Connecticut and Rhode Island seek court order to reinitiate the Revolution Wind project
In a series of developments, offshore wind projects in the United States are facing uncertainty due to the Trump administration's review of existing construction and permits.
The Revolution Wind project, a 700-MW offshore wind farm jointly owned by Ørsted and Global Infrastructure Partners, is nearing completion. The windy farm is expected to come online by the grid operator and is set to supply energy to Connecticut and Rhode Island. However, a stop work order has been issued against the project, threatening its completion.
Ørsted, the Danish energy company, has stated that a delay beyond September 22, 2025 could imperil the entire project and threaten unsustainable losses for the company. In response to this, Ørsted announced a rights issue on Monday, aiming to raise $9.4 billion, citing the stop work order against Revolution Wind as a reason for strengthening the company's capital structure.
The states of Connecticut and Rhode Island have requested an injunction to lift the Trump administration's stop work order for the Revolution Wind project. They argue that the project is 'real, fully permitted, and nearly complete,' with approximately 80% of the work done, all offshore foundations installed, and around 70% of its turbines ready. The collapse of the Revolution Wind project would mean the 'significant time and money the States spent identifying, selecting, and authorizing Revolution Wind would be wasted and additional time and ratepayer money will be spent to find a replacement.'
The Trump administration's arguments against the Revolution Wind project's injunction request include the Secretary's authority for continued oversight, even after the previous approval of the project's construction and operations plan. The attorneys general for Connecticut and Rhode Island counter that the project is already fully permitted and should not be subject to further review.
Meanwhile, another offshore wind project, the 2.2-GW Maryland Offshore Wind project owned by US Wind, is also facing challenges. The Trump administration has reevaluated the project due to a Jan. 21 executive order from President Donald Trump. The Bureau of Ocean Energy Management filed to revoke its approval of the construction and operations plan for the Maryland Offshore Wind project, citing an error in the weighing of certain statutory factors, specifically underestimation of impacts to search and rescue operations and commercial fisheries.
New England ISO, which operates the grid, has included the Revolution Wind project in its analyses of near-term and future grid reliability. The supportive infrastructure for the wind farm is also far along, with 90% of physical construction at the mainland interconnection site substantially completed, one of two offshore wind utility substations installed, and 84 out of 85 miles of utility export cable installed.
The Trump administration argues it has the authority to revisit permits for offshore wind projects. The Federal Energy Regulatory Commission (FERC) filed a revocation request on September 12 for the construction and operation plan of the Maryland Offshore Wind project. Eversource Energy's remaining cost obligations to the Revolution Wind project led to the company being placed on 'rating watch negative' by Fitch Ratings on Monday.
These developments highlight the ongoing challenges and uncertainties facing offshore wind projects in the United States under the current administration. As the industry continues to grow, it will be important for these issues to be resolved to ensure the continued development and success of offshore wind energy in the country.
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