Wind Takes Hold

 

BEFORE EASING LAST YEAR, THE GROWTH OF AMERICA'S renewable energy industry was a bright spot in the national economy. In fact, according to the United Nations' "Renewable 2010 Global Status Report," of all the new energy capacity installed in 2009 in the United States, 50 percent came from renewables.

Wind energy has had a significant role in the green energy expansion. Thirty-seven states now have wind turbines generating tens of thousands of megawatts of electricity and millions of dollars in local and state tax revenues and lease payments. In addition, these wind projects have produced 85,000 manufacturing jobs at more than 400 factories, with new jobs created in every state.

As the economy struggles to recover, the wind industry might not bounce back rapidly - much like many other manufacturing industries - but the opportunity in wind energy development and the country's need for diversified energy sources will certainly move wind forward.

In December, Congress passed the Section 1603 investment tax credit extension. The Section 1603 Treasury Grant Program, part of the American Recovery and Reinvestment Act, provided cash grants that helped sustain the wind industry during a time when the tax equity market softened. The program has already provided more than 1,450 renewable energy projects with funding in excess of $5.5 billion. This legislation will continue to create development and production incentives in the wind sector and other renewable energy sectors through 2011.

In addition to the investment tax credit, wind project developers can receive the renewable energy production tax credit. This is a federal incentive for wind energy, offering a credit of 2.1 cents per kilowatt-hour. Last year, the stimulus bill extended the tax credit for wind power facilities beginning construction through the end of this year.

This year also brings a new political environment and opportunity for federal energy leadership. As the economy improves and energy demand begins to rise again, meeting that demand with renewables will continue to be a big issue.

The freshman legislative class is positioned to lead the charge to pass a national renewable electricity standard. Thirty states already have their own renewable portfolio standards, which set a percentage of electricity that must come from wind and other renewable energy sources according to a specific timeline. The governors from these states are backing a national standard to stimulate new investment in renewable-energy projects.

Governors aren't the only backers of wind power. A recent Rasmussen Report finds that 60 percent of voters believe investing in wind and other renewable energy sources offers a better long-term investment than investing in fossil-fuel energy. Wind is a proven energy technology, and its costs often are competitive with energy generated from fossil fuel. Fossil fuel prices can be volatile, but creating a diversified energy infrastructure that incorporates renewables with traditional energy will help ease the cost fluctuations as economic factors change.

Late last year, a bipartisan group of four Republicans and four Democrats introduced a national renewable standard bill independent of other energy policy efforts. Though the bill did not progress last year, these legislators hope to obtain clearance this year. Creating a federal renewable electricity standard policy like this will help drive the growth of wind energy in the long run while project developers can still reap the benefits of short-term tax incentives.

This would position the wind industry for sustained growth in the United States, maintaining manufacturing and creating construction and maintenance jobs and helping boost the local economies in which wind projects are developed.

I am optimistic about the future of wind in America. Having immediate tax incentives, political leadership on energy and climate issues, public support for renewables and the need for an improved energy structure will lay the groundwork for more wind projects and further underscore wind as a practical, sustainable and beneficial energy source.