Wind Energy Faces Turbulence in 2025

Wind energy faced significant challenges in 2025 due to policy reversals, corporate upheaval, and poor electricity generation in key markets. Despite setbacks in the U.S. and Europe, China continued to expand its wind capacity. Prospects for improvement in 2026 are evident with policy changes and supply chain adjustments.

Wind energy faced a tumultuous year in 2025, marked by unfavorable policy changes, company disturbances, and disappointing electricity outputs in critical markets. U.S. President Donald Trump's policy shifts on renewable energy led to a standstill on offshore projects and adversely affected power developers and wind specialists.

Europe witnessed unsuccessful auctions for new wind power, with Germany and Denmark recording no bids, underscoring the industry's global struggles. Widespread layoffs and project withdrawals by established developers added to the woes, making 2025 a challenging year for wind energy.

Nonetheless, the outlook for 2026 is brighter, as changes to auction incentives, supply chain adjustments, and escalating demand for cleaner energy sources are expected to rejuvenate the sector. Meanwhile, China's steadfast expansion of wind farms remains a beacon of growth in an otherwise turbulent landscape.

(With inputs from agencies.)