Below I wrote about the “green energy” dominos falling rapidly. Now, according to the Financial Times (subscription or registration may be required), that last U.S. domino, the government subsidies, may fall — and it is a big one.
Renewable energy industries in the US face falling off a “cliff”, with the loss of tens of thousands of jobs, if investment grants for projects such as wind farms are not extended by Congress, companies warned.
The tax deal agreed between President Barack Obama and congressional Republicans excluded an extension to the tax credits that have supported investment in wind, solar and other forms of renewable power, which are due to expire at the end of the year.
As negotiations on the plan continued on Wednesday, industry sources said the only tax break for renewable energy that had been agreed was an extension of the credit for blending ethanol into petrol, which is strongly supported in corn-producing states.