Oklahoma Ponders Tax on Wind Energy, Hosts Nearly $5 Billion in Active Wind Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Oklahoma recently proposed a new tax on wind generation that would be the highest in the nation. In a recent State of the State address, Gov. Mary Fallon (R) also proposed ending state-wide tax incentives earlier than previously planned. The new tax would have to be passed by three-quarters of the State House and Senate, and could generate more than $36 million in revenue. Industrial Info is tracking $4.98 billion in active wind projects in Oklahoma.

Oklahoma currently ranks fourth in the nation for installed capacity for wind generation, and the Oklahoma Panhandle has the best wind resources in the U.S., with steady and fairly high wind speeds of more than 7.5 to 10 meters per second.

The state's ranking also could be bolstered by the Plains & Eastern high voltage direct current (HVDC) transmission line proposed by Clean Line Energy Partners LLC (Houston, Texas). This project was recently approved by the U.S. Department of Energy (DOE) and is scheduled to begin construction in 2018, if approvals and financing are obtained by the developers. It would be the country's largest clean energy infrastructure project.

Industrial Info is tracking $1.38 billion in transmission and distribution projects in Oklahoma.

A recently released report by the Business Council for Sustainable Energy concluded that household spending on energy has fallen to its lowest level as a share of total consumption since record-keeping began in 1960. Household energy consumption expenditures in 2016 have fallen to an average of 3.96% of total spending.

Over the last five years, renewable energy projects have represented 62% of U.S. generation capacity additions, according to the U.S. Energy Information Administration (EIA), with greenhouse gas emissions also falling to their lowest levels in 25 years.

Oklahoma now ranks sixth in the nation for lowest cost per kilowatt-hour at 8.6 cents, due to low natural gas generation costs, as well as ample and low-cost renewable energy generation in the state from wind, solar and hydroelectric sources.

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