Renewable Energy Infrastructure Gaps in Non-Leading US States: High-Conviction Investment Opportunities

The U.S. renewable energy landscape is undergoing a transformative shift, with investment and policy momentum increasingly extending beyond traditional leaders like Texas and California. While these states dominate headlines, non-leading states—such as Iowa, Kansas, Oklahoma, and South Dakota—are emerging as critical hubs for clean energy innovation and infrastructure development. These regions present high-conviction investment opportunities, driven by untapped capacity, supportive policy frameworks, and growing demand for grid resilience.

Renewable Energy Capacity in Non-Leading States

According to a report by Clean Edge, Iowa led the nation in 2024 with 63.3% of its electricity generated from renewables, primarily wind 2024 Top 10 Renewable Energy^[1]. Kansas followed closely at 48.5%, while Oklahoma and South Dakota achieved 41% and 61% respectively 2024 Top 10 Renewable Energy^[1]. Nebraska and North Dakota also demonstrated progress, with 33% and 35% of their electricity coming from renewables 2024 Top 10 Renewable Energy^[1]. These figures underscore a national trend: even states historically reliant on fossil fuels are pivoting toward wind and solar. For instance, Oklahoma's 41% renewable share—driven by wind—reflects a 200% year-over-year increase in clean power capacity NEW REPORT: Clean Energy Dominates in 2024^[2].

Policy Trends and Infrastructure Gaps

The 2024 legislative session revealed a surge in grid modernization efforts across non-top states. As noted in the National Conference of State Legislatures (NCSL) report, 30 states introduced grid-enhancing technologies (GETs) like reconductoring and microgrids to avoid costly new transmission lines 2024 Legislative Energy Trends - National Conference of State Legislatures^[3]. Maine, for example, passed legislation requiring periodic reviews of GETs to optimize grid capacity 2024 Legislative Energy Trends - National Conference of State Legislatures^[3]. Similarly, New Hampshire initiated a microgrid study to bolster energy resilience 2024 Legislative Energy Trends - National Conference of State Legislatures^[3].

However, infrastructure gaps persist. The Business Council for Sustainable Energy highlights that interconnection delays and permitting bottlenecks hinder rapid deployment in states like Louisiana and Oklahoma, where local opposition to wind and solar projects has led to restrictive siting laws Mapping the state-level battles over blocking renewable energy^[4]. For instance, 49% of siting-related bills introduced in 2025 aimed to restrict renewable development, including increased local approvals and setback requirements Mapping the state-level battles over blocking renewable energy^[4]. These challenges create a paradox: while demand for renewables grows—driven by data centers and cleantech manufacturing—supply lags due to outdated grid infrastructure 2025 Renewable Energy Industry Outlook | Deloitte Insights^[5].

High-Conviction Investment Opportunities

1. Solar and Wind Expansion in Sun Belt States
   Nevada, Arizona, and North Carolina have seen solar capacity grow by over 300% since 2020, supported by declining costs and federal incentives like the Inflation Reduction Act (IRA) The top US states for renewable power generation^[6]. For example, Nevada's solar share of renewable capacity now exceeds 40%, creating opportunities for utility-scale solar farms and community solar projects The top US states for renewable power generation^[6].

2. Energy Storage and Grid Resilience
   The U.S. added 7.5 GW of battery storage in 2023, but non-top states lag behind. Investments in storage solutions—such as lithium-ion batteries and flow batteries—could address intermittency issues in states like Kansas and Oklahoma, where wind dominates 2024 Key Trends - Business Council for Sustainable Energy^[7].

3. Grid-Enhancing Technologies (GETs)
   GETs like reconductoring and dynamic line rating offer cost-effective alternatives to new transmission lines. Maine's LD 589 legislation, which mandates GET reviews, signals growing interest in these technologies 2024 Legislative Energy Trends - National Conference of State Legislatures^[3]. Investors could target firms specializing in GET deployment or grid software analytics.

4. Rural Electrification and Microgrids
   States like New Hampshire and Georgia are exploring microgrids to enhance resilience against natural disasters 2024 Legislative Energy Trends - National Conference of State Legislatures^[3]. Federal grants under the IRA's Greenhouse Gas Reduction Fund could catalyze investments in rural microgrid projects, particularly in states with aging infrastructure.

Conclusion

Non-leading U.S. states represent a $303.3 billion clean energy investment frontier, with renewable capacity growing at a 25% annual rate In 2024, the United States produced more energy than ever before^[8]. While challenges like permitting delays and grid constraints persist, the policy momentum and federal incentives create a compelling case for investors. By targeting solar and wind expansion, energy storage, and grid modernization in states like Iowa, Kansas, and Oklahoma, investors can capitalize on a $36 GW renewable and storage deployment pipeline by 2030 2025 Renewable Energy Industry Outlook | Deloitte Insights^[9]. The key lies in aligning capital with state-specific opportunities, leveraging IRA tax credits, and addressing infrastructure gaps through innovative technologies.