It is crunch time for the wind industry. Facing the potential expiration of the production tax credit (PTC) at the end of this year, developers are rushing to complete construction and place projects in service.
Since it was enacted in 1992 under the Energy Policy Act, the PTC has been allowed to expire three times and has frequently been extended only for short increments. Unwilling to risk losing this crucial tax incentive, developers are focused on completing construction of their wind assets this year and carefully monitoring development pipeline progression.
Although an organized developer can successfully manage the construction of a significant wind project in eight to 12 months, there are several challenges that – if not properly addressed – can turn into emergencies.
An article I recently contributed to North American Windpower Magazine discusses four main areas where developers should take care to avoid delays if they want to successfully generate revenue in a timely fashion and capitalize on the PTC. These include:
While the uncertainty that characterized the wind market today may cause some developers to delay future projects, those that stay the course can achieve their business goals with careful planning and execution.
If you are a wind developer trying to bring a project into service this year, what challenges are you facing? How has your project development schedule been impacted by uncertainty around the PTC? Will your future projects be affected if it is not renewed?