The Biden-era push into wind energy has stalled under President Trump, who has suspended federal permits and leases for wind projects, leaving major developers in limbo. As the Wall Street Journal (WSJ) reports, companies including TotalEnergies, Shell and Orsted have shelved projects or recorded billions of dollars in impairments due to the uncertainty. “We’re not going to do the wind thing,” Trump declared at a rally on January 20, dismissing wind turbines as “big, ugly windmills” that “ruin your neighborhood.”
The sweeping freeze affects onshore and offshore wind projects alike, and several federal agencies, including the Army Corps of Engineers, the Federal Aviation Administration and the Bureau of Land Management, are now re-evaluating their permitting functions. The Lava Ridge wind farm in Idaho, specifically named in Trump’s executive order, has been put on hold for further review. Sen. Jim Risch (R-Idaho), who personally lobbied Trump to halt the project, commented, “He gets it. It’s not a difficult task because he shares my reticence about windmills.”
Beyond permitting, the wind industry also faces potential cuts to tax credits from the Inflation Reduction Act of 2022 (aka the Climate Act), which Trump has called a “scam.” Developers rushed to get projects started before the new administration took office, securing tax benefits ahead of potential policy changes. But as AlixPartners’ David Hindman warned, “all parties will want more certainty than we have now.”
While offshore wind projects were already grappling with rising costs and supply chain disruptions, the pause has added another risk. Industry advocates emphasize that projects still in development or under construction are vital to the economy. “They are already providing a key benefit to our economy,” said Frank Macchiarola of the American Clean Energy Association.
Bottom line: For now, wind energy developers are in a state of paralysis, waiting for regulatory clarity as the Trump administration reshapes America’s energy landscape.
