Invenergy CEO: PTC phase-down may not count for much

The US wind business cheered the multi-year production tax credit extension clinched at the end of 2015, and the gradual step-down of support that came with it. But as mid-year reality sets in, big names in the industry, including Invenergy chief executive Michael Polsky, are wondering whether the PTC phase-out – which begins on 1 January 2017 – will hold much value after all.

The idea behind the PTC phase-out was to spark a near-term investment boom without simultaneously creating a demand cliff. Developers with advanced projects would rush to qualify for the full PTC in 2016, but earlier-stage projects would still be able to secure a substantial fraction of the PTC over the coming few years – or so the thinking went.

But major wind developers are now questioning whether many projects will get built based on reduced PTC levels after all, given the intensely competitive landscape in the US power sector today.

“Certainly

Wind

Invenergy CEO: PTC phase-down may not count for much