COVID-19 Pandemic Puts $35 Billion in Wind Energy Investments at Risk, Says Industry Group

WASHINGTON -
In one of the latest examples of the havoc that the novel coronavirus is wreaking on the U.S. economy, the American Wind Energy Association (AWEA) -- the national trade association for the U.S. wind industry -- yesterday stated its concerns that COVID-19 will "pose significant challenges to the American wind power industry." According to AWEA's calculations, the disease is jeopardizing the development of approximately 25 gigawatts of wind projects, representing $35 billion in investments.
Rural communities, where about 99% of wind projects are located, in particular, face considerable risk. The AWEA estimates that rural communities stand to lose about $8 billion in state and local tax payments and land-lease payments to private landowners. In addition, it's estimated that the pandemic threatens the loss of over 35,000 jobs, including wind turbine technicians, construction workers, and factory workers.
The development of wind projects is heavily reliant on the earning of tax credits. However, in order to qualify for the current credits, project developers are bound to begin construction before Dec. 31, 2020. With local and state governments implementing various measures to stop the spread of the virus, the success of project developers' meeting this deadline is dubious. Addressing this and other challenges, the AWEA is turning to the government for help. In the trade association's press release, it states that "to protect the industry and these workers, AWEA is asking Congress for flexibility in allowing existing policies to continue working for the industry through this period of uncertainty."
Illustrating one of the ways in which COVID-19 is affecting the industry, Siemens Gamesa, a global leader in the manufacturing of wind turbines, closed a second factory in Spain this week after learning that a second of its employees had tested positive for the novel coronavirus.
Related News

Top Senate Democrat calls for permanent renewable energy, storage, EV tax credits
WASHINGTON - The 115th U.S. Congress has not even adjourned for the winter, and already a newly resurgent Democratic Party is making demands that reflect its majority status in the U.S. House come January.
Climate appears to be near the top of the list. Last Thursday, Senator Chuck Schumer (D-NY), the Democratic Leader in the Senate, sent a letter to President Trump demanding that any infrastructure package taken up in 2019 include “policies and funding to transition to a clean energy economy and mitigate the risks that the United States is already facing due to climate change.”
And in a list of…