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The U.S. tax credit for wind power, due to end Dec. 31, should be extended to spur new projects, BP Plc (BP/)’s BP Alternative Energy Chief Executive Officer Katrina Landis.
Landis said that wind-power developers are putting U.S. projects on hold while waiting to see if Congress approves an extension of the Production Tax Credit, which provides 2.2 cents a kilowatt-hour for electricity generated from wind.
“We’ve been hearing from wind-turbine manufacturers that they have no orders for 2013,” Landis said in an interview at the Bloomberg New Energy Finance Summit in New York today. “They are shifting to places like Brazil, where there is more certainty about support.”
If the credit is allowed to lapse, installations of turbines in the U.S. may fall as much as 95 percent to 500 megawatts in 2013 from this year, Amy Grace, a New Energy Finance wind analyst, said at the event.
“The PTC is an incentive that is genuinely working,” Landis said. “Having transparent incentives that step down over time is the right approach.”
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