Trump’s campaign against wind energy is driving up expenses globally

Global Offshore Wind Industry Faces Uncertainty Amid U.S. Policy Shifts

Industry leaders in wind energy are expressing concern that President Donald Trump’s recent actions against offshore wind development in the United States could have far-reaching effects, potentially discouraging investment in the sector worldwide.

According to the Financial Times, Vestas CEO Henrik Andersen highlighted that the U.S. administration’s decision to halt offshore wind projects has increased unpredictability for investors. This heightened uncertainty could make investors more cautious, raising the cost of capital for an industry already grappling with escalating expenses.

President Trump has consistently voiced strong opposition to wind energy. Within the first eight months of his presidency, approximately $19 billion worth of wind and solar initiatives were abandoned, and new investment announcements in these sectors fell by 20%.

Several major offshore wind projects that were already underway have been put on hold by the government, leading to legal challenges. Earlier this month, Danish company Ørsted and its partner, a subsidiary of Global Infrastructure Partners involved in the Revolution Wind project, filed a lawsuit against the U.S. federal government.

Norwegian energy giant Equinor also received a stop-work order for its $3 billion Empire Wind project. The government cited national security as the reason for halting five projects, including Empire Wind 1, which was already 60% finished. In response, Equinor warned that it might cancel the project if the suspension is not lifted, though no legal action has been taken yet. Such developments are likely to further erode investor confidence in the wind energy market.

“When you’re planning investments that span two to three decades, the only way to manage risk is to demand higher returns,” Andersen told the Financial Times. “When setbacks occur in the industry, everyone starts to wonder if they could be next.”

By Irina Slav for Oilprice.com

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