Trump turmoil further delays major US offshore wind contracts

Massachusetts and Rhode Island once again delayed signing power purchase agreements (PPAs) for two wind farms totalling nearly 2GW awarded last year, signaling further decline of the once burgeoning sector amid President Trump’s onslaught.

Last September, in the nation’s first three-state shared procurement round, Massachusetts awarded 1GW to Ocean Winds’ SouthCoast and 791MW to Iberdrola-owned Avangrid’s New England array.

Rhode Island took another 200MW of SouthCoast. Connecticut unexpectedly declined to procure any capacity.

“Due to ongoing uncertainty caused by federal level activities, the counterparties have not yet completed their contract negotiations,” attorneys representing the evaluation team coordinating activities between developers and utilities told the state regulator.

Parties “are now targeting the completion of negotiations and execution of contracts on or before December 31, 2025,” the letter to the Massachusetts Department of Public Utilities added, with contracts expected to be filed 25 February next year.

The US industry has already weathered bouts of spiraling inflation and interest rates and supply chain turmoil, but President Donald Trump’s animosity is its biggest threat.

Still, the Massachusetts Department of Energy Resources, which oversees offshore wind procurement, confirmed its commitment “to an all-of-the-above approach to energy, including offshore wind.”

“Offshore wind produced locally in Massachusetts will help lower costs, create thousands of jobs, and move us toward energy independence,” it added in a statement.

Rhode Island has committed to 1GW of capacity to enable its clean grid mandates. The nation's first array, the 30MW Block Island, is located in Rhode Island state waters.

SouthCoast jeopardy

Amid the turmoil, Ocean Winds has indicated it may pull the plug on SouthCoast despite having already spent some $670m towards what is an expected $6bn total.

“Without clarity on when or how issues arising under the Presidential Memorandum will be resolved, it may be impossible for the parties to execute the PPA,” Ocean Winds’ North American CEO Michael Brown said in legal testimony.

The delays may put Rhode Island’s portion of the array at risk, as utility Rhode Island Energy said it “may terminate the project’s conditional selection if negotiations are not successful prior to” 1 November this year.

Massachusetts utilities include Eversource Energy, which had previously been an industry player through joint ventures (JV) with Orsted that it has since exited.

National Grid, which is involved in PPA negotiations, is also a sector participant whose offshore wind JV with RWE, Community Offshore Wind, has likewise been sidelined by Trump tumult.

Unitil is the final utility included in PPA negotiations.