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Global Onshore Wind Market Report

Key Regional Markets

United States

Onshore Wind Capacity

15.3 GW

GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)



US Dollar

Country Credit Rating (S&P)


Renewable Energy capacity (2022)


Onshore Wind Share in Renewables (2022)


Renewable Energy Target

80% renewable energy generation
by 2030 and 100% carbon-free electricity by 2035

The US is the second-largest renewable energy market globally after China. Onshore wind has the maximum share of renewable energy portfolio in the US, placing the country in second position globally after China. Currently, the country stands at 352GW of total renewable installed capacity, of which 141GW is from onshore wind (IRENA, 2023). Historically, its renewable energy mix was headed by renewable hydropower until 2017, when onshore wind surpassed it and took the leading position. This robust surge in the renewable energy market is dedicated to tax credits, corporate investments, and fiscal backups. Especially the state aid and investments driven by the Inflation Reduction Act (“IRA”) of 2022 helped catalyse renewable technology expansion. Further, the administration aims to reach 80% of renewable energy generation by 2030 and decarbonise the electricity grid by 2035 (NPR, 2023). Such ambitious targets and initiatives can result in amplified deployment of onshore wind, supported by declining levelized cost of energy. 


  • Combination of ITC and PTC under the 2022 IRA opened doors to new opportunities for onshore wind sector

  • Significant fiscal incentives for renewable deployment play a crucial role in shaping the sector’s growth trajectory


  • Increased transmission backlogs causing delay in project commissionings

  • Increased PPA prices amidst supply chain issues are likely to stagnate project pipeline

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics July 2023

Since 2017, onshore wind has directed the US’ renewable installed base with a current share of 40%. In 2019, it surpassed the 100GW mark of cumulative installed capacity, currently stationed at 141GW (IRENA, 2023). Its share has risen consistently in the last decade, triggered by policy-level push and private investments. Thereafter, it is followed by solar PV and renewable hydropower. Although offshore wind is almost non-existent, recent policy amendments under IRA can drive its untapped potential. Despite this, electricity generation from conventional sources controls the power demand. On a positive note, the share of coal-fired generation decreased by 3% from 2021-2022. Contrariwise, the combined share of wind and solar energy increased by 2% during the same period (Mercom, 2023). This will amplify in the coming years as projects delayed due to supply chain bottlenecks are expected to come online in 2023-2024. As per EIA forecasts, wind generation will increase from 11% in 2023 to 12% in 2024 (EIA, 2023).

Installed Capacity: Status and Trend

Trend in Installed Onshore Wind Capacity

Source: Preqin Global Report 2023: Private Equity

Onshore wind annual capacity additions have generally been on an upward swing. The wind sector accounted for 22% of new electricity capacity installed in the US in 2022, representing $12 billion in capital investment. The outgrowth came from repowering projects, further driven by tax benefits and competitive prices of onshore wind technology. However, in 2022, capacity additions fell by 45% due to supply chain constraints birthing project delays, sinking tax breaks for developers, and rising project costs (IRENA, 2023). Despite this, the new tax regime, PTC extension, and state aid under IRA are expected to boost the wind sector, as already 4.7GW of additional wind power capacities are deployed in Q12023, with the highest contribution from Texas (WindExchange, 2023). In terms of generation, by the end of 2021, wind power generated 9.1% of electricity, with South Dakota leading the segment (Energy Government, 2022). This is expected to surge further as delayed, and repowering projects are expected to be commissioned in the coming years.

Demand Drivers

Fiscal aid and financial incentives have been fundamental drivers for onshore wind deployment. In August 2022, the IRA became a law that expedites tax credits for wind energy projects. Under this, the Investment Tax Credit (ITC) allows 6% to 30% tax credits for land-based wind projects depending on project size and labour factors. Besides, projects above 1MW capacity must satisfy new apprenticeship and existing wage requirements to obtain the 30% ITC for projects that begin construction before 1st January 2025 (US Department of Energy, 2023). 

Historically, the Production Tax Credit (PTC) has supported onshore wind energy by assisting developers. However, its phase-out in 2021 affected capacity installations in the subsequent year. In August 2022, IRA significantly boosted onshore wind power producers by renewing the PTC. This allows developers and owners to claim a federal income tax credit on every kilowatt-hour of electricity supplied to the grid annually for ten years (US Department of Energy, 2023). Thus, utility-scale wind projects can choose between PTC and ITC to assist project visibility and maximise efficiency. In association, the new PTC provides credits for manufacturing and supplying wind power project components, thus providing a fillip for the domestic equipment manufacturing and supply chain.

Other than fiscal initiatives at the Federal level, state-level incentives assist the development of renewable technologies. An executive order by the Biden Administration mentions establishing a federal-level goal for decarbonisation by 2050. Following the same target, in November 2022, a renewable portfolio standard (RPS) was designed for 36 states and the District of Columbia. This encourages electricity suppliers to give their customers a minimum share of electricity produced from eligible renewable resources. Among these, 12 states and the District of Colombia mandate the RPS obligations to attain 100% clean electricity by 2050 (EIA, 2022). 

Policy impetus has also helped wind power generation to gain a competitive position through economies of scale. Thus, it is progressively competitive to build a new wind power plant instead of a new coal or gas-based one. The wind developers also benefit from the high wholesale power prices in the US market (Mercom, 2023). Particularly during summer, such a trend of rising prices has been a major propelling factor. While long-term PPAs are the conventional way for wind power offtake, many projects also keep some capacity aside for the wholesale power market.

Market Opportunity

The Inflation Reduction Act sets the stage for a fundamental transformation of the US renewable sector. IRA is expected to accumulate $114 billion in total investments in the US renewable sector by 2031 (PV Magazine, 2023). In the latest announcement, the Biden-Harris administration has committed to providing $20 billion through grants that will be deployed through two separate and complementary competitions ($14 billion through the National Clean Investment Fund (NCIF) and $6 billion through the Clean Communities Investment Accelerator (CCIA)), each aimed at mobilizing a national-scale clean energy financing network (The White House, 2023). Further, in 2023, the US Agriculture Department announced providing $11 billion to rural communities to bring them clean energy under the Powering Affordable Clean Energy programme. About $1 billion is allocated to finance renewable energy projects, including large-scale wind, solar and geothermal projects, through partially forgiving loans available for renewable energy enterprises and electric utilities (NPR, 2023). Although not specifically for onshore wind, the declining LCOE prices for wind power can make project financing available for the technology.

The PPA prices are on a rise in the US. This effect of supply chain constraints ignited a halt in project development in 2021-2022 (Mercom, 2023). Curtailing this depends on state aid and plans to reshore supply chain constraints under the IRA, as the paused projects are anticipated to come online by 2024. Such changes can stabilise PPA prices that can thrive renewable deployment as hybrid projects get significant PPA attention. Besides, heightened energy price uncertainty will compel businesses and off-takers to seek long-term contracts to guarantee stability.

In association with deploying new projects, repowering is another segment in the US with a significant scope considering the ascending age of wind turbines. GE Renewables has topped this market by repowering more than 4GW of wind capacities in the US (GE, 2019). In 2023, Vestas bagged a 139MW order to repower a project in Pennsylvania. Further, it is forecasted that the repowering of age-old wind turbines has a scope of attracting $25 billion by 2030, indicating a wide array of opportunities for OEMs to stack revenue (WindESCo, 2023).

Lastly, the OEMs operating in the onshore wind sector will particularly benefit from the advanced manufacturing production (AMPC) credit from the IRA (US Department of Energy, 2023). This will help OEMs reverse declining equipment sales margins in the short term and incentivize investment in manufacturing capacity for the US onshore wind power market, thereby creating an opportune pricing environment for manufacturers.


Source: BNEF Global Wind Market Outlook

Although the USA is expected to witness balanced growth in onshore wind capacity additions, the BNEF estimation marginally contradicts its potentiality. It indicates a dampening momentum between 2023-2028. This could be an effect of the shift of policy focus on offshore technology, as evident from IRA 2022, which has given much attention to this emerging technology. Besides, solar is only a few gigawatts behind onshore wind and is expected to rise as a stiff competitor.

However, post-2028, it is expected to add more than 11GW owing to a rising repowering capacity and hybrid wind-solar and storage projects. The extension of PTC and amendment of ITC amalgamated with advanced transmission networks can further aid the sector. Besides, the rapid fall in LCOE for onshore wind power will substantiate the investment for the sector to level up the energy transition nationwide (IEEFA, 2023).

Irrespective of this, headwinds, like the location-wise variability of wind speed and inefficient transmission infrastructure, are expected to restrain the expansion prospects of onshore wind projects. Especially, varied PPA prices in several regions of North America are an effect of delayed permit processes and higher interconnection costs. PPA prices rose by 20.7% in the Southwest Power Pool (SPP) and 9.4% in the Midcontinent Independent System Operator (MISO), highlighting unfavourable market dynamics in the SPP and MISO regions. However, wind PPA prices decreased by 10.3% in the Electric Reliability Council of Texas (ERCOT), implying an affirmative outlook (Mercom, 2023). Owing to high wind conditions, steady project prospects are making inroads in Texas as corporates seek to invest in the region, like ACEN, acquiring eight operating wind projects.

Besides, the US faces logjams from its inefficient transmission connectivity. Developing new grid lines and transforming the old ones is a long-term process, and the deployment of $5 billion prescribed under the IRA towards improving transmission infrastructure needs to be expedited (S&P Global, 2022). Owing to such obstructions, about 1GW of renewable projects are waiting for approval. This needs urgent addressing as late project commissioning would also impact the project returns in a competitive market.