One of Donald Trump’s first acts as president was to issue an executive order that could kill off America’s nascent offshore wind industry.
President Trump’s order signed Monday suspends federal leases for offshore wind energy development on the outer edge of the continental shelf, a location far enough from the coast where wind speeds are consistently high but easily accessible. It’s close enough.
“This withdrawal does not apply to leases related to other purposes, including, but not limited to, oil, gas, minerals, and environmental conservation,” the order states.
The order does not stop work on leased projects, but it directs the Secretary of the Interior to consider ways to terminate or modify existing contracts.
Offshore wind power generation is struggling in the United States. There are only a handful of offshore wind farms operating in U.S. waters, with just 174 megawatts of capacity as of the end of May, according to the National Renewable Energy Laboratory. This is only a percentage of the world’s total electricity of 68 gigawatts, most of which is in Europe and China.
However, the outlook for the sector is starting to improve, with 4.1 GW under construction, another 3.4 GW approved, and another 19.8 GW going through the permitting process. All told, that would have helped the Biden administration achieve its goal of increasing offshore wind capacity to 30 gigawatts by the end of 2010.
Although offshore wind remains expensive compared to other sources of electricity, its relative consistency and proximity to major population centers and data centers make it attractive. In Europe, data center operators are eager to sign contracts. Last year, Google agreed to purchase 478 megawatts of offshore wind power to power two data centers in the Netherlands.
In the United States, offshore wind power generation has been hampered by public resistance and a lack of the infrastructure needed to build and install turbines. The availability of cheap, windy land inland also leans in favor of land-based turbines.
President Trump’s executive order does not completely eliminate offshore wind power, as the majority of offshore wind development is done in other countries. Rather, the sector is likely to mature in other countries where companies can gain expertise while waiting for the US market to reopen.