Making up more than 35% of the state's generated electricity, Iowa is a leading U.S. state in wind power generation. The development of wind power in Iowa began with a state law, enacted in 1983, requiring investor owned utilities purchase 105 MW of power from wind generation. In 2016, over 20 billion kWh of electrical energy was generated by wind power. As of February 2016, Iowa had over 6,300 megawatts (MW) of capacity. By 2020 the percentage of wind generated electricity in Iowa could reach 40 percent.
In addition to federal programs, the state of Iowa encourages development of renewable electricity sources through a 1 cent per kilowatt hour tax credit. Also, generation equipment and facilities receive property tax breaks, and generation equipment is exempt from sales tax.
The development of wind power in Iowa began with the enactment in 1983 of a state law that required investor-owned utilities in the state to buy a total of 105 MW of power from wind generated electricity, one of the first renewable electricity portfolio standards. This provided assurance to those building wind power installations that there would be a market for the electricity they produced.
In 2010 and in 2009, Iowa led the U.S. in the percentage of electrical power generated by wind, at 15.4 percent and 14.2 percent. This was up from 7.7 percent in 2008, as there was a large increase in the installed capacity in 2008. Some of the wind power generated electricity is sold to utility companies in nearby states, such as Wisconsin, and Illinois.
Wind farms are most prevalent in the north and west portion of Iowa. Wind maps show the winds in these areas to be stronger on average, making them better suited for the development of wind energy. Average wind speeds are not consistent from month to month. Wind maps show wind speeds are on average strongest from November through April, peaking in March. August is the month with the weakest average wind speeds. On a daily cycle, there is a slight rise in average wind speeds in the afternoon, from 1 to 6 p.m. Estimates by the National Renewable Energy Laboratory (NREL) indicate Iowa has potentially 570,700 Megawatts of wind power using large turbines mounted on 80 meter towers. Iowa ranks seventh in the country in terms of wind energy generation potential due to the strong average wind speeds in the midsection of the U.S. The Iowa Environmental Mesonet distributes current weather and wind conditions from approximately 450 monitoring stations across Iowa, providing data for modelling and predicting wind power.