The U.S. Dept. of the Interior has immediately paused the leases for all large-scale offshore wind projects under construction in the United States due to “national security risks identified by the Dept. of War in recently completed classified reports.”

“The prime duty of the United States government is to protect the American people,” said Secretary of the Interior Doug Burgum. “Today’s action addresses emerging national security risks, including the rapid evolution of the relevant adversary technologies, and the vulnerabilities created by large-scale offshore wind projects with proximity near our East Coast population centers. The Trump administration will always prioritize the security of the American people.”

The following leases are paused:

• Vineyard Wind 1
• Revolution Wind
• CVOW
• Sunrise Wind
• Empire Wind 1

The Dept. of the Interior claims that the blade movement and reflective towers create “radar interference called ‘clutter.'” Allegedly, this is a national security risk.

Dominion Energy released the following statement in response to the pause issued for the Coastal Virginia Offshore Wind project:

“The Coastal Virginia Offshore Wind Project (CVOW) is essential for American national security and meeting Virginia’s dramatically growing energy needs, the fastest growth in America. This growth is driven by the need to provide reliable power to many of America’s most important war fighting installations, the world’s largest warship manufacturer, and the largest concentration of data centers on the planet as well as the leading edge of the AI revolution.

Stopping CVOW for any length of time will threaten grid reliability for some of the nation’s most important war fighting, AI and civilian assets. It will also lead to energy inflation and threaten thousands of jobs.

CVOW is American-owned and benefits all of our Virginia customers. Our customers are paying for the project after a careful review of project costs and benefits by Virginia state regulators in 2022. These same state regulators, along with numerous federal agencies, oversee our cyber and physical security program, which is among the strongest in the energy industry.

The project has been more than 10 years in the works, involved close coordination with the military, and is located 27 to 44 miles offshore, so far offshore it does not raise visual impact concerns. The project’s two pilot turbines have been operating for five years without causing any impacts to national security.

CVOW enjoys bipartisan support and is within months of generating a massive 2,600 MW to support the fastest growing part of America’s energy grid. This growth serves the largest concentration of critical infrastructure in the world.

Virginia’s All-American, All-Of-The-Above-Energy Plan requires a range of power generation assets, including natural gas, advanced nuclear, and renewables. Virginia needs every electron we can get as our demand for electricity doubles. These electrons will power the data centers that will win the AI race, support our war fighters, and build the nuclear warships needed to maintain our maritime supremacy. Virginia’s grid needs addition of electrons, not subtraction.

We stand ready to do what is necessary to get these vital electrons flowing as quickly as possible.”

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The United States is expected to add more than 7 GW of wind installations in 2025, a 36% increase over the previous year, and the five-year outlook remains unchanged quarter-over-quarter from previous forecast, according to the “U.S. Wind Energy Monitor” report released by Wood Mackenzie and the American Clean Power Association (ACP).

Amid a challenging market environment, the report shows that the United States is on track to add 46 GW of new wind capacity from 2025 to 2029, with total projected volumes unchanged quarter-on-quarter from previous forecasts. However, timing has shifted, as 2026 and 2027 will deliver significant gains, at 10.7 GW and 12.7 GW, respectively, as more assets advance through the development pipeline.

While Q3 installations came in 23% below forecast at 932 MW, the market has shown progress with 3.8 GW queued for Q4 2025 — representing 52% of the year’s total expected capacity. This back-loaded installation pattern is consistent with typical project-commissioning timelines.

U.S. turbine order intake has rebounded to pre-One Big Beautiful Bill Act (OBBBA) levels quarter-over-quarter, supported by 2+ GW of firm commitments in Q3, the biggest intake in the region in the last nine months and a 79% quarter-over-quarter increase. However, true visibility remains limited as OEMs increasingly withhold project details and much qualifying “start-of-construction” activity occurs through off-site component manufacturing.

The market will then see a noticeable drop off, as 2029 weakens meaningfully quarter-over-quarter following project cancellations and inactive designations for late-decade capacity, driven by permitting and broader development challenges.

“The U.S. power market is facing mounting strain after a decade of flat demand, with utilities committing to 160 GW of large-load additions. This represents a significant opportunity for wind energy, which benefits from strengthened economic fundamentals and a compelling business case driven by its competitively low LCOE,” said Leila Garcia da Fonseca, director of research at Wood Mackenzie. “However, turbine costs remain elevated due to tariffs and mid-term wind growth will depend on resolving permitting and policy uncertainty.”

Power demand growth through 2029 is expected to average around 3% compared to just 0.7% over the previous decade, with data centers accounting for approximately 59 GW of the 90 GW total peak demand growth. This surge in baseload demand positions wind as a natural fit to meet rising power needs.

Onshore activity

The five-year capacity outlook remains unchanged at 39.8 GW of added capacity quarter-over-quarter. The 2025-2027 pipeline is fully committed with all projects having turbine orders in place. More than 60% of the three-year capacity outlook has been commissioned or is under construction.

Activity is led by western states, such as Wyoming, New Mexico and others, that will account for 34% of activity in this time period. Major projects driving the outlook include Pattern’s 3.5-GW SunZia project in New Mexico, which will position the developer as 2026’s top installer, and Invenergy’s 998-MW Towner Energy Center in Colorado, the largest single project expected in 2027.

The market continues expanding geographically, with Arkansas bringing its first utility-scale onshore wind project online through Cordelio’s Crossover Wind.

The repowering market remains strong, as Wood Mackenzie projects that 18 projects will drive 2.5 GW of capacity additions in the next three years.

Offshore activity

Wood Mackenzie expects the offshore installation pace to slow in Q4 2025 due to harsh winter weather conditions, pushing remaining capacity into 2026. Despite these near-term adjustments, Vineyard Wind has demonstrated strong execution, connecting 15 turbines in Q3 and delivering 200 GWh through nine months.

“U.S. offshore wind shows diverging momentum,” said Garcia Da Fonseca. “Projects under construction with COD estimated for 2026 continue to hit key milestones, but post-2027 developments face potential delays amid constrained wind turbine installation vessel capacity, driving delays and contract terminations.”

The offshore sector is also experiencing significant financial pressure.

Tariffs drive up wind turbine costs

The report highlights that uncertainty around tariffs is a threat to projections. Wood Mackenzie projects that tariffs will drive up turbine costs in 2026, before moderating in subsequent years. In total, U.S. onshore wind capex is projected to increase by 5% through 2029.

“U.S. wind turbine pricing is experiencing unprecedented uncertainty as conflicting market and regulatory forces interact,” said Garcia Da Fonseca. “Domestic manufacturing overcapacity relative to permitted project volumes, particularly after 2028, would normally place downward pressure on prices. Despite this, onshore wind costs are expected to continue rising due to tariff exposure on raw material inputs and subcomponents.”

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A federal judge has vacated President Donald Trump’s executive memorandum, lifting the pause on federal permitting for wind energy projects in a ruling on a lawsuit brought by over a dozen state attorneys general and the Alliance for Clean Energy New York.

Several state-based climate jobs coalitions filed an amicus brief supporting the lawsuit. The brief described workers’ and labor unions’ extensive investments of their time and resources to train for the offshore wind energy sector, which promises to be a large and growing source of domestic jobs.

This legal decision is a major victory in efforts to deliver clean power to communities across America.

“As energy demand rises and utility bills are burdening working families, we need reliable, domestic energy sources that keep the lights on and provide family-sustaining jobs for our communities,” said Climate Jobs Massachusetts in a statement. “Offshore wind projects have created thousands of jobs in Massachusetts alone, and our union members have invested millions of dollars to train workers in specialized skills for building them. With several more projects ready to go, the wind industry will bring thousands more family-sustaining jobs to Massachusetts, as long as the federal government issues the necessary permits. This ruling is an important step towards green-lighting the clean energy projects our region desperately needs. We thank Attorney General Campbell for her leadership in standing up for workers and the clean energy projects that will benefit our communities in countless ways.”

“President Trump’s unpopular and illegal wind ban undercut the ability of Maine and New England to become energy independent and stabilize electricity prices for working families. It left nearly completed wind projects abandoned offshore in other parts of New England, stalled critical port development in Maine, laid off thousands of workers, and kept a large amount of clean power off of the grid that could have brought hundreds of millions of dollars of savings to households across the region. Union members in Maine invested in specialized training to prepare for offshore wind – training made possible by hundreds of thousands of dollars in union-backed workforce development. These workers are ready to build the next generation of clean, reliable power. Political interference took those job opportunities away,” said the Maine Labor Climate Council. “We thank Attorney General Aaron Frey and the coalition of attorneys general for their leadership in holding the federal government accountable and defending a clean energy future that benefits working people.”

Climate Jobs Rhode Island stated, “This decision protects good union jobs, years of workforce training, and the future of a clean-energy industry that Rhode Island workers have helped build from the ground up. Climate Jobs Rhode Island joined our regional labor partners in filing an amicus brief to show exactly what was at stake: the livelihoods of skilled workers who trained, worked, and sacrificed to make offshore wind real in our state. Today’s ruling means those workers can keep doing what they do best, building America’s energy future with union skill, safety, and pride. Thank you to AG Peter Neronha for standing with workers and defending our state’s future. We are ready to keep building.”

In Rhode Island, the federal government is also waging separate challenges to Revolution Wind, a 704-MW offshore wind project set to power 350,000 New England homes and support over 1,000 jobs. The federal government issued a stop work order on the project in August 2025, and while a subsequent federal court ruling allowed construction to resume, workers remain uneasy about the future of their jobs. Climate Jobs Rhode Island and the Rhode Island AFL-CIO recently released a video featuring workers on the project.

Climate Jobs New York also jointly announced with environmental groups the delivery of more than 14,000 petition signatures from New Yorkers urging continued advancement of wind project permitting and offshore wind development. The signatures, collected through collaborative organizing efforts, signal that New Yorkers clearly understand the value of offshore wind for jobs, energy costs, and the environment.

“New York’s offshore wind industry is creating thousands of family-sustaining union jobs, strengthening local economies, and building a more resilient energy system,” said Esther Rosario, Executive Director of Climate Jobs NY. “This ruling brings much-needed stability to the permitting process and to the lives of the workers across our state who depend on these projects. The public’s strong support shows how urgent it is to continue to move forward.”

“This decision is a victory for Ironworkers in Maryland and our brothers and sisters from across the labor movement. For years, we in labor have known that offshore wind is a critical piece of our energy future, and accordingly, we have invested heavily in training our members to work in this industry,” said Kendall Martin, President of the Ironworkers District Council of the Mid-Atlantic States. “This week’s legal victory is an important step toward ensuring that training will continue to be put to use. Offshore wind creates good union jobs, provides reliable energy, and makes our environment healthier and our air cleaner. As energy demand is skyrocketing and costs are burdening families, we need to bring as much domestic, affordable power online as possible. Offshore wind is ready to provide that power. Let’s get back to work building it.”

News item from Climate Jobs National Resource Center

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