Courts, Contracts, And The Fight To Keep U.S. Offshore Wind Afloat
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Offshore wind was targeted by the Trump Administration in 2025, with multiple rationales offered to cripple the industry.
On January 20th 2025, President Trump issued an executive memorandum to suspend issuance of any approvals required to develop and operate wind energy projects, pending wide-ranging federal assessment.
Seventeen states and DC filed suit, and won, with a Circuit Court judge ruling the executive order was “arbitrary and capricious.”
The Department of Interior also went after Orsted’s Revolution Wind project with a stop work order in August 2025, citing unclear national security concerns, though DOI Secretary Burgum cited underwater drones, that could be launched in a swarm attack through a wind farm without detection. A federal judge rejected that order.
In December, the DOI issued new stop work orders impacting five major East Coast offshore wind farms, again citing national security risks.
As a result, Massachusetts – on December 30th – again delayed finalizing offtake contracts for two projects totaling 2,078 MW of capacity.
Last week, the 700 MW Revolution Wind project off Rhode Island and the 810 MW Empire Wind 1 project off New York went to court requesting an injunction against the stop work order.
Revolution Wind argued that it had undergone extensive reviews with federal agencies and agreed to a mitigation plan addressing any national security risks.
Empire Wind also argued that the terms of its lease specify that advance notice “will normally be given before requiring a suspension or evacuation.”
That’s what’s really at stake here. This precedent allows future presidents to take similar actions against other investments they don’t like. Some oil co execs say this type of zigzag is “detrimental to business” because one cannot make long term plans.
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