The House-passed bill and the Senate plan would offer $13 billion over 10 years to extend a production tax credit through 2012 — the credits currently expire each year — and provide tax breaks for investments in renewable energy. The House version also includes a grant program that covers 30 percent of the upfront costs of wind energy investments.

The Senate version includes the tax breaks but does not offer the grant program, which would allow wind and solar industries to convert tax credits into grants from the Energy Department.

Wind power advocates say the grant program is needed because tax credits have been hampered by the recession. The projects require large upfront financing and have traditionally attracted investors who use the credits to offset tax liabilities. But few of these investors are profitable now.

Clipper Windpower announced about 90 layoffs last month, mainly at a manufacturing plant in Cedar Rapids, Iowa, and several wind-related manufacturers have announced similar cuts.

Several Midwest states are hoping to increase their stake in wind energy, pointing to the potential for rural development. Wetstone’s organization estimates that North Dakota has nation’s largest wind energy potential, followed by Texas, Kansas and South Dakota.

Proponents in Congress said the extension of the production tax credit would help. Wind farm developers would see a tax credit for every kilowatt-hour of electricity they produce extended through the end of 2012.

In Texas, state regulators have picked several developers to build nearly $5 billion in high-voltage electricity lines stretching from the growing wind farms of West Texas to the state’s largest cities. When completed in the next four to five years, the Texas lines should be able to carry 18,500 megawatts, enough electricity for 14 million to 18 million typical homes.

Vestas (VWDRY.pk) announces earnings on Feb 11th and with the recent PR announcements about landing its 8th major Chinese wind contract, is Vestas worth buying given the world economic problems???   Lets look at what Vestas has done in past four years………growing revenues, growing net income, growing margins, and expanding in over 60 countries installing wind turbines almost as fast as they can build and assemble them.   Vestas announced at Davos that their capacity is now being underutilized by 15% given the world economic crisis and slowing orders and demand slowing.  Vestas ADR’s use to sell for $48 this summer when oil was $140 per barrel.   Given that Vestas produces profits and then reinvests its profits into expanding markets (ie, CHINA 350 Million in 3 separate wind turbine plants INSIDE CHINA) and then takes existing market share from the established providers.   Vestas in 2010 will be making a 3.0 MW wind turbine every single hour 24/7/365 and will take more market share from 2nd place GE.  Yes, Vestas imho is a strong buy at these price points of $16 per share…….Feb 11th will test the price given that overall markets will probably drop short term in next two weeks before USA employs the bad bank system to try and turn the USA economy around.  Vestas imho is a strong buy anything close to $16 per share for the LONG TERM and I mean more than 3 years time frame!! 

Denmark’s Vestas Wind Systesm (VWS.CO), one of the world’s top producers of wind turbines, plans to invest $350 million in its China-based subsidiary in order to meet growing demand for wind power in the country, according to reports. 

Since the new year, Vesta China has received several orders for wind turbines, including one from China Guangdong Nuclear Wind Power for a total of 116 wind turbines. Industry Week reported that order was the eigth made by the company, for a total of 500 megawatts (MW) worth of wind turbines.

Vestas also reported sales of 100 MW of turbines for two other projects in China. The developers of those projects were not disclosed.

“As of June 30 2008, Vestas had delivered more than 1,000 turbines to China and we continue to have high expectations for the growing Chinese market,” Lars Andersen, who heads up Vestas’s China division, said in the statement.

Vestas China is located in Tianjin’s Binhai District, a hub for wind power companies.

China’s wind power manufacturing capacity is about 8 gigawatts (GW) and is expected to reach 12 GW by 2010.