U.S. President Trump announced on Monday the suspension of Virginia's offshore wind project—the largest of its kind in the nation—along with four other East Coast wind projects under development. The decision deals a heavy blow to the U.S. wind energy sector, triggering declines in related stocks. Dominion Resources (D.US), the developer of the Virginia project, saw its shares drop over 5% intraday before closing 3.72% lower. Denmark's renewable energy giant Ørsted tumbled 12.7%, while Vestas Wind Systems fell 2.7%.
U.S. Interior Secretary Doug Burgum stated that the Defense Department identified national security risks in these projects, prompting the suspension. The Interior Department released a statement explaining, "Investigations revealed that wind turbine blades and highly reflective towers could interfere with radar signals. Offshore wind farms may obscure legitimate moving targets while generating false signals in surrounding areas." The suspension allows federal authorities time to collaborate with leaseholders and state governments to assess potential mitigation measures.
According to Dominion Resources, the Virginia project planned to install 176 turbines capable of powering over 600,000 homes, with completion originally scheduled for next year. The company emphasized the project's critical role in meeting both national security needs and Virginia's surging energy demand, particularly for data centers and AI infrastructure driving up electricity prices. "Any delay threatens grid reliability for military installations, AI facilities, and civilian infrastructure," Dominion warned, adding that the suspension would exacerbate energy inflation and jeopardize thousands of jobs.
Trump has targeted the wind industry since taking office. On January 20, he ordered a freeze on new onshore and offshore wind leases pending federal review. Senate Minority Leader Chuck Schumer condemned the administration's actions as "irrational," arguing the Interior Department's decision would spike energy costs. "Trump's reckless obstruction lacks justification and will burden households with higher bills amid already elevated energy prices," Schumer stated.
The administration's anti-wind policies recently faced legal setbacks. On December 8, a Massachusetts federal judge ruled Trump's project suspension order "violates statutory requirements."
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