John Marciano Quoted by E&E News on Tax Bill’s Impact on Wind Industry
E&E News has quoted John Marciano, co-head of the global project finance practice at Akin Gump, in the article “Booming wind industry pauses to weigh tax bill impact,” which reports on the uncertainty for the wind industry as it tries to protect certain renewable energy provisions in the tax legislation pending in Congress.
Current law, the article notes, required wind farm developers to start construction on new projects by the end of 2016 to qualify for the full production tax credit (PTC), with four years to complete them. A sliding scale reduces the amount of PTC available, depending on when projects begin. In many instances, those deals could range from a sale to a utility or power purchase agreement with a utility or corporate buyer or another, more complex off-take agreement.
Marciano said the type of wind deal varies by market, but a couple of significant trends are emerging. “I think in the next year we’re going to see a huge push toward corporate [power purchase agreements] and hedges. And I think that’s largely going to be driven by the data center users, the big tech companies.”
One emerging trend, the article reports, is the move by existing wind farm owners to repower older turbines to take advantage of the PTC. To this point, Marciano said, “There are a lot of turbines that are out there where we can take the existing tower, an existing pad, swap out the blades or swap out the nacelles, or both, and sometimes it’s not even the same vendor.”