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
Sep 6, 2024 - Wind Investments Improve
- 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.
- The Department of Energy’s Loan Program Office (LPO) is speeding up efforts to award loans to clean energy projects before the presidential election, according to The Wall Street Journal. Officials in the Biden administration are concerned that LPO lending for climate-related projects and companies could run dry if Donald Trump wins the election. The LBO received a windfall of billions in funding through the passage of the 2022 Inflation Reduction Act, but only a small fraction of the funding has been deployed. A Trump win could introduce uncertainty to the lending program because LPO loans are approved by political appointees who answer to the executive branch. During the Biden administration, the LPO has approved about $6.5 billion but nearly $25 billion in new loans are awaiting approval.
- 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.
- In May, amid rising demand for electricity, the Federal Energy Regulatory Commission (FERC) approved two new rules aimed at streamlining the process of building the large transmission lines that are needed to bring more power to the US grid, according to The Wall Street Journal. The first rule will require power producers and transmitters to apply a 20-year scope in their forecasts for electricity supply and demand shifts. The planning rule also urges utilities to implement grid-enhancement technologies, including power flow control devices and sensors, which can make transmission on existing lines more efficient. The second rule deals with permitting changes for new transmission lines to clear bottlenecks that have kept new renewable energy sources from hooking up to the grid. In 2023, the backlog of new power projects waiting to connect to the grid – mainly wind, solar, and battery storage – grew by 30% compared to 2022, according to Lawrence Berkeley National Laboratory. The new transmission line rule favors projects that benefit electricity consumers and adjusts cost allocation for projects spanning multiple states.
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