US President Barack Obama will sign into law today (17 Feb.) a nearly $790
billion economic stimulus package approved by the US Congress this weekend. The
bill is the first of three expected legislative initiatives in 2009 from the new
administration to promote and expand renewable energy development in the United
States. For Vestas, this is a very positive signal.
“We highly welcome the provisions of the stimulus bill related to renewables and
wind energy. This is exactly the kind of action and short-term follow up from
the new administration we have been calling for from the industry. It is a good
first step for the necessary new changes which are needed in the American
electricity sector in order to have more energy independence and a cleaner
energy production,” Vestas President and CEO Ditlev Engel comments.
Senior Vice President, Vestas Group Government Relations, Peter C. Brun further
explains the significance: “This is the first time in the US we have ever seen
such long regulatory stability in terms of a multi-year Production Tax Credit
until 31 December 2012. Previously, the PTC extensions were only one or two
years constituting big risk and uncertainty for both investors and manufactures
like Vestas. So we regard this development as a major positive development in
the US market.”
Another innovation is the introduction of a new grant program allowing investors
to convert production or investment tax credits into an equivalent financial
grant from the Treasury. This is an important new option for investors to
stimulate short-term investments in the present economic situation.
The US administration has announced it will also propose an energy bill and
climate change legislation later this year.
The economic stimulus bill contains both tax incentives and federal spending
programs that will provide a significant boost to the continued growth of
renewable energy jobs in manufacturing and project development.
Highlights of the renewable energy provisions in the package include:
A three-year extension of the Production Tax Credit (PTC), through 31 December
2012.
An option for project owners to claim a 30 per cent Investment Tax Credit (ITC)
in lieu of the PTC.
A new grant program, administered by the US Treasury, to ensure that project
owners can effectively monetize their renewable energy tax credit during the
current economic crisis.
A new 30 per cent investment tax credit that will provide over $2.3 billion to
invigorate domestic renewable energy manufacturing and create clean energy
jobs.
Targeted provisions, including funding, to encourage renewable and electricity
transmission
“The choice of the administration to sign the stimulus bill in Colorado is
well-chosen,” notes Vestas Senior Vice President Roby Roberts. “Vestas has
already shown its commitment to the American market by building manufacturing
plants in the state. For Vestas, the stimulus provisions for renewables and wind
power are incredibly important for sustaining our American investments. In this
regard, also the new manufacturing tax credit and the transmission initiatives
are very encouraging.”
In 2008, Vestas opened its first manufacturing facility in Windsor, Colorado -
creating 650 local jobs. Vestas is looking to implement a one billion USD
investment programme, which would make Vestas the biggest wind power investor in
the USA.
Yours sincerely
Vestas Wind Systems A/S
Ditlev Engel
President and CEO
Contact details:
Peter C. Brun, Senior Vice President,
Vestas Group Government Relations
Tel.: +45 4160 6102
Roby Roberts, Senior Vice President of External Relations,
Vestas Americas A/S
Tel.: +1 503 327 2370
