Subsidies in Wind Energy in Holland
As it appears, Holland is not the only nation to give an economic boost by supporting a promising new source of energy. In the Holland history, energy subsidies have been crucial for the overall economic development. This essay looks at the positive aspects of these intermittent subsidies. It also details how the same subsidies are weakening the renewable energy industry by focusing on how the Production Tax Credit (PTC) is affecting the industry. Nevertheless, the essay will establish that despite the precise information about the subsidies in wind energy, the provision of long-term and predictable subsidies is important in ensuring a sustainable shift to a renewable energy source.
Positive Aspects
Holland's subsidies in wind energy, in the form of PTC, are a government incentive that serves financial support for the development of renewable energy facilities. Firms that produce electricity from geothermal, wind and "closed-loop" bioenergy qualify for a government PTC that grants a 2% per kWh incentive for the initial ten years of operating a renewable energy facility (Piscitello, & Bogach, 1998).
The incentive was because of the industry recording a strong growth while the PTC was enacted, leading to the PTC extension. Then, lapses in the PTC ignited a drastic slowdown in the execution of intended wing projects, leading to layoffs at wind facilities and production companies. With the restoration of PTC, Holland's wind energy sector has regained its footing, thus experiencing strong growth, thanks to the credit subsidy (Zhongguo &...
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