Steel tariffs threaten US wind generation growth as input costs rise

Steel tariffs and the looming end of the tax credits in 2020 could slow the booming wind build out in the coming years. Solar and wind energy are expected to be the fastest growing sources of US electricity generation over the next two years, according to the US Energy Information Administration. EIA’s January 2019 Short-Term Energy Outlook forecasts wind generation to grow by 12% in 2019 and 14% in 2020, even while total U.S. electricity generation across all fuels will fall by 2% this year and then show very little growth in 2020. Electricity generated from wind this year will surpass hydropower generation, as the share of total U.S. electricity generation produced by all renewables, excluding hydropower, will increase to 13% of total generation in 2020 from 10% in 2018, according to EIA. However, the introduction of a 25% tariff on steel imports one year ago changed trade flows and set off a chain reaction of retaliatory tariffs and additional safeguard measures from other countries. “The tariffs are increasing the cost of wind energy and will reduce our ability to grow, and in fact, we may end up laying men and women off because of these tariffs,” said Tom Kiernan,… continue reading

Continue reading Steel tariffs threaten US wind generation growth as input costs rise. This article appeared first on CTRM Center.

Source: CTRM Center

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