July 21, 2017 Read More →

U.S. Wind Exec Sees Low Costs Persisting

SNL:

Pattern Energy Group Inc. CEO Mike Garland said he sees wind energy prices staying in the 3 cents/kWh to 4 cents/kWh range over the long term despite the federal renewable electricity production tax credit’s phase-out. Although some companies and utilities are wary of new wind projects with the PTC going away, wind power “is a phenomenal opportunity right now,” Garland said in a July 18 interview with S&P Global Market Intelligence.

The PTC was 2.3 cents/kWh for wind facilities that started construction before the end of 2016 and had not claimed the investment tax credit. That amount for wind facilities goes down by 20% every year through 2019, when it expires.

Several components are putting the wind industry in a “unique market inflection point,” Garland said. The cost of construction is low in most parts of the U.S., while capacity factors have been favorable for wind developers and subsidies for renewables are still going strong.

Pattern has been able to provide wind power at less than 2 cents/kWh in high wind areas with low construction costs such as Texas and Oklahoma, Garland said. The company expects those prices to remain the norm for the next few years, until the PTC ends.

($) Pattern Energy CEO: Wind power will be 3 to 4 cents/kWh for foreseeable future

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