Sign Up For Novogradac Industry Alert Emails

Renewable Energy Tax Credit News Briefs - June 2017

The National Resources Defense Council (NRDC), an international nonprofit environmental organization, released a report April 3 demonstrating that extensions of the renewable energy investment tax credit (ITC) and production tax credit (PTC) will create more than 220,000 jobs in 2017 and add $23 billion to the U.S. economy. The report, “Engine of Growth: The Extensions of Renewable Energy Tax Credits Will Power Huge Gains in the Clean Energy Economy,” analyzed the impact of renewable energy tax credits (RETCs) on employment and gross domestic product (GDP) gains in 16 selected states. Results showed that Ohio will add more than 10,000 jobs in 2018 and the state’s GDP is expected to get a boost of nearly $1.2 billion that year. In addition, Pennsylvania is projected to gain nearly 9,300 jobs each year in 2017 and 2018, and its GDP will get a boost of more than $1 billion per year, and Virginia will gain approximately 5,000 jobs per year in 2017 and 2018. NRDC concludes that any adjustments to the tax code should take into account the significant economic, public health and climate benefits of clean energy, and policymakers should take advantage of the economic development opportunity that clean energy represents. The report is available at www.energytaxcredits.com. 

***

The American Wind Energy Association (AWEA) released April 11 its ninth annual report, “AWEA U.S Wind Industry Annual Market Report for Year Ending 2016.” The report reviews U.S. wind industry trends, industry rankings and the market landscape through 2016, including market rankings, market comparisons, key trends, jobs and impacts by state. According to AWEA’s report, 2016 was the second year in a row that more than 8,000 megawatts (MW) of wind capacity was added to the grid, and more than 100,000 Americans now work in the wind industry. The report is available at American Clean Power.

***

Rocky Mountain Power announced April 4 the Integrated Resource Plan (IRP), a 20-year, $3.5 billion plan to provide electricity to its customers and to construct a portion of the Gateway West transmission line to facilitate the wind expansion. The 2017 IRP includes upgrading more than 900 megawatts of existing wind plants with larger blades and newer technology to generate 20 percent more energy, beginning construction on a segment of the Gateway West 500-kilovolt transmission line between Medicine Bow, Wyo., and the Jim Bridger power plant in Point of Rocks, Wyo., and facilitating construction of up to 1,100 megawatts of new wind projects by the end of 2020 while using federal PTCs. Rocky Mountain Power anticipates the energy efficiency of the 2017 IRP will meet 88 percent of the energy growth needs in the next 10 years.

***

Sunnova Energy Corporation, a solar service provider, announced March 14 the investment of $80 million in tax equity funding commitments from U.S. Bancorp Community Development Corporation (USBCDC). This funding will go to the development of new residential solar projects with a total value of more than $200 million. To date, Sunnova has raised more than $1.5 billion from equity and other financing transactions.

***

Avangrid Renewables announced plans in late April to break ground in September on the first phase of the Montague Wind Farm in Gilliam County, Ore. The 404-megawatt (MW) wind farm will be built in two phases of 202 MW each, and will provide more than 560 million kilowatt-hours (kWh) of renewable energy per year. Avangrid Renewables acquired approximately 2,000 MW of equipment before the end of 2016, when the PTC began to phase down. Brian Walsh, project developer, said in an article in North American Wind Power, that a portion of the “safe harbor” turbines will be applied to the Montague project. Apple will sign on as a corporate buyer for the 404-MW farm. Apple pledged to generate and procure more than 4 gigawatts of new clean power worldwide by 2020. The Montague Wind Farm is expected to fully operational by Dec. 31, 2018.

***

AWEA released May 2 its, “U.S. Wind Industry First Quarter 2017 Market Report.” AWEA finds that wind power reported its best first quarter since 2009, with 908 utility-scale turbines installed in the first quarter of 2017, totaling 2,000 MW of capacity. Great Plains states Texas and Kansas had the greatest numbers, with the former installing 724 MW and the latter installing 481 MW. In addition, there were 1,781 MW signed in long-term contracts for wind energy, which AWEA found to be the most in a first quarter since 2013. According to AWEA’s report, the near-term pipeline has reached 20,977 MW of wind capacity with 4,466 MW in new construction and advanced development announcements recorded in the first quarter. The report is available at American Clean Power

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services