OREANDA-NEWS. NextEra Energy today said that demand for new renewable energy capacity will stretch beyond 2016 despite the uncertain future of key federal tax incentives.

NextEra's ongoing investments in renewable energy projects partially depend on the federal production tax credit (PTC) and investment tax credit (ITC) for new wind and solar projects. But even with the PTC unavailable, barring passage of a new federal tax extenders package by December, and the ITC scheduled to drop to 10pc from 30pc in 2016, NextEra reaffirmed its long0term capacity growth outlook into 2018.

"We continue to expect to bring into service a total of approximately 4,700 to 5,100MW of renewables from 2015 through 2018," chief financial officer Moray Dewhurst said during a first quarter earnings call.

Throughout the first quarter of 2015, NextEra's development arm contracted to build 200MW of new wind capacity, and 300MW of new solar capacity, with 80MW of that solar capacity set to be delivered after 2016, representing a positive market signal for the company. The company also expects Congress will eventually pass a short-term extension of the wind PTC, which expired at the end of 2014.

NextEra has fielded a stream of interest from utilities and commercial customers on developing energy storage capacity, particularly in markets with mandates in place or being discussed, like California, Hawaii and New York, the company said.

"Many of our traditional customers and non-traditional customers are asking about storage behind the meter, or as a part of a new wind or utility-scale solar plan," NextEra Energy Resources chief executive Armando Pimentel said. But the cost of storage makes it unlikely the company will invest in states without such mandates, he said.

The company said its Texas wind generation declined significantly as the state grapples with negative real-time power prices during low-load periods. Electricity production from NextEra's wind assets in the state fell to 72pc of operating capacity across 2,848MW total, down from 99pc production across 2,598MW in the previous quarter.