A new report says impending government decisions could soon result in a sharp decline in expansion of wind power.
The news comes as the industry is expected to experience record growth in 2019 and 2020 and seven states are about to double their wind capacity in the near term,
Tariffs Could Block Wind
A report by the energy consulting firm Wood Mackenzie predicts wind capacity in the United States will experience its largest growth ever in 2019 and 2020, with installed capacity predicted to expand to 121 gigawatts (gw) from 97 gw.
Despite such already planned increases, the industry’s long-term growth prospects are cloudy, says Wood Mackenzie’s report.
U.S. wind turbine manufacturers have brought a case before the International Trade Commission (ITC) saying several countries are dumping turbines at a loss on the U.S. market, damaging domestic turbine manufacturers. In response, ITC is considering a tariff on wind turbines and parts sold by Canada, Indonesia, Korea, and Vietnam, who manufacture 84 percent of the parts used in wind turbines erected in the United States. These tariffs would be placed on top of existing tariffs on towers and other wind-related equipment from China. The tariffs would make wind power projects more expensive.
In addition, the federal production tax credit for wind is scheduled to be phased out at the end of 2019, reducing a subsidy for the industry.
If tariffs hit and the PTC is not renewed, prices will rise substantially and the buildout of wind projects could slow dramatically, says Wood Mackenzie.
More HERE
