This PTC news comes from consulting firm MAKE.
The U.S. internal revenue service (IRS) released updated PTC eligibility guidelines on 8 August 2014 that will unlock project finance and restore project construction.
This Flash Note examines current US market dynamics and the implications of the IRS guidance on the near term forecast. The note analyzes US order intake, development activity as well as challenges in the Texas wind power market. US forecast scenarios for 2014 to 2017 are provided, including MAKE’s expectation of a PTC extension.
The Flash Note highlights that significant U.S. development was paralyzed in H1 by bank reluctance to risk investment in projects that ultimately may not qualify for the PTC.
It also notes that the IRS clarification on “physical work” eligibility requirements will result in conversion of ~3GW of conditional order backlog, and that the limited construction window left in 2014 will cause 1.4GW to shift into 2015, creating execution risk ahead of the YE/2015 deadline.
An overview is available for free at MAKE’s website.
Also read: What if there were no sunset to the PTC, and other thoughts
MAKE
www.consultmake.com
Filed Under: Financing, News
