LITTLETON, Colorado, Dec 23 (Reuters) - Like any

industry, wind energy has had its good and bad years. But 2025

may be one of the worst: a toxic stew of major policy reversals,

corporate upheaval and sub-par generation in key markets.

U.S. President Donald Trump's policy U-turn on renewable

energy likely ranks as the most damaging development. It sparked

a freeze on offshore project work in the Atlantic and dealt a

heavy blow to power developers and specialist wind firms alike.

Disappointing auctions for new wind power capacity across

Europe - some in Germany and ‌Denmark with no bids at all -

highlight that wind's woes extend well beyond U.S. shores.

Throw in mass layoffs, project pull-outs by prominent

developers and months-long stretches of below-normal output in

key markets, and 2025 becomes a year to forget for the industry.

That said, there ​are reasons to expect some improvement in

2026 as changes to auction incentives, supply chain adjustments

and demand growth for power from all sources spur continued wind

energy uptake around the world.

Below ‍is a breakdown of the major factors that impacted the

wind sector in 2025, and what to look out for in 2026 ⁠and

beyond.

SLOWEST GROWTH IN DECADES

On top of all the ⁠external factors that bashed wind

developers in 2025, the performance of existing wind farms did

little to bolster the sector's reputation as a reliable power

source.

Indeed, global electricity generation from wind farms this

year is on track to register its smallest growth rate ‌in more

than 20 years, thanks in large part to sustained stretches of

sub-par generation in Europe and ​North America.

Global wind-powered electricity production through the first

10 months of 2025 amounted to 2,158 terawatt hours (TWh), data

from think tank Ember showed.

That is a record, but only 7% higher than the same period in

2024, compared with an average annual growth rate of 14% from

2015 through 2024.

Four straight months of year-over-year ⁠declines in wind

generation in Europe - the second-largest wind-producing region

after Asia - were a key factor in ‍hobbling global wind output

growth ​right at the start of 2025.

Mid-year declines in wind generation in North America - the

third-largest wind production region - then weighed further on

global wind output as the region recorded output declines from

the year before in April, May, June, August and September.

Even Asia - which accounts for around 45% of global wind

power production - registered rare year-over-year drops ‍in wind

generation in September and October, further stifling global

output growth.

POLICY AND COMPANY TURBULENCE

Just as existing wind farms were struggling to perform as

expected, planned future projects were being buffeted by major

sudden shifts to key policies and power auction participation

levels.

In the U.S., the Trump administration's scrapping of federal

support for wind power accelerated the phase-out of tax credits,

tightened start-of-construction rules and imposed tougher limits

on foreign-made components. Those changes look set to slow both

onshore and offshore project growth for years.

In Europe, the string of dismal wind power auctions spurred

key developers, including Denmark's Orsted and

Vestas, to push for faster permitting and better

auction terms in order to boost investments.

Some of those proposed changes are likely to take effect in

2026, and could ignite broader interest in the build-out of ​new

wind capacity across the ‍region.

In Japan, soaring cost estimates for planned offshore

projects caused Mitsubishi ( MSBHF ) to pull out of three

projects that were slated to start operations by 2030.

However, the Japanese government has since made changes to

wind project policies that are designed to allow greater

flexibility for developers, provide more financial support and

expand the area eligible for offshore wind ​projects.

As with Europe's policy tweaks, these changes are likely to

rekindle interest in expanding Japan's wind power footprint in

2026 and beyond, despite the tough going so far in 2025.

CHINA-LED

Even as wind developers endured setbacks elsewhere, wind

power output in China - by far the world's top deployer and

producer of wind power and its components - is on track to post

more than 10% growth in wind energy for the 25th year in a row.

China's share of global wind power output is set to rise to

a record above 41% in 2025, from just under 40% in 2024.

The sheer scale and pace of China's ongoing wind farm

expansion means global wind production will likely keep hitting

new highs in the coming years, even if growth grinds to a halt

in the U.S. and stays weak in Europe.

China's steady flow of wind component exports - up more than

20% to ​over $4 billion so far in 2025, per Ember data - also

means supplies of wind parts are climbing in almost every

region.

Combined with the ongoing need to boost power output in

almost every country, those swelling wind power supplies look

set to ensure that wind power's global footprint keeps growing

in 2026 and beyond - despite 2025's heavy turbulence.

The opinions expressed here are those of the author, a columnist

for Reuters.

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