NewEnergyNews More: Wind Rebuilding

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  • Tuesday, October 11, 2016

    Wind Rebuilding

    U.S. Tax Credit Powers Wind-Farm Upgrades; Wind-power producers rush to renovate existing facilities in boon for turbine manufacturers

    Rebecca Smith, October 7, 2016 (Wall Street Journal)

    “…[Backed by the federal commit to grow the U.S. wind industry, wind producers and turbine makers are repowering existing wind farms…Upgrading wind farms makes sense for wind producers because modern turbines generate far more electricity than those built two or three decades ago. That means some existing wind farms will get overhauled to generate more renewable power, while others will produce the same amount of electricity but with fewer turbines…Renovating an existing wind farm is also often simpler than building a new one—they are already connected to transmission lines and have zoning approvals—so the projects often make better financial sense than starting from scratch…The market for refurbished capacity [also] represents an enormous opportunity for turbine manufacturers…Existing facilities qualify for the [federal production tax credit] if refurbished enough to satisfy IRS rules, which require investments to equal 80% of the market value of the facility being replaced…[One analyst] estimated that 15% of the U.S. installed base of 75,000 megawatts of wind capacity is ripe for retrofits…” click here for more

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