In this article, we will take a detailed look at the 20 States That Produce Most Wind Energy with insights into wind power generation. You can skip our detailed introduction to the renewable energy industry and go to 5 States That Produce Most Wind Energy.
Since the 1970s, concerns about the sustainability and environmental impact of fossil fuel usage have spurred the growth of wind power technology. There are 72,731 turbines covering 43 states in the U.S. Today, electricity derived from wind farms powers about 20 million homes annually in the United States. In 2022, wind turbines generated 10.2% of the country's electricity. After hydro-power, wind power is now the second-largest renewable energy source in the United States. Accordingly, by 2030, wind energy could provide 20% of the nation's total power.
Consequently, the U.S. wind energy market is anticipated to register a compound annual growth rate (CAGR) of approximately 5.87% during the forecast period 2022-2027. Despite the COVID-19 pandemic, the market witnessed a significant growth of around 14 GW in 2020. The market experienced a slight disturbance only in Q1 and Q2 of 2020. Favorable government policies, increasing investment in wind power projects, and reduced cost of wind energy are the major factors attributing to the market's growth. These factors have led to increased adoption of wind energy, thereby positively contributing to the demand for wind energy.
A Look Into the U.S. Wind Energy Market
NextEra Energy Inc (NYSE:NEE), a prominent player in the renewable energy sector, has faced challenges as its stock market performance dipped in the face of broader market pressures. NextEra Energy Inc (NYSE:NEE) is a less volatile utility stock than the overall stock market, with a beta of 0.30. This makes it a good choice for investors seeking stability. However, its dividend yield is only 1.8%, lower than many other utility stocks. Additionally, like all utilities, NextEra Energy Inc (NYSE:NEE) faces risks from inflation and rising interest rates. NextEra Energy Inc's (NYSE:NEE) stock price has fallen 40% year-to-date. This is due to several factors, including rising interest rates and the company's decision to cut its dividend. Despite the recent stock price decline, analysts remain bullish on NextEra Energy Inc’s (NYSE:NEE) long-term prospects.
Duke Energy Corp (NYSE:DUK) is a leading electric utility company in the Southeast and Midwest regions of the United States. It provides retail electric services to 7.7 million customers in six states: North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Duke Energy Corp (NYSE:DUK) generates electricity using various sources, including coal, natural gas, fuel oil, hydro, nuclear fuel, and solar.
Duke Energy Corp (NYSE:DUK) also has a 50% interest in joint venture electricity transmission projects such as Duke-American Transmission Co. and Pioneer Transmission, LLC. In FY2022, Duke Energy Corp's (NYSE:DUK) capital investment expenditures stood at US$8,985 million, which grew 17.4% year-over-year. This investment is being used to support the company's clean energy transition and to meet the growing demand for electricity from its customers.
Moreover, Duke Energy Corp (NYSE:DUK) has committed to investing $145 billion over the next decade in capital projects, most focusing on modernizing the grid. In 2022, Duke Energy Corp (NYSE:DUK) partnered with Amazon Web Services (AWS) to develop industry-leading intelligent grid solutions that will benefit its customers and help advance its clean energy transition to deliver reliable, affordable, and increasingly clean energy. This includes improving the grid's reliability and resiliency, connecting a growing number of renewable, and preparing the grid for rapid EV adoption. To achieve these goals, Duke Energy Corp (NYSE:DUK) will leverage rich data about customer energy demands, grid loads, and advanced analytical tools. AWS will provide Duke Energy Corp (NYSE:DUK) with the cloud computing platform and tools it needs to develop and deploy innovative grid solutions.
For our list of 20 states that produce most wind energy, we consulted the most recent wind power generation data provided by the U.S. Energy Information and Administration. This data is reliable due to its comprehensiveness, focus on wind energy, and reputation for accuracy, ensuring a robust and credible assessment of states' wind energy production. The states were then listed in ascending order of Wind Power Generation in 2022.
Wind Power Generation (Billion Kilowatt-hours): 4.034
Montana is a state with abundant wind resources. In 2022, wind energy accounted for 7.5% of the state's total electricity generation, and renewable energy accounted for 45%. Several factors make Montana an excellent place to develop wind energy. First, the state has strong and consistent winds. Second, Montana has a lot of open land suitable for wind farm development. Third, Montana has a supportive regulatory environment for wind energy.
Wind Power Generation (Billion Kilowatt-hours): 4.786
New York State is committed to developing offshore wind energy to help meet its ambitious renewable energy targets. In July 2022, New York State launched its third competitive solicitation for offshore wind energy, intending to procure at least 2,000 additional megawatts. This follows the State's selection of two offshore wind projects in 2020 totaling nearly 2,500 megawatts. Once completed, these projects will generate enough electricity to power 1.3 million homes.
Wind Power Generation (Billion Kilowatt-hours): 7.467
Wind energy is a growing source of clean energy in Missouri. In 2022, wind energy provided 77% of the state's renewable electricity generation. Missouri has about 2,100 megawatts of wind power generating capacity, more than three times the state's conventional hydropower generating capacity.
Wind Power Generation (Billion Kilowatt-hours): 9.11
Michigan is the wind energy leader in the Great Lakes region, with over 750 turbines producing over 1368 MW of electricity. Wind energy accounted for 8% of Michigan's electricity generation in 2022. Michigan's Great Lakes wind energy potential could meet 18 times its 2020 electricity demand. The residential sector is the largest energy consumer at 28%, followed by transportation at 26%, industry at 24%, and commerce at 22%.
Wind Power Generation (Billion Kilowatt-hours): 9.12
Oregon's onshore wind energy is the second-largest zero-carbon electricity source in the state after hydro-power. Wind power accounts for 11.6% of Oregon's electricity generation and 4.69% of its energy consumption. Oregon's wind capacity has grown significantly since 2001, when the state's first wind facility was built. With 3,415 MW of wind generation, Oregon is ninth nationally in overall wind capacity and third among the 14 U.S. states in the Western Electricity Coordinating Council.
Wind Power Generation (Billion Kilowatt-hours): 9.148
Washington leads the nation in electricity generation from renewable resources, with more than two-thirds of its electricity coming from hydroelectric power. The Grand Coulee Dam on the Columbia River is the largest power plant in the country by far, and it produces enough electricity to power 2.3 million homes. Wind power is the state's second largest renewable energy source, providing about 7% of its electricity in 2016.
Wind Power Generation (Billion Kilowatt-hours): 9.766
Indiana is home to over 2,300 MW of wind capacity, including the fourth-largest wind farm in the U.S. The state ranks 12th in the U.S. for the number of wind turbines, with 1,264. In 2019, wind generated 6% of electricity in Indiana, with 16 projects in service. Over 1,100 MW of new wind projects are in development or construction. The 2021 legislative session proposed changes to Indiana's approach to wind energy, recognizing the need to power Hoosier homes with clean, renewable energy.
Wind Power Generation (Billion Kilowatt-hours): 10.02
Wyoming is a wind energy powerhouse. With over 3,000 megawatts of wind power generating capacity, the state produces almost 12 times more energy than it consumes. It is the second-biggest net energy supplier among the states after Texas. Wind power generation in Wyoming has more than doubled since 2019, accounting for 22% of the state's total electricity net generation in 2022. The state has some of the best wind resources in the country, with average wind speeds of over 20 miles per hour in many areas.
Wind Power Generation (Billion Kilowatt-hours): 10.325
South Dakota is a leader in wind energy generation, with wind providing 55% of the state's total in-state net generation in 2022. South Dakota's strong wind resources have made it a prime destination for wind energy development, and the state has almost 2,800 megawatts of wind energy capacity at 23 active wind farms. Renewable resources supplied more than four-fifths (84%) of South Dakota's total in-state electricity generation in 2022.
Wind Power Generation (Billion Kilowatt-hours): 12.555
Since the construction of the state's first wind farms in 1998, wind energy generation in Nebraska has sky-rocketed to nearly 9.5 billion kilowatts in 2021. As of the end of 2021, Nebraska was one of 20 states with over 1,000 megawatts of installed wind capacity, which is growing. Currently, 32 wind facilities are operating across the state, with another 25 new facilities in development, including 11 in eastern Nebraska. Nebraska's abundant wind resources and commitment to renewable energy have made it a prime destination for wind energy development.
Wind Power Generation (Billion Kilowatt-hours): 14.273
Wind energy is a significant renewable energy source in Minnesota, providing 22% of the state's total in-state electricity net generation in 2021. Renewable generation has almost doubled over the past decade, with wind energy leading. Due to its substantial wind resources and supportive regulatory environment, Minnesota is a prime destination for wind energy development. The state has over 4,000 megawatts of installed wind capacity, and more wind projects are in effect.
Wind Power Generation (Billion Kilowatt-hours): 14.48
Renewable energy in New Mexico could triple after the State Land Office completed an auction of public land throughout the state to be used for wind energy production. The 11 leases sold in the auction went to Pattern Energy, totaling about 147,685 acres. This could increase renewable energy capacity on state land to more than 1,200 megawatts, compared with about 400 MW in 2019. The leases are primarily in Central New Mexico, with five in Lincoln County, four in Torrance County, and two spanning Torrance and San Miguel counties.
Wind Power Generation (Billion Kilowatt-hours): 15.69
Wind energy is a significant renewable source in California, providing 11% of the state's total system power in 2020. This is more than enough to power all homes in Sacramento, San Francisco, and Los Angeles counties combined. In 2020, California wind projects generated 13,703 gigawatt-hours (GWh) of electricity, or 7.2% of all power developed within the state. Out-of-state wind projects generated an additional 16,635 GWh of electricity for California, representing 20% of total power imports. Combined, wind energy accounted for 27% of California's renewable energy production for the Renewables Portfolio Standard (RPS) in 2019.
Wind Power Generation (Billion Kilowatt-hours): 16.571
With over 4,300 megawatts of installed wind power generating capacity, North Dakota produces nearly two-fifths of its electricity from wind, making it the second-largest electricity generating source in North Dakota and the fourth-largest in the nation. The state has some of the best wind resources in the country, with average wind speeds of over 20 miles per hour in many areas.
Wind Power Generation (Billion Kilowatt-hours): 16.706
Colorado leads the nation in wind energy generation, with wind providing 27.9% of all electricity in Colorado. Wind energy projects offer a secure, local energy source, save water, and reduce residents' exposure to harmful pollutants. Total wind energy investment in Colorado is $9.8 billion. More than $10 million in state and local tax dollars are generated by wind energy projects annually, and more than $18 million goes to Colorado residents directly in the form of land lease payments.
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Disclosure. None. 20 States That Produce Most Wind Energy was originally published on Insider Monkey.