By the end of the year, the wind power subsidy policy in many countries is about to expire. An uneasy mood is spreading in the wind power industry. Can the subsidies continue? Will the intensity increase or decrease? Many uncertainties make wind power companies want to desperately fight for government subsidies for the next year. For renewable energy, government subsidies are necessary to protect the development of the industry. However, it is now unknown whether subsidies can continue.
In the United States, for example, in the past 20 years, the United States wind power industry has always enjoyed a production tax credit (referred to as PTC) policy. PTC is a preferential policy in the new regulations of the United States "Energy Policy Law" in 1992. It provides wind power and other renewable energy power stations with 2.2 cents per kilowatt-hour discount during the first 10 years of operation. This is the only financial policy support mechanism in the US wind energy industry. It is this kind of subsidy policy that allows wind power to occupy a place in the competition with cheap electricity such as coal and natural gas. Of the electricity growth in the United States in the past four years, 35% came from wind power.
However, this unique support mechanism has not provided a stable investment environment for developers and manufacturers of wind power industry and suppliers at all stages of the industry chain. It also cannot ensure that their investment plans are clear. Prospects. More importantly, every time PTC expires, it will cause concern in the wind power industry, because each time the previous extension is at the last moment of expiry, and it will be accompanied by many controversial voices. This time, I’m afraid it’s no exception. . Today, this subsidy policy is due to expire at the end of 2012. Although the wind power industry called on the government to continue to maintain this subsidy policy and increase subsidies, the government still failed to give a clear statement.
A report released by the US energy consultancy HIS recently stated that PTC is of vital importance to the US wind power industry. If this subsidy is lost, the growth rate of the US wind power industry will be greatly affected. Since 2005, the wind power industry in the United States has maintained an annual growth rate of 5.6 million kilowatts. If this subsidy is lost, the new wind power capacity in the United States from 2013 to 2016 will be reduced by more than half, to 2.3 million kilowatts per year. Given that natural gas prices may continue to decline, the wind power industry may be hit harder. The American Wind Energy Association has repeatedly stated that the reason why the size of the US wind power industry can continue to grow is thanks to the investment confidence brought about by the timely update of PTC. “Fortunately, the Congress made an extension before the expiration date of the wind power production tax credit reduction bill. The wind energy industry can create a series of records."
For the wind power industry, losing this subsidy is simply unimaginable. They are currently actively fighting for the government to increase subsidies. In fact, they did not wait until the end of PTC at the end of 2012, and wind power companies demanded that the government now increase subsidies to help the wind power industry achieve better development.
In July this year, a group of 24 people from the Democratic Party and the Republican Party called on the government to increase its subsidies for the wind power industry and extend the period of subsidies until 2020. Some wind power companies are optimistic about the prospects of PTC and believe that the government will continue this policy and increase subsidies, but some people are concerned about this.
This worry is not difficult to understand. Due to the implementation of the PTC Act, the US Congress often delays the expiration of the bill's validity before extending the vote and extending the validity period is short-term. This is naturally undesirable for the wind power industry that needs stable investment. of. The short-term extension of the PTC's validity period has adversely affected the growth and stability of the industry, causing the US wind power market to fluctuate, showing a cycle of "prosperity-depression." Rob Graham Lek from the American Wind Energy Association said that the uncertainty of the subsidy has cast a shadow on the prospects of the wind power industry. Many developers and investors have reduced or eliminated wind power projects in 2013 because it is time for investment decisions for these projects. It may not be visible in 2012, but the damage caused by the government's hesitation to the wind power industry will be fully reflected in 2013. This situation has existed for the past few years.
In recent years, the wind energy industry in the United States has grown bigger and bigger, and the plans for each large-scale wind power project in the future are in urgent need of a stable policy. However, if PTC still maintains a short extension period, and every time the results are announced late, it may be a further impact on the wind power industry. Indeed, wind power is clean, but only its cost can be accepted, and people will pay attention to its other advantages.
In the United States, for example, in the past 20 years, the United States wind power industry has always enjoyed a production tax credit (referred to as PTC) policy. PTC is a preferential policy in the new regulations of the United States "Energy Policy Law" in 1992. It provides wind power and other renewable energy power stations with 2.2 cents per kilowatt-hour discount during the first 10 years of operation. This is the only financial policy support mechanism in the US wind energy industry. It is this kind of subsidy policy that allows wind power to occupy a place in the competition with cheap electricity such as coal and natural gas. Of the electricity growth in the United States in the past four years, 35% came from wind power.
However, this unique support mechanism has not provided a stable investment environment for developers and manufacturers of wind power industry and suppliers at all stages of the industry chain. It also cannot ensure that their investment plans are clear. Prospects. More importantly, every time PTC expires, it will cause concern in the wind power industry, because each time the previous extension is at the last moment of expiry, and it will be accompanied by many controversial voices. This time, I’m afraid it’s no exception. . Today, this subsidy policy is due to expire at the end of 2012. Although the wind power industry called on the government to continue to maintain this subsidy policy and increase subsidies, the government still failed to give a clear statement.
A report released by the US energy consultancy HIS recently stated that PTC is of vital importance to the US wind power industry. If this subsidy is lost, the growth rate of the US wind power industry will be greatly affected. Since 2005, the wind power industry in the United States has maintained an annual growth rate of 5.6 million kilowatts. If this subsidy is lost, the new wind power capacity in the United States from 2013 to 2016 will be reduced by more than half, to 2.3 million kilowatts per year. Given that natural gas prices may continue to decline, the wind power industry may be hit harder. The American Wind Energy Association has repeatedly stated that the reason why the size of the US wind power industry can continue to grow is thanks to the investment confidence brought about by the timely update of PTC. “Fortunately, the Congress made an extension before the expiration date of the wind power production tax credit reduction bill. The wind energy industry can create a series of records."
For the wind power industry, losing this subsidy is simply unimaginable. They are currently actively fighting for the government to increase subsidies. In fact, they did not wait until the end of PTC at the end of 2012, and wind power companies demanded that the government now increase subsidies to help the wind power industry achieve better development.
In July this year, a group of 24 people from the Democratic Party and the Republican Party called on the government to increase its subsidies for the wind power industry and extend the period of subsidies until 2020. Some wind power companies are optimistic about the prospects of PTC and believe that the government will continue this policy and increase subsidies, but some people are concerned about this.
This worry is not difficult to understand. Due to the implementation of the PTC Act, the US Congress often delays the expiration of the bill's validity before extending the vote and extending the validity period is short-term. This is naturally undesirable for the wind power industry that needs stable investment. of. The short-term extension of the PTC's validity period has adversely affected the growth and stability of the industry, causing the US wind power market to fluctuate, showing a cycle of "prosperity-depression." Rob Graham Lek from the American Wind Energy Association said that the uncertainty of the subsidy has cast a shadow on the prospects of the wind power industry. Many developers and investors have reduced or eliminated wind power projects in 2013 because it is time for investment decisions for these projects. It may not be visible in 2012, but the damage caused by the government's hesitation to the wind power industry will be fully reflected in 2013. This situation has existed for the past few years.
In recent years, the wind energy industry in the United States has grown bigger and bigger, and the plans for each large-scale wind power project in the future are in urgent need of a stable policy. However, if PTC still maintains a short extension period, and every time the results are announced late, it may be a further impact on the wind power industry. Indeed, wind power is clean, but only its cost can be accepted, and people will pay attention to its other advantages.
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