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Researched by Industrial Info Resources (Sugar Land, Texas)--A series of reports recently released by the U.S. Department of Energy (DOE) highlights U.S. wind power generation growth. Wind power accounted for 32% of domestic energy capacity growth in 2021, and the DOE expects that amount to grow--with the Inflation Reduction Act (IRA) poised to further wind's standing in the U.S. energy mix.
The federal production tax credit (PTC) has fueled wind generation growth and capacity additions in recent years, but the PTC for wind expired at the end of 2021. However, the recently passed IRA will extend the credit by at least 10 years.
According to a press release announcing the reports, "The Inflation Reduction Act includes long-term extensions of critical tax incentives supporting the deployment of all three wind applications--land-based, offshore and distributed--and new programs to support the siting and construction of high-voltage transmission lines, which will be important for both land-based and offshore wind. Also included are new production-based tax credits for domestic manufacturing and supply of wind components and equipment, which will provide strong incentives to onshore key supply chains of wind turbines and related components."
Onshore Wind
The DOE's Land-Based Wind Market Report shows 13.4 gigawatts (GW) of new onshore wind-generation capacity was added in 2021, and the capacity total reached 136 GW by the end of the year.
The report's future outlook projects yearly onshore wind additions could "generally decline through 2023 before rebounding" to an average of 7 GW in 2023, before jumping to 13 GW in 2025. However, the report was published before the IRA legislation: "Finally, there have been recent legislative proposals for a long-term extension of the PTC and other national policies to support a clean energy transition. The fate of these proposals will impact the sector's upside potential to exceed the projections."
Industrial Info is tracking $113 billion worth of capital-spending projects for onshore wind-generation across the U.S., of which only $46.5 billion has a high or medium (70-99%) probability of moving forward as planned, according to Industrial Info's Global Market Intelligence (GMI) Power Project Database. Subscribers to the GMI project database can click here for a full list of detailed project reports.
Clearway Energy's (NYSE:CWEN) (Princeton, New Jersey) $1 billion County Line Wind Project in northern Maine is in the planning stage, and construction is expected to kick off in March 2023. The windfarm would utilize 150 turbines, each with a 4.2-megwatt (MW) capacity, to generate 630 MW of wind energy. Click here for the project report.
TradeWind Energy LLC's (Lenexa, Kansas) $550 million Seven Cowboy Windfarm near Cordell, Oklahoma, will use 107 turbines, each with a 2.8-MW capacity, to generate about 300 MW. Construction is expected to wrap up by the end of this year. TradeWind is a subsidiary of Enel Green Power North America (Andover, Massachusetts). Click here for the project report.
Looking to the future, NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) plans to kick off construction of the 500-MW, $750 million Stutsman County Windfarm in Jamestown, North Dakota, in 2024. Click here for the project report.
Offshore Wind
Offshore wind developers face some obstacles that onshore developers do not, including logistical hurdles due to U.S. maritime law and opposition by residents along the coastal areas where the windfarms will be installed. However, the Biden administration recently expanded areas available for offshore development.
According to the DOE's Offshore Wind Market Report, in 2021, "Falling offshore wind prices, state-level commitments, and an unprecedented expansion into new leasing areas drove the U.S. offshore wind pipeline to grow 13.5% over the previous year." For more information on the state of offshore wind projects in the U.S., see July 1, 2022, article - EIA: Developers to Add 6 Gigawatts of U.S. Offshore Wind by 2029.
Industrial Info is tracking $48.5 billion worth of capital offshore wind-generation projects across the U.S., of which only $18 billion worth has a high or medium probability of moving forward as planned. Subscribers can click here for a full list.
The highest-valued project is Dominion Energy Incorporated's (NYSE:D) (Richmond, Virginia) 2.6-GW Coastal Virginia Offshore Windfarm (CVOW). Construction is expected to kick off in 2024. The project is in the permitting stage, but earlier this month it received approval from the Virginia State Corporation Commission (SCC). Click here for the detailed project report.
New England Aqua Ventus, in collaboration with the University of Maine, plans to construct the Aqua Ventus Offshore Windfarm near Monhegan Island, Maine, which would generate 500 MW. New England Aqua Ventus is a joint venture between RWE Renewables Americas LLC (San Francisco, California) and Diamond Offshore Wind (Boston, Massachusetts). Construction is expected to begin in 2023, with completion a year later. An 11-MW demonstration project is underway. Subscribers can read a detailed report for the windfarm and its demonstration project.
Click here to view all of the project reports discussed in this article, and here for the associated plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The federal production tax credit (PTC) has fueled wind generation growth and capacity additions in recent years, but the PTC for wind expired at the end of 2021. However, the recently passed IRA will extend the credit by at least 10 years.
According to a press release announcing the reports, "The Inflation Reduction Act includes long-term extensions of critical tax incentives supporting the deployment of all three wind applications--land-based, offshore and distributed--and new programs to support the siting and construction of high-voltage transmission lines, which will be important for both land-based and offshore wind. Also included are new production-based tax credits for domestic manufacturing and supply of wind components and equipment, which will provide strong incentives to onshore key supply chains of wind turbines and related components."
Onshore Wind
The DOE's Land-Based Wind Market Report shows 13.4 gigawatts (GW) of new onshore wind-generation capacity was added in 2021, and the capacity total reached 136 GW by the end of the year.
The report's future outlook projects yearly onshore wind additions could "generally decline through 2023 before rebounding" to an average of 7 GW in 2023, before jumping to 13 GW in 2025. However, the report was published before the IRA legislation: "Finally, there have been recent legislative proposals for a long-term extension of the PTC and other national policies to support a clean energy transition. The fate of these proposals will impact the sector's upside potential to exceed the projections."
Industrial Info is tracking $113 billion worth of capital-spending projects for onshore wind-generation across the U.S., of which only $46.5 billion has a high or medium (70-99%) probability of moving forward as planned, according to Industrial Info's Global Market Intelligence (GMI) Power Project Database. Subscribers to the GMI project database can click here for a full list of detailed project reports.
Clearway Energy's (NYSE:CWEN) (Princeton, New Jersey) $1 billion County Line Wind Project in northern Maine is in the planning stage, and construction is expected to kick off in March 2023. The windfarm would utilize 150 turbines, each with a 4.2-megwatt (MW) capacity, to generate 630 MW of wind energy. Click here for the project report.
TradeWind Energy LLC's (Lenexa, Kansas) $550 million Seven Cowboy Windfarm near Cordell, Oklahoma, will use 107 turbines, each with a 2.8-MW capacity, to generate about 300 MW. Construction is expected to wrap up by the end of this year. TradeWind is a subsidiary of Enel Green Power North America (Andover, Massachusetts). Click here for the project report.
Looking to the future, NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) plans to kick off construction of the 500-MW, $750 million Stutsman County Windfarm in Jamestown, North Dakota, in 2024. Click here for the project report.
Offshore Wind
Offshore wind developers face some obstacles that onshore developers do not, including logistical hurdles due to U.S. maritime law and opposition by residents along the coastal areas where the windfarms will be installed. However, the Biden administration recently expanded areas available for offshore development.
According to the DOE's Offshore Wind Market Report, in 2021, "Falling offshore wind prices, state-level commitments, and an unprecedented expansion into new leasing areas drove the U.S. offshore wind pipeline to grow 13.5% over the previous year." For more information on the state of offshore wind projects in the U.S., see July 1, 2022, article - EIA: Developers to Add 6 Gigawatts of U.S. Offshore Wind by 2029.
Industrial Info is tracking $48.5 billion worth of capital offshore wind-generation projects across the U.S., of which only $18 billion worth has a high or medium probability of moving forward as planned. Subscribers can click here for a full list.
The highest-valued project is Dominion Energy Incorporated's (NYSE:D) (Richmond, Virginia) 2.6-GW Coastal Virginia Offshore Windfarm (CVOW). Construction is expected to kick off in 2024. The project is in the permitting stage, but earlier this month it received approval from the Virginia State Corporation Commission (SCC). Click here for the detailed project report.
New England Aqua Ventus, in collaboration with the University of Maine, plans to construct the Aqua Ventus Offshore Windfarm near Monhegan Island, Maine, which would generate 500 MW. New England Aqua Ventus is a joint venture between RWE Renewables Americas LLC (San Francisco, California) and Diamond Offshore Wind (Boston, Massachusetts). Construction is expected to begin in 2023, with completion a year later. An 11-MW demonstration project is underway. Subscribers can read a detailed report for the windfarm and its demonstration project.
Click here to view all of the project reports discussed in this article, and here for the associated plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
