Wind power is one of the greatest contributors to renewable energy resources in the United States. In the past 30 years, electricity generated from wind turbines has significantly increased. Advances in technology over the years has brought down the cost of generating electricity from wind-powered sources. Government financial incentives have also played a role in the expansion of wind-powered technology.
In the past 20 years, electricity generated from wind-powered generation has increased from six billion kilowatt-hours (kWh), in 2000, to just over 300 billion kWh. Wind-power currently makes up just over seven percent of electricity generated in the U.S. and 24% of generation from renewable energy sources. This trend is likely to continue as offshore wind projects are expanding on the east coast.
Geographical Landscape and Wind Power
To maximize generation capacity, wind turbines must be placed in areas that are prone to receiving large amounts of wind. Mountain ranges or hilly areas are not the best locations as they can significantly reduce the amount of wind that can reach the wind turbines. Less wind means less electricity that can be generated. It’s no surprise then, the states that produce the most power from wind turbines are located in regions that are geographically prone to receive a lot of wind.
Texas ranks first in the nation when it comes to wind-powered capacity and the number of turbines installed. This should be no surprise given Texas’s massive flat landscape. Annual wind capacity in the state currently falls above 24 gigawatts (GW), fifth highest in the world. The majority of wind farms in the state are located in the Texas Panhandle, Gulf coast just south of Galveston, and in the Trans-Pecos region which falls in the western part of Texas.
Another geographical landscape that provides the perfect conditions for generating wind power is offshore. The U.S. Department of Energy’s Wind Energy Technology Office (WETO) funds research to advance the technology necessary to capture wind power off the coast of the United States and convert it into electricity. Offshore wind resources are more abundant, powerful, and consistent than land-based wind resources. It is estimated the U.S. has the potential to capture more than 2,000 gigawatts (GW) from state and federal waters including the Great Lakes.
Rhode Island is home to America’s first offshore wind farm. The Block Island Wind Farm has five turbines capable of generating 30 megawatts (MW) of capacity. This is enough energy to power 17,000 homes in New England. Construction began in 2015 with the first wind turbines going operational in 2016. The project was developed by Deepwater Wind.
Tax Credits for Wind Power
Just like most renewable energy projects, the government provides tax incentives for companies to invest in technology to better advance the capabilities of wind-generated electricity. Two tax incentives are known as the production tax credit (PTC) and investment tax credit (ITC). The production tax credit provides a tax credit of 1-2 cents per kilowatt-hour for the first 10 years of electricity generation for utility-scale wind. The investment tax credit provides a credit for 12-30% of investment costs at the start of the project.
In December of 2019, Congress passed extensions to both the PTC and ITC. The current wind PTC was extended through the end of 2020. Below is a breakdown of the production tax credit:
- If construction begins by December 31, 2017, then 1.8 cents/kWh in estimated allowable tax credit
- If construction begins by December 31, 2018, then 1.4 cents/kWh in estimated allowable tax credit
- If construction begins by December 31, 2019, then 1 cent/kWh in estimated allowable tax credit
- If construction begins by December 31, 2020, then 1.5 cents/kWh in estimated allowable tax credit
The Pros and Cons of Wind Generated Electricity
| Source | Pros | Cons |
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Wind Power |
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Number One Source of Renewable Energy
From all the methods of generating power from renewable energy resources, wind power outcompetes every other source, with hydropower coming in at a close second. The last 20 years have helped propel wind power to the number one source of renewable energy in the United States. This trend is expected to continue as the U.S. Department of Energy is working with private companies to have 20% of total net generation, come from wind power by 2030.
