World Wind Watch | Green Energy News

February 8, 2004 – Vol.8 No.46

WORLD WIND WATCH.

Leading energy attorney Art Scavone of global law firm White and Case says that wind power needs long term U.S. federal tax policies in order for wind capacity to continue to grow. The stop-and-start tax policy of the production tax credit (PTC), which expired again at the end of 2003, makes long-term commitment to wind energy difficult for investors. Financiers for wind projects want stability in policy to ensure confidence in the industry.

An extension of the PTC for another three years is included in a greatly shrunken energy bill now headed for the floor of the U.S. Senate.

Scavone also points out that of all current renewable energy technologies wind energy is the most feasible and economically viable on a mass scale, and that thirteen states now have Renewable Portfolio Standards (RPS) with eleven more considering them. Utility companies in those states will be looking to build renewable capacity under the laws.

(In Maryland an RPS for 7.5 percent of all energy produced in the state be from renewable sources by 2014 was introduced in the Maryland House on February 13. A matching bill will be introduced in the State Senate in the week beginning February 15, 2004. The bill was supported by environmentalists as well as the state’s largest electric utilities. Maryland has good wind resources in its western mountains and offshore.)

Counterpoint to Scavone’s remarks: The wind industry will do better - have a long, secure future - when it no longer needs the PTC to be an economically viable source of energy. When wind can stand on its own towers, without the need for support from the Federal government, then it will need only local approval from communities and the willingness of wind developers and utility companies to advance.

White and Case, with 37 offices in 26 countries and 1700 attorneys on staff has considerable experience as legal advisors to wind energy project financing. Visit White and Case at http://www.whitecase.com/