Washington, D.C. (May 4, 2017)
NHA Commends Senator Ron Wyden’s Renewable Energy Tax Technology Neutral Bill
Washington, D.C. (May 4, 2017) – The National Hydropower Association (NHA) today commended Finance Committee Ranking Democrat Ron Wyden (D-OR) for introducing the Clean Energy for America Act to provide a technology-neutral approach to tax incentives for the deployment of renewable energy. The hydropower industry has been placed at a competitive disadvantage in the marketplace for new renewable electricity generation as a result of Congress’s decision in 2015 to provide long-term extensions of tax incentives for wind and solar energy, while allowing tax credits for other technologies, including those for hydropower development, to expire.
The Wyden bill would put all clean energy technologies back on a level-playing field and provide the long-term policy certainty that the hydropower industry needs for investors to be willing to commit new capital investment for hydropower expansions. Last year, the Section 45 Production Tax Credit (PTC) and Section 48 Investment Tax Credit (ITC) for hydropower and marine energy resources were allowed to run out.
“While hydropower stands ready to create tens of thousands of jobs and provide more clean energy, it’s expired tax incentive has placed the industry at a significant disadvantage,” said Linda Church Ciocci, NHA Executive Director. “These critical tax incentives are vital to building on non-powered dams and conduits, upgrading existing facilities and bringing marine energy technologies to full-scale commercialization. Putting all renewables on a level-playing field will unlock hydropower’s clean energy potential and promote responsible new energy
infrastructure development.”
The bill would also provide incentives for marine, hydrokinetic and new pumped storage projects. Pumped storage is one of the most cost-effective utility-scale options for grid energy storage, acting as a key provider of what is known as ancillary services. Ancillary services include network frequency control and reserve generation– ways of balancing electricity across a large grid system. With an ability to respond almost instantaneously to changes in the amount of electricity running through the grid, pumped storage is an essential component of the
nation’s electricity network.
Today, the U.S. has 22GW of pumped storage capacity, with facilities in every region of the country. The U.S Department of Energy’s Hydropower Vision report has found that hydropower can grow by 50GW by 2050, with 36GW coming from new pumped storage development. Senator Wyden’s bill, if enacted, would go a long way toward helping these new pumped storage projects become a reality.
“NHA thanks Senator Wyden for his vision and steadfast support for the hydropower industry,” said Church Ciocci. “His legislation will bring parity to the renewable energy sector and help to secure America’s clean energy future.
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