GOOD NEWS IN THE WIND

New Energy infrastructure can only be built and maintained domestically. The investments and the jobs and the returns on the investments must, therefore, serve the domestic economy.

It was predicted that extension of the New Energy tax credits would result in explosive new growth. The tax credits were extended just 2 weeks ago and, despite this being a disastrous moment for the U.S. economy, the predictions have already begun to come true. 4 big wind energy manufacturing facility construction projects were finalized in the wake of the extension of the wind power industry's production tax credit (PTC).

Doing the math: Just 2 of the 4 projects account for investment of more than $80 million in the U.S. economy and at least 2125 new jobs.

And that’s just the beginning.

The sin: Wind's PTC, an incentive driving a remarkable U.S. economic engine of growth and wealth, was only extended for 1 year. If the wind industry can perform so well in a floundering marketplace with an uncertain 1-year incentive, THINK what it will do as the economy rallies back around it IF a new Congress and a new President give it a REAL incentive, a long-term incentive on which serious business people can plan and rely.

Listening to the murmurs: The new administration will be seated January 20, 2009. Expect the fight to be joined that day for a long-term PTC and a national Renewable Electricity Standard (RES) requiring U.S. utilities to obtain a portion of their power from New Energy sources (or some equivalence) by a date certain.

The McCain energy plan does not include a national RES but the Obama energy plan calls for utilities to get 10% of their power from New Energy by 2015 and 25% by 2025.

What is that parenthetical "or some equivalence" about?

NewEnergyNews has suggested (to any and every policy wonk who will listen) a way to break the impasse between states supporting a national RES and those who oppose it on the grounds their states' New Energy assets are inadequate to meet a standard: Give those states credit toward meeting the standard for building new transmission infrastructure. Why?

Because the 3rd item on New Energy's legislative agenda for 2009 is likely to be a bill mandating and funding a desperately needed new national transmission superhighway.

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Wind Energy Industry Creates Jobs, Shines As Growing Bright Spot In The Midst Of Faltering Economy
Christine Real de Azua, October 10, 2008 (American Wind Energy Industry)

WHO
The American Wind Energy Association (AWEA); Polymarin Composites/Wind Water Technologies (WWT); Brevini USA; Moventas; Met-Con; TPI Composites

WHAT
As predicted, extension of the wind energy industry’s production tax credit (PTC) has resulted in the finalization of several deals that will bring more New Energy manufacturing to the U.S., increasing emissions-free generating capacity, expanding the domestic job pool and boosting the national economy.

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WHEN
- October 2008: The PTC extended for 1 year.
- Close of 3Q 2008: Full listing of new manufacturing facilities with job creation potential to be released by AWEA.
- 2009: The wind industry will seek long-term extension for its PTC.

WHERE
- Little Rock, Arkansas: Polymarin Composites and Wind Water Technologies (WWT).
- Muncie, Indiana: Brevini USA, U.S. subsidiary of Italian wind turbine manufacturer.
- Faribault, Minnesota: Moventas, Finland-based gearbox manufacturer; Met-Con construction company
- Newton, Iowa: TPI Composites

WHY
- The PTC extension is expected to make wind project economic conditions favorable for the short term.
- Polymarin Composites and Wind Water Technologies (WWT) will invest $20 million to transform the former Levi Building into a combined wind turbine blade and nacelle manufacturing facility: 830 new jobs (average wage: $15/hour)
Brevini USA is planning a new facility to make gearboxes, will invest $60+ million to retrofit an existing 60,000-square-foot building and add 150,000 square-feet of manufacturing space: Expansion in 2010, ~450 permanent local jobs (average annual pay: $46,000+)
- Moventas, Finland-based gearbox manufacturer, will build a 75,000-square-foot North American assembly and distribution facility using Met-Con construction, to open in October 2009, starting with 90 workers, growing to 335 (adding 30 employees yearly through 2023)
- TPI Composites opened a 316,000-square-foot wind turbine blade manufacturing facility in September, a former Maytag facility (closed in 2006): ~500 jobs at full capacity,

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QUOTES
- Randall Swisher, Executive Director, AWEA: “Even in this time of economic uncertainty, America’s wind industry continues to invest in our economy, building new factories and wind farms across the country, and creating thousands of jobs…But if we are to keep this momentum going, we will need the new President and Congress to make a long-term commitment to growing renewable energy in the United States, at last allowing the wind industry to escape the uncertainties of a tax credit that is extended one year at a time.”
- Swisher: “We will be working with the new Congress and President next year to help shape policies that promote renewable energy to meet our economic, national security, and environmental challenges…”