Economics

Trump Administration Halts Major Rhode Island Wind Project

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A major offshore wind project off the coasts of Rhode Island and Connecticut has been ordered to halt, raising concerns over billions in investment, job security, and the future of U.S. renewable energy economics.

The Revolution Wind project, developed by Danish firm Ørsted, was 80% complete, with 45 of its 65 turbines installed. It was expected to generate 704 megawatts, supplying power to more than 350,000 homes. Construction began in 2023 with full operation planned for 2026.

On Friday, the U.S. Bureau of Ocean Energy Management (BOEM) issued a stop-work order citing “national security interests of the United States.” The move follows President Donald Trump’s directive to reassess existing offshore wind leases during his second term. BOEM’s acting director, Matt Giacona, said work would remain suspended pending a full review.

The decision has sparked immediate economic concerns in Rhode Island and Connecticut. Governor Dan McKee said the project is “just steps away from powering hundreds of thousands of homes and supporting good-paying jobs,” while Connecticut’s governor, Ned Lamont, pledged to explore legal and administrative options to reverse the halt. Senator Richard Blumenthal warned that stopping the project threatens both energy security and economic growth in the region.

Ørsted stated it is evaluating the financial impact of the halt and may consider legal action. The company has invested heavily in U.S. offshore wind, and the Revolution Wind project was seen as a key step in expanding the industry along the East Coast.

The halt also affects local supply chains, port activities, and workforce plans. Offshore wind has been one of the fastest-growing segments in U.S. renewable energy, contributing roughly 10% of the nation’s electricity generation. Analysts say prolonged delays could shake investor confidence and shift capital back toward fossil fuel projects.

Opposition groups welcomed the decision. Green Oceans, a nonprofit challenging the project in federal court over environmental concerns, called the pause “a meaningful step to protect the fragile ocean environment.” However, energy policy analysts warned that disrupting approved projects undermines the stability of the renewable energy market.

This marks the second major offshore wind project to face suspension under the current administration, following earlier delays at New York’s Empire Wind. Industry experts caution that frequent policy reversals create uncertainty in a sector that requires long-term investment and stable regulatory conditions.

The Revolution Wind project is located more than 15 miles south of the Rhode Island coast and 32 miles southeast of Connecticut. It represents a multibillion-dollar investment with the potential to support hundreds of construction and maintenance jobs.

As the review proceeds, both states and industry stakeholders await clarification on the national security concerns cited and whether the halt will become a broader policy stance affecting the U.S. offshore wind market.

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