The United States government has issued an order on Monday to halt immediately the works on five offshore wind farm concessions on the east coast of the US, including the Vineyard Wind 1 project by Avangrid, a US subsidiary of Iberdrola, and the Danish firm Copenhagen Infrastructure Partners (CIP). The decision represents a devastating blow to the development of this type of renewable energy in the country.
The US Department of the Interior "immediately suspends the lease contracts for all large-scale offshore wind projects under construction in the United States, due to national security risks identified by the Department of Defense in recently prepared classified reports," the agency stated in a press release cited by Efe. The statement does not provide further details on what those "national security risks" are.
Behind the Vineyard Wind 1 project is Iberdrola. Located off the coast of Massachusetts, the project is already partially operational. It had received $3.5 billion in committed financing and capital raised to date, with the goal of reaching a combined generation capacity of over 800 megawatts.
The other four affected developments are Revolution Wind and Sunrise Wind in Rhode Island, CVOW - Commercial near Virginia, and Empire Wind 1 on the New York coast, which has involved another Spanish company, the engineering firm Esteyco.
"The primary duty of the United States government is to protect the American people," stated Interior Secretary Doug Burgum, adding that the measure "addresses emerging risks to national security, including the rapid evolution of relevant adversary technologies and vulnerabilities created by large-scale offshore wind projects near population centers on the East Coast." "The Trump administration will always prioritize the safety of the American people," he added in statements reported by Europa Press.
The US Administration emphasized that this halt will provide "time to work with lessees and state partners to assess the possibility of mitigating the national security risks posed by these projects."
The decision, which revokes leases granted by the Joe Biden administration (2021-2025), puts billions of dollars in investments and the future of this type of energy on the East Coast in jeopardy. The region had strongly supported marine generation projects and expected these developments to produce energy for over 2.5 million households.
Since returning to the US presidency in January, Donald Trump has repeatedly expressed his opposition to wind energy, arguing that it spoils the landscape or negatively affects bird ecosystems.
Iberdrola's $3 Billion Mega Project in the US
Vineyard Wind 1 is Iberdrola's first and largest offshore wind installation in the US. The project is located off the coast of Massachusetts and has an installed capacity of 806 megawatts, generating enough energy to meet the demand of over 400,000 households and businesses throughout the Commonwealth, as reported by Europa Press.
The project is 50% owned by the Iberdrola Group (through Avangrid Power, a subsidiary of Avangrid) and CIP, with an investment of around $3 billion (over ¤2.7 billion) secured through contracts with the state's three main electric companies.
Last September, the Trump Administration, as part of its campaign against these types of renewables, already targeted two of Iberdrola's offshore wind projects (New England Wind 1 and 2) by revoking the authorization for their construction.
Orders to halt works and permit withdrawals, or the threat to do so, have occurred in various wind farms since the new US government took office.
In fact, shortly after taking office in January, Trump issued an executive order temporarily suspending new concession contracts for wind energy in US coastal waters, while demanding a review of federal government leasing and authorization practices for these projects.
Over $16 Billion Investments in Networks
The US is a strategic market for Iberdrola in its new2028 roadmap, launched last September. The group foresees investments of over ¤16 billion in the country until 2028, with the majority of the investment allocated to electric and gas network infrastructure.
The investment plan of the energy company led by Ignacio Sánchez Galán is based on the ongoing commitment to invest, rebuild, and strengthen electric and gas network infrastructure in its utilities in New York and New England, serving over 3.4 million customers.
With over 10.5 gigawatts of generation capacity in 24 states and assets including gas and electric companies across the Northeast, Avangrid serves over six million households and businesses throughout the US.