Wind Energy PTC Extended, Biodiesel Credit Renewed

Wind energy. The year is starting off well for proponents of the wind energy production tax credit (PTC). Congress included the PTC as well as investment tax credits (for offshore and community wind projects) in its final bill, which President Obama has signed into law as the American Taxpayer Relief Act of 2012.

The one-year extension of the credit, which provides a tax break of 2.2 cents for every kilowatt-hour of energy produced by wind, has saved an estimated 37,000 wind energy jobs (out of the current 75,000 industry jobs). Jobs needed for wind energy development include engineers, construction workers, electricians, operators, and the turbine manufacturers.

The PTC extension also has enabled future job creation, as it covers all wind energy projects started in 2013. The projects do not have to be placed in service by that date, though, as it can take 18 to 24 months to develop a wind farm.

Because of the uncertainty regarding the PTC extension into 2013, many wind developers rushed projects into service before the end of 2012. The U.S. Energy Information Administration has estimated that, if completed, wind energy additions would top 12,000 megawatts of installed capacity for the year. It added that this would exceed capacity additions from any other fuel source, including natural gas.

Biodiesel. The tax act also has reinstated retroactively the dollar-a-gallon biodiesel credit for biodiesel blenders of pure biodiesel, agribiodiesel, or renewable diesel blended with petroleum diesel to produce a mixture containing at least 0.1 percent diesel fuel. The IRS states that only blenders that have produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business are eligible for the tax credit.

While many are happy that the biodiesel and wind energy credits have been reinstated or extended and see growth in these markets for the year, their impermanence and potential expiration at the end of the year create uncertainty that could hinder longer-term projects.

DOE offers technical assistance for boiler legislation

Through its Clean Energy Application Centers (CEACs), the DOE will offer technical assistance and cost information to facilities burning coal or oil so that those facilities know about clean-energy strategies for compliance, such as combined heat and power. To learn more about the assistance, visit (http://www1.eere.energy.gov/manufacturing/distributedenergy/boilermact.html).

DOE investing in solar projects, biobased products

The U.S. Department of Energy has announced funding of innovative solar projects and biobased products.

Through its SunShot Initiative, the DOE will help to reduce the total installed cost of solar energy systems by investing $10 million in 10 projects that will address photovoltaics advances, solar cell efficiencies, energy storage, interconnection issues, and system hardware and power electronics balances. The initiative is a collaborative national effort to make solar energy cost-competitive with other forms of energy by the end of the decade.