According to the United States Energy Information Administration (EIA), the timing and magnitude of the utility-scale solar and wind power projects deployment in the US are very sensitive to tax credit policies that are expected to be phased out by 2022. The US federal tax credits for renewable projects were initially enacted in 1992 and have been extended several times. In 2015, the US government extended phaseout schedules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC) legislation. The PTC are expected to expire for wind power projects set to break ground in 2019.
If the PTC and ITC are extended at the full credit value through 2050, wind generation should continue to increase throughout the projection and should be 40% higher than in the Reference case by 2050. If existing tax credits expire in 2019, the market for new wind power plants should continue to increase from current levels (+55% on 2017) but wind power generation should be lower than in the Reference case. It would have a larger effect on utility-scale solar projects (40% less solar generation on average between 2017 and 2050 than in the Reference case).
Interested in Power Plants?
Enerdata has developed a market research service to screen, monitor and analyse the development of power generation assets.
Power Plant Tracker offers an interactive database and a powerful search engine covering power plants worldwide – including both installed and planned capacities for renewables and fossil fuels.