How Wind Power Competes
(Page 2 of 2)
May 2, 2008
By Peyton Baldwin
Why Wind Power Needs Our Support
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But even though wind power is cheap to produce, building wind-electric plants requires considerable capital investment. In the United States, getting investors interested in these projects can be difficult because of the government’s on-again, off-again support for wind power through tax credits and other legislation.
Currently, the growth of wind power is promoted by the production tax credit, which goes to renewable energy facilities for the first 10 years the turbine operates. The credit is good through December 31, but Congress recently failed to extend the tax credit in the 2007 energy bill. New legislation will have to be passed in order for the credit to apply thereafter.
A few other challenges have the potential to slow wind power’s progress. USA Today reports that there is a shortage of power lines that wind farms can hook into. Current power lines are nearing capacity and many wind farms are not built close to existing lines. A decision on a solution to this problem will need to be made in order for wind power growth to continue.
Additionally, General Electric has confirmed there is also a shortage of wind turbines. At the end of 2007, $11 billion in wind turbines were on backorder, but now that amount has grown to $12 billion. Facilities must wait a year or year and a half to receive a turbine. The shortage is because of the high demand and the time it takes to engineer the most efficient turbine possible. The result is many projects being put on hold.
These obstacles are partly because of the high demand and exceptional growth of the industry. Nevertheless, new wind farms are popping up all over the world. The outlook for the wind industry once it blows past these drawbacks is very good.
To learn more about small-scale, residential wind turbines read New and Improved Wind Power. Or, learn more about wind farms in Whither Wind.
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