IER reviews the PTC

The Institute for Energy Research takes a look at the potential extension of the production tax credit for the wind energy industry in their new report “The Case Against the Wind PTC.”

Some highlights of the report findings.

  • A two-year extension of the PTC will cost $13.35 billion
  • The PTC allows wind producers to pay the grid to take their power and still make a profit
  • 65% of voters say that two decades of tax credits for wind is enough
  • PTC threatens overall grid reliability as wind tends to produce electricity when it is not needed
  • PTC supports an uncompetitive energy source as the levelized cost of wind energy is $109 / MWh (2x the average wholesale price of $54 / MWh
  • Despite widespread marketing claiming wind is on cost parity with other sources, without the PTC wind installations dropped over 90% (when the PTC expired at the end of 2012)

As Warren Buffet succinctly noted, it doesn’t “make sense (to build wind energy) without the tax credit.”

Download the full IER report.

28. November 2014 by Jason Hayes
Categories: Energy, Marketplace Information, Producers | Tags: , , , , | Comments Off on IER reviews the PTC