Dive Brief:
- As natural gas prices rise the economics of wind power will improve, and will soon reach a point where it needs no federal subsidy says one GE executive. As Greentech media reports, the offical also noted that the falling cost of wind power means it has already caught up to gas in some areas of the Midwest.
- Advances to turbine technology have helped the industry, though if Congress phases out the production tax credit for wind power it will make things difficult for the industry in the short-term, according to GE Energy Management Director of Government Affairs and Policy David Malkin.
- GE wants Congress to instead renew the tax credit through 2015 and then begin to phase it out over three to five years.
Dive Insight:
Wind power is getting more competitive and soon will not need production tax credits to survive, Malkin told Greentech Media. In some areas of the Midwest, wind power is already operating on par with gas plants, even without the credit. And so GE is supportive of phasing out the credit, but “if Congress does nothing, the next year for the wind industry is going to be tough,” said Malkin.
Malkin said he expects gas prices will eventually rise and stabilize around $4 to $5/MMBtu, which will make wind power more competitive. But in the short-term, the tax credit can help wind power with the transition. “We need a little bit of a cushion. We need Congress to extend the PTC ideally for 2015 to buy us time to then implement that measured phase-out," he said.
