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Renewable Energy Landscape in the Wake of Policy Changes
On Inauguration Day, President Donald Trump implemented an executive order that indefinitely stopped the approval of new onshore wind energy projects on federal land. This also includes a halt on new leases for offshore wind farms in U.S. coastal waters. The directive aligns with Trump’s campaign promise to curb wind energy expansion, marking a significant setback for the wind industry which has faced various challenges in recent years, including supply chain disruptions, rising costs, public hesitation, and political opposition against federal tax incentives promoting the offshore sector.
Despite these challenges, the established onshore wind industry is thriving, contributing nearly 11% of the nation’s electricity supply and ranking as the largest source of renewable energy, even occasionally surpassing coal generation last year. On April 8, amidst moves to support coal, the aging wind infrastructure spurred new business prospects for market leaders like GE Vernova, Vestas, and Siemens Gamesa, a Siemens Energy subsidiary.
These repowering initiatives have provided a vital boost to the wind sector, allowing these companies to recover from previous downturns marked by obstacles in both onshore and offshore projects. As a result, in 2024, all three companies recorded revenue growth, with stocks for GE Vernova and Siemens witnessing an upward trend.
GE Vernova, which became an independent entity from General Electric just last year, dominated the onshore wind market in 2024, claiming 56% of installations, while Vestas and Siemens Gamesa held 40% and 4%, respectively.
According to the U.S. Energy Information Administration, installed wind power capacity rose dramatically from 2.4 gigawatts (GW) in 2000 to 150.1 GW by April 2024. Even though the pace of new greenfield onshore projects has slowed over the last decade, projections suggest the U.S. will exceed 160 GW of wind capacity by 2025, as indicated in a report from Wood Mackenzie.
Currently, approximately 1,500 onshore wind farms operate across 45 states, with Texas, Iowa, Oklahoma, Illinois, and Kansas leading in installations. Most of these farms are situated on private land, managed primarily by large energy firms such as NextEra Energy, RWE Clean Energy, and Berkshire Hathaway’s MidAmerican Energy. The latter sources 59% of its renewable energy from wind, powering 3,500 turbines across 38 projects in Iowa.
Many turbines in operation are over 20 years old and approaching the end of their productive lives. This brings a pressing decision for operators: whether to upgrade outdated components or to dismantle them in favor of newer, more efficient models that could boost output by as much as 50%.
“It’s becoming increasingly apparent that a significant portion of the U.S. wind infrastructure has surpassed its design lifespan,” noted Charles Coppins, a research analyst in global wind at Wood Mackenzie. “Operators are turning to the latest turbine technologies to replace aging units.”
So far, approximately 70 GW of onshore capacity has undergone full repowering in the U.S., while another 12 GW has seen partial upgrades. Coppins reported that around 10,000 turbines have already been retired, with another 6,000 expected to follow in the next decade.
Moving forward, upgrading or replacing older turbines has economic advantages for operators and original equipment manufacturers (OEMs). Notably, repowering obviates the need for new land acquisitions. Additionally, newer turbines are often larger and more efficient, requiring fewer units to achieve higher electricity production while extending lifecycle benefits.
However, challenges remain. Stephen Maldonado, an analyst with Wood Mackenzie, pointed out that upgrades must not exceed designated interconnection limits established with local utilities, which could entail additional permitting processes.
Public sentiment also poses obstacles. Many residents voice concerns regarding potential environmental impacts, property devaluation, visual aesthetics, and an overall skepticism toward renewable energy initiatives.
RWE, a subsidiary of Germany’s RWE Group, ranks as the third-largest renewable firm in the U.S. It operates 41 utility-scale wind farms, accounting for 48% of its total capacity, which also incorporates solar and battery storage. The company is presently undertaking two repower projects in Texas, including the Forest Creek wind farm, which originally began operations in 2006. This site will replace its existing Siemens Gamesa turbines with new GE Vernova models, extending its operational life by another 30 years and accommodating increased local energy demands.
According to CEO Andrew Flanagan, these ventures illustrate the dual focus on wind energy generation and local economic contributions, highlighting anticipated job creation and tax revenue benefits from these developments.
Additionally, Siemens Gamesa has undertaken several large-scale U.S. repowering projects, such as the extensive Rolling Hills wind farm in Iowa. In a notable 2019 initiative, this firm replaced outdated turbines with higher-capacity units manufactured within the U.S.
In another development, Clearway recently partnered with Vestas to revamp its Mount Storm Wind farm in West Virginia. This initiative highlights a significant increase in overall electricity production by reducing the original number of turbines required.
Turbine Recycling Initiatives and Economic Factors
Another advantage of repowering is its potential to stimulate the emerging recycling industry tasked with handling the removal of decommissioned wind turbine components, ranging from blades to metals. Modern turbines boast a recyclability rate between 85% and 95%, with design advancements aiming for complete recyclability in the future.
Historically, many turbine blades made from fiberglass and carbon fiber have ended up in landfills, but startups are now exploring innovative recycling solutions. For example, Carbon Rivers partners with turbine manufacturers to reclaim materials from decommissioned blades for reuse in new products. Similarly, Veolia North America converts shredded blades into fuel for cement production, addressing both recycling and waste management challenges.
Further complicating matters for the wind industry, the Trump administration’s fluctuating import tariffs, particularly a 25% tax on steel and aluminum, have also impacted manufacturers across various sectors. However, analysts like John Hensley from the American Clean Power Association note the industry’s strategic progress in domestic manufacturing capabilities, which helps mitigate risks from import tariffs.
Despite the challenges posed by tariffs and administrative policies, the wind industry is focusing on meeting the growing electricity demand in the U.S. “By 2040, we anticipate a 35% to 50% increase in demand,” remarked Hensley. “It’s comparable to adding a new Louisiana to the power grid every year for 15 consecutive years.”
In recent discussions, GE Vernova’s CEO Scott Strazik highlighted that the current uptick in U.S. electricity demand represents the most significant growth since the post-World War II industrial expansion. “The infrastructure development expected is reminiscent of that transformative era,” he noted.
As the wind sector grapples with rising capital costs and policy uncertainties, repowering stands out as a viable strategy to enhance electricity supply while addressing logistical and regulatory hurdles more effectively.
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