Offshore wind projects hit pause under Trump

The Trump administration on Monday stopped work on all US offshore wind projects, creating new trouble for the growing clean-energy industry.

The Interior Department paused federal leases for five projects along the East Coast, citing national security concerns.

The move halted turbines at the partly operating Vineyard Wind 1, already supplying Massachusetts, and stopped work at Coastal Virginia Offshore Wind, Revolution Wind, Sunrise Wind, and Empire Wind.

According to the Trump administration, large offshore wind farms near densely populated coastal areas could interfere with sensitive defense technologies, including ground-based radar systems. It also said it needs time to address unspecified national security risks from wind farms cited in classified Pentagon reports.

President Donald Trump has long held the view that turbines are not cost-effective.

The five turbines were expected to generate nearly 6 gigawatts of electricity, enough power to supply Manhattan at full capacity. The government ordered developers to suspend all offshore work for at least 90 days, with the option to extend the stoppage.

Markets reacted quickly. Shares of Orsted, Vineyard Wind’s Danish developer, fell more than 11%, while Dominion Energy, the company developing Coastal Virginia Offshore Wind, saw its stock drop nearly 4%. Companies said they are complying with the order while reviewing legal and regulatory options.

Jobs and industry concerns 
The industry says the Pentagon was involved during project planning.

Meanwhile, state leaders from both parties criticized the move, warning that it threatens thousands of jobs and delays clean energy investments. Industry groups estimate offshore wind projects support about 12,000 direct jobs and 5,000 indirect jobs nationwide. 

The decision adds fresh uncertainty to an industry already strained by rising costs, high interest rates, and supply-chain bottlenecks.