Revitalizing America's Mature Wind Energy Sector Amid Political Challenges

On the day President Donald Trump took office, he took steps to indefinitely pause the granting of permits for new wind energy initiatives on government-owned territory. This move was aligned with his campaign vow to halt the addition of new windmills, representing another setback for the wind power sector. Over previous years, the industry has grappled with supply chain disruptions, rising costs affecting project viability, public resistance, and political forces against federal incentives, particularly those boosting the nascent offshore wind industry.

Despite these hurdles, onshore wind farms, a staple of American renewable energy over decades, supply almost 11% of the nation's electricity. This makes it the largest renewable energy source in the U.S., occasionally supplanting coal in power generation. In April, the Trump administration moved to support coal production, yet the aging infrastructure behind wind energy offers new avenues for revitalization, sparking potential avenues for business within the sector.

Opportunities in Energy Infrastructure Refresh

The revitalization of existing infrastructure has fostered positive developments for wind energy stakeholders, creating pathways for significant players like GE Vernova and Siemens Gamesa. These companies reported increased earnings in 2024, having weathered difficult periods characterized by underwhelming project outcomes. GE Vernova, which emerged from General Electric, led the onshore installations in the U.S., claiming a major market share, followed closely by Denmark's Vestas and a modest share by Siemens Gamesa.

Between 2000 and April 2024, onshore wind capacity in the U.S. surged from a modest 2.4 gigawatts (GW) to over 150 GW. Although the pace of new onshore wind project launches has decelerated over the past decade, predictions from Wood Mackenzie, an energy research entity, suggest the U.S. will eclipse 160 GW by 2025.

Presently, there are approximately 1,500 wind farms dotting 45 states, with Texas, Iowa, Oklahoma, Illinois, and Kansas leading. These sites largely occupy private land and are predominantly controlled by prominent energy firms. As many turbines, now over 20 years old, near the closure of their lifespans, operators face decisions between upgrading or fully replacing them to leverage newer, more efficient technologies.

The Benefits and Challenges of Infrastructure Upgrades

Wood Mackenzie analyst Charles Coppins notes the obsolescence issue as forcing operators to consider modernization through the latest turbine models. Approximately 70 GW of onshore capacity has been entirely refreshed in the U.S., with an additional 12 GW partially updated, reflecting about 10,000 turbines removed and another 6,000 anticipated for retirement in the decade ahead.

There are economic advantages to updating existing wind farms rather than building from scratch. Land acquisition becomes unnecessary, and due to advancements, fewer but more efficient turbines can be installed, prolonging operational life and enhancing electricity output while minimizing costs.

Navigating Community and Regulatory Barriers

Limitations do exist, particularly concerning exceeding allowed grid interconnection volumes without renegotiating permits, observed Stephen Maldonado, Wood Mackenzie’s analyst. Public resistance also poses challenges, often centered around environmental concerns, property value impacts, and aesthetic issues.

RWE Group, among the largest renewable entities in the U.S., is actively refreshing its wind farm assets, such as the Forest Creek project, to meet growing energy needs stimulated by local industries. These initiatives provide economic benefits, including increased employment and local tax revenues.

Enhancing Sustainability Through Recycling

Repurposing existing turbines presents another opportunity: recycling components. Up to 95% of current turbines are recyclable, with companies developing methods to process decommissioned materials. Veolia, for instance, transforms old blades into alternative fuels used in cement production.

Trump's tariff policies also pose obstructions, though domestic production of turbine parts mitigates some risks associated with international material sourcing. As the industry faces mounting capital expenses, repowering stands out as a strategic way to enhance grid capacity outcomes.

The prospects for repowering in the U.S. wind sector appear promising, with significant growth anticipated by 2040, emphasizing the critical role repowering plays in bolstering national energy infrastructure.