The production tax credit provides that an incentive of 2.2 cents a kilowatt-hour for electricity from wind be applied to operators’ tax bills.
In an interview with Bloomberg’s Alex Morales, Engel said, “history has shown us [that if production tax credits are not extended] these markets tend to fall off a cliff”.
He added, “We should prepare ourselves for it.”
The US House of Representatives is currently considering a bill that would extend the credit, but its fate is uncertain going into a presidential election year.
In 2010, the last year for which full-year statistics are available, Vestas delivered 1,093 MW of turbines in the US. According to Vestas’ most recent annual report, that capacity represented nearly 20 percent of the company’s sales that year.
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