States Vow to Fight Trump Official’s Stop-Work Order on Offshore Wind Farm

The Democratic governors of Rhode Island and Connecticut promised on Saturday to fight a Trump administration order halting work on a nearly complete offshore wind farm off their coasts, which was slated to be operational next year. The Revolution Wind project, approximately 80% complete with 45 of its 65 turbines installed, received a letter from the US Bureau of Ocean Energy Management (BOEM) on Friday ordering it to "halt all ongoing activities." The letter cited "concerns related to the protection of national security interests" without specifying them, raising concerns about potential political motivations behind the decision. Senator Chris Murphy called the decision "corruption," linking it to political donations. The project was expected to power over 350,000 homes, and its halting represents a significant setback for the states' climate goals.

Rhode Island's Attorney General, Peter Neronha, stated that without the Revolution Wind project, the state's Act on Climate law "is dead in the water." Scientists emphasize the urgent need for renewable energy to combat climate change. The halt on Revolution Wind, and previously on Empire Wind (a New York project), signals a potential broader strategy by the administration to curb renewable energy growth in favor of fossil fuels, aligning with President Trump's known criticisms of wind and solar power.

Market Signals

Erosion of investor confidence in the U.S. offshore wind market due to regulatory instability.
Increased project risk, potentially leading to higher financing costs.
Companies not directly involved may gain market share by demonstrating greater regulatory certainty.

Winners & Losers

Winners: Fossil fuel industry (may indirectly benefit from a slowdown in offshore wind), and anti-wind advocacy groups like Green Oceans. Losers: Revolution Wind developers (Ørsted), the states of Rhode Island and Connecticut, the supply chain and workforce (approx. 1,200 jobs impacted), and investors in the U.S. offshore wind sector.

Action Timeline

Immediate: Companies and industry groups must actively engage in legal challenges and political advocacy to reverse the stop-work order.
Short-term: Investors and developers should closely monitor legal and political developments to determine market entry and investment timing.
Long-term: The outcomes of legal challenges and shifts in federal policy will be a key indicator of future regulatory certainty in the U.S. offshore wind sector.

Risk Assessment

Regulatory Risks: The possibility of further politically motivated regulatory actions that could impact other offshore wind projects.
Market Volatility: Uncertainty surrounding the U.S. offshore wind sector is likely to increase market volatility.