The lesson here is that a regulatory framework has to be stable - or at least to evolve in predictable ways. The PTC saga was the exact opposite, and has had one simple consequence: the reluctance of turbine manufacturers to set up factories in the US, in the face of uncertainty on the demand side.

As I am sure you well know, this also was the fatal flaw in the (too successful?) subsidizing scheme for small-scale windmill projects (MEP subsidy) for the Netherlands under Balkenende II which was abruptly cut last year, August 2006, to the potential detriment of possibly hundreds of projects and the frustrations of both environmental organisations and wind industry.

DutchNews article

I did wonder: surely there must have been a more reasonable solution than just cutting the subsidy overnight. There was a government revenue gap growing because of the scheme's success, true - yet why not funnel in some extra money and cool down the subsidy a bit to stabilise the progression at a lower pace.

IMHI, making it stop because the 9% target had been reached was the lousiest excuse Wijn (now ex-minister of Economic Affairs) could pick and just showed how invested the government was in a renewable energy policy.

Jerome, you're the banker here - thoughts?