Recent Events

On his first day back in the Oval Office, January 20, 2025, U.S. President Donald Trump signed an executive order placing a pause on all offshore wind lease sales in U.S. federal waters and the issuance of approvals, permits and loans for wind projects. The Department of the Interior is now tasked with conducting “a comprehensive assessment and review of Federal wind leasing and permitting practices” and its impacts on the environment, economic costs of dealing with intermittent energy supplies, and the “effect of subsidies on the viability of the wind industry.”

These actions were anticipated by the industry and do not amount to a sudden dismantling of the U.S. offshore wind power industry. The nominee for Secretary of the Interior, Doug Burgum, stated during his confirmation hearing that he would be reviewing all offshore wind projects and that “if they make sense and they’re already in law, then they will continue.” There are also legal protections in place that the Trump administration will have to address to legally overturn permits, which could prove difficult to justify amidst President Trump’s “drill, baby, drill” slogan which advocates for fossil fuel extraction. Individual state governments like those in Virginia, Massechusetts, California and Maine also hold certain powers in the offshore wind industry, meaning that the order’s impact is “not very significant” in many cases. Still, the negative impact on the industry’s future in the U.S. is evident and controversial. The actions will temporarily halt future progress such as Guam’s call made in early January for nominations regarding possible wind energy leasing off its coast.

Across the rest of the world, the push to innovate, perfect and capitalize on offshore wind power continues. In early January, the European Commission approved a €998 million joint acquisition specifically aimed at supporting offshore wind energy production. On January 10, Brazilian President Luiz Inacio Lula da Silva signed into law a bill authorizing the development of offshore wind farms. On January 21, the United Kingdom announced new measures to “curb underwater noise and accelerate renewable energy” in an effort to remove environmental barriers to industry progress. Poland made major progress in January on expanding Baltic Power, its most advanced offshore wind farm project in its region of the Baltic Sea, now making it the leading country for offshore wind in the Baltic Sea. Estonia announced a new project with a French developer for its first floating wind tender in the Baltic Sea. South Africa has begun discussions on getting its first offshore wind farm within the next few years. The Asia-Pacific region at large has recently been noted as having untapped potential in this field, though some countries like Japan have noted concerns over profitability and labor shortages.

Keep In Mind

Offshore wind power is more controversial and complex than observers may first suspect. It is difficult to deny how attractive wind turbines sound, being that the wind used to generate this power is provided free of charge. But that free wind is uncontrollable in its consistency, making the power supply dependent on the whim of mother nature. To counter this legitimate concern, offshore wind suppliers should focus on first applying it to small-scale ventures and providing energy to non-essential services. A reframing of its capabilities and fresh fact-based explanation of its benefits could also be in order to assuage concerns of non-experts. There also may be new issues, such as the technical hiccup of safely storing excess energy, that need to be addressed.

The outright negative take on wind power over the last month could bring permanent harm to not only the offshore wind power industry but also to similar naturally-sourced power farms like solar power, though countries weigh these benefits and challenges differently. The European Union is clearly committed to harnessing offshore wind power, calling it a “a crucial element in decarbonizing Europe’s economy and in meeting its climate and energy targets.” The European Environment Agency openly recognizes how harmful these farms can be if not carefully installed and is already working to combine the farms with environmentally-boosting initiatives, such as setting up marine sanctuaries and artificial reefs. The International Energy Agency predicted in 2018 that wind would be the European Union’s largest source of electricity by 2027 and the sudden interruption of the fossil fuel supply chain following Russia’s invasion of Ukraine in February 2022 only exacerbated Europe’s call to not rely on fossil fuels, so this commitment can be expected to remain.

Notably, Europe is clearly not alone in this field. China has the largest number of wind farms and is continuing to invest in the field despite its infamous reliance on fossil fuels. Vietnam plans to expand its capacity for wind power to 28 GW by 2030. India has openly recognized how offshore wind power could be harnessed along its 7,600km stretch of coastline and has begun project development. Brazil is positioning itself to become a wind power industry leader in Latin America. Africa and other parts of the Global South are also looking to capitalize on capturing free air flow, although they do have unique challenges that must first be addressed.

Regardless, between President Trump’s executive order and declaration of a national emergency on energy and critical minerals for the United States, it can be expected that the U.S. federal government will not be putting forth heavy support for offshore wind power in the next four years. It appears, however, that the global industry is both capable of and eager to charge forward without the United States on offshore wind power.

This issue’s Spotlight was written by Jessica Martin, ICAS Research Associate & Chief Editor, ICAS Newsletters.