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http://www.rechargenews.com/energy/w...icle326932.ece

Election offers hope for one-year PTC extension, analysts say

Barack Obama’s US election win offers the chance of a one-year renewal of the US wind production tax credit (PTC) by January as part of a “lame duck” congressional package, say analysts at HSBC.
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HSBC Global Research says the PTC enjoys bipartisan support ahead of the expected plunge in the US wind market from 11GW this year to 3GW in 2013, which it dubs the “clean-tech cliff”.

But the analysts warn that the PTC – the key federal subsidy for US wind power – would need to see a multi-year extension to bolster investor confidence in the sector, along with a federal clean-energy standard.

Obama’s re-election “essentially protects key climate policies from repeal, particularly the regulation of carbon dioxide by the EPA (Environmental Protection Agency)”, notes the HSBC team.

A new Obama administration could explore the possibility of raising revenue from a carbon tax to help the US avoid the so-called “fiscal cliff” facing the nation’s finances.

Research has suggested this could raise $154bn by 2021, halving the deficit the following year, adds the HSBC team.

Andrew Lee, London

Published: Wednesday, November 7 2012