More wind power plants anticipated this year before tax credit phaseout
An Energy Information Administration (EIA) report has determined more wind power plants are anticipated by the end of this year due to the phaseout of the U.S. production tax credit (PTC) in 2020.
The EIA’s Preliminary Monthly Electric Generator Inventory noted it is expected wind capacity additions domestically in 2019 will total 12.7 gigawatts (GW), exceeding annual capacity additions for the previous six years but falling short of the record 13.3 GW of wind capacity added in 2012.
The PTC provides operators with a tax credit per kilowatt hour of renewable electricity generation for the first 10 years a facility is in operation and was initially set to expire for all eligible technologies at the end of 2012. It was later retroactively renewed, with the high level of annual capacity additions in 2012 was driven by developers scheduling project completion in time to qualify for the PTC.
Officials said wind project developers must begin operations by the end of 2020 to receive the full 2016 value of the PTC. However, they acknowledged that more wind capacity is expected to come online by the end of 2019 than by the end of 2020 based on the latest project statuses reported on the Preliminary Monthly Electric Generator Inventory.
Reported dates for wind projects coming online in 2019, 5.7 GW, or 44.7 percent of the annual total, are currently expected to be completed in December.
