A 200-megawatt wind farm planned by TradeWind Energy Inc. in northeast Nebraska has been stalled.
The company planned to begin construction on the Rattlesnake Creek Wind Project by the end of the year to qualify for federal tax benefits. However, TradeWind Energy was unable to secure a commitment from a large power company to buy generated electricity, according to Columbus Telegram.
Under IRS regulations, Tradewind would have to spend at least 5 percent of the project'stotal cost of $400 million to $500 million to qualify for the production tax credit set to expire at the end of this year. Frank Costanza, executive vice president of TradeWind Energy, noted that would mean TradeWind would have to spend more than $20 million.
Under LB104, a bill passed by Nebraska lawmakers, TradeWind is required to have 10 percent of power produced available to utilities in Nebraska.
The project planned in Dixon County covers more than 20,000 acres and involves around 100 landowners who would receive payments of up to $15,000 per turbine. The wind farm would create 200 construction jobs and 12 to 16 permanent jobs and pay $700,000 a year in local taxes.
According to the American Wind Energy Association, Nebraska ranks last among its surrounding states and 26th out of the 39 states that generate wind energy, despite having the fourth-best wind resources in the country.
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