New Center for Rural Affairs Resource Examines Minnesota Wind Energy: Growth, Gaps, and Rural Impact

Wind energy has a long-standing presence in Minnesota, with the state’s first project becoming operational in 1994. Since then the state has capitalized on its abundant wind resources to become a national leader in generation. In 2023, wind energy accounted for more than three-fourths of Minnesota’s renewable generation and 25% of the state’s total net generation, placing the state among the top 10 nationwide for in-state generation from wind.

The Center for Rural Affairs has released a fact sheet providing an analysis of Minnesota’s wind energy industry, reviewing existing policies and identifying opportunities to enhance future development.

“Minnesota has strong energy policies that continue to support wind development,” said Cora Hoffer, senior policy associate at the Center for Rural Affairs. “Beyond providing clean, homegrown, low-cost energy, wind also delivers local economic benefits by creating jobs and generating tax revenue for counties.”

Wind plays a role in meeting Minnesota’s carbon-free electricity goal, which requires all utilities to deliver 100% carbon-free electricity by 2040. Continued growth in renewable energy will also depend on strategic investments in transmission infrastructure and reforms to streamline the permitting process.

“When transmission infrastructure lacks sufficient capacity and cannot support the amount of energy being generated, congestion occurs,” said Hoffer. “This limits how much wind energy can be delivered and costs Minnesotan communities.”

In Minnesota, wind farms pay host communities tax revenue based on the amount of energy produced. In 2021, wind production in the Buffalo Ridge area dropped more than 50% due to lack of transmission capacity, costing three rural counties over $1 million and 15 others another $700,000.

“In many rural counties with limited tax bases, revenue from wind projects is vital for funding infrastructure improvements and emergency services,” said Hoffer. 

Center for Rural Affairs | cfra.org/publications