Tax credit extensions can impact renewable energy deployment and electric sector

The Energy Department's National Renewable Energy Laboratory (NREL) today released new analysis exploring the potential impact of recently extended federal tax credits on the deployment of renewable generation technologies and related U.S. electric sector carbon dioxide (CO2) emissions.

The report, Impacts of Federal Tax Credit Extensions on Renewable Deployment and Power Sector Emissions, details the use of state-of-the-art scenario modeling to explore two questions:

(1) How might renewable energy deployment in the contiguous United States change with these recent credit extensions?

(2) How might this change in renewable energy deployment impact CO2 emissions in the power sector?

Federal tax credits for renewable energy, particularly the wind production (PTC) and the solar investment tax credit (ITC), have offered financial incentives for renewable energy deployment over the last two decades in the United States. In December 2015, the wind and solar tax credits were extended by five years from their prior scheduled expiration dates, but ramp down in tax credit value during the latter years of the five-year period.

The report examines the impacts of the tax credit extensions under two distinct natural gas price futures, as the price of natural gas has been a key factor influencing the economic competitiveness of new renewable energy development. The analysis finds that, in both natural gas price cases, tax credit extensions can spur renewable capacity investments at least through the early 2020s, and can help lower CO2 emissions from the U.S. electricity system.

The tax credit extensions are estimated to drive a net peak increase of 48-53 gigawatts in installed renewable generation capacity in the early 2020s. Longer-term impacts are less certain and can depend on prices. After the tax credits ramp down, greater renewable energy capacity is driven by a combination of assumed cost reductions in renewable generation, assumed rising fossil fuel prices, and existing clean energy policies. The tax credit extension-driven acceleration in capacity development can reduce fossil fuel-based generation and lower electric sector CO2 emissions. Cumulative emissions reductions over a 15-year period (spanning 2016-2030) as a result of the tax credit extensions are estimated to range from 540 to 1,400 million metric tons CO2.


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More information: www.nrel.gov/docs/fy16osti/65571.pdf
Citation: Tax credit extensions can impact renewable energy deployment and electric sector (2016, March 1) retrieved 18 September 2019 from https://phys.org/news/2016-03-tax-credit-extensions-impact-renewable.html
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Mar 01, 2016
"renewable incentives that are biased in favor of wind and solar and biased against large-scale hydro, nuclear and gas combined cycle are a very expensive and inefficient way to reduce carbon dioxide emissions."
"A nuclear or gas combined cycle plant avoids far more emissions per MW of capacity than wind or solar because it can operate at 90 percent of full capacity." "nuclear plant can operate also at 90 percent of full capacity and can replace a coal-fired plant on a one-to-one basis."
"Limited benefits and higher costs make wind and solar socially less valuable than nuclear, hydro, and combined cycle gas."
http://www.brooki...er-frank
"US nuclear power reactors operated at record 91.9% capacity in 2015"
http://www.platts...21796809
http://www.charlo...906.html

Mar 02, 2016
One more incident, and nukes are through, Willie.

How long until the next one?

Mar 02, 2016
One more incident
So pray with your faith for a next one monstrous earthquake/tsunami to cause another incident, because in Fukushima, no one has been killed by radiation, a big disappointment for sensationalist mass media and fear-mongers.
http://journal.av...over-it/

Mar 02, 2016
"no one has been killed by radiation, a big disappointment for sensationalist mass media and fear-mongers."
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Stop it. You are projecting your character onto others.

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