Global renewable developer and energy giant RWE has made the decision to pause its US offshore wind operations due to the challenging “political environment” created by the Trump administration. CEO Marcus Krebber recently announced in a speech transcript that the company has ceased its US offshore wind business, citing uncertainty and risks associated with the current political climate.
While RWE has put a hold on its offshore wind activities, the company’s onshore wind, solar energy, and battery storage projects in the US continue to progress. RWE recently reached a significant milestone by achieving a 10 gigawatt capacity in the US, with plans for an additional 4 gigawatts under construction. Despite the challenges, Krebber highlighted the positive impact of renewables on regional economies and job creation.
In light of the political developments, RWE has implemented stricter requirements for future investments in the US. These include ensuring all federal permits are in place, safeguarding tax credits, mitigating tariff risks, and securing offtake agreements for onshore wind and solar projects at the time of investment decisions. Only projects that meet these conditions will be considered for further investments.
RWE’s renewable energy portfolio in the US accounts for approximately half of its installed capacity, making it the third-largest renewable energy company in the country through its subsidiary, RWE Clean Energy. The company holds development rights for US offshore wind projects in New York, Louisiana, and California.
In 2022, RWE acquired the New York lease area for $1.1 billion, where it plans to develop the 3 gigawatt Community Offshore Wind project in collaboration with the UK’s National Grid. The project aims to power over a million homes and was scheduled to be operational in the early 2030s. Additionally, RWE secured the Louisiana lease in the Gulf of Mexico for $5.6 billion in 2023 and is developing the Canopy Offshore Wind project off Northern California, expected to be completed in the next decade.
Despite the challenges in the US offshore wind sector, RWE remains committed to advancing renewable energy projects in the country. The company’s focus on onshore wind, solar energy, and battery storage reflects its dedication to sustainable energy solutions. As the renewable energy industry continues to evolve, RWE aims to navigate the changing political landscape while driving innovation and growth in the US market.
