What the election means for renewable energy (GOP job killers)

[jpak]

http://money.cnn.com/2010/11/05/news/economy/geothermal_washington_energy.fortune/

FORTUNE -- Companies in renewable energy industries are trying to figure out how to navigate the swing rightward from the midterm elections. Starting with the worst casae scenario, projects that received some of the $16.8 billion in stimulus funding allocated to the Office of Energy Efficiency and Renewable Energy in 2009 could now be left to wither, without getting the chance to return the promised green megawatts per dollar invested.

Right now, though, It's unclear how renewables funding will play out. Here's what we know: Republicans took the House but lost the Senate. Harry Reid, a longtime champion of renewables -- especially geothermal energy -- retained his Senate seat and is all but certain to remain Majority Leader. As with all new legislation, the split amongst the two chambers means that every new or reauthorized energy program will have to have support from both sides of the aisle to win approval.

Renewable energy developers fear that Republicans won't extend certain production and incentive tax credits for green energy. Production credits are meant to stimulate construction of new renewable energy power plants, and incentive credits are mostly meant for homeowners who want to replace or upgrade their residences with renewable or energy efficient heating and cooling systems.

The end of either tax credit could man that venture capitalists investing in green energy could redirect funding away from startups, thanks to the withdrawal of government support that helps make green energy economically viable.

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