OCT 27

Up until recently, supply was the limiting factor preventing more large-scale wind turbines and farms from being built. There simply were not enough factories manufacturing turbine parts, and those that existed took a long time to build those parts. As a result, although we have certainly installed a record amount of wind power capacity across the country (4.2 gigawatts in 2008’s first three quarters, according to the American Wind Association), demand for turbines generally exceeded supply.

The good news is, the manufacturing industry has responded to that demand. The AWE also reported that eight new turbine manufacturing factories went online this year, and that nine expanded their production capacity. Business leaders for renewable energy companies have confirmed that turbines are now relatively abundant and easier to procure.

Money, though, has become an issue. Like everyone else hit by the credit crunch, wind companies lack the necessary capital to get their projects moving. Loans are hard to come by, and the new renewable tax credits guaranteed by Congress do not go into effect until January. In theory, despite the availability of turbines we might actually see LESS generating capacity given this financial drought.

Hopefully, those with the means to help out these companies will do so. In our unsteady economic times, it makes sense to invest in a technology that is reliable and effective.

Via Greentech Media

Comments (3)

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Wind tax credits are already in effect
written by Anders, October 27, 2008

The wind production tax credit is in effect for any turbine installed through the end of 2009. Prior to the passage of the bailout bill, it was in effect only through the end of 2008. Furthermore, more companies can take advantage of the tax credit than could previously.

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written by EV, October 27, 2008

Money, though, has become an issue. Like everyone else hit by the credit crunch, wind companies lack the necessary capital to get their projects moving.

Told you so.

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Wait or buy now?
written by Adam Pieniazek, November 04, 2008

Been thinking about investing in a small wind system for our home (we live near the coast in Boston, it gets windy enough, trust me), but should we wait until January to get new tax credits or did the existing tax credits simply get extended?

I was taking a wait and see approach with the presidency, assuming that if Obama wins more incentives might be coming but with the economy going down now might be the time to go ahead and invest in our own energy production.

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