What the U.S. offshore wind power crisis says about energy megaprojects, risk, and political resilience.

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After a surge of optimism, the U.S. offshore wind industry faces its most serious challenges yet. Just a year ago, the sector seemed poised for rapid growth, with East Coast states making offshore wind a centerpiece of their clean-energy and reliability strategies. Today, that progress has been sharply interrupted.

The reversal has been swift. Since returning to office, the Trump administration has halted new federal leases and permits and ordered work stopped on projects already under construction, moves that put billions of dollars in investment at risk. By September, Interior Secretary Doug Burgum declared that, under current policy, there is no future for offshore wind in the United States. 

Yet the industry’s troubles, despite strong progress, began well before this political turn. Inflation, high interest rates, and supply-chain disruptions sharply increased project costs, forcing developers to cancel or renegotiate contracts. Earlier, states had made strategic missteps in their race to capture offshore wind jobs and supply-chain investment, leaving the industry more exposed to shifting economic and policy winds.

Elizabeth Wilson of Dartmouth College, founding director of the Irving Institute for Energy and Society, discusses how these experiences have shaped an emerging body of “institutional learning” across the states—lessons in risk sharing, coordination, and governance that may help buttress the industry for the long term. As the future of U.S. offshore wind hangs in the balance, Wilson offers perspective on how those lessons could form the foundation for progress in a political and economic environment that remains volatile and uncertain.

Elizabeth Wilson is a professor of Environmental Studies at Dartmouth College and founding director of the Irving Institute for Energy and Society.

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Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu.

What the U.S. offshore wind power crisis says about energy megaprojects, risk, and political resilience.
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After a surge of optimism, the U.S. offshore wind industry faces its most serious challenges yet. Just a year ago, the sector seemed poised for rapid growth, with East Coast states making offshore wind a centerpiece of their clean-energy and reliability strategies. Today, that progress has been sharply interrupted.
The reversal has been swift. Since returning to office, the Trump administration has halted new federal leases and permits and ordered work stopped on projects already under construction, moves that put billions of dollars in investment at risk. By September, Interior Secretary Doug Burgum declared that, under current policy, there is no future for offshore wind in the United States.&nbsp;
Yet the industry&rsquo;s troubles, despite strong progress, began well before this political turn. Inflation, high interest rates, and supply-chain disruptions sharply increased project costs, forcing developers to cancel or renegotiate contracts. Earlier, states had made strategic missteps in their race to capture offshore wind jobs and supply-chain investment, leaving the industry more exposed to shifting economic and policy winds.
Elizabeth Wilson of Dartmouth College, founding director of the Irving Institute for Energy and Society, discusses how these experiences have shaped an emerging body of &ldquo;institutional learning&rdquo; across the states&mdash;lessons in risk sharing, coordination, and governance that may help buttress the industry for the long term. As the future of U.S. offshore wind hangs in the balance, Wilson offers perspective on how those lessons could form the foundation for progress in a political and economic environment that remains volatile and uncertain.
Elizabeth Wilson is a professor of Environmental Studies at Dartmouth College and founding director of the Irving Institute for Energy and Society.
Related Content
Communicating Climate Policy: Raising Public Awareness through Trusted Sources <a href="https://kleinmanenergy.upenn.edu/research/publications/communicating-climate-policy-raising-public-awareness-through-trusted-sources/">https://kleinmanenergy.upenn.edu/research/publications/communicating-climate-policy-raising-public-awareness-through-trusted-sources/</a>
Bringing Fusion Energy to the Grid: Challenges and Pathways. <a href="https://kleinmanenergy.upenn.edu/research/publications/bringing-fusion-energy-to-the-grid-challenges-and-pathways/">https://kleinmanenergy.upenn.edu/research/publications/bringing-fusion-energy-to-the-grid-challenges-and-pathways/</a>
Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu.

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

What the U.S. offshore wind power crisis says about energy megaprojects, risk, and political resilience.

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