The eleventh-hour, five-year extension of the wind Production Tax Credit last December by Congress, while meant to encourage investment into the wind sector in the long-term, has in the short run caused a lull that has seen 2016 become the slowest year for primary wind financings in the US by volume since 2005.

New wind energy installations fell by 44% in the third quarter when compared to the same quarter in 2015, according to a recent report from the American Wind Energy Association (AWEA). In 2016’s third quarter, 895MW of wind energy installations were in progress, whereas the third quarter 2015 saw 1,603MW of projects under construction.

All new capacity during the third quarter was added in the states of California and Texas, where wind and other renewables have become competitive through local market rules and greening initiatives as well as technological advancements and strong infrastructure.

After many financeable projects were sped across the finish line late last year driven by fears that the PTC would be discontinued, it is no surprise that 2016 got off to a slow start. With four years remaining on the tax credit, many developers saw 2016 as a time to take stock and firm up long-term development goals and balance sheets.

As a result, only 17 primary financings have crossed the finish line so far this year—barely more than half the number of projects to close by this time last year (30) and the year prior (33).

By volume, 2016 year-to-date has been the slowest for onshore wind primary financial closes since 2006 which had 10 closes by 21 November. By value, it is the slowest year on record since 2005, which had seen nine deals worth $1.6 billion close by 21 November as compared to the 17 deals worth $3.7 billion so far this year.

Despite the lull in primary financings this year, new wind power purchase agreements were up 39% by the end of the third quarter, driven by strong corporate demand from buyers including Amazon, Google, Johnson & Johnson and Target.

Another victory for the wind industry came from Iowa, which became the first state to generate more than one-third of its energy from wind with 6,365MW of wind capacity installed and another 3,000MW in development.

Wind energy now accounts for about 5% of total electricity generation in the US, and even in the face of a pro-fossil fuel presidential administration, state, local, corporate and utility initiatives are likely to continue driving further development in the US sector in years remaining until the PTC is either allowed to end or extended.