How Wind Repowering Became a High-Stakes Investment Decision: From Technical Upgrade to Tax-Critical Strategy
Tax attorneys Ryan Phelps and Raghav Agnihotri contributed to an article explaining how the landscape for wind energy generation project repowering has evolved. As they highlight, repowering today entails time-sensitive regulatory and investment decisions that determine whether a project qualifies for U.S. production tax credits (PTCs); compressed timelines, new sourcing restrictions and heightened valuation scrutiny all mean project developers and construction managers must carefully plan and execute to satisfy regulatory requirements and maintain PTC status. For example, the start of construction can make or break a project, and supply chain choices carry tax eligibility implications under Foreign Entity of Concern (FEOC) rules. The article additionally covers interconnection agreements and network upgrades, supporting documentation and fair market value considerations, among other trends. The piece provides a helpful summary of content prepared by Marshall & Stevens and Holland & Knight for a webinar hosted by the Trade Council of Denmark.