Utility companies cautiously navigating due to Trump's antagonism towards wind and solar energy
The United States finds itself in a mixed wind energy landscape, with China leading in both wind and solar capacity. As of mid-2025, the development of wind energy in the U.S. is experiencing a complex landscape due to political influences, particularly in offshore wind development.
While onshore wind installations are surging significantly, offshore wind development is being actively suppressed by the Trump administration. Onshore wind power is expanding strongly, with installations in Q1 2025 reaching 2.1 GW, a 91% increase compared to the same period in 2024. For the full year 2025, total installed wind capacity (onshore, offshore, and repowering) is forecast at 8.1 GW. Western states are expected to lead, with 9.4 GW of new onshore capacity anticipated through 2029.
However, despite rising installations, wind turbine orders have dropped by 50% in the first half of 2025 compared to 2024. This decline is attributed to regulatory uncertainty stemming from tariffs, permitting challenges, and upcoming tax credit expirations. The One Big Beautiful Bill Act (OBBBA), passed in mid-2025, and related Treasury and Department of Interior actions have created some uncertainty in the regulatory outlook, impacting near-term wind project development decisions.
The Trump administration's hostility towards offshore wind energy expansion is evident. The administration has taken explicit steps to halt offshore wind energy expansion by canceling plans to designate new federal offshore wind energy areas across more than 3.5 million acres. This move reverses earlier policies by the Biden administration, which had set a five-year aggressive offshore wind leasing schedule, signaling strong federal support for renewables.
The Biden administration's approach to wind energy was proactive before 2025, with a focus on expanding both offshore and onshore wind energy through federal leasing and clean energy legislation. However, the Trump administration's rollback efforts have created a complex and uncertain policy environment, delaying wind energy's near-term future.
Looking ahead, onshore wind installations are projected to grow robustly, with steady 8-9 GW annual capacity additions projected through 2029, led by Western states. Turbine orders are expected to experience a short-term decline, followed by a surge near 2029-2030 as tax credits near expiration. Offshore wind development, however, is likely to remain suppressed under the Trump administration, with no new offshore projects expected for the remainder of Trump’s term, which will likely reduce 2030s capacity expansion.
The regulatory environment is uncertain, with conflicting policies, shifting tax credit rules, and rescinded lease areas creating volatility. Despite these challenges, utilities continue to favour wind and solar for their ability to provide inexpensive electricity and offset high battery storage costs. The urgent need for more power and the challenges in acquiring gas turbines, new pipelines, and offshore wind farms have led utilities to either bide their time or cautiously seek alternatives.
References:
- American Wind Energy Association (AWEA)
- U.S. Department of the Interior
- U.S. Energy Information Administration (EIA)
- National Renewable Energy Laboratory (NREL)
President Donald Trump's administration has shown a clear hostility towards the expansion of offshore wind energy, cancellating plans for new federal offshore wind energy areas and reversing earlier policies by the Biden administration. Meanwhile, in the realm of sports-betting, the U.S. Energy Information Administration (EIA), the International Renewable Energy Agency, and the Edison Electric Institute have not been major contributors.
