Martha Wyrsch, president of Vestas-American Wind Technology Inc., testified before the U.S. Senate Finance Subcommittee on Energy, Natural Resources and Infrastructure to urge an immediate extension of the production tax credit (PTC), which is set to expire on Dec. 31, 2012.
‘An extension of the PTC is necessary for the continued employment of the 80,000 people working in the U.S. wind industry,’ said Wyrsch, who leads the North American arm of Vestas Wind Systems. ‘Wind energy has grown dramatically in the past several years, creating a manufacturing renaissance in the U.S., and the PTC has been a significant driver in that growth. The jobs at stake, which include 20,000 people in the U.S. wind industry's manufacturing sector and technical jobs throughout rural America, are skilled-labor positions with competitive wages and medical and retirement benefits.’
Wyrsch noted that if the PTC is not extended, hundreds of U.S. wind industry suppliers employing thousands of people also would be affected.
Since 1999, the PTC has received short-term extensions seven times, and has lapsed three times. In the past, the wind industry has experienced a boom-and-bust development cycle, with significant drops in installations in years following PTC expiration. Each of these drops has had an impact on employment and capital investment.
"The development cycle for wind power begins more than a year in advance of operation," Wyrsch said. "Many of our customers have already announced they will not place orders for any new turbines until the PTC is extended. The industry needs predictable, long-term tax and energy policies to ensure continued investment."
