US President Donald Trump’s order to temporarily halt leasing of areas and the issue of permits for both offshore and onshore wind energy generation has aroused a wave of discontent in the country, with some voicing fears that the order spells the beginning of the end of the wind power industry. Experts have pointed out that at the same time, Trump is openly and fully supporting the development of the polluting oil and gas industry.
What happened?
Immediately after Trump had been sworn in for his second presidential term, he signed an executive order to temporarily stop offshore and onshore areas from being leased for wind energy generation, thus delivering on his electoral promises. Shortly after Trump’s executive order, the Department of the Interior halted the authorization of any onshore and offshore renewable energy development for 60 days.
According to the order, the 60-day period was necessary to assess whether wind generation causes “grave harm” to navigational safety, national security, economic interests, and to the environment.
The move has been largely seen to be a massive blow to energy production as the wind generation industry is the fourth-largest source of electricity in the USA and the largest source of renewable energy, covering about 10% of the country’s electricity needs. This is sufficient to supply power to over 46 million American dwellings. Moreover, the industry supports more than 300,000 jobs.
See also: How will the shift to renewables impact the energy job market?
A study by Synapse Energy in 2024 showed that 9,000 megawatts of offshore wind energy would lead to New England states saving an average of US$630 million yearly in electricity costs. It would also help residents to reduce their monthly electricity bills by between US$2.79 and US$4.61.
Support for oil and gas?
On the other hand, in an apparent paradox, the order allows for areas within the Outer Continental Shelp to be leased for uses such as the production of polluting oil, gas. This is no surprise since Trump had already announced full support for the oil and gas sector in his inaugural address.
“We have something that no other manufacturing nation will ever have — the largest amount of oil and gas of any country on earth — and we are going to use it. […] We will be a rich nation again, and it is that liquid gold under our feet that will help to do it,” he said.
On the day of his inauguration, Trump signed another executive order “to unleash America’s affordable and reliable energy and natural resources”. The document backs “energy exploration and production on federal lands and waters, including on the Outer Continental Shelf”.
Manish Bapna, the CEO of NRDC, an American environmental advocacy group, commented that by doing so the US administration “is putting oil and gas profits first – and putting the rest of the country at risk”.
Trump’s order under fire
Commenting on the order to restrict wind power generation, Jason Grumet, American Clean Power CEO, said:
“States voting for President Trump are eight of the top ten states in terms of reliance on wind power with many depending on wind for a significant share of their electricity use. Restricting wind development in these regions is certain to increase consumer energy bills.”
Kit Kennedy, Managing Director of the Power Sector at the Natural Resources Defense Council, argued that Trump’s executive order is bad for public health, national security, clean air and it halts a promising power generation alternative that the U.S electric grid badly needs.
“This is bad for American workers, as well. The growing U.S. wind industry and its manufacturing supply chain are creating quality jobs and growing local economies along our coasts and across the Midwest. This announcement put those investments – and the jobs that go with them – at mortal risk,” she highlighted.
According to Kate Sinding Daly, the Senior Vice President for Law and Policy at the Conservation Law Foundation, while speaking to WBUR Radio in Boston, legal battles will ensue if there are attempts to annul federal contracts or rescind federal permits. With the new administration, she also foresees a challenge in implementing offshore projects that have pending federal approvals.
Businesses step back from wind industry?
Trump’s executive order has caused uncertainty as to the future of offshore wind projects. In New Jersey, Shell Oil exited the 200-turbine Atlantic Shores Offshore Wind Farm in late January 2025 and wrote off its US$1 billion investment, although it will retain its 50% ownership of it. This was the state’s first offshore windfarm, with federal permits to operate, and was expected to generate 2,800 megawatts of electricity and power nearly 1 million homes.
Trump had written on Truth Social that he wanted this New Jersey project “dead and gone” days after signing the executive order. The state had hopes of having 11,000 megawatts generated from offshore wind power by 2040.
See also: Supporting US organizations: up to 90 days of free access to tenders and grants
