Wind Power
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 98 companies in the US use wind power to drive a turbine and produce electric energy, which is provided to electric power transmission systems or electric power distribution systems. Utility-scale turbines are generally defined as turbines that exceed 100KW in capacity, but typically range from 1.5 to 7.5MW. Wind energy accounts for about 10.2% of total US electricity generation and about 47.6% of electricity generation from renewable energy, according to the EIA.
“NIMBY” Opposition
Wind farms often face opposition from local residents concerned about noise, aesthetic impacts, and harm to bird populations.
Dependence on Government Support
The Inflation Reduction Act (IRA) was signed into law in 2022 and it extends tax credits for renewable energy projects for 10 years, which is expected to bring greater certainty to project planning instead of Congress needing to renew the credits every few years.
Industry size & Structure
The average wind electric power generator employs about 77 workers and generates about $82 million annually.
- The wind electric power generator industry consists of about 98 firms that employ about 7,600 workers and generate almost $8 billion annually.
- The industry is highly concentrated; the top eight companies account for 84% of industry revenue.
- Large firms include Clearway Energy, Energy Capital Partners, and Caithness Energy.
- Large owners of wind capacity include NextEra Energy, Berkshire Hathaway Energy, Avangrid, and EDP.
- Wind energy accounts for about 10.2% of total US electricity generation and about 47.6% of electricity generation from renewable energy, according to the EIA.
- More than 74,500 wind turbines operate across 44 states, Guam, and Puerto Rico and represent more than 149,400 megawatts (MW) of electricity generation capacity.
- Texas, Iowa, Oklahoma, Kansas, and Illinois produced about 59% of total U.S. wind electricity generation in 2023.
- Alta Wind Energy Center in California is the world’s third-largest wind farm generating 1,550 MW of electricity. The first US commercial, utility-scale offshore wind farm – South Fork Wind off the coast of Montauk, New York – came online in 2024.
Industry Forecast
Wind Power Industry Growth
Recent Developments
Nov 6, 2024 - Wind Costs to Drop
- Renewable energy’s levelized cost of electricity (LCOE) in North America fell 4.6% in 2024, driven primarily by a 4.2% decline in capital costs, according to consulting firm Wood Mackenzie and reporting by Utility Dive. Led by utility-scale wind and solar, the levelized costs for renewables are dropping worldwide. The LCOE for onshore wind is projected to decline 42% by 2060, and offshore wind is expected to decline by up to 67% over the same period. The Wood Mackenzie report noted that while offshore wind faces cost pressures in the short term, those challenges will ease as offshore grows to play a more significant role in the overall renewable energy mix.
- In October, the Bureau of Ocean Energy Management (BOEM) announced that four lease areas had been sold in the Gulf of Maine’s first-ever offshore wind auction. Avangrid Renewables bought two lease areas for $11.2 million totaling more than 233,000 acres. Invenergy NE Offshore wind also bought two leases covering more than 215,000 acres for $10.7 million. Avangrid’s two leases offer a potential generating capacity of 3.4 gigawatts (GW) about 29 nautical miles from Massachusetts. One of the leases purchased by Invenergy has about 1.6 GW in potential capacity and is about 46 nautical miles from Maine, and the other is about 21 nautical miles from Massachusetts and has a potential generating capacity of 1.8 GW.
- Investments in US wind projects are picking up while solar has slowed, according to BloombergNEF’s Renewable Energy Investment Tracker. Near the end of 2023, wind projects attracted a record $31 billion in investment, and another $12 billion was raised in the first half of 2024. Since the beginning of the year, solar developments have dropped 12% to about $26.5 billion. Industry insiders suggest that while the renewables sector remains robust, investments have been mixed due to each sector’s recovery from the supply chain disruptions stemming from the pandemic. BloombergNEF estimates that total US investments in renewable energy are up 63% compared to levels before the Inflation Reduction Act was signed.
- In early September, the US Department of the Interior approved wind firm US Wind’s Maryland Offshore Wind project. The project aims to deliver up to 2 gigawatts (GW) of wind energy to the Delmarva Peninsula and is the tenth offshore project to receive approval under the Biden administration. So far, 15 GW of offshore wind projects have been approved, while the Biden administration’s stated goal is to produce 30 GW of offshore wind by 2030. On top of technical challenges inherent to offshore wind – including low wind speeds and hurricane dangers in the Gulf of Mexico and deep waters off the West Coast – the industry has grappled with high interest rates, inflation, and supply chain snarls that have slowed or delayed projects.
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