The US government has temporarily suspended approval for new wind energy projects on federal lands and waters following President Trump’s executive order signed on January 20, 2025. This policy shift, coupled with Trump's vow to repeal the Inflation Reduction Act, has sparked uncertainty about the future growth of the wind energy market. Wind power currently accounts for approximately 10% of the electricity generated in the US, positioning it as the country's largest renewable energy source. According to the American Clean Power Association, there are 73GW of offshore wind capacity under development in the US, enough to power 30 million homes. However, a huge capacity of about 55GW from the development pipeline stands at risk.
According to the latest market study by The Insight Partners on the US Wind Energy Sector, the market, which saw substantial growth under the Biden administration, is expected to face significant challenges during Trump's second term. Consequently, the projections presented in the report forecast a reduction of 30% in the US wind energy capacity by 2030.
According to Ankit Mathur – Principal Analyst at The Insight Partners, the US wind sector is projected to decline sharply to about 18GW of new capacity installation during 2025–2028. Concerning factors contributing to this decline include high borrowing costs, policy uncertainty, and a rollback of federal incentives that were pivotal to the growth of clean energy. The interior secretary will re-evaluate wind leasing and permitting practices for federal lands and waters to assess the wind energy sector’s environmental impact and financial viability. Consequently, many industry stakeholders, including major wind energy companies such as GE Vernova, Orsted, and Total Energies, are reassessing or scaling back their offshore wind projects.
The Road Ahead for the US Wind Industry
Despite challenges, wind energy remains a key component of the US energy transition. Even with the Trump administration’s stance against clean energy, especially wind power, states such as California, Texas, and Iowa—home to thriving wind energy industries—are likely to continue investing in wind energy. These states often have state-level policies and incentives that promote the growth of clean energy. For example, Texas continues to expand its wind power capacity and is often praised for its market-driven approach to renewable energy. Iowa has also made remarkable progress, with wind providing nearly 40% of the state’s electricity. States like these are pushing forward with clean energy projects, seeing wind power as an environmental imperative and an economic opportunity, particularly in terms of job creation in the manufacturing and maintenance sectors. Mathur concludes that the outlook for US wind power is likely to progress at a moderate pace, largely driven by ESG-conscious corporates and state level renewable mandates.
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