RWE Pauses US Offshore Wind Activities Amid Regulatory Uncertainty

RWE, Germany's largest power generator, suspended its offshore wind operations in the US, attributing it to regulatory ambiguity in President Donald Trump's government. CEO Markus Krebber said this in a speech draft preceding the firm's annual general assembly, pointing to the challenges encountered by European power firms in the US offshore wind sector, now a main point of attention in Trump's energy policies.

President Trump sparked controversy earlier this year by calling wind turbines "garbage," which only added to the uncertainty regarding the future of wind power in the US. Such rhetoric and shifting policies have left European companies such as RWE uncertain about investing in the increasing offshore wind market.

Also read: RWE and PPC Approve 567 MW Solar Farms in Northern Greece

Halting US Projects for Now

RWE, which has significant stakes in the US renewable energy market, confirmed that it has halted its offshore wind projects “for the time being” in response to the current political climate. Krebber noted that the company remains cautious due to ongoing political developments. Despite the pause, RWE continues to hold rights for offshore wind projects in three US coastal locations.

This decision follows similar moves by other European energy giants. Last week, Norwegian company Equinor announced it would stop construction on its Empire Wind I project off the coast of New York, after receiving a stop-work order from US Interior Secretary Doug Burgum.

Impact on Community Offshore Wind Project

RWE’s pause affects its 3 gigawatt Community Offshore Wind joint venture with Britain’s National Grid, a project in which RWE holds a 73% stake. According to the company's most recent annual report, the joint venture has non-current assets valued at 1.31 billion euros ($1.49 billion).

The company's halt on US offshore wind projects is a sign of the difficulties that European companies are experiencing as they try to deal with an increasingly uncertain regulatory environment in the United States.