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One of Donald Trump’s first acts as president was an executive order that could destroy the nascent US offshore wind industry.
Trump’s executive order, signed Monday, suspended federal leases for offshore wind development on the outer continental shelf — far enough from the coast, where wind speeds are consistently higher, but close enough to be easily accessible.
“This withdrawal does not apply to leasing related to oil, gas, minerals and any other purposes such as environmental protection” states.
The order does not halt work on projects that have lease agreements, although it directs the Interior Secretary to consider ways to terminate or modify existing agreements.
Offshore wind has made it difficult in the United States. Several offshore wind farms with a total capacity of 174 megawatts are operating in American waters at the end of May. according to to the National Renewable Energy Laboratory. That’s one hundredth of the world’s total of 68 gigawatts, most of which is in Europe and China.
The outlook for the sector has started to improve, although 4.1 gigawatts are under construction, another 3.4 gigawatts have been approved and another 19.8 gigawatts are in the permitting process. Overall, this would help meet the Biden Administration’s goal of 30 gigawatts of offshore wind capacity by the end of the decade.
Although offshore wind is still expensive compared to other energy sources, its relative consistency and proximity to major population centers and data centers have made it attractive. Data center operators in Europe were eager to sign deals. Last year, Google agreed to buy it 478 megawatts Offshore wind power to power two data centers in the Netherlands.
In the US, offshore wind has been hampered by public opposition and a lack of the infrastructure required to build and install turbines. The availability of cheap, windy land in the interior of the country has also tipped the scales in favor of onshore turbines.
Trump’s executive order won’t kill offshore wind entirely, since most offshore wind development is happening in other countries. Instead, the sector is likely to mature in other countries where companies can gain experience while waiting for the US market to reopen.
