Ørsted and Iberdrola Are Trying to Save U.S. Offshore Wind Investments

Two major offshore wind developers,  Ørsted and Iberdrola, have efforts underway to save their offshore wind projects in the United States. The companies are reportedly trying to win over the Trump administration, which opposes offshore wind energy, by emphasizing the larger investments in the United States.

Energy Secretary Chris Wright, Bloomberg reports, confirmed that the administration is “actively engaged in discussions” with Ørsted over the future of the Revolution Wind project off the coast of Rhode Island and Connecticut. According to the reports, Wright, during a presentation at the Council of Foreign Relations, confirmed that there is “a very active dialogue,” saying the issues of the wind farm were being “worked and discussed.” 

Last month, the Trump administration issued a stop work order for the project, which Ørsted said is 80 percent installed. The company highlighted its large investment, saying that all of the foundations for the 704 MW wind farm are installed and that 45 out of the 65 wind turbines have also been installed. The export cabling and the onshore power substation are nearly complete. 

Ørsted filed a lawsuit challenging the legal authority to suspend the project, calling it a necessary step. The company, however, also said it was continuing to seek a resolution with the administration.

Spanish investment analysts are also saying that Iberdrola, the parent company of U.S. renewable energy company Avangrid, which is the developer for several major U.S. offshore wind farms, is also taking steps to protect its investment. It was revealed last week that the Trump administration was planning to challenge approvals for Avangrid’s New England 1 and 2 offshore projects granted in the last days of the Biden administration. Work was expected to begin this year on New England 1, a 791 MW project, and would be followed by the larger 1,080 MW second phase.

The Trump administration’s moves against the offshore wind energy sector are raising broader concerns, with Avangrid potentially one of the most exposed. In addition to the permits for the New England offshore projects, Avangrid is the developer of Vineyard Wind 1, with Iberdrola telling investors in July that the project was already exporting power from 17 out of 62 planned turbines, with 23 turbines installed, and supplying approximately 30 percent (241 MW) of its full capacity of 806 MW. Congressman Bill Keating told the MV Times last week he was afraid the administration might target Vineyard Wind with a similar stop work order. 

Avangrid also holds licenses for the Kitty Hawk wind farm offshore from North Carolina. It is also the developer for a potential 3 GW Gulf of Maine wind farm. Analysts note that the U.S. offshore wind energy sector is a major part of Iberdrola’s investment and growth strategy.

The analysts believe Iberdrola is highlighting its broader investment strategy to the Trump administration to protect its wind farm licenses. A third of the investments in the company’s 2024-2026 Strategic Plan, or more than $14.7 billion, are in the United States. 

The Trump administration has been proud to highlight the large investment commitments coming from foreign companies into the United States. Analyst Aranzazu Bueno at Bankinter believes the company will work to highlight its full investment potential to protect the offshore wind projects as its main growth avenue in the United States. The company will be presenting to investors on September 24, and there is some anticipation that it could grow its U.S. investment commitments to more than $21 billion.

Wright, however, continues to question the viability of offshore wind energy. Bloberg reports he said the U.S. government is not responsible for a company’s finances, countering the claims of the large investments made into the offshore wind projects, which are now in jeopardy. He called offshore power “costly” and said it has “limited job potential.”