Market Trends of United States Wind Energy Industry
The Onshore Segment to Dominate the Market
- Onshore wind energy refers to electricity produced by wind turbines situated on land, harnessing the natural flow of air. It is one of the fastest-growing renewable energy technologies in the United States. Wind turbines do not release air or water pollutants, making them important for a future carbon-free energy industry.
- In the last five years, onshore wind energy technology has advanced to maximize electricity output per installed megawatt. Despite a drop in natural gas prices in 2023, wind energy continued to positively impact the grid, human health, and the environment by reducing emissions of nitrogen oxides and carbon dioxide.
- For instance, in 2023, onshore wind energy installations in the United States were around 150.43 GW, a 4.2% increase compared to the 144.3 GW of onshore wind energy installations in 2022. The increase in wind power is due to tax incentives from the Inflation Reduction Act, which makes wind energy more affordable. Additionally, decreasing wind energy costs and increasing investments in the supply chain boosted its growth.
- In July 2024, the 500 MW High Prairie Wind Farm in Missouri became operational, featuring 175 advanced wind turbines. This project is expected to generate enough electricity to power approximately 120,000 homes annually. It is part of Ameren Missouri’s USD 4.5 billion investment plan to add 3,100 MW of clean energy capacity by 2030. The High Prairie Wind Farm is projected to significantly contribute to Missouri’s goal of achieving net-zero carbon emissions by 2050.
- According to the Global Wind Energy Council, nearly 653 GW of onshore projects are likely to be commissioned between 2024 and 2028 in countries like China, the United States, and Europe.
- Therefore, onshore wind energy is expected to expand in the coming years with additional investments, technological advances, and economic growth.
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Increasing Investments to Drive the Market
- Due to the increasing demand for electricity, the United States is promoting the growth of wind energy to meet power needs. Many multinational corporations and local firms are investing in the wind energy industry with the help of the governments of federal provinces in the United States.
- In September 2023, the Biden administration announced USD 10 billion to strengthen the US offshore wind energy supply chain. This investment is expected to involve developing ports, vessels, and workforce development, which may greatly increase investor confidence. This initiative aims to expedite the shift to renewable energy and fortify the economy.
- For instance, in March 2024, the first commercial-scale offshore wind power plant in the United States, situated off the coast of Thode Island, began delivering power. The facility comprises 16 turbines, each with a capacity of 8.2 megawatts (MW), which can produce 130 MW in total. The infrastructure for offshore wind energy in the United States has advanced significantly with this milestone.
- Three major offshore wind projects are under construction in the Atlantic. Vineyard Wind 1, of Massachusetts, will have an 800 MW capacity to power 400,000 homes. Revolution Wind, between Rhode Island and Massachusetts, will have a 704 MW capacity for 250,000 homes. Ocean Wind, off New Jersey, will have a 1.1 GW capacity to power 500,000 homes. These projects are boosting the US offshore wind energy capacity.
- In 2023, wind energy generation in the United States reached 429.5 TWh, a slight decrease compared to 438.7 TWh in 2022. This represents a 2.1% decline in electricity generation from wind energy sources year-over-year. Despite this reduction, the overall trend from 2018 to 2023 reflected significant growth, with wind energy generation increasing by 56% over the five-year period.
- Hence, such developments in the wind energy industry are expected to drive the growth of the market in the upcoming years.
