Copenhagen: The wind turbine market faces a difficult 2013 even if a US incentive scheme known as the Production Tax Credit (PTC) is extended beyond its end-2012 expiry date, Denmark-based MAKE Consulting said in a research note.
Uncertainty about whether the tax credit will be extended or replaced with something else has led to a rushed 2011 and 2012 wind farm building cycle, while new development plans for 2013 have plummeted, MAKE said.
The wind industry will see precipitous drops in 2013 installations without a PTC, MAKE said in an abstract of a note for paying customers entitled, US market eyes policy cliff.
But even if a PTC is extended, the market impact is likely to be muted due to more challenging macro-economic conditions - basic demand conditions remain weak and natural gas futures remain low, it said. Even with a PTC, 2013 will not be the boom market of PTC years past.
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