Winds of change: how new policies and reports are propelling US wind energy forward

The wind energy sector in the United States is catching a fresh breeze, driven by groundbreaking policies and a surge of investment. This momentum is captured in the US Department of Energy's (DOE) recently released 2024 market reports, which outline significant developments in the wind industry. The reports paint an optimistic picture of the future, highlighting how the Inflation Reduction Act (IRA) has catalysed growth and investment, even as the industry navigates challenges.

Under the leadership of President Biden and Vice President Harris, the past year has been transformative for wind energy. Wind power now contributes over 10% of the nation's electricity, with an impressive US $10.8 billion invested in new capacity. The industry also supports more than 125,000 jobs across the country, making it a critical component of America's clean energy future.

Policy winds at the back of the industry

The passage of the IRA has been a game-changer for the wind sector, leading to a 30% increase in near-term deployment forecasts. By 2026, annual growth is expected to exceed 15 gigawatts (GW), with nearly 20 GW per year projected by the decade's end. This surge is supported by the expansion of the domestic supply chain, with 15 new or revitalised wind manufacturing facilities launched since the IRA's enactment.

“The United States is committed to investing in technologies to accelerate the deployment of wind energy and bring more renewable electricity onto the grid,” said Eric Lantz, director of the Wind Energy Technologies Office at the DOE. Lantz emphasised the DOE's ongoing collaboration with stakeholders to advance the industry and ensure a sustainable energy future.

Onshore and offshore wind: twin pillars of growth

The 2024 reports highlight robust growth in both onshore and offshore wind sectors. According to the Land-Based Wind Market Report, prepared by the DOE’s Lawrence Berkeley National Laboratory, the US added nearly 6,500 megawatts (MW) of new land-based wind capacity in 2023, bringing the total to nearly 150,500 MW. This capacity is enough to power approximately 45 million homes.

Notably, wind energy now supplies more than 59% of Iowa's electricity, over 55% in South Dakota, and more than 40% in both Kansas and Oklahoma. Texas led the nation in new installations, adding 1,323 MW in 2023, followed by Illinois and Kansas.

Offshore wind is also making waves, as detailed in the Offshore Wind Market Report from the DOE’s National Renewable Energy Laboratory. The offshore wind project pipeline grew by 53% last year, with a total capacity of over 80,000 MW, enough to power more than 26 million homes if fully developed. Despite economic challenges, including rising interest rates and supply chain constraints, the offshore wind industry is poised for significant expansion. By 2035, the US could have 40 GW of offshore wind capacity installed.

Technological advancements and economic impact

One of the most exciting trends in wind energy is the ongoing technological innovation. Wind turbines are growing larger and more efficient, with the average capacity of new installations rising by 23% since 2020. This increase in size and power allows turbines to capture more wind, generating electricity at a lower cost. The benefits extend beyond the grid, with wind energy contributing significantly to public health and climate protection by reducing harmful emissions.

The reports also underscore the economic impact of wind energy, particularly in terms of job creation and investment. The offshore wind sector alone has seen $10 billion invested in its supply chain since 2021, with $2.1 billion invested in 2023. Eight states have set procurement mandates totaling more than 45 GW of offshore wind capacity by 2040, reflecting the strong commitment to this burgeoning industry.

Distributed wind: a growing niche

While large-scale projects dominate the headlines, the Distributed Wind Market Report, prepared by the DOE’s Pacific Northwest National Laboratory, highlights the growth of smaller-scale wind projects. In 2023, nearly 2,000 distributed wind turbines were installed across 16 states, adding 10.5 MW of new capacity. These turbines are often used to meet on-site energy demand or support local electricity distribution networks.

The DOE and the US Department of Agriculture (USDA) are collaborating to support distributed wind through initiatives like the Rural Agricultural Income & Savings from Renewable Energy (RAISE) program. This program aims to help 400 farmers deploy smaller-scale wind projects, providing a new revenue stream and reducing energy costs.

Looking ahead: a wind-powered future

The wind energy sector in the US is at a pivotal moment, buoyed by strong policy support and increasing investment. The DOE’s 2024 reports suggest that wind energy will play a crucial role in the nation’s transition to a cleaner, more resilient energy future.

For those interested in exploring the opportunities in wind energy, the DOE’s website offers a wealth of information. By subscribing to the Wind Energy Technologies Office's e-newsletter, "Catch the Wind," stakeholders can stay informed about the latest developments, funding opportunities, and industry events.

As the US continues to invest in wind energy, the future looks bright powered by the winds of change.