Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Economy

The Wind Industry Is Putting on a Brave Face

After Trump’s executive orders took aim at wind developers, they’re mostly keeping a stoic silence.

•
A wind turbine and a huge wave.
Heatmap Illustration/Getty Images

The newly inaugurated president does not like the wind industry. Especially the offshore wind industry.

Donald Trump on Monday night issued an expansive executive order targeting the sector that the industry is only just starting to digest. And while the executive order was mostly being seen as a pause or moratorium on new offshore leasing, it could have much more wide-ranging effects. It calls for the Secretary of the Interior and the Attorney General to “conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases, identifying any legal bases for such removal,” thus calling gigawatts of existing, permitted projects into doubt.

“The executive order pausing new offshore wind leasing and permitting is a blow to the American offshore wind industry and hurts the hundreds of U.S. supply chain companies and thousands of workers already building more American energy,” Liz Burdock, the chief executive officer of the Oceantic Network, an offshore wind industry group, said in a statement. “Today’s actions threaten to strand $25 billion already flowing into new ports, vessels, and manufacturing centers, and curtail future investments across our country.” Companies that have active offshore projects have been largely mum on the order. A spokesperson for Orsted, the Danish company behind the under-construction Revolution Wind project off the coast of Rhode Island and the Sunrise Wind project off the coast of Long Island, told me only that it was “in the process of reviewing it to assess the impact on our portfolio.”

A spokesperson for Equinor, which is working on the Empire Wind project, projected to start serving New York City in 2026, told me, “Equinor is committed to advancing a broad energy portfolio that supports a domestic supply chain, generates skilled jobs, and makes a lasting contribution to American energy security. We will continue to assess all policy developments and work with the Trump administration as we deliver long-term energy solutions for the growing American economy.”

Several other major offshore and onshore wind developers, including Pattern Energy, Avangrid, and NextEra either did not respond to requests for comment or would not comment on their ongoing projects in light of the order.

Trade group officials and outside experts were skeptical that the order would stop projects currently under construction like Revolution Wind, Vineyard Wind in Massachusetts, or the Coastal Virginia Offshore Wind Project, backed by the utility Dominion. Projects like Empire and Sunrise Wind, which have started some onshore construction, may survive as well. But the Biden Administration also permitted a flurry of projects in its final year, including SouthCoast Wind, New England Wind, Atlantic Shores South, and the Maryland Offshore Wind Project, and those may now be in doubt.

“Projects with steel in the water are probably safe,” Cy McGeady, a fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, told me. “I’d be shocked if a project with steel in the water has its permit revoked.” But of those that haven’t yet gotten started, he cautioned, “It’s those projects that are most at risk.”

Shares of Orsted fell over 9% in the United States Tuesday after the company announced $1.7 billion in impairments due to delays on its Sunrise Wind project — not related to the executive orders. The company also said it was marking down the value of its leases off the coasts of New Jersey, Maryland, and Delaware, and cited “considerably increased project costs,” as well as delays linked to transmission equipment for the wind turbines.

“Delivering the project within the updated schedule and cost is an absolute top priority for Orsted,” the company’s chief executive Mads Nipper said in a statement on the accounting changes.

The executive order comes after a dreadful few years for the offshore wind industry, which has been hammered by high costs, delays, and interest rate hikes, which led to several project cancellations even before Trump’s victory. The wind industry as a whole has seen slowing growth, thanks to difficulties building adequate transmission, exposure to high interest rates, and rising local opposition. New wind energy additions in the United States peaked in 2020 and 2021 with 14 gigawatts of added capacity, falling to just over 6 gigawatts in 2023.

The executive order also, at best, means no more new leasing for the duration of Trump’s time in office, calling into question the growth prospects of the whole offshore wind industry in the United States. Onshore wind may be on firmer ground, as many projects, especially in Texas, are not built on federal lands and do not require the full federal permitting process to be built.

“If the growth prospects are curtailed or drastically limited or at least diminished for the next four-plus years,” McGeady told me, referring to the offshore wind industry, “then it’s much harder to justify costs in the near term investment and expenditure of capital for an industry that might never launch.”

Blue

You’re out of free articles.

Subscribe to access Heatmap's exclusive climate and energy polling, award-winning journalism, and subscriber-only events. Save $57 on an annual subscription, just $156 $99/year.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Politics

California Just Voted for Single-Payer Wildfire Insurance

Progressive candidate Jane Kim declared victory in the race for California Insurance Commissioner.

Jane Kim and Ben Allen.
Heatmap Illustration/Getty Images, Jane Kim, Ben Allen

Few political wonks outside of California were likely paying much attention to the Golden State on Tuesday night, as Democrats’ anticipated blue wave crested. But the state did have one close, consequential race on the ballot: insurance commissioner. On Friday, Bernie Sanders-endorsed progressive Jane Kim won the race to lead the California Department of Insurance, which oversees the state’s $452 billion insurance market.

Kim declared victory over the more moderate State Senator Ben Allen, who was backed by the California Democratic Party, after reaching a nearly six-point lead on Friday. In a brief speech before supporters, Kim said Allen called to congratulate her that morning. (A spokesman for the Allen campaign confirmed the call to The Orange County Register.) Kim ran on a proposal for a state-run, single-payer insurance program that would cover homeowners against wildfire damage — though the plan would ultimately need approval from both the California legislature and Governor-elect Xavier Becerra.

Keep reading...Show less
Yellow
Data center construction.
Heatmap Illustration/Getty Images

Beyond the repudiation of Donald Trump, if there was one message voters sent on election night, it was that they really don’t like data centers.

Democrats who ran against rampant data center development won at both the gubernatorial level (Amy Acton in Ohio, Gina Hinojosa in Texas) and the senatorial level (Abdul El-Sayed in Michigan, Annie Andrews in South Carolina). The Wall Street Journal counted 125 Democrats nationwide who “targeted their opponents over data centers.”

Keep reading...Show less
Yellow
Mike Levin.
Heatmap Illustration/Getty Images

It’s crunch time for the Senate’s bipartisan permitting reform and transmission bill. In three days, the bill’s authors plan to put the Bipartisan American Affordability and Jobs Act to a vote on the Senate floor. That means there’s probably only three days to finish up an amendment to the bill that addresses critics’ concerns without toppling the delicate balance the authors initially struck to foster bipartisan support.

BAAJA has major implications for climate policy, as it would make it much easier and cheaper to build high-voltage transmission lines that connect renewable energy from where it is generated to demand centers. It includes ratepayer protection provisions that require data centers to pay all of the costs of upgrading the grid so that they can hook up to it. The bill would also speed up permitting for energy projects of all stripes, from solar farms and geothermal plants to pipelines and liquified natural gas terminals.

Keep reading...Show less
Blue