US Suspends Offshore Wind Leases In Fresh Blow To The Industry

The US 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 broader attack on clean energy.

The US Interior Department announced the move Monday, citing national security concerns and saying the massive turbines may interfere with radar systems. Suspending the leases will enable the administration to work with developers and states to mitigate any security risks, the Interior Department said in a statement.

Shares of offshore wind companies slumped. 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, and Dominion Energy, developer of the Coastal Virginia Offshore Wind project, both fell as much as 5.8%. 

The suspension is the latest in a series of body blows for the nascent US offshore wind industry. President Donald Trump has openly expressed his 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 US 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.”

Analysts at Jefferies said in a research note Monday that “the language used by the administration and prior experience on stop orders should bring some optimism that projects could restart quickly.”

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.

“These towers are gargantuan,” Interior Secretary Doug Burgum said in an interview with Fox Business. “One can understand how they would create issues for radar.” 

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 war fighting, 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.