America’s appetite for electricity is growing — fast. A recent study by S&P, commissioned by American Clean Power and other energy and business trade groups, shows that U.S. electricity demand is expected to increase up to 50 percent by 2040. This surge is fueled by near-term growth in manufacturing and data centers and long-term trends like the electrification of transportation and heating. To meet this rising demand, we need an “all of the above” energy strategy — one that embraces every available source of power. But few are as uniquely positioned as wind energy to deliver clean, reliable, homegrown electricity at the scale and speed we need.
Land-Based Wind: Resilience Amidst Headwinds
Land-based wind faced a challenging year in 2024, with just 3.9 GW of new capacity added — the lowest annual figure in a decade. But behind the slowdown lies a deeper story of resilience and potential. While installations dipped, the project pipeline continued to grow at a steady 3 percent average quarterly pace over the past two years. The industry’s momentum was stalled by uncertainty around tax credits in the early 2020s, supply chain disruptions, and broader economic turbulence — all of which contributed to higher capital and equipment costs.
Transmission remains one of the sector’s biggest barriers. Wind-rich regions are often hampered by congested transmission corridors, limiting the ability to build where the wind blows strongest. In 2024, just 821 miles of new transmission were built — a stark contrast to the 12,000 miles added since 2015, underscoring the need for a modernized, expanded grid. Meanwhile, wind-power purchase agreement (PPA) prices have risen 5 percent quarter-over-quarter on average over the past three years, as cost declines for wind components have lagged those of solar and storage. Still, the long-term economic case for wind remains strong.
Offshore Wind: Breaking New Ground
2024 marked a milestone year for offshore wind, highlighted by the commissioning of South Fork Wind — the country’s largest offshore wind farm to date at 132 MW. Now in 2025, five major projects — Coastal Virginia Offshore Wind, Revolution Wind, Vineyard Wind 1, Sunrise Wind and Empire Wind 1 — are in various stages of construction, all having secured necessary federal environmental and construction permitting. However, presidential actions taken in early 2025 targeting offshore wind — alongside a recent construction halt from Interior Secretary Doug Burgum against Empire Wind — have introduced new policy and permitting uncertainties.
With the first utility-scale project completed and a total of 11 projects having received Construction and Operations Plans (COPs) approval from BOEM — five of which are under construction — the offshore wind industry was well-positioned for continued growth. Additionally, eight more projects had already entered the federal permitting process. But the indefinite halt on permitting and leasing has brought that momentum into question, presenting significant challenges for the sector.
Despite these setbacks, the U.S. offshore wind pipeline remains robust, with nearly 73 GW of potential capacity based on current leased areas — enough to power up to 30 million homes. The long-term outlook now hinges on regulatory clarity and continued investment over the next 3.5 years.
Clean Energy Boom
Federal energy tax credits are reshaping the U.S. energy landscape — driving not only a surge in wind development but also catalyzing a broader industrial revival. New capital is breathing life into American manufacturing, powering the infrastructure and supply chains needed to power the clean economy. The wave of clean-energy investment extends far beyond individual projects.
From new factories to upgraded infrastructure, the economic ripple effects are substantial. ICF estimates that recent federal policy could unlock $1.9 trillion in economic activity over the next decade, strengthening domestic supply chains and creating a more resilient clean-energy ecosystem. Wind developers and manufacturers are responding in kind, with investments flowing into turbine blade manufacturing, nacelle assembly, and steel fabrication across the country.
Local Impact and Job Creation
Wind energy delivers far beyond the grid. Every year, it generates more than $2 billion in landowner lease payments and local tax revenue, strengthening rural and economically disadvantaged communities. These funds support schools, emergency services, and roads — creating a ripple effect of opportunity.
The wind industry also supports more than 300,000 jobs across construction, manufacturing, logistics, and operations. Wind-turbine technician is now the second-fastest growing job in the country, with projected employment growth of 44 percent over the next decade.
Veterans are especially well-represented in the workforce, employed at rates 80 percent higher than the national average.
A Clear Path Forward
Despite the challenges facing the wind industry, its future is full of promise. With strong policy support, a skilled workforce, and a growing pipeline of projects, wind energy is positioned to meet our nation’s rising energy demands head-on.
It’s not just a source of clean power — it’s a driver of economic growth and a pillar of American energy security. The future of U.S. energy is blowing in the wind. Now is the time to harness its full potential.
