Court ruling saves billion-dollar project in the USA: This wind farm became a symbol of resistance against Trump's policies – Creative image: Xpert.Digital
Texas of all places: This US state is becoming an unstoppable solar giant and is putting everything else in the shade
America's bizarre energy paradox: Trump fights green energy, but the market has long since decided
The United States is currently experiencing an unprecedented energy paradox characterized by two opposing realities. On the one hand, there is a Trump administration that is striving with all its might to prolong the era of fossil fuels and, in particular, to slow down the emerging offshore wind industry by halting construction and cutting subsidies. On the other hand, the market is demonstrating an unstoppable momentum of its own: Led by the oil-rich state of Texas, which has emerged as the nation's solar champion, the expansion of solar and battery storage capacity is breaking all records and completely dominating the construction of new power plants.
At the center of this conflict is the nearly completed "Revolution Wind" offshore wind farm, whose construction was suddenly halted by the government, citing vague national security concerns. However, a remarkable court ruling has now rejected this move as "arbitrary and capricious" and given the project the green light for completion. This dispute is more than just a legal tug-of-war; it is a symbol of the future of the American energy transition. While politics is putting the brakes on progress, economics, technological progress, and the commitment of individual states have initiated a development that, while slowed down, can probably no longer be completely halted.
What is the current state of renewable energy in the USA?
The United States is currently experiencing a paradoxical situation in the energy sector. While President Trump is pursuing policies that strengthen fossil fuels and hinder renewable energy, the market is exhibiting a completely different dynamic. According to current data from the U.S. Energy Information Administration, a total of 64 gigawatts of new utility-scale capacity is expected in 2025, with renewable energy demonstrating absolute dominance.
Of these 64 GW, 33.3 GW will be photovoltaics, accounting for more than half of all new capacity. Battery storage follows with 18.3 GW, wind energy with 7.8 GW, and only 4.7 GW for gas-fired power plants. It is noteworthy that no new installations of coal-fired or nuclear power plants are planned for 2025.
Around 12 GW of new solar capacity was already installed in the first half of 2025. A further 21 GW of large-scale installations are planned for the second half of the year, meaning solar capacity additions in the US are expected to reach over 33 GW for the full year. Around 27 percent of the solar capacity added in the first half of 2025 is located in the state of Texas.
What role does Texas play in the American energy transition?
Texas has emerged as the undisputed solar champion of the United States in 2025. With 20.7 GW of installed solar capacity, the Lone Star State can already meet 27.7 percent of peak demand on the ERCOT grid with solar energy. This figure doubles the 2023 baseline and positions Texas as a global powerhouse for renewable energy.
The figures show that Texas is not just participating, but leading the American energy transition. Developers plan to bring another 9.7 GW online in Texas in the second half of the year. By 2030, Texas could have 50 GW of solar capacity, which would fundamentally change the energy landscape.
Battery storage accounted for the second-largest share of capacity additions in the first half of the year, with 5.9 GW, about half of which was built in Arizona or California. In Texas, developers expect a total of 7.0 GW of battery storage capacity for the full year 2025, with much of it coming online in the second half of the year.
What is the current status of offshore wind energy in the USA?
Offshore wind energy in the US is in a critical phase. Currently, only three offshore wind projects are fully operational: the Block Island Wind Farm (30 MW), completed in 2016, the Coastal Virginia Offshore Wind Pilot Project (12 MW) from 2020, and the South Fork Wind Farm (132 MW), which is scheduled to be fully operational in 2024.
Under the Biden administration, the US had set ambitious goals: 30 GW of offshore wind capacity by 2030 and 15 GW of floating offshore wind energy by 2035. By 2050, according to the US government's original plans, offshore wind energy could even reach 110 GW or more.
The project pipeline totaled 51.4 GW, 84 percent of which is planned on the East Coast. New York State currently leads the pipeline with 4.6 GW, followed by New Jersey with 3.8 GW. Construction and operating plans were submitted for ten wind farms, pending final environmental review.
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What happened to the Revolution Wind project?
The Revolution Wind project is at the center of the current controversy surrounding US offshore wind policy. This 704 MW offshore wind farm, developed by Denmark's Ørsted in partnership with Skyborn Renewables, is located 15 nautical miles south of the coast of Rhode Island and 32 nautical miles southeast of Connecticut.
The project was to consist of 65 Siemens Gamesa 11.0-200 DD turbines, each with a rated capacity of 11 MW. It had signed power purchase agreements to supply 400 MW to Rhode Island and 304 MW to Connecticut, enough to power approximately 350,000 homes.
On August 22, 2025, the Bureau of Ocean Energy Management issued a construction stop order for Revolution Wind, even though the project was already 80 percent complete. The agency cited unspecified national security concerns as the reason. This was particularly surprising given that the Department of Defense had previously approved the project and all necessary safety reviews had been completed.
How did the court react to Trump's construction freeze?
On September 22, 2025, Federal Judge Royce Lamberth issued a decisive rejection of the construction freeze. Appointed by Ronald Reagan, the judge granted Ørsted's request for a preliminary injunction and described the Trump administration's actions as "arbitrary and capricious."
Judge Lamberth found that the Trump administration had cited "conflicting reasons" for halting the project and described the changing statements as "the height of arbitrary and capricious action." He emphasized that Revolution Wind had reasonably relied on government assurances and that the sudden reversal jeopardized the company's ability to meet contractual deadlines.
The judge emphasized that there was "no doubt of irreparable harm to the plaintiffs," as Ørsted was losing $2.3 million a day. The court found that the plaintiffs had demonstrated "a likelihood of success on the merits."
What arguments did the Trump administration put forward?
The Trump administration justified its interventions in offshore wind projects with various arguments, which were, however, questioned by experts and even its own Defense Department. Initially, vague "national security interests" were cited as the reason for the construction freeze, without providing specific details.
Secretary of the Interior Doug Burgum later suggested that wind turbines could disrupt radar systems and enable covert attacks using swarm drones. These claims, however, were refuted by military experts and the Department of Defense, which had previously approved the project.
In subsequent court filings, the administration argued that the project failed to comply with agreements with the Department of Defense to mitigate security concerns. It also cited other concerns, such as impacts on cod spawning grounds. However, Judge Lamberth noted that the department failed to cite "any factual findings" leading to a belief that Revolution Wind would harm national security or the reasonable use of the waters.
How do Trump's measures affect the entire industry?
The Trump administration has launched a comprehensive offensive against offshore wind energy that extends far beyond the Revolution Wind project. On January 20, 2025, President Trump issued a memorandum withdrawing all areas of the Outer Continental Shelf from wind energy leasing and directing the Secretary of the Interior to review existing leases.
The administration has also revoked permits for other offshore wind projects off Massachusetts and Maryland. Key permit documents for the New England Wind 1 and 2 offshore wind farms were revoked without further explanation. SouthCoast Wind, another wind power project in Massachusetts, has been paused since the beginning of the year.
On August 31, 2025, the Trump administration announced the cancellation of $679 million in federal port funding intended to support the offshore wind industry. These funds were earmarked for twelve port projects from California to Virginia. Transportation Secretary Sean Duffy justified the decision by arguing that "unnecessary wind projects consume resources that could be redirected to revitalizing America's maritime industry."
What legal challenges arise?
The legal battles over the Trump administration's offshore wind policy have only just begun. Eighteen states have already filed a coalition lawsuit against Trump's attempt to freeze offshore wind development. These states argue that the federal government should work with the states, not against them.
Massachusetts Governor Maura Healey sharply criticized Trump's actions. Given rising energy prices, she argued, Trump should not put a stop to such projects, as they are the only way to provide affordable electricity. Connecticut Attorney General William Tong and Rhode Island Attorney General Peter Neronha called the court ruling in the Revolution Wind case an important victory for workers and families.
Industry experts predict further legal disputes. David Burton, a partner at the law firm Norton Rose Fulbright, predicted that there will likely be lawsuits challenging the new Treasury guidelines. Revoking previously granted approvals is likely to face significant legal challenges.
How is the industry reacting to the political uncertainties?
The offshore wind industry is proving resilient despite the political setbacks, but is grappling with significant challenges. Following the court ruling, Ørsted announced that Revolution Wind "will resume the affected construction work as soon as possible, with safety as its top priority." The company emphasized that it remains committed to working collaboratively with the US administration and other stakeholders.
The industry was already struggling with economic difficulties before the political interventions. In 2023 and 2024, numerous offshore wind companies, including Ørsted, faced billions of dollars in write-offs and cancellation fees as they were unable to complete projects profitably due to rising construction costs, higher interest rates, and supply chain disruptions.
More than 10,000 MW, or half of the planned projects, had already been canceled or halted even before the Trump administration took its new measures. Aside from Dominion's regulated project, developers have only committed to building 1,636 MW of capacity, which is scheduled to come online before the end of the decade.
What long-term effects can be expected?
The long-term effects of Trump's policies on the American energy transition are complex and at times contradictory. Experts believe that the dynamic expansion of renewable energies will be hindered and slowed, but not stopped, under Trump's presidency.
BloombergNEF predicts 23 percent fewer wind, solar, and storage installations over the next decade as a result of Trump's actions. Nevertheless, market data shows that the energy transition has developed its own momentum, which political interventions can only influence to a limited extent.
The Federal Energy Regulatory Commission predicts that solar and wind power will surpass natural gas capacity by 2029. As of April 2025, utility-scale solar and wind combined account for 22.8 percent of total U.S. electricity generation capacity. When all renewable energy sources are included, they account for approximately 31.8 percent of U.S. power plant capacity.
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States as a driving force: How US states are saving offshore plans
How are investments and financing developing?
The financing landscape for renewable energy in the US has changed dramatically under the Trump administration. With the "One Big Beautiful Bill Act," Trump eliminated most of the clean energy tax breaks from the Inflation Reduction Act of 2022. Wall Street estimates the volume of the suspended government loans at more than $300 billion.
According to an analysis by the independent business association E2, investments worth USD 14 billion that were originally earmarked for green technologies under the Inflation Reduction Act have been and will be canceled in the USA in 2025.
Despite these setbacks, the industry is showing remarkable resilience. Since 2023, $2.1 billion has been spent on domestic supply chain development, including port development, ship orders, workforce development, and other supply chain financing. According to a Financial Times analysis, companies have already invested over $130 billion as part of the Biden infrastructure program.
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What role do the federal states play?
The states are proving to be key players in driving the energy transition, independent of federal policy. Ten US states have set offshore wind expansion targets with a total capacity of 81 GW. Rhode Island has the most ambitious goal, with 100 percent renewable energy by 2033, while Connecticut aims for 100 percent carbon-free electricity by 2040.
In California, where offshore wind development is still in its infancy, most of the progress is being made at the state level. Adam Stern, director of Offshore Wind California, a trade association, noted that a budget of approximately $475 million for port improvements and $4.6 billion for transmission line improvements has been approved.
The primary drivers of the offshore wind sector are state governments. Massachusetts has set targets for 5,600 MW, Connecticut for 2,000 MW, and Rhode Island for 1,430 MW of offshore wind capacity. These state initiatives provide a degree of stability in an otherwise uncertain regulatory environment.
What is the international perspective?
The American offshore wind industry lags considerably behind international comparisons. Europe and China each have more than 30 GW of offshore wind capacity in operation, while the US accounts for a tiny fraction at approximately 174 MW. Global offshore wind capacity totaled 68,258 MW across 319 operating projects at the end of 2023.
For international investors, political uncertainty in the US is sending "extremely chilling signals," as the Global Wind Energy Council noted. The delay or loss of future revenues could severely impact European developers like Ørsted, which are already struggling with high levels of debt.
Nevertheless, the international outlook for the US market remains fundamentally optimistic. Jason Grumet, CEO of the American Clean Power Association, a renewable energy industry organization, stated: "We will build an offshore wind industry in this country because it is difficult to imagine meeting our coastal energy needs without it."
Which technological developments will shape the future?
Despite political obstacles, technological development in the American offshore wind industry is showing continued progress. Revolution Wind uses modern, state-of-the-art Siemens Gamesa SG 11.0-200 DD wind turbines, each with a rated output of 11 MW. These turbines are significantly larger and more efficient than their onshore counterparts.
In its Annual Energy Outlook 2025, the US Energy Information Administration anticipates a much stronger long-term growth in renewable energy than previously expected. Compared to the previous study from 2021, the EIA forecasts more than double generation capacity by 2050. Particularly noteworthy is the forecast for offshore wind power, which is expected to increase by an average annual growth of 26.2 percent, from 0.4 TWh in 2024 to 173.7 TWh in 2050.
The development of floating offshore wind technology is seen as key to developing deeper waters. Biden's original plans called for developing 15 GW of floating offshore wind energy by 2035. This technology would make it possible to harness the vast wind resources off the West Coast, where the water is too deep for conventional foundations.
How does the energy transition affect the American economy?
The economic impacts of the energy transition in the US are multifaceted and extend far beyond energy production. Revolution Wind alone was expected to create "1,200 direct construction jobs and thousands more indirect and induced jobs through investments in the local economy." The original 30 GW offshore wind target by 2030 would have required investments of more than twelve billion dollars along the Atlantic and Pacific coasts and created tens of thousands of new jobs.
The cancellation of the $679 million in federal funding for ports is particularly hard on the maritime industry. Representative Jared Huffman of California criticized it as "a new level of folly, as the Trump administration seeks to dismantle an entire clean energy industry, eliminate thousands of good-paying jobs, and raise electricity costs for American consumers."
Despite political opposition, the solar industry is demonstrating impressive economic vitality. Following the court ruling on Revolution Wind, solar stocks rose significantly on Friday. The market leader for rooftop solar, Sunrun, saw its share price jump by more than 30 percent.
What does this mean for global climate policy?
American energy policy under Trump has far-reaching implications for global climate policy. Analysts estimate that under Trump, the United States will emit up to four billion tons of CO2 equivalent more into the atmosphere by 2030 than would have been saved under a Harris administration. This is twice the amount of all the savings achieved worldwide over the past five years through wind power, solar energy, and other clean technologies.
The international impacts go beyond direct emissions. It is questionable what will remain of the $100 billion climate fund for poorer countries if the US, as the largest donor, drops out. In Europe, right-wing parties are already feeling emboldened to weaken the planned EU climate targets.
Nevertheless, there is reason for cautious optimism. "Never in human history has a form of energy grown as rapidly as renewables," said Christoph Bals of the environmental organization Germanwatch. "The Trump administration can probably slow this trend, but it cannot stop it."
What lessons can be learned from the Revolution Wind decision?
The court's ruling on Revolution Wind offers important insights into the limits of executive power in the energy sector. Judge Lamberth's decision demonstrates that projects already fully permitted and under construction enjoy stronger legal protections than new developments. The court's finding that the Trump administration cited "contradictory reasons" and acted "arbitrarily and capriciously" sets an important precedent.
The decision also highlights the importance of careful documentation and legal preparation for energy projects. Ørsted's ability to convincingly argue that the project had all the necessary permits and had already undergone comprehensive safety assessments was crucial to its success.
For the industry, the ruling signals that legal challenges against political interventions may have a chance of success, especially if the government frequently changes its justifications or fails to provide concrete evidence. This could encourage other developers to take similar legal action.
What does the future of renewable energy look like in the USA?
Despite the political turmoil, the fundamentals point to a clear direction: The energy transition in the US has developed a momentum of its own that political interventions can only halt to a limited extent. The fact that more than half of all new electricity capacity will come from solar energy by 2025 underscores the economic superiority of renewable technologies.
FERC forecasts for a "highly likely" capacity expansion between May 2025 and April 2028 predict that solar power will significantly outperform other energy sources at 90,158 MW, followed by wind power at over 22,000 MW. These figures suggest that renewable energy will account for about one-third of American power plant capacity by 2029.
Offshore wind energy is likely to experience slower but steady development. While new projects are facing delays, the court ruling will allow plants already approved and under construction, such as Revolution Wind, to move forward with their completion. Government initiatives and long-term power purchase agreements offer a degree of stability in an uncertain regulatory environment.
In the long term, America's energy future will likely be determined by the inherent economics of renewable energy. As climate scientist Niklas Höhne of the NewClimate Institute noted, Republicans may leave the tax-relief portion of Biden's infrastructure measures untouched. This means that many of the fundamental incentives for renewable energy will remain, even if direct subsidies are eliminated.
The Revolution Wind decision demonstrates that the American judiciary is willing to limit arbitrary political interventions in the energy sector. This provides important certainty for investors and developers and could pave the way for the continued, albeit slower, development of renewable energy.
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