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Land-Based Wind Market Report: 2023 Edition

Land-Based Wind Market Report: 2023 Edition

Full Title: Land-Based Wind Market Report: 2023 Edition
Author(s): Ryan Wiser, Mark Bolinger, Ben Hoen, Dev Millstein, Joe Rand, Galen Barbose, Naïm Darghouth, Will Gorman, Seongeun Jeong, Eric O'Shaughnessy, and Ben Paulos
Publisher(s): U.S. Department of Energy
Publication Date: August 15, 2023
Full Text: Download Resource
Description (excerpt):

Wind power additions in the United States totaled 8.5 gigawatts (GW) in 2022. Wind power growth has historically been supported by the industry’s primary federal incentive—the production tax credit (PTC)—as well as myriad state-level policies. Long-term improvements in the cost and performance of wind power technologies have also been key drivers for wind additions. Nonetheless, 2022 was a relatively slow year in terms of new wind power deployment—the lowest since 2018—due in part to ongoing supply chain pressures, higher interest rates, and interconnection and siting challenges, but also the reduction in the value of the PTC that was in place up until the passage of the Inflation Reduction Act (IRA) in August 2022.

Passage of IRA promises new market dynamics for wind power deployment and supply chain investments in the years ahead. IRA contains a long-term extension of the PTC at full value (assuming that new wage and apprenticeship standards are met) along with opportunities for wind plants to earn two 10 percent bonus credits that add to the PTC for meeting domestic content requirements and for locating projects in energy communities. Among many other provisions, IRA also includes new production-based and investment-based tax credits to support the build-out of domestic clean energy manufacturing. Though it is too early to see the full impacts of IRA in historical data, IRA has already impacted analyst forecasts for future wind power capacity additions and wind industry supply-chain announcements.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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