Shortly after taking office, Trump began "sniping" at renewable energy sources: stopping the leasing of federal land to build wind farms.

date
21/01/2025
avatar
GMT Eight
According to the situation book released by the White House, US President Donald Trump will order the federal government to stop leasing American land for the construction of "large-scale wind farms." It is understood that Trump was officially sworn in last Monday local time, starting his second presidential term. It is currently unclear the extent to which Trump's plan will be extended, but the federal government has broad powers over the leasing and permitting of wind farms on federal lands and waters. Renewable energy advocates warn that any attack on offshore wind farms could potentially stifle this emerging industry and hinder the construction of large-scale clean energy facilities on the East Coast. The directive will be one of a series of energy executive actions that Trump plans to take later Monday local time. The White House stated in the situation book, "President Trump's energy policy will terminate the leasing of land for large wind farms as these wind farms will destroy our natural landscapes and cannot serve American energy consumers." Trump's policy brings long-term uncertainty to states like New York, New Jersey, and others that rely on offshore wind projects to meet their electricity needs. Trump's actions mirror those of former US President Joe Biden, who ordered a halt to oil and gas leasing in his first year in office and later banned the widespread export of natural gas around the world. Biden's focus is on fossil fuels, while Trump's focus is on renewable energy. The impact of the leasing ban on onshore and offshore wind power projects will differ. The onshore wind development industry is relatively mature and stable, while the offshore wind industry in the US is just getting started. Despite this, eleven offshore wind projects have already received final approval from the US federal government, with the last one set to be approved on Friday. While they are not affected by any ban on new leases, many projects still face legal risks from lawsuits. Trump's plan comes at a time when offshore wind developers are facing pressure from rising financing and equipment costs. Because offshore wind farms are built in federal waters managed by the US government, the industry is particularly vulnerable to changes in Washington politics. Additionally, US wildlife protection laws pose risks to the projects of North Atlantic China Welding Consumables, Inc. Trump has never hidden his hostility towards wind power. He opposed the construction of a wind farm near his golf course in Aberdeen, Scotland, and has often criticized wind turbines for obstructing views, causing bird and whale deaths. He also wrongly claimed that wind turbines can cause cancer. However, Trump took a relatively hands-off approach to the industry in his first term. The US Department of the Interior continued to review proposed offshore wind projects and sell construction leases, even celebrating a record auction in 2018, saying it would help secure America's "energy dominance." If Trump takes further action to halt the construction of existing offshore wind projects, not just new leasing projects, it will affect projects from the same auction in 2018. Companies that may be affected include Avangrid Inc., Orsted AS, EDP Renewables, Engie, and TotalEnergies Renewables.

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