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New US Wind Energy Capacity Fell 56% as Tax Relief Dwindled


These translations are done via Google Translate
The pace of US onshore wind-farm installations tumbled last year, in a sign that the industry’s struggles aren’t limited to the fledgling offshore sector.

US wind developers installed 6.7 gigawatts of power generation capacity last year, a 56% drop from the prior year, S&P Global said Monday in a report. That happened due to declining tax breaks for developers even amid the Biden administration’s push to add more renewable energy.

Wind developers have identified a five-year project pipeline of 77.2 gigawatts, which means the industry would need to install an average of 15.4 gigawatts of wind capacity annually to meet the figure, S&P said in the report. One gigawatt is about equal to the electric generating capacity of a large nuclear reactor or natural gas-fired power plant.

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For onshore wind, the drop in activity was mostly the result of the declining production tax credit, which was eliminated for projects that started construction last year, according to S&P. The Inflation Reduction Act that was signed in August restored the value of the tax credit, which S&P sees as boosting wind farm construction in future years.

The offshore sector, meanwhile, has struggled to move forward amid inflation and mounting political push-back.

Industry group American Clean Power calculated the annual decline in the number of onshore wind installations at 37% in a research report last month.



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