RWE Halts Offshore Activities in the United States Due to Political Developments

German renewable energy giant RWE has made the decision to cease its offshore activities in the United States citing “political developments.” This move comes after other major players in the industry such as TotalEnergies, Shell, and BP announced their retreat from U.S. projects. Additionally, Equinor recently expressed concerns over the suspension of offshore work on a fully permitted wind farm off New York by the Department of Energy under the Trump administration.

RWE’s CEO, Dr. Markus Krebber, is scheduled to address shareholders during the company’s annual meeting on April 30. In his upcoming speech, he will highlight the success of RWE in 2024 and provide updates on key projects such as the Sofia wind farm in the UK and the Danish wind farm Thor. With a current offshore wind farm capacity of 3.3 GW and four projects totaling 4.4 GW under construction, RWE has established itself as a significant player in the renewable energy sector.

Despite the company’s achievements in onshore wind, solar energy, and battery storage, Krebber will emphasize the need for caution in light of the current political climate in the U.S. He will announce that RWE has suspended offshore activities in the country and has set higher requirements for future investments to mitigate risks associated with political uncertainty.

RWE’s Ventures in the U.S. Market

RWE had secured a lease for a 3-gigawatt area in the New York Bight following a competitive offshore auction in 2022. Additionally, the company obtained a lease to develop up to 1.6 GW off the coast of Northern California, aiming to establish one of the first commercial-scale floating wind farms in the country. Collaborating with Greater New Orleans and GNOwind Alliance, RWE has been exploring regional opportunities and proposed the Community Wind project with a capacity of 1.3 GW in New York State.

In November 2024, RWE raised concerns about the increasing risks associated with offshore wind in the U.S. and the slower growth of the European hydrogen economy, leading to delays in investments. Krebber will reveal that the company has revised its investment criteria, raising the average return requirement from 8 percent to over 8.5 percent for future projects.

Challenges and Requirements for Future Investments

As RWE surpassed 10 GW of renewable energy generation capacity in the U.S. at the beginning of 2025, the company is imposing stricter conditions for future investments. These include the necessity of all federal permits being in place, safe harboring tax credits, and mitigating relevant tariff risks. Only projects meeting these criteria, particularly in onshore wind and solar for now, will be considered viable given the current political environment.

Developers of U.S. offshore wind projects are facing uncertainties following regulatory reviews initiated by the Trump administration. Recent actions, such as permit withdrawals in New York and New Jersey, have raised concerns within the industry. Shell and Equinor have already signaled their retreat from U.S. offshore wind projects, highlighting the financial implications of such decisions.

The renewable energy sector in the U.S. is navigating through challenging times with shifting political landscapes impacting investment decisions. While RWE remains committed to sustainable energy solutions, the company’s strategic shift in response to political developments underscores the need for stability and certainty in the industry.