President-elect Donald Trump’s vow to kill offshore wind energy development “on day one” of his second term is already triggering project slowdowns on the East Coast, but the biggest wind farm proposed in the Gulf of Mexico will likely stay on track.
That’s because the project is on such a long development timeline that Trump’s four-year term will be over before permitting and construction begin, according to RWE, the German energy giant that plans to build a 2,000-megawatt wind farm about 40 miles south of Lake Charles, Louisiana. The project, which could power more than 350,000 homes, isn’t expected to be operational for about a decade.
“The project has a long-lead development timeline that is longer than any one federal administration, and with a planned operational date in the mid-2030s,” RWE spokesman Ryan Ferguson said.
RWE, the world’s second-largest offshore wind developer, and other key players in the renewable energy industry announced shifts in funding priorities and warned of project delays and possible derailments after Trump was elected president this month.
“The change of administration in the U.S entails risks for the timely implementation of offshore wind projects,” RWE Chief Financial Officer Michael Muller said at a press conference earlier this month. “The new Republican administration could delay specific projects. The realization of our Community Offshore Wind project near New York, for example, depends on outstanding permits from U.S. federal authorities.”
The “higher risks and delays” in the U.S. offshore wind market prompted RWE to initiate a $1.6 billion share buyback, RWE CEO Markus Krebber said during a call with investors. The buyback signaled a significant shift in the company’s short-term spending priorities but not waning confidence in the durability of U.S. demand for renewables, Muller said, noting that a growing number of states are setting goals for solar and wind energy.
RWE’s recalibration makes sense, said Jenny Netherton, the Southeastern Wind Coalition’s Louisiana program manager.
“That was not unexpected,” she said. “Companies are always trying to find the best way forward in an uncertain environment.”
Trump’s opposition to offshore wind began in 2006, when he initiated a decade-long fight against the Scottish government over a proposed wind farm the future U.S. president said would spoil the view from a golf course he hoped to build. Trump lost the battle and was ordered to pay Scotland nearly $300,000 in legal fees. In recent speeches, Trump has said wind farms harm property values and wildlife. More outlandishly, he has claimed wind energy causes cancer, increases food prices, and prevents people from watching TV when the wind isn’t blowing.
During his first term, Trump was accused of “slow walking” the permits for some of the first offshore wind farms in federal waters. RWE and other companies say wind farms already under construction will likely move forward, but projects slated to break ground over the next couple years may face setbacks.
Of the 30 states with offshore wind potential, nine have statewide wind energy mandates. Two states — Massachusetts and Rhode Island — have deadlines to reach wind energy targets in the 2020s and four states — New York, Connecticut, Maryland, and Virginia — have deadlines in the 2030s.
These goals and the U.S.’s ever-rising electricity needs are signs that Trump may slow but not kill wind energy development, Muller said.
“We still believe U.S. offshore wind [energy] is still needed,” he said, noting New York in particular. “If they are going to keep up with demand, they need offshore wind.”
Louisiana set a goal of developing the capacity for 5,000 megawatts of offshore wind energy by 2035, but the target wasn’t legally binding. Proposed in 2021 during the administration of Governor John Bel Edwards, a Democrat, the goal appears to have been abandoned by Governor Jeff Landry, who took office in January. The Republican governor has said little publicly about offshore wind development and has not responded to requests seeking his position on the matter.
Many other Louisiana Republicans strongly back offshore wind, seeing it as an economic boon for the state. Louisiana companies that long served the offshore oil and gas industry have seen business flag in recent years. Several of them, including shipbuilders, engineering firms, and metal fabricators, have easily transitioned to helping plan and build offshore projects on the East Coast, including the U.S.’s first offshore wind farm.
Bipartisan legislation in Louisiana paved the way for a fast-tracked approval process for wind projects in state-managed waters, which extend 3 miles from the coast. Louisiana has approved agreements with two companies to build small-scale wind farms near Cameron Parish and Port Fourchon, the Gulf’s largest oil and gas port. The two projects will likely be built years before the RWE wind farm.
The last federal lease auction in the Gulf was canceled in July due to weak interest from bidders, but two companies recently offered competing plans for a 142,000-acre area near Galveston, Texas. It’s unclear how Trump’s victory will affect those proposals. The Bureau of Ocean Energy Management is waiting to see if there’s more developer interest in the area and will likely initiate a competitive lease sale in the coming months.
While Trump may cause uncertainty at the federal level, Louisiana isn’t likely to waver in its support for offshore wind energy, Netherton said.
“It still enjoys broad support here,” she said. “Nationally, there’s very little control over what happens, but in Louisiana, offshore wind has a very clear path forward.”
