How the USA Became the World's Second-Largest Wind Market

Wind energy has become one of the most important pillars of the United States electricity system. By the end of 2017, the U.S. had installed more than 88,000 wind turbines across 41 states, with a total installed capacity of 89 GW — making it the second-largest wind market in the world after China, according to the American Wind Energy Association (AWEA).

2017: A Record Year

The U.S. wind industry installed 7,017 MW of new capacity in 2017, the third-highest annual total in history. Wind power generated 254 terawatt-hours (TWh) of electricity that year — approximately 6.3% of total U.S. electricity generation, according to the U.S. Energy Information Administration (EIA).

Key milestones from 2017:

• Wind surpassed hydropower as the largest source of U.S. renewable electricity generation
• Texas alone had over 22 GW of installed wind capacity — more than any country except China, Germany, India, and the U.S. itself
• Iowa generated 37% of its in-state electricity from wind, the highest share of any state

The Production Tax Credit

The federal Production Tax Credit (PTC) has been the primary policy driver for U.S. wind growth. The PTC provides a 2.4 cents per kWh tax credit for electricity generated from wind during the first 10 years of a project's operation (2017 rate). Projects that began construction before December 31, 2016 qualified for the full PTC, creating a strong pipeline of projects that came online in 2017.

Falling Costs

Wind energy costs have fallen dramatically. According to Lawrence Berkeley National Laboratory's *Wind Technologies Market Report 2017*, the average levelised cost of energy (LCOE) for new U.S. wind projects fell to approximately $20 per MWh in 2017 — a decline of roughly 66% since 2009. This made wind the cheapest source of new electricity generation in many parts of the country.

Jobs and Economic Impact

The U.S. wind industry employed 105,500 workers in 2017, according to the U.S. Department of Energy's *Wind Vision* report. Wind turbine technician was the second-fastest-growing occupation in the United States, with median annual wages of approximately $52,260.

Wind projects also generate significant local economic benefits through land lease payments to farmers and ranchers — typically $3,000–$8,000 per turbine per year — and local property tax revenues.

The Road Ahead

With the PTC step-down schedule and falling costs, the U.S. wind industry was positioned for continued growth. The Department of Energy's *Wind Vision* study projected that wind could supply 35% of U.S. electricity by 2050 if supportive policies and grid investments continued.