Offshore wind has no future as a source of electricity generation in the U.S. under the Trump administration, Interior Secretary Doug Burgum said at an energy conference in Italy this week.
“Under this administration, there is not a future for offshore wind because it is too expensive and not reliable enough,” Burgum told an audience at the Gastech conference in Milan on Wednesday.
It is the clearest statement yet from a senior Trump administration official that the president aims to shut down the nascent offshore wind industry in the U.S. Burgum oversees the leasing and permitting of offshore wind farms in federal waters as head of the Department of the Interior.
President Donald Trump barred new leases for offshore wind farms on his first day in office through an executive order that was framed as “temporary.” Trump also ordered a review of permits, but the industry had hoped projects under construction would be allowed to move forward.
But the Department of the Interior is “taking a deep look” at five offshore wind farms that are already under construction in the U.S., Burgum said Wednesday without naming the projects.
The offshore wind farms under construction are Revolution Wind off Rhode Island; Vineyard Wind 1 off Massachusetts; Coastal Virginia Offshore Wind; Sunrise Wind off New York; and Empire Wind also off New York.
“Yes, they were permitted but they got moved through a very fast ideologically driven permitting process,” Burgum said at the conference in Italy.
The Department of the Interior ordered Danish renewable energy company Orsted to halt construction of Revolution Wind on Aug. 22, citing national security concerns. The project is fully permitted and 80% complete with billions of dollars invested, according to Orsted.
The Department of the Interior had issued a stop-work order for Empire Wind in April, but ultimately let the project resume construction in May after apparently striking a deal over new natural gas capacity.
Burgum told CNBC’s Brian Sullivan this week that the Trump administration is in discussions with Orsted and New England governors on Revolution Wind, though he wouldn’t say that the project might restart work.
“I can’t say for certain because some of these projects are a literal train wreck in terms of their economics,” Burgum told CNBC. “If we were to complete them then we’re just locking in billions and billions of taxpayer money which might be going to a hedge fund.”
Renewable energy executives told CNBC in August that the Trump administration’s attacks on solar and wind will lead to a power crunch that increases electricity prices.
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