What obstacles lie in the way of wind generation reaching its full potential in the U.S.?
Consistent policy support. Over the past seven years (1999-2005), the federal production tax credit has been extended four times, but three times Congress allowed the credit to expire before acting, and then only approved short durations. These expiration-and-extension cycles inflict a high cost on the industry, cause large lay-offs, and hold up investments. Long-term, consistent policy support would help unleash the industry’s pent-up potential. Nondiscriminatory access to transmission lines. Transmission line operators typically charge generators large penalty fees if they fail to deliver electricity when it is scheduled to be transmitted. The purpose of these penalty fees is to punish generators and deter them from using transmission scheduling as a “gaming” technique to gain advantage against competitors. Therefore, the fees are not related to whether the system operator actually loses money as a result of the generator’s action. Because the wind is variable, wind plant owners cann
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