QUICK NEWS, March 14: SENATE REJECTS CRUCIAL SOLAR TAX CREDIT; SENATE REJECTS CRUCIAL WIND TAX CREDIT; DEMAND RESPONSE, NEW ENERGY AND POWER MARKETS

SENATE REJECTS CRUCIAL WIND TAX CREDIT
Senate Rejects Measure To Extend Wind Energy Production Tax Credit
Laura DiMugno, 13 March 2012 (North American Windpower)

"The U.S. Senate has voted to reject an amendment to S.1813, the Surface Transportation Bill, that would have extended several important renewable energy incentives - including the [urgently needed] production tax credit (PTC) for wind power - for one year…The measure…also called for an extension of the Section 48C advanced energy manufacturing tax credit, which expired in 2010, as well as an extension of the Section 1603 cash-grant program.

"Although the vote on the measure was even at 49-49, the amendment required 60 votes to pass, and was, therefore, not agreed to…The news comes as a disappointment to the wind industry, which was hoping for a boon in an uncertain economic climate…"

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[Denise Bode, CEO, American Wind Energy Association:] "…[T]ens of thousands of American jobs are being put in peril…[though] the wind production tax credit enjoys bipartisan…The clock is ticking, and the stakes for a timely extension of the PTC could not be clearer…We stand to lose one of America’s best new sources of American manufacturing jobs. With every day that goes by, layoffs are occurring and further job losses - and even plant closings - will accelerate with each month we near expiration in December.”

"…[T]he Senate voted on a third amendment to S.1813 that also had the potential to dramatically alter the U.S. energy landscape. The measure…would have extended tax credits for the oil and gas industries, as well as approved the Keystone XL Pipeline and opened up other areas for domestic oil and gas production…[Its sponsor] claimed the measure would [also] lower gas prices - an assertion that has questionable backing…The Senate…[voted it down] 41-57 vote."


SENATE REJECTS CRUCIAL SOLAR TAX CREDIT
U.S. Senate Rejects Amendment To Extend Section 1603 Program
Jessica Lillian, 13 March 2012 (Solar Industry)

"An amendment…that would have extended the U.S. Department of Treasury's Section 1603 program and other renewable energy tax incentives failed to receive approval from the U.S. Senate…[The] legislation sought to revive the Section 1603 program and other incentives via an amendment to the Surface Transportation Bill (S.1813), legislation focusing on highway improvements…[The #1812 (Energy Tax Extenders) amendment] needed to receive 60 votes in order to be included in S.1813. However, it received just 49 votes…

"The 1603 program provided a 30% cash grant in lieu of tax credits to eligible solar projects and proved to be extremely popular among U.S. solar developers until its expiration. The renewal of this program ranks among the top legislative priorities for the Solar Energy Industries Association (SEIA) and many solar firms."

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"However, given that the 1603 program just ended a few months ago, the full effect of its expiration remains to be seen…Further complicating matters are provisions that allow certain solar projects grandfathered in under the safe-harbor deadline of Dec. 31, 2011, to remain eligible for a cash grant…

"…[The] vote was widely regarded as one of the industry's primary chances for seeing a 1603 extension…[but] other avenues still exist. President Obama's proposed fiscal-year 2013 budget, for instance, provides for an extension of the 1603 program. However, this budget must clear a series of legislative hurdles in order to be implemented as originally written…The solar sector also recorded a small victory…[when an amendment] to repeal all energy tax credits, including the investment tax credit (ITC) for solar energy, and replace them with a lowered corporate tax rate [was defeated]…"


DEMAND RESPONSE, NEW ENERGY AND POWER MARKETS
Demand Response and Renewables Integration Will Drive the Growth of Short-Term Power Markets
March 8, 2012 (Pike Research)

"Due to the prohibitive cost of storing electricity on a major scale, short-term power markets are relied on to balance generation and load on a 24/7 basis. These markets typically take the form of a day-ahead market that provides a preliminary forecast of the next day’s power generation and consumption, and a real-time market, which is used to balance the actual generation to load…

"…Due to advancing technology and declining prices for renewable energy, particularly wind and solar, demand response (DR) and renewables integration are both growing into significant factors in the short-term markets. Demand response acts as a counterbalance against price volatility in the short-term power markets, while the integration of renewables means that weather fluctuations will increasingly affect the short-term price of power. According to a recent report from Pike Research, these two forces will lead to accelerating growth in short-term power markets over the next several years."

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"Trading services will grow from $283 million in 2011 to as much as $333 million in 2016 under an economic recovery scenario, the cleantech market research firm forecasts. Under a slower growth model, trading services will reach $317 million in 2016…

"Data management and forecasting can help to make more effective trades and to help limit exposure to sudden price fluctuations. Once transacted, there are complex rules associated with settlements of trades. Vendors that offer these types of services are expected to see strong growth in the coming years…[A]s the markets develop…Pike Research expects there to be new entrants in the playing field when credit becomes available and price volatility offers opportunities…"