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Renewable cos may slide on fears US to cut tax credits for

Shares in renewable energy companies with assets in the US could see further declines tomorrow on ongoing fears that the US energy bill might be passed this week without including tax incentives for generators and promoters of renewable energy, market sources said. ...Yesterday, website renewableenergyaccess.com reported that the Democrat house leaders in the US are preparing to cede to demands from Republicans and remove all tax breaks for renewable energy companies from the bill in order to push it through parliament before the Thanksgiving break on November 16.

Shares in renewable energy companies with assets in the US could see further declines tomorrow on ongoing fears that the US energy bill might be passed this week without including tax incentives for generators and promoters of renewable energy, market sources said.

At today's close, EDP Energias de Portugal lost 0.21 eur or 4.28 pct to 4.70, while Iberdrola SA (other-otc: IBDRF.PK - news - people ) was off 0.17 eur at 11.55 and Gamesa Corporacion Tecnologica SA dropped 1.58 eur or 4.56 pct to 33.10.

Yesterday, website renewableenergyaccess.com reported that the Democrat house leaders in the US are preparing to cede to demands from Republicans and remove all tax breaks for renewable energy companies from the bill in order to push it through parliament before the Thanksgiving break on November 16.

The website said that this would mean that renewable energy companies would not be guaranteed Production Tax Credits (PTC) or Investment Tax Credits (ITCs) for their investments, which are considered essential for wind energy to be profitable in the US.

If PTCs are not renewed by the new energy bill, then they could expire in December 2008, leaving wind farm developers with no financial... more [truncated due to possible copyright]  

Shares in renewable energy companies with assets in the US could see further declines tomorrow on ongoing fears that the US energy bill might be passed this week without including tax incentives for generators and promoters of renewable energy, market sources said.

At today's close, EDP Energias de Portugal lost 0.21 eur or 4.28 pct to 4.70, while Iberdrola SA (other-otc: IBDRF.PK - news - people ) was off 0.17 eur at 11.55 and Gamesa Corporacion Tecnologica SA dropped 1.58 eur or 4.56 pct to 33.10.

Yesterday, website renewableenergyaccess.com reported that the Democrat house leaders in the US are preparing to cede to demands from Republicans and remove all tax breaks for renewable energy companies from the bill in order to push it through parliament before the Thanksgiving break on November 16.

The website said that this would mean that renewable energy companies would not be guaranteed Production Tax Credits (PTC) or Investment Tax Credits (ITCs) for their investments, which are considered essential for wind energy to be profitable in the US.

If PTCs are not renewed by the new energy bill, then they could expire in December 2008, leaving wind farm developers with no financial security for upcoming projects.

'The PTCs are key here, any news that they are to be cut will weigh heavily on all companies with wind assets in the US,' an analyst at a leading Portuguese bank said.

Renewable Energy Access also reported that the house leaders could also remove the proposed 'renewable portfolio standard,' which targets 20-25 pct of US energy demands being served by renewable sources by 2025.

EDP acquired US company Horizon Wind Energy LLC in March for about 2.9 bln usd, and plans to invest 3.5 bln eur in developing the US groups 9,000 megawatt windfarm project pipeline to 2010.

Iberdrola is expected to complete its planned acquisition of US company Energy East (nyse: EAS - news - people ) for 6.4 bln eur in the first half of next year and has sizable investments in wind energy in the US.

Gamesa's growth strategy is heavily focused on the US, where it expects its four factories in the state of Pennsylvania to account for more than 20 pct of the group's total wind turbine manufacturing capacity this year.

jonathan.gleave@thomson.com



Source: http://www.forbes.com/marke...

NOV 13 2007
https://www.windaction.org/posts/11884-renewable-cos-may-slide-on-fears-us-to-cut-tax-credits-for
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