USA and European countries to encourage wind power development policy summary

Right now, Asia, Europe, North America are the three most developed regions of wind power, leading the development of the global wind power industry. Installed capacity of these three areas is more than 97% of the world's total installed capacity.

Right now, Asia, Europe, North America are the three most developed regions of wind power, leading the development of the global wind power industry. Installed capacity of these three areas is more than 97% of the world's total installed capacity. European and American countries, who are rich countries, can not enjoy the gains of CDM. However, due to governments' incentives policy, and a good long-term support , wind power industry are booming . Here today we will explain Its main support policy as follows:


1) Europe

European governments support policy can be summarized into two types: Feed-in- tariff system and certificate subsidy system.

① feed-in-tariff system
For example: Germany, France, Spain, Denmark
The government unified a higher tariff for wind power users & wind farms to make up the cost of investment, investors get a reasonable profit, thus raise enthusiasm of inverstors and promote the development of wind industry.

② Certificate subsidy system
For example: Sweden, United Kingdom, Poland, Romania
The government passed legislation to help develop wind industry. Besides the normal income of wind farms to grid-tie and sell electrical to state grid, each kilowatt wind farm produced, will receive corresponding number of certificates. The owner of the wind farm can join some particular markets to exchange certificates thus get profits. Through this method, these countries ensure the sustainable development of the wind power industry.

2) United States

As electrical price in U.S. is not high, the development of the U.S. wind power industry is tightly connected with government's long-established and sound reasonable tax policy. There are mainly 2 types: production tax credit (PTC) and investment tax credits ( ITC).

① production tax credit (PTC)
Profits from wind farms generated electricity enjoy long-term income tax credit rights, which could be sold to another or more registered American companies, such registered companies are called corporate tax investors. The investor receive a certain amount tax exemption through the deal, and obtain the benefits in their operations; while the wind farm owners, get additional income to sell tax credits .

② investment tax credit (ITC)
Wind farm investors finish the construction of wind farms before a certain date, the federal government will return 30% of the total wind power equipment investment to investors . Through this way, investors not only speed up the recovery of funds , but also improve the income of wind farms.

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