Renewable power developers energized half as much wind power capacity in the third quarter than in the year-ago period, according to S&P Global Market Intelligence data.
It was one of the slowest quarters in at least five years with only 288 MW of new wind power capacity connected to US electric grids. The figure stands in contrast with the third quarter's surge in solar energy installations. And it is also an aberration from the first two quarters of the year, when developers commissioned a combined 2,871 MW of new wind capacity.
As of the third quarter, 2023 has been slower than the prior year. Developers in the first three quarters added 3,159 MW, compared with 5,361 MW of capacity added in the first three quarters of 2022.
Still, with new federal incentives from the Inflation Reduction Act, 2024 looks brighter for developers, with 17,040 MW scheduled for commissioning next year. Of that capacity, 2,736 MW is under construction.
Wind energy took off in the 2010s and now contributes approximately 10% to the US electricity supply, according to the US Energy Information Administration. But more recently, solar power capacity additions have outpaced that of wind as renewable energy developers look to take advantage of large markets where the sun shines bright, such as in Texas. The boom in battery storage installations, often colocated next to solar energy generators, has also contributed to more demand for solar energy in states looking to decarbonize power grids.
In the third quarter, the five-year pipeline for wind shrank to 72,885 MW, from 79,972 MW in the second quarter.
Of the total pipeline for projects for 2023–2027, about 11%, or 8,358 MW, is under construction; 23%, or 16,403 MW, is in advanced development; 43%, or 31,559 MW, is in early development; and 23%, or 16,564 MW, represent projects in the announced phase.
Market Intelligence considers a project as under construction when building activity has begun; site preparation does not qualify. Projects in advanced development must meet two of five criteria: financing is in place, power purchase agreements are signed, equipment is secured, required permits are approved or a contractor has signed on to the project. A project is in early development after permitting begins. An announced project must have a listing in an interconnection queue with an accompanying public announcement or permitting action.
Ørsted A/S commissioned the largest project of the quarter, the 200-MW Sunflower Wind Farm in Marion County, Kansas. Ørsted is selling the power to various corporate clients including Walmart. And Algonquin Power & Utilities Corp. energized the second-largest project of the quarter, the 88-MW Sandy Ridge Wind 2 Plant in Blair County, Pa.
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