Trump’s opposition to wide edges in the wind industry will likely pose risks to millions of households | Real Time Headlines

President Donald Trump Promising to unlock the U.S. energy advantages, but his comprehensive order for wind energy has allowed a range of risky projects to bring enough electricity to millions of U.S. homes.

this Order Trump to issue First day in the office New offshore wind rentals suspended indefinitely In coastal waters of the United States, new permits have been suspended, pending review completion. Data from consulting companies Aurora Energy Research.

“At present, it’s hard to see how these projects will move forward,” said Artem Abramov, head of new energy research at consulting firm Rystad. Like Aurora, Rystad estimates that about 30 GW of people on the east coast of the United States are at risk.

CNBC’s data analysis of the Energy Information Administration said that these projects, if implemented, would provide sufficient consolidated power to more than 12 million homes in the United States. According to Aurora, the order is not expected to affect the projects under construction, totaling about 5 GW.

Trump abandoned the Biden administration’s commitment during its battle against climate change and pulled the United States from the Paris Agreement for the second time. He focused on boosting fossil fuel production, opening up U.S. coastal waters for oil and gas the same day he pulled out of these waters.

Abramov said Trump’s orders would jeopardize efforts in the central and northeastern U.S. to transition from fossil fuels and decarbonize. For example, New York, New Jersey and Virginia have adopted ambitious clean energy goals at the state level. But they are too north to rely on solar power to obtain power using batteries, Abramov said.

“If you want to achieve a future where power generation in New York or New Jersey or Virginia is completely free of fossils, if that’s the ultimate goal, there aren’t many alternatives to offshore winds.”

According to Rystad and Aurora, the order could eventually force states to rely more on carbon-launched natural gas. But without the offshore windless New York State in the New York metropolitan area, it is almost impossible for a country like New York to achieve its climate goals and ensure adequate energy supply, especially in the lower state of the New York metropolitan area.

Until 2027, the power projects waiting to be connected to the Downtown New York grid are almost entirely wind and transmission, Hoos said.

“Unless there is a major reform, there is almost no possibility of introducing new gas online in the next 18 to 24 months, or there is some quick way to bring this gas online, so you can really encounter reliability,” Hoos said. question.”

But behind Trump’s policy, more gas may be built in the late decade, Hoos said. Before the election results, investor sentiment has shifted to natural gasRT artificial intelligence data centersaid Abramov.

Two weeks after Trump’s order, New Jersey decided not to move forward in the Atlantic Coast project, which would become the state’s first offshore wind development. State Utilities Commission cites “Federal Action and Permit Driven Uncertainty” and European Petroleum Specialty shell Exit the project.

“Overseas wind is facing significant challenges right now, and it’s time to be patient and prudent,” Governor Phil Murphy said in a statement supporting the board’s decision.

Murphy sets a goal to achieve 100% clean energy in New Jersey by 2035. ”

The U.S. offshore winds “have stopped, more or less effective immediately” after Trump’s order Vesta Wind Energy System CEO Henrik Andersen told investors during a Feb. 5 earnings call. Vestas, Denmark, is one of the world’s leaders in manufacturing and repairing wind turbines.

According to 2.4 GW from April 2024, WIND has been rising to power in the U.S. for 25 years. Energy Information Management. The record of that month was produced from the wind, surpassing the coal-fired power supply. Current wind accounts for 11% of total electricity generation in the United States.

But the industry has been fighting supply chain bottlenecks and high interest rates. Offshore wind is already the most expensive form of renewable energy, Abramov said. Hoos said U.S. developers face a lot of certainty in cost due to the challenges of building on water rather than land.

“The industry hopes costs will fall,” Abramov said. “We have not seen any projects in the U.S. that can achieve lower levels of energy costs.”

Orsted, the world’s largest offshore wind developer, decided on February 5 Abandon its goal By 2030, up to 38 GW of renewable energy capacity will be installed. Orsted also cut its investment plan by about 25% at the end of the decade to reach 21 billion to 230 billion Danish royal family (about $29 billion to $32 billion), lowering the previous ones from 270 billion crowns.

CEO Rasmus Errboe told investors that Orsted’s Sunrise Wind and Revolutionary Wind projects should not be affected by Trump’s orders, respectively. However, future developments may be risky.

“We are totally committed to pushing them forward and fulfilling our commitments,” Errboe said. “We do not expect any impact on the assets under construction, but of course, for the assets under development, this may be a different situation.”

Dominion Energy CEO Robert Blue told investors during a Feb. 12 revenue call for U.S. utility companies that the order should also not affect the largest such project under construction in the U.S., which is the U.S. The largest project of this type under construction.

“Stop, this will be the most inflationary action Virginia can take,” said Blue. “There is a need to power the growing data center market we have been talking about, which is for continuing our strengths in AI and technology to Crucial. “

Wind Energy Industry Hall Group United States Clean Energy Statement on January 20 Trump’s order describes it as a general measure that will endanger domestic energy development and harm U.S. businesses and workers. ACP CEO Jason Grumet said in a statement that the president’s order contradicts the government’s goals to reduce bureaucracy and release energy production.

Frank MacChiarola, the group’s chief advocacy officer, said the ACP is now trying to get a clear idea of ​​how executive orders are implemented from the Trump administration. MacChiarola said, for example, it is not clear when the review of licenses and rental practices is completed.

A spokesman for the Interior Department simply said that the department was carrying out Trump’s executive order when asked to comment on a detailed list of issues. When asked when the review of the permit and leasing practices will be completed, the spokesperson said any estimates would be hypothetical.

MacChiarola said the wind world is committed to working with the Trump administration to support the president’s energy domination agenda and to prove that renewable energy plays a key role in that agenda, the largest new source of electricity in the United States.

“When past governments chose to stifle the almost universally believed to be wrong in the U.S. energy development,” MacChiarola said.

Rystad of Rystad said the overland winds allowed to be discontinued before review, but a portion of the industry is unlikely to face significant impact. He said onshore wind farms are almost entirely built on private rather than federal land. The market has also been saturated, and increasing capacity depends largely on building more energy storage first, analysts said.

However, offshore winds have much fewer mature markets in the United States and are seen as a major growth opportunity for the industry. But this seems to change rapidly.

“As long as the order is in place, they will not see the United States as a market for continuous offshore wind expansion,” the analyst said.

-CNBC’s Gabriel Cortes contributed to this report.