U.S. Wind Energy Industry Experiences a Resurgence?
The US onshore wind industry is experiencing a recovery in installations, with Q1 2025 seeing a 91% year-on-year increase, and a total of 8.1 GW of capacity expected in 2025 [1][2][4]. However, turbine orders have fallen by 50% in the first half of 2025, primarily due to regulatory uncertainty surrounding tax credits and permitting [1][2][4].
Despite these challenges, repowering projects are contributing to the total installation forecasts, although they represent a smaller share compared to new builds. The industry expects nearly 9 GW of annual wind installations over the next five years, totaling around 44 GW new capacity through 2029, with Western states leading deployment [1][2].
The future outlook is cautiously optimistic, as demand for turbine orders—particularly for those securing safe harbor provisions—is projected to rebound in the second half of 2025 following the passage of the One Big Beautiful Bill Act (OBBBA) and related executive actions. However, short-term market volatility and ongoing challenges such as permitting delays, tariff risks, and the imminent sunset of tax credits are expected to reduce onshore additions slightly through 2029 before a forecasted late-cycle spike in 2029-2030 when tax credits expire [2][4].
Companies like Vestas are pivotal in this recovery phase. Although specific projects were not disclosed, Vestas has reportedly obtained new orders aligned with the sector’s signs of revival [3]. For instance, in March 2022, Vestas announced a 172-megawatt order for its V117 4.2-megawatt turbines, slated for the Mount Storm Phase 2 repowering project in Grant County, West Virginia [5]. More recently, Vestas secured a new order for its V150 4.5-megawatt turbines, including a 5-year service agreement followed by a 5-year operational support period [6].
Regional trends indicate that Western states are leading in installations, with projections of adding 9.4 GW through 2029 [1][2]. The Mount Storm repowering project, for example, will reduce the number of turbines at the site from 132 to 78, while increasing the capacity of the wind farm from 264 megawatts to 335 megawatts [7].
Meanwhile, the US offshore wind industry is vulnerable to disruption, as it depends almost entirely on federal lease areas, with exceptions being minor state-controlled waters [8]. On the other hand, the US wind industry is currently on life support, waiting for another abrupt shift in US energy policy [9].
In conclusion, the US onshore wind sector is recovering from a slow start in 2025 with strong near-term growth prospects despite regulatory and market challenges. Companies like Vestas remain integral to expanding and modernizing the wind energy infrastructure [1][2][3][4]. The distributed wind energy industry requires rapid innovation to reduce costs and increase customer confidence.
- The US government's policy regarding tax credits and permitting is currently a significant factor affecting orders for wind turbines within the industry.
- A newsletter or industry report might detail the positive outlook for onshore wind energy in the US, with forecasts of 44 GW of new capacity through 2029, largely driven by Western states.
- Innovation in the distributed wind energy sector is crucial for reducing costs and building customer confidence.
- A podcast discussing the US wind energy industry could explore the challenges and opportunities facing companies like Vestas, as they contribute to the sector's recovery through projects like the Mount Storm repowering project.
