The Future of Wind Energy: Industry Views on the PTC Phase-Out
- Posted on November 22, 2016
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The wind industry is in a significant state of transition. With the phase-out of the federal Production Tax Credits (PTC) in full effect, wind energy leaders are rapidly capitalizing on the present opportunities and devising strategies for success once the credits end. For understanding into how this will affect the industry moving forward, Mortenson has released a new study examining peer insights into succeeding in a post-PTC era.
Can the industry thrive after the PTC phase out? Wind professionals believe yes – where eighty-six percent are optimistic about the future of wind in America.
The IRS allows wind facilities that qualify in 2016 up to four years to complete construction and receive 100 percent of the PTC, a key incentive that helped foster the industry’s growth. The PTC is currently scheduled to decrease annually until 2019 when the credit received reaches 40 percent, giving those projects until 2023 to complete.
“There is strong optimism for wind energy in the U.S.,” said Wendy Davidson, director of business development at Mortenson. “We are seeing a move to quickly capitalize on near-term incentives yet, at the same time, industry leaders are committed to innovating to maintain wind’s long-term position as a leading source of clean energy.”
Focusing on the future, wind industry experts indicated several main changes that will help the industry thrive after the PTC phase out. Efficiency topped the list at forty-eight percent, followed by supporting needed infrastructure. Ninety-six percent of wind energy peers agree that energy storage will ultimately be a game changer for the wind industry and viable in less than 10 years. A new study with more insights into energy storage is available at http://www.mortenson.com/company/news-and-insights/storage2016.
Professionals believe that long-term, the Midwest offers the best environment for wind expansion (31%) while the Mid-Atlantic region is projected to have the most improvement over current market conditions during the next five years. The Southeast is viewed as having significant untapped potential with good wind availability (63%) and its environment is also expected to improve moving forward.
Mortenson surveyed more than 400 wind industry professionals at AWEA’s WindPower Conference in New Orleans and summarized peer-to-peer insights into the “Wind Energy: Challenge Accepted-Thriving in a Post-PTC Era” report. Sign-up to receive the full report at www.mortenson.com/windpostPTC/.