Offshore Wind Wire

By David McGlinchey

A bipartisan group of senators introduced legislation last week to extend offshore wind production and investment tax credits for another decade.

Maine Republican Senators Susan Collins and Olympia Snowe joined with Sen. Tom Carper (D-Delaware) and Sen. Sherrod Brown (D-Ohio) to introduce the bill, which will extend the credits until 2020.

“These provisions are vital because of the long lead times required to permit and construct wind turbines offshore, compared to onshore wind energy,” the senators said in a press release.

All four senators represent states with proposed or potential offshore wind projects.  The production tax credit provides a credit of 2.1 cents per kilowatt-hour for wind energy systems.  Offshore wind developers can opt to receive a 30 percent investment tax credit in place of the production tax credit for facilities commissioned before 2013 if construction begins before the end of 2010.  Developers can choose to receive the investment tax credit as a direct grant from the Treasury Department.

“This legislation is essential to encourage the continued growth of this fledgling industry,” Carper said.  “Guaranteeing these tax incentives through 2020 will provide companies with the certainty they need to plan for the long term and encourage further development even in these challenging economic times.”

Carper made specific note of NRG Bluewater Wind, which is developing an offshore wind project off of Delaware.

“Our wind energy companies require certainty to invest in America’s renewable resources and the data reflects that consistent incentives expand renewable energy production,” Snowe said.  “We must provide dependibility and conistentcy to tax policies that have a history of working.”