a record year with 13.2. GW of wind energy coming online. Wind energy now accounts for 6% of the country’s total electricity generation.
The expected expiration of the federal production tax credit (PTC) created a rush to complete as many projects as possible before the December 31, 2012 deadline.
Congress ultimately did extended the PTC for one year, but with a new twist. The credit now applies to projects that start construction in 2013. Previously, the PTC only covered projects that were online by the PTC expiration date.
The industry is still awaiting guidance from government on what “start construction in 2013” means.
Because of the uncertainty last year over whether the PTC would be extended, the wind industry was reluctant to develop a 2013 project pipeline. Consequently, it is expected the US wind energy market in 2013 will develop in a somewhat different pattern than usual, as estimated project time is between 18-24 months.
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