Small Business

Windy Times for the Wind Industry

By Dog Pony

Updated on: January 29, 2009 / 11:30 AM EST / MoneyWatch

The wind industry posted a record year of growth in 2008. But even high growth green-tech companies are being left to twist in the wind by wavering government policies.

Reports SustainableBusiness.com:

The U.S. wind energy industry shattered all previous records in 2008 by installing 8,358 megawatts (MW) of new generating capacity, despite a pull-back that began in the fourth quarter and has led to recent layoffs--
Denise Bode, CEO of the American Wind Energy Association, said "At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We are already seeing layoffs in the area where wind's promise is greatest for our economy: the wind power manufacturing sector"
The industry hopes to recover its momentum if President Barack Obama's proposals for incentivizing renewable energy are approved by Congress.

The wind industry is especially dependent on subsidies and tax rebates that are set by the federal government. Uncertainty over how much the government will support wind projects each year has contributed to a cycle of boom and bust for the industry.

Do you think Congress should provide long-term subsidies to wind companies? Or should the federal government implement a cap and trade system for carbon emissions and let the market figure out which energy technology makes the most sense for America?

Share your thoughts on renewable energy policy below.