US Halts Offshore Wind Leases in New Setback for Industry
New York Recently Said It Would Make Port Improvements to Support Industry
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The U.S. is suspending leases for all five wind farms under construction off the East Coast in the latest blow to a sector that’s been targeted repeatedly by the Trump administration as part of its attack on clean energy.
The Interior Department announced the move Dec. 22, citing national security concerns and saying the massive turbines may interfere with radar systems. Suspending the leases will let the administration work with developers and states to mitigate any security risks, the Interior Department said in a statement.
Just last week, New York announced it was offering $300 million for port improvements in a signal of support for the offshore wind industry. The state said it was seeking bids for funds that would go toward upgrades for offshore wind manufacturing, staging and logistics, the New York State Energy Research and Development Authority said Dec. 19.
New York Gov. Kathy Hochul said “there’s no credible justification” for curtailing work on the projects.
“The real threat to national security is in undermining our energy independence,” Hochulwrotein a post on X.
The Trump administration will look for any excuse to continue its assault on clean energy — and the thousands of good-paying jobs these projects bring — but there is no credible justification for this stoppage.
The real threat to national security is in undermining our energy… — Governor Kathy Hochul (@GovKathyHochul)
Shares of offshore wind companies slumped on the Dec. 22 news. Orsted A/S, the Danish company that’s co-developing the Revolution Wind project off Rhode Island, declined 13%. Vestas Wind Systems A/S, the Danish turbine maker, slipped 2.7% and Dominion Energy, developer of the Coastal Virginia Offshore Wind project, fell as much as 5.8%.
The suspension is the latest in a series of body blows for the nascent U.S. offshore wind industry. President Donald Trump has openly expressed disdain for the sector and imposed restrictions on it within hours of taking office this year, leading to numerous legal challenges. A federal judge ruled earlier this month that Trump’s ban on new projects was illegal.
It remains to be seen if citing national security will be a more legally durable way to keep wind turbines out of U.S. waters. The effect that offshore wind can have on radar has been known for years, said Pavel Molchanov, an analyst at Raymond James.
“I’m skeptical that there is any new information about the military concerns all of a sudden that singlehandedly warrants projects being halted,” he said. “We know the administration is not a fan of offshore wind, to put it mildly.”
Offshore wind farm projects raised national security concerns under previous administrations, too. The Defense Department under former President Joe Biden pushed successfully for changes to leases being sold along the West Coast to address some of the issues.
The projects impacted by the lease suspensions are Vineyard Wind 1 off Massachusetts, Revolution Wind, Coastal Virginia and Empire Wind 1 and Sunrise Wind, which are both off New York, according to the statement.
“The movement of massive turbine blades and the highly reflective towers create radar interference called ‘clutter,’” the Interior Department said in the statement.
Dominion said it had received an order to suspend work on the project for 90 days. The move, the company said, “will threaten grid reliability for some of the nation’s most important warfighting, AI and civilian assets.”
Equinor said it is evaluating the order and seeking more information from the government. Orsted and Vineyard didn’t respond to requests for comment.
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