The US wind sector is rising. The passage of the Inflation Reduction Act raised hopes that had sunk over two years of uncertainty over the prospects for continued tax equity support. It saw tax credits not only extended but also strengthened with adders and transferability. The longer runway for the support it provides will bring new players to the wind investment table, among them corporations and foreign investors.
But at the same time, the current war-induced inflationary environment is putting more cost pressure on wind development, bringing a shock rise in costs to an industry founded on the principle of costs going down. Certain projects are being pushed to renegotiate their offtake agreements.
Even without inflation, supply chain and transmission development chasms are yet to be traversed at the federal level. Questions about the future availability of wires and wind turbines are already holding back wind developers, banks and firms who would otherwise be charging full steam ahead.