Once again, uncertainty reigns over whether the federal production tax credit (PTC), which expired on Dec. 31 for wind and several other alternative energy industries, will be renewed.
The credit, which has a long history of being temporarily renewed after expiration, pays 2.3¢ per kilowatt hour of generation to wind, geothermal and cloosed-loop biomass energy companies, and 1.1¢/kWh to municipal solid-waste and certain other alternative power firms. The payment period generally applies to the first 10 years of operation. If Congress does not renew the PTC, say those who stand to benefit from it, the future of new projects and investment in these technologies is in jeopardy.