US faces wind power boom and bust

The US wind power market is set for a boom-and-bust scenario over the next 24 months, according to a wind power analyst.

The boom, said Justin Wu, head of wind analysis at Bloomberg New Energy Finance, will be driven by tax breaks provided by the Obama government to the wind industry which are due to expire at the end of the year.

à‚ Wu claimed this will result in a “bumper year” as firms rush to complete wind projects in the next 12 months ” up the 9 GW he predicts ” and then a comparatively barren period in 2013 when no cash incentives exist.

But there is pressure on Congress to extend the scheme ” which is worth 2.2 cents a kilowatt-hour of wind power generated ” not least because turbine maker Vestas last week announced it would be forced to cut 1600 US jobs if it were not re-instated.

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