Wind energy in the U.S. faces political headwinds, slowing its growth

The United States has made notable strides in wind energy, both onshore and offshore, with significant growth expected over the coming decades. The nation’s wind energy sector is a crucial element of its renewable energy transition, contributing to reducing carbon emissions and diversifying the energy grid. Recent developments under the Trump administration, however, had a significant impact on the pace and direction of the industry, both positively and negatively.

Installed capacity and growth

• Total capacity: By 2024, the United States had an installed wind energy capacity of approximately 150.4 GW, making it one of the world’s leading producers of wind energy. This includes both onshore and offshore capacity, with onshore turbines accounting for the majority of the installed capacity
• Onshore wind: Onshore wind energy in the U.S. has continued to grow, with cumulative installed onshore capacity surpassing 150 GW by the end of 2023. However, the pace of new installations has slowed, with only 6.4 GW added in 2023—marking a significant decline compared to previous years. The Midwest, Texas, and Great Plains states remain key hubs for onshore wind projects due to their favourable wind conditions. While the Trump administration promoted fossil fuels, it did not significantly obstruct the expansion of onshore wind energy.
• Offshore wind: Offshore wind energy in the U.S. has entered a period of expansion, with a total of 310 MW now operational as of Q3 2024. Additionally, 4.1 GW is currently under construction, with another 15.34 GW under contract. The Biden administration has accelerated offshore wind permitting, with the Bureau of Ocean Energy Management (BOEM) approving construction for 10 offshore wind projects, totalling at least 15 GW, and advancing lease auctions in the Gulf of Maine and Central Atlantic. However, the Trump administration’s policies favoured traditional energy sources and delayed some regulatory progress in the offshore wind sector.

Government ambitions

• 2030 target: The U.S. government has set a target of 30 GW of offshore wind capacity by 2030 as part of its broader goal to reduce carbon emissions and create clean energy jobs. This ambition gained significant momentum under the Biden administration, but during the Trump years, offshore wind development faced delays due to regulatory rollbacks, including the delay of leases for offshore wind farms and reduced funding for renewable energy initiatives.
• 2050 target: Long-term plans involve a vision of 110 GW of offshore wind capacity by 2050, aligning with the nation’s carbon-neutral ambitions and efforts to decarbonize the energy sector. These targets were reaffirmed under Biden, after Trump’s policies had pulled back support for offshore wind and alternative energy investments.

Current and upcoming projects

• Offshore wind projects: Key offshore wind projects are under development in states like Massachusetts, New York, and New Jersey. For instance, the Vineyard Wind Project off the coast of Massachusetts, slated for completion in 2025, will have a total capacity of 800 MW with 62 turbines. This marks one of the first large-scale offshore wind farms in the U.S. The Trump administration, however, had slowed offshore development through executive orders that aimed to limit regulations for fossil fuel industries and imposed restrictions on offshore wind leases in some areas.
• Onshore wind projects: Despite market saturation and permitting delays, the U.S. continues to add onshore wind farms, particularly in Texas, Iowa, and Oklahoma. The Thunderhead Wind Project in Nebraska is expected to add 300 MW to the grid by 2025. While Trump’s focus on fossil fuel expansion did not prevent onshore projects, his administration’s push to relax regulations on oil and gas extraction created tensions with the wind energy sector in regions where fossil fuel industries are prevalent.

Recent developments

• Offshore wind leases: The U.S. Department of the Interior has been actively auctioning offshore wind lease areas. In 2024, BOEM held a Central Atlantic lease sale, raising nearly $93 million, with Equinor securing a lease for 2 GW and Dominion Energy aiming for 2-4 GW. Future auctions are planned for the Gulf of Maine, with an estimated 13 GW of potential capacity. The leasing process was delayed during Trump’s term, as he prioritized the opening of offshore drilling areas and rolled back environmental protections that were crucial for the wind industry’s development.
• Legislative support: The Inflation Reduction Act (IRA) passed in 2022 has given a significant boost to the renewable energy sector, including wind energy. It offers tax incentives for the development of wind farms, particularly offshore wind, and has accelerated the development of new projects. Under the Trump administration, the wind industry had to contend with reduced federal support, but the IRA under Biden’s administration provided much-needed financial incentives to support long-term industry growth.

These developments highlight the United States’ commitment to expanding wind energy capacity. While policy shifts under the Trump administration slowed offshore wind growth and reduced renewable energy investments, the sector continues to expand, driven by state-level support, corporate investments, and renewed federal incentives. With aggressive government targets, private sector engagement, and a growing number of projects, the U.S. remains poised to be a global leader in wind energy in the coming decades.

This information is updated in March 2025

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