WIND GETS READY FOR NO GOVT SUPPORT

How The Wind Energy Supply Chain Can Prepare For A Possible Post-PTC Era
15 March 2012 (North American Windpower)

"…Barbara Sands, renewable energy expert at PA Consulting Group, [said] if federal renewable energy incentives such as the PTC expire, more than $20 billion (based on approximate capital costs of $2,000/kW in 2012 for installed wind capacity) will be shifted from the federal level to the state level - in other words, from all U.S. taxpayers to just customers in states with renewable portfolio standards.

"The resulting rise in energy costs will test state and, by extension, regulator support for renewables, and participants across the sector will face a number of complex challenges…Wind developers, equipment manufacturers and utilities will all need to face this issue, but proactive planning can…[keep them] profitable…"

Can planning prevent it from happening again? (click to enlarge)

"Wind energy developers, for example, will need to focus on sites and projects that provide the best economics…[U]tilities will need to find a way to recover the high cost of renewables…[P]ressure will be placed on regulators to allow them to recover the higher cost of renewable energy in future rates, thereby passing these costs on to customers…[E]quipment manufacturers…will come under pressure from wind energy developers and wind farm operators to both improve their products’ performance and reduce the cost of their equipment.

"…[A]ssuming the current projected level of natural-gas prices of about $4.50/MMBtu, the capital cost of wind projects would need to be at least 35% lower for wind generation to be competitive with new natural-gas-fired generation, PA Consulting says…[M]anufacturers will need to decrease fixed capital costs and improve efficiency to become cost-competitive."