International developer RWE,one of the most active players in the U.S.offshore wind market and the second-largest in the world,is reportedly pausing work on its American projects,citing mass uncertainty triggered by the Trump administration’s policies.
“In the US…We have stopped our offshore activities for the time being,”RWE CEO Markus Krebber informed Reuters ahead of the company’s annual meeting.“We remain cautious given the political developments.”
“Energy supply is a long-term business,and companies in the sector are particularly dependent on reliable framework conditions.If the regulatory framework deteriorates,investments could become less attractive,”Krebber added in RWE’s annual report.“Regulatory changes could also impact the economic viability of existing generation assets,prompting impairments.The political framework in the energy sector has become less certain,especially in the USA.”
About half of RWE’s installed renewable capacity is located in the United States,and the company has another roughly 4 gigawatts(GW)in development.However,in March,RWE unveiled plans to cut its U.S.investments by one-fifth,taking close to$10.9 billion off the table.At the time,Krebber told Global Banking&Finance Review that the American market is currently“impossible to predict,”lamenting President Trump’s outspoken anti-offshore wind sentiment.
“The new President,Donald Trump,mandated a comprehensive review of the approval processes for wind power projects,imposed a temporary ban on leasing sites for new offshore projects,and introduced additional import duties,”said Krebber in his company’s annual report.“We foresee a risk that additional measures may follow,preventing us from continuing our renewables expansion as planned.It is conceivable that federal approvals for new build projects could be denied or that tax incentives could deteriorate.Furthermore,additional duties could make importing components more expensive or impossible.”
“In light of these developments,we have opted to significantly curtail expenditure on our offshore projects in the USA for the time being,”the CEO continued.“If it became clear that delivering these projects was no longer feasible,we would have to recognise impairment losses on the capitalised development and investment costs.To limit our exposure to risks arising from tariffs and other trade barriers,we carefully evaluate the countries from which we procure supplies,while increasingly seeking local sources.”
What was RWE Working on?
RWE holds three offshore wind leases in U.S.waters off the coasts of New York,Louisiana,and California.
Its largest project,New York’s 3 GW Community Offshore Wind joint venture with National Grid,was supposed to start generating electricity in the early 2030s,powering millions of homes along the east coast.RWE paid$1.1 billion for the lease area in 2022 in a wild auction that fetched high prices.New York State is banking on a lot of offshore wind power to meet its clean energy goals,and,quite frankly,for the stability of its future grid.
“In an era of energy abundance,we should not dismiss the fact that the national wind energy industry is generating enough power to serve more than 46 million American homes,”noted President and CEO of NYSERDA,Doreen M.Harris,in a statement Monday.“And the offshore wind industry alone is spurring domestic supply chain investments of$40 billion across 40 different states.Federal actions jeopardizing locally-produced energy risk the economic stability of all states,not only those states developing wind energy,as well as the hundreds of thousands of Americans relying on critical supply chain investments to spur business and economic growth and maintain family-supporting jobs.”
“I am united with Attorney General James,Governor Hochul,and the 17 other states alongside New York for the logical resumption of wind energy projects and to move them forward to secure a reliable and abundant energy supply for future generations,”Harris added.
RWE was the lone bidder in a snoozer of a 2023 auction for offshore wind development rights in the Gulf of Mexico,in which it secured a lease off the coast of Louisiana for just$5.6 million.RWE also owns an offshore wind lease offshore Northern California for a project called Canopy Offshore Wind.
In 2024,RWE commissioned 1.6 GW of new onshore wind,solar,and battery storage capacity and announced multiple long-term power purchase agreements with large technology companies and manufacturers.
Others Pausing US Operations
RWE is far from alone in pumping the brakes on U.S.operations because of the President’s disdain for offshore turbines.
Last month,fellow European offshore wind developer Equinor said it would halt its progress on the fully-permitted Empire Wind 1 project off the coast of New York after receiving a stop-work order from U.S.Interior Secretary Doug Burgum.
Empire Wind was prepared to send its first power next year.It has a capacity of 810 megawatts(MW),sprawling roughly 80,000 acres between 15-30 miles southeast of Long Island,NY.Pausing the project risks$28 billion in investment and imperils significant power that NYSERDA was planning on tapping into.
“Stopping work on the fully federally permitted Empire Wind 1 offshore project should send chills across all industries investing in and holding contracts with the United States Government,”reacted Liz Burdock,CEO of industry association Oceantic Network.“Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses,beyond those in the offshore wind industry,that their investment in the U.S.is not safe.”
Burgum contends further review of the project is needed,implying the Biden administration rushed its approval.Equinor,which boasts more than$60 billion in U.S.investments,said it would engage directly with the agency and the Interior Department to understand any questions about Empire Wind 1’s permits.
In December 2024,European multinational energy company TotalEnergies kickstarted the trend of pulling the plug on U.S.offshore wind projects before Trump even took office,pausing work on Attentive Energy,a planned 3 GW initiative off the coasts of New York and New Jersey.
“Offshore wind,I have decided to put the project on pause,”TotalEnergies chief executive officer Patrick Pouyanne told attendees of the Energy Intelligence Forum in London,comments first reported by Bloomberg.
“I said to my team,the project in New York,we’ll see that in four years,”he added.“But the advantage is it’s only for four years.”
