RWE Freezes US Offshore Wind Operations Amid Political Uncertainty

German utility RWE has made the decision to freeze all of its US offshore wind operations due to the political environment created by the administration of current president Donald Trump.

Back in November of last year, RWE expressed concerns about the potential impact of a new administration on its operations, stating that it might have to delay its plan to invest €55bn ($62.4bn) in green technologies globally by 2030.

Since Trump took office and began targeting offshore wind projects, RWE has been forced to scale back its US operations and lay off some of its offshore wind employees. The company’s US subsidiary, RWE Offshore Wind Services, announced layoffs of around 73 employees in the Boston area, primarily affecting those working on long-term offshore wind projects.

In a speech transcript that will be delivered at the company’s AGM, RWE CEO Marcus Krebber revealed that the US offshore wind business is now closed “for the time being.” However, the onshore wind, solar energy, and battery storage businesses will continue as usual.

Given the current political climate in the US, Krebber emphasized that future US investments by RWE will be subject to stricter requirements. He stated, “All necessary federal permits must be in place, tax credits must be secure, and tariff risks must be mitigated. Onshore wind and solar projects must have secured offtake at the time of investment decision for further investments to be considered.”

RWE has already made significant investments in US offshore wind projects, including a $1.1bn lease area in New York for the development of the 3GW Community Offshore Wind project in partnership with the UK’s National Grid. The company also invested $5.6bn in a lease in the Gulf of Mexico for the Canopy Offshore Wind project off Northern California.