President Donald Trump signed an executive order on Monday that temporarily halts offshore wind lease sales in federal waters and pauses approvals, permits, and loans for both onshore and offshore wind projects. The order directs the interior secretary to review wind leasing and permitting practices for federal waters and lands, considering environmental impacts, economic costs, and subsidies affecting the wind industry.
Trump's administration aims to increase oil and gas drilling and has shown hostility towards renewable energy, particularly offshore wind. The order also temporarily prohibits the development of the Lava Ridge Wind Project in Idaho.
Currently, wind power accounts for about 10% of electricity generated in the U.S., making it the largest source of renewable energy. There are 73 gigawatts of offshore wind capacity under development in the U.S., which could power 30 million homes.
Trump's order is expected to face legal challenges, similar to actions taken by President Joe Biden. The move aligns with Trump's campaign promise to end the offshore wind industry and prioritize fossil fuel production for cheaper energy costs.
While offshore wind projects are estimated to cost around $100 per megawatt hour, onshore wind remains one of the cheapest energy sources at about $31 per megawatt hour. Natural gas plants are projected to produce electricity at nearly $43 per megawatt hour.
Environmental groups have criticized the executive order, viewing it as a setback for renewable energy progress. However, supporters argue that the focus on fossil fuels is necessary for grid reliability and cost-effectiveness.
The Biden administration had previously promoted offshore wind as a climate change solution, setting national goals and approving commercial-scale projects. The nation's first commercial-scale offshore wind farm recently opened off the coast of New York.
