“Wind projects most at risk by the new tax bill are those that negotiated their finance package in the last two years based on a 35 percent corporate tax rate. Renegotiating these agreements, if possible, could result in higher debt assumed for the project, higher prices for the electricity sold, and pressure to lower build costs … to put the financial viability of the project at risk.”
As previously cited, the wind industry is reliant on tax-equity investors willing to accept tax credits in return for funding significant percentages of their project costs. Tax-equity financing is complex; altering one or more elements of an investment package could undermine the success of a wind project.
Despite Congress’ decision to leave the wind PTC phase-out unchanged in the final tax bill, other changes in the law might upset plans for some projects.…
Continue Reading“There remains much to do in 2018. But the crony energies–those dependent on special government favor–are on notice that their time may be running short. Consumers and taxpayers come first in a free and prosperous commonwealth.”
It has been a good year for the master resource and public policy in the United States. The Trump reset of energy and climate policy has been the most dramatic in history in terms of free-market orientation. Trump’s reversing the Obama administration is what Ronald Reagan did to the Carter Administration’s energy policy back in 1981–but more so.
At yesterday’s White House briefing, Sarah Huckabee Sanders reviewed some of the energy highlights of the year.
“As December winds down,’ she said, “I thought this would be a perfect opportunity to look back at what has been, by any measure, a historic year.”…
Continue ReadingMany readers of MasterResource are undoubtedly aware of the ‘Featured Analysis‘ blogs at the Institute for Energy Research (IER). I blog at IER (my employer) in addition to my MasterResource work.
Below, my posts at the IER website are linked. In addition, my ‘Political Energy‘ posts at Forbes.com are listed as a reference guide. Here are the links to my 2017 work for those interested.
IER Posts
“Kathleen Hartnett White: A Scholar for CEQ” (October 18)
“Scary Sea Level Rise? Check Your Science” (September 8, 2017)
“Al Gore’s Energy Problems” (August 25, 2017)
“Climate Optimism, Energy Realism for the Next Generation” (August 11, 2017)
“Milton Friedman on Energy” (July 31, 2017)
‘Deep Decarbonization’ vs. Direct-Use Natural Gas (July 14, 2017)
“James Hansen’s Failed Ultimatums: A Free Market, Anyone?”…
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