South Dakota Establishes Itself as a Renewable Energy Leader

South Dakota has spent the last decade or so quietly establishing itself as a leader in America’s renewable energy space. Surprisingly, the Midwestern Republican-led state has built an energy portfolio that’s so incredibly clean that it rivals notoriously green states like Vermont, Oregon, and Washington State.

Most people picture predominantly Democratic states like California when they think of states with notably high shares of green energy in their energy mix. However, South Dakota draws a majority of its energy from renewable energy sources despite being Republican-led.

In fact, South Dakota now generates more energy from renewables than any other state in the country, an incredibly impressive feat for the predominantly red state. According to the 2024 State of Renewables Report by Environment America, the amount of green energy generated in South Dakota last year was enough to cover 92% of the total electricity sold throughout the state.

Wind was the most dominant source of clean energy, accounting for over 50% of all of South Dakota’s energy production, followed by hydropower, solar, and biofuels. The state’s massive green energy production and its growing dependence on renewables were mostly driven by practicality and geography, rather than politics and climate action.

South Dakota generates immense amounts of wind energy thanks to its flat, wind energy-friendly terrain. This open, flat terrain ensures South Dakota has consistent and reliable winds and makes it the perfect place to deploy wind farms. As a result, South Dakota is generating and using enough wind energy to offset over 10 million metric tons of CO₂ every year.

This is equal to removing 2.2 million internal combustion engine vehicles from the state’s roadways. Wind energy production in the Mount Rushmore state has quadrupled since 2019, and South Dakota is now home to 29 wind projects capable of producing electricity for over 2 million homes.

With census data indicating that there are around 360,000 homes in the state, South Dakota could power all its homes many times over using wind energy.

Hydroelectric power from dams installed along the Missouri River also covered a notable portion of South Dakota’s energy needs at 21%. Solar energy currently provides a minuscule amount of energy for South Dakota, but its output is growing steadily due to technological advancements, falling prices, and a growing solar market. This allowed South Dakota to increase its solar energy output from just 4 gigawatt hours in 2022 to a whopping 356 GWh in 2024.

South Dakota’s overwhelming reliance on renewable energy could serve as a blueprint for other states, especially rural states with limited access to grid electricity. Regardless of political ideology, South Dakota proves that clean energy adoption can be driven by local geography and practical benefits. As electricity demand in the U.S. continues to grow, other regions may find similar success by embracing green power tailored to their unique conditions and needs.

As more states embrace green power, the prospects of firms like SolarBank Corp. (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) will only face one direction, up.

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