On January 27, 2025, Donald Trump signed an executive order suspending new federal authorizations for offshore wind energy infrastructure in the United States. This move could significantly impact the emerging offshore wind industry.
The order specifically halts new permits for infrastructure installation on the Outer Continental Shelf, which is known for its consistent and high wind speeds. However, it does not affect permits related to oil, gas, and mineral production, nor conservation activities.
Existing projects with signed contracts will not be immediately disrupted, but the Secretary of the Interior is tasked with reviewing these contracts, potentially paving the way for cancellations.
Despite the challenges, the offshore wind sector had seen some positive developments, with 4.1 gigawatts currently under construction and an additional 3.4 gigawatts approved. The Biden administration aimed to boost capacity to 30 gigawatts by the end of the decade.
As of May 2024, the U.S. had only 174 megawatts of operational offshore wind capacity, representing roughly 1% of the global total of 68 gigawatts, predominantly located in Europe and China. The high costs of installing offshore infrastructure have hindered growth compared to onshore projects.
Internationally, however, interest in offshore wind energy remains strong. For instance, Google signed a contract last year for 478 megawatts of offshore wind energy to power two data centers in the Netherlands.