In 2008, only 1.28% of the electricity generated in the United States was produced by wind turbines. This number, which was released by the American Wind Energy Association, compares to significantly higher numbers in European countries. Denmark's share of wind energy in the national energy mix is 20%. Energy produced by wind turbines is responsible for 9% of the electricity produced in Spain and 7% in Portugal and Germany.
Two U.S. Representatives from Minnesota (Collin Peterson and Tim Waltz) introduced a bill that has the potential to increase the wind energy share in the U.S. energy mix. The bill would make changes to the Renewable Energy Production Tax Credit (PTC). The PTC has been one of the most important tools for wind power project developers in the past. The bill would make the PTC even more valuable for new wind power project developments in California.
The U.S. Representatives from Minnesota called their bill Wind Energy Promotion Act (WEPA). The bill is aimed at allowing individual investors to profit from the PTC. Currently the PTC shelters passive activity income. This situation makes it nearly impossible for individual investors to make use of the PTC since private investors only have a minimal passive activity income. The bill allows the PTC to offset up to $40,000 of ordinary income. Such a measure would allow individuals for the first time to invest in wind power in a way that could boost wind power project development.
It is not clear at this point whether the bill will be adopted. The WEPA, however, would be another step towards the utilization of the great potential for wind energy in the U.S.
