Wind Energy in Arkansas: Impacts of the 2025 Wind Energy Development Act and Future Outlook
The landscape of wind energy development in Arkansas has shifted significantly over the last year. Of the Southeastern states, Arkansas has some of the greatest wind energy potential and the most robust pipeline of proposed land-based wind projects. Last year brought both the ribbon cutting of the state’s first wind project, Crossover Wind, but also passage of one of the strictest wind regulations in the country, the Arkansas Wind Energy Development Act. As the state's regulatory landscape and project pipeline rapidly shifts, it is important to understand the implications of these new regulations, including their impacts on the economic prosperity of Arkansas.
Arkansas leads the Southeast in early-stage wind development, with over 2.5 GW under development across at least eleven projects visible in the Midcontinent Independent System Operator (MISO) interconnection queue. Most of these proposed projects are concentrated in the Delta region, although some are located on ridgelines of Northwest Arkansas. Cordelio Power’s Crossover Wind project reached commercial operation in June 2025, marking Arkansas’s first utility-scale wind project. The Nimbus Wind project, under development by Scout Clean Energy in Northwest Arkansas, is under construction and expected to be online by Spring 2026.
Crossover Wind is now generating electricity while contributing measurable local benefits. Crossover Wind provides approximately $450,000 each year in property tax revenue to Cross County’s general fund. That revenue supports schools, infrastructure, and essential public services without requiring an increase in local tax rates. In addition to these fiscal contributions, the project creates ongoing operations and maintenance jobs and supports local businesses through service contracts, lodging, and supply purchases. Participating landowners receive long-term lease payments that supplement agricultural income while allowing existing farming and ranching activities to continue. Together, these impacts represent a combination of public revenue, private income, and local economic activity associated with utility-scale wind development.
Despite these benefits, resistance to wind energy development has gained traction in Arkansas. During the 2025 legislative session, a flurry of wind-related bills were introduced—the most consequential being Act 945, enacted in April 2025. Act 945, known as the Arkansas Wind Energy Development Act, imposes sweeping siting restrictions widely seen as a de facto ban on new wind development. Some of the harshest requirements include a minimum setback of 3.5x turbine height from non-participating landowners, and 1 mile from schools, hospitals, nursing homes, churches, and other public spaces. For reference, the industry standard for setback requirements is 1.1x–2.1x turbine height.
Act 945 exempts wind projects “under development” as of April 9, 2025, but it is unclear what qualifies a project to be exempted. As the Arkansas Public Service Commission (PSC) commenced rulemaking throughout the fall of 2025 to implement Act 945, wind industry comments led by the Southern Renewable Energy Association, recommended establishing specific criteria and a straightforward process for project developers to request exemption status. In their final rulemaking, published in December 2025, the PSC declined to create a standard exemption process, instead electing to evaluate projects on a case by case basis with no clear decision making timeline.
This lack of clarity on what projects are eligible for exemption creates confusion and uncertainty in the future of Arkansas’ wind industry. The PSC’s decisions about which projects are grandfathered will influence whether projects currently in the MISO queue are able to reach completion and begin delivering power to Arkansas. Removing counties from the decision-making process reduces economic development opportunities for rural communities seeking to support energy independence while securing a stable source of income.
As implementation of Act 945 continues, the central question is whether Arkansas maintains a regulatory framework that allows viable wind projects already in development to proceed. Clear standards and predictable processes for exemption decisions would provide greater certainty for developers, landowners, utilities, and local governments. The experience of Crossover Wind shows that when projects move forward, they can deliver lasting economic benefits while contributing to a more diverse and resilient energy system. The choices made now will determine whether Arkansas remains positioned to attract long-term energy investment and strengthen grid resilience, or whether those opportunities shift elsewhere.