Seeking Alpha

Wind turbine construction jumps ahead of subsidy deadline

  • Wind turbine project developers are rushing to begin construction on projects before year's end, and thereby guarantee the projects are eligible for a tax credit (worth $0.023 per kWh) that expires on Jan. 1.
  • However, this isn't the first time construction has picked up ahead of a subsidy expiration. And since previous deadlines required projects to be completed (rather than just started) before a subsidy expired, the pressure on developers isn't quite as intense this time around.
  • Over the last two decades, Congress has allowed a wind tax credit to expire several times before later renewing it. Construction activity has generally fallen sharply following an expiration.
  • Wind turbine maker Vestas (VWDRY) has scored a slew of U.S. orders ahead of the deadline. The deadline also has implications for struggling turbine component/software maker American Superconductor (AMSC -1.3%).
Comments (1)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    These have been around long enough to have a working report of actually how they are doing....I would suspect they are not as Profitable as they are sold....the ones I see are always down..not working...I don't know why they just are not turning
    26 Dec 2013, 02:18 PM Reply Like
DJIA (DIA) S&P 500 (SPY)