Expiry of tax breaks endangers expansion of wind power – wind power industry in the USA on the verge of bankruptcy.
The wind power industry in the USA is in a serious crisis. The capacity of wind farms has dropped dramatically in recent months. According to a report by Bloomberg, wind power capacity in the US has fallen by 56 percent due to greatly reduced tax breaks (Bloomberg: 27.03.23).
Wind power industry in the USA on the verge of bankruptcy: Carbon-free energy supply at risk
The impact on the wind energy industry is devastating. Many companies have reduced their workforce and stopped or postponed projects. Many companies are expected to go bankrupt in the coming months as they struggle to cover their running costs.
U.S. reliance on renewable energy has increased in recent years as more businesses and consumers switch to green energy sources. The government is committed to achieving a completely carbon-free energy supply by 2035. But this objective faces a setback if the wind energy industry is unable to recover from this crisis.
The phasing out of tax breaks threatens the development of renewable energy in the US
The tax breaks were introduced in recent years by the U.S. government to encourage the development of renewable energy. But now that the economy is growing again and the demand for renewables is declining, regulators have begun phasing out these perks.
This has led to a dramatic decline in investment in new wind turbines. In many cases, developers have abandoned their plans for new wind farms because the tax breaks are no longer sufficient to cover the investment costs. The uncertainty about the future promotion of renewable energy has led many investors and companies to invest their money in other industries and projects.
U.S. Wind Power Industry: Decline in Capacity Threatens Environment and Economy
The impact on the U.S. environment and economy is significant. The wind energy industry is one of the most important areas for the transition to a carbon-free energy supply. The decline in the capacity of wind farms means that less clean energy is produced, resulting in a higher demand for fossil fuels. This, in turn, increases CO₂ emissions and exacerbates climate change.
The crisis in the wind energy industry also has an impact on the economy. The wind energy industry employs thousands of workers and generates billions of dollars in revenue. The decline in investment and capacity has led to a decline in employment and a loss of income.
The U.S. federal government has already taken action to help the industry.