The Biden-era momentum for wind energy has ground to a halt under President Trump, who has paused federal permitting and leasing for wind projects, leaving major developers in limbo. As the Wall Street Journal (WSJ) reports, companies such as TotalEnergies, Shell and Orsted have either shelved projects or recorded billion-dollar impairments due to the uncertainty. “We aren’t going to do the wind thing,” Trump declared at a rally on Jan. 20, dismissing turbines as “big ugly windmills” that “ruin your neighborhood.”
The sweeping freeze affects offshore and land-based wind projects alike, with multiple federal agencies — including the Army Corps of Engineers, the Federal Aviation Administration and the Bureau of Land Management — now reassessing their roles in permitting. The Lava Ridge Wind Project in Idaho, specifically named in Trump’s executive order, has been halted for further review. Sen. Jim Risch (R-Idaho), who personally lobbied Trump to stop the project, commented, “He gets it. It’s not a hard lift because he shares my reticence about windmills.”
Beyond permitting, the wind industry also faces possible cuts to tax credits from the 2022 Inflation Reduction Act (aka Climate Act), which Trump has called a “scam.” Developers rushed to begin projects before the new administration took office, securing tax benefits before potential policy changes. But as David Hindman of AlixPartners warned, “All parties — developers, financers, others — are going to want to have more certainty than we have now.”
While offshore wind projects were already contending with rising costs and supply-chain disruptions, the pause has added another layer of risk. Industry advocates stress that projects still in development or under construction are vital to the economy. “They’re providing a key benefit to our economy already,” Frank Macchiarola of the American Clean Power Association, told WSJ.
Bottom line: For now, wind energy developers are left in a state of paralysis, waiting for regulatory clarity as the Trump administration reshapes America’s energy landscape.
