In 2022, increased legislation focused on renewable energy has led to a growth in the wind sector. Based on the United States Department of Energy’s 2023 wind market reports1, wind power continues to be one of the fastest growing renewable energy sources in the United States.
Highlights from 2023 Wind Market Report
- Wind energy provided 10% of total electricity nationwide and more than 60% of power in Iowa, and over 40% of power in South Dakota, Kansas, and Oklahoma.
- Fourteen states installed new utility-scale land-based wind turbines in 2022. Texas installed the most capacity, with 4,028 MW. While Oklahoma and Nebraska each over 600 MW of capacity in 2022.
- For the first time, non-utility buyers, such as corporations, are purchasing more wind than utilities.
- The average capacity of newly installed wind turbines grew 7% from 2021 to 2022, to 3.2 MW.
- For wind projects built in 2022, the estimated public health benefits, climate benefits, and value to the grid are worth more than five times the cost of generating electricity from wind energy.
Overall, based on the data collected in 2023 it is evident that the wind sector has begun to see growth at an accelerated rate.
Obstacles to Offshore Wind Energy
As the transition to wind energy continues to increase there have been a myriad of challenges within the United States renewable energy marketplace. Economically, there is a backlog of production and price differentiation as wind turbine manufacturers are unable fulfill orders that were placed two years ago. Additionally, utilities are facing increased competition from oil and gas companies who have outbid them in wind auctions. Although these obstacles impact the creation of wind turbines, a new MIT study2 found that the health benefits associated with wind power are an impactful reason to continue the development of offshore wind technologies at an accelerated rate.
The Future of Wind Energy
In 2023, based on data collected, there is great need for innovation in the wind sector. Given the ever-changing nature of the wind industry, businesses who provide the logistics to create this technology will see growth. Additionally, there will be a need for experts who can maintain and fix wind turbines. States such as New York continue to fill these gaps and lead offshore development. Currently, New York is on pace to meet its goals set in the CLCPA3 and provide 9,000 megawatts of offshore wind energy by 2025.