Cape Wind, the proposed $2.6 billion wind farm off the coast of Massachusetts criticized by local residents including the Kennedy family, will qualify for a key federal tax credit that expires at the end of the year, according to its turbine supplier Siemens AG.
More than 1,000 wind power manufacturing employees in Iowa and Kansas received an early Christmas gift yesterday as energy giant Siemens AG announced that its U.S. plants would supply 448 wind turbines to MidAmerican Energy Co. as part of the largest single order for onshore turbines in history. At a ribbon-cutting at Siemens’ Fort Madison, Iowa, turbine blade manufacturing plant, executives from Siemens and MidAmerican, along with local, state and federal officials, marked the largest economic development project in Iowa history, as Des Moines-based MidAmerican embarks on a $1.9 billion expansion of wind power generation across the state.
The Oracle of Omaha is certainly not guilty of a lack of energy in the remaining days of 2013. Warren Buffett grabbed his share of recent headlines when he disclosed a $3.45 billion stake in ExxonMobil. And although this story received large amounts of attention from the media, it’s only fair to acknowledge Berkshire Hathaway’s subsidiary, MidAmerican Energy Holdings, which has also been busy lately.
The decision by Warren Buffett’s utility company to order about $1 billion of wind turbines for projects in Iowa shows how a drop in equipment costs is making renewable energy more competitive with power from fossil fuels. Turbine prices have fallen 26 percent worldwide since the first half of 2009, bringing wind power within 5.5 percent of the cost of electricity from coal, according to data compiled by Bloomberg. MidAmerican Energy Holdings Co., a unit of Buffett’s Berkshire Hathaway Inc. (BRK/A), yesterday announced an order for 1,050 megawatts of Siemens AG (SIE) wind turbines in the industry’s largest order to date for land-based gear.
Alexander and Manchin are among the Senate’s top critics of the wind industry’s prized tax credit. While the $23-per-megawatt-hour PTC also supports geothermal, biomass and other renewable sources, wind is responsible for the lion’s share of its cost, estimated at more than $1 billion per year. Wind is the largest non-hydro renewable electricity provider and was the source of more new installed capacity than any other source last year, surpassing natural gas.
Providing the most prominent acknowledgement to date that comprehensive tax reform may not happen before the 113th Congress adjourns, Senate Finance Chairman Max Baucus last week told a private meeting of committee members that they likely would have to address a raft of temporary tax breaks in isolation next year, a senior Republican on the panel told Greenwire today. The Montana Democrat’s acknowledgement carries wide implications for wind energy developers, biofuels producers and building efficiency companies that rely on the temporary tax breaks known as extenders.
As the Obama administration seeks to clear a path for more renewable energy projects, it has increasingly found itself caught between two staunch allies: the wind energy industry and environmental organizations. Tensions between both groups and the administration have risen since a new federal rule was announced this month allowing wind farms to lawfully kill bald and golden eagles under 30-year permits.
Here, in the heart of coal country, at the center of the natural gas boom and the former foundation of U.S. manufacturing might, a long-shuttered auto plant now houses the Aquion Energy factory. Its workers are building innovative batteries to store solar- and wind-generated electricity. Yet Aquion’s best customers are across the globe, not down the street. The battery manufacturing plant sits southeast of Pittsburgh, atop the Marcellus Shale, the rich geographic formation that is one of the epicenters of the natural gas boom. So the battery storage systems the company makes aren’t likely to be used here, a region brimming with abundant natural gas reserves and reliant on coal-fired plants for energy.
MidAmerican Energy’s plan to build 448 wind turbines in Iowa has created the world’s largest order for onshore wind turbines, says the utility and Siemens, the company that will provide the equipment. MidAmerican plans to complete five Iowa wind energy projects by 2015, an expansion that will cost $1.9 billion. The Des Moines-based power company will create a total of 1,050 megawatts of energy, enough power for 317,000 U.S. households, the company said. The project is expected to create 1,000 construction jobs over two years and add 40 permanent jobs.
MidAmerican Energy Holdings Co., the power unit of Warren Buffett’s Berkshire Hathaway Inc. (A:US), agreed to buy wind turbines valued at more than $1 billion from Siemens AG (SIE) for five projects in Iowa, in the supplier’s biggest order to date for land-based wind equipment.