Production Tax Credits come in two forms - One is hidden
Below are US Energy information Administration (EIA) figures just released from 2013, along with some additional information from the IRS. The production tax credits are given in two forms. One is publicized in the media at 2.3 cents per kWh and on the table it is listed as "Tax Expenditures". The other non-publicized and far greater version of the PTC is listed below as "Direct Expenditures". It is a 10 year tax credit given in advance for wind and solar projects the year they apply for it. What this means is that if congress were to eliminate the PTC today, America would still get stuck for the PTC tax out to 2025. When dealing with the IRS this PTC 10 year grant is called the Investment Tax Credit.
Owners of wind and solar projects when filing yearly tax forms can elect to take the Investment Tax Credit in Lieu of Production Tax Credit. As it can be seen below in the table, more of these credits are taken up front. This may be what Iberdrola Ierdrols did with their Maine wind projects.
From the IRS.............
"Who Can Take the Credit Generally, the owner of the facility is allowed the credit. In the case of closed-loop biomass facilities modified to co-fire with coal, other biomass, or both, open-loop biomass facilities, and refined coal facilities, if the owner is not the producer of the electricity, the lessee or the operator of the facility is eligible for the credit.
Notice 2009-52
Election of Investment Tax Credit in Lieu of Production Tax Credit; Coordination With Department of Treasury Grants for Specified Energy Property in Lieu of Tax Credits SECTION 4. Coordination with Department Of Treasury Grants
Section 48(d) governs the interaction between the investment tax credit determined under § 48 and Section 1603 Grants. Generally, § 1603 of the Act requires the Treasury Department to make grants to persons who place in service specified energy property (including certain energy property eligible for the investment tax credit determined under § 48 or the production tax credit under § 45). Section 48(d)(1) provides, in the case of property with respect to which the Treasury makes a Section 1603 Grant, that no credit may be determined under § 48 or § 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year."
The amount of PTC paid out is determined by the energy in kWh declared by project owners. This is the scary part since the wind industry is already known to rig mortality research, falsely reporting wind turbine mortality at wind projects.
In looking over the EIA data I did notice a disturbing trend in the energy being reported by the wind industry going back to 1995. After 2005 the amount of energy production being declared by the wind industry in comparison to installed capacity has magically increased in the US by about 35%. It may be that the way energy production is calculated has changed in favor of these industries resulting in more tax credits being paid out by taxpayers.
In 2013 5.936 billion dollars was paid out to the wind industry and 5.328 billion dollars paid out to the solar industry. Combined these two industries produce about 1/275 of the energy used by Americans.
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Comment
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Comment by Mike DiCenso on March 22, 2015 at 8:33pm
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Ken Lay and Jeffrey Skilling would be so proud!!! Enron has been reborn.
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Comment by Jim Wiegand on March 19, 2015 at 1:27pm
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Because I do believe that the wind energy production numbers since 2005 are being rigged by about 33% I have added some additional information. Right now the US wind industry is giving energy production numbers for a wind turbine capacity factors at about 32%. Denmark is reporting 41% but these high numbers are coming from far windier locations offshore. Not to mention that many new wind farms in the US are not being set up in these prime winds.
Off Shore wind Advantage #3: More Wind
One of the greatest advantages that offshore wind farms have over those on land is the frequency of strong winds over the ocean. Studies have shown that winds offshore blow nearly 40 percent more often than on land. Consequently, offshore wind farms can outpace those on land in terms of capacity and possibly offset the higher construction costs.
The combination of all three makes a significant reason for people to maintain the development of onshore wind farms in places where there is an economic (i.e. enough wind), aesthetic and environmental sense, and to intensify their support for offshore wind. The current trend in offshore wind investment reflects this. Numerous countries in Europe, Asia, and North America are increasing their investments in this clean technology, showing that with time, we are becoming not only more efficient but also smarter about the way we create energy.
- See more at: http://relevansi.com/blog/offshore-onshore-debate-wind-energy/#stha...
Below are the listed capacity factors for very windy Denmark's offshore turbines. They average 41%
All numbers are to the end of January 2015. Analysis by EnergyNumbers.info. Raw data from ens.dk
Latest
rolling
12-month
capacity
factorLife
capacity
factorAge
(y)Installed
capacity
(MWp)Total
elec.
gen.
(GWh)Rolling annual
capacity factors
(click to enlarge)Total
44.8%
41.0%
1271
29 568
Anholt 1
49.2%
50.1%
1.8
399.6
3 213
Avedøre Holme
37.5%
38.3%
4.6
10.8
166
Frederikshavn
33.9%
30.7%
11.7
7.6
239
Horns Rev I
44.6%
41.9%
12.3
160
7 216
Horns Rev II
49.0%
49.2%
5.4
209.3
4 893
Middelgrunden
25.0%
25.5%
14.1
40
1 260
Nysted (Rødsand) I
38.8%
37.2%
11.6
165.6
6 275
Nysted (Rødsand) II
44.5%
44.1%
4.6
207
3 707
Rønland I
42.0%
44.3%
12.1
17.2
805
Samsø
36.6%
39.4%
12.0
23
952
Sprogø
34.9%
35.6%
5.3
21
345
Tunø Knob
31.0%
30.2%
19.7
5
260
Vindeby
20.6%
23.2%
23.4
4.95
236
http://energynumbers.info/capacity-factors-at-danish-offshore-wind-...
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I tried to find out when the 10 year PTC prepayment option came into play but so far have been unsuccessful. I believe this maneuver was a slimy response to a public that is getting wise to their ways. The wind industry knows their days of fleecing the taxpayers are coming to an end.
I believe that the wind energy numbers are being rigged by about 33%. Especially since many new sites are not placed in prime wind locations. I also suspect the industry is being paid production credits for wind energy with supplemental back-up energy added and or that every kWh generated on site is being counted even though there are great energy losses by the time this energy reaches consumers. What all this means is that this industry may have received as much as 10 billion in PTC over payments going back to 2005.
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Comment by alice mckay barnett on March 19, 2015 at 8:04am
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thank you for explanation again of why WIND companies are on a crash course to set up quickly.
Maine as Third World Country:
CMP Transmission Rate Skyrockets 19.6% Due to Wind Power
Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.
Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT
******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********
(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/
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Hannah Pingree on the Maine expedited wind law
Hannah Pingree - Director of Maine's Office of Innovation and the Future
"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."
https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/
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