The regulatory offensive by US President Donald Trump against offshore wind energy has triggered an abrupt halt in one of the key strategic markets for European companies in the sector. Since January 2025, the US Government has frozen the granting of new leases and permits for offshore projects, directly impacting ongoing initiatives and jeopardising future developments. The latest and most emblematic case is that of Empire Wind 1, led by Equinor, which, despite having secured all necessary permits, was halted by the Department of the Interior due to legal and environmental concerns. "This decision worsens the situation as it exposes the risk even for already approved projects," warns Kiko Maza, CEO of WeMake Consultores and a renewable energy expert. Empire Wind 1 not only symbolises a stalled investment but also delivers a significant blow to the European supply chain. The monopile foundations and transition pieces were being manufactured by SIF in the Netherlands, while the turbines were supplied by Vestas from Europe. "The US market was one of the major growth drivers and, until a local supply chain was established, manufacturing was set to remain in Europe," states Maza in conversation with Strategic Energy Europe. In addition to Equinor, other major European firms have also been affected:
- TotalEnergies decided to pause the development of Attentive Energy following the 2024 elections.
- rsted has reported delays and cost overruns in Sunrise Wind, with losses amounting to $1.68 billion.
- RWE cut 3 billion from its annual budget and laid off 73 employees in Massachusetts.
Does market contraction threaten the sector"s development in Europe? According to the WeMake analyst, "it does not affect European markets beyond the problems that some suppliers and developers may face due to their losses in US projects.
However, he clarifies that these losses could
slow down future investments in Europe. The consultant highlights another key factor: rising costs.The inability to operate in a global market forces projects to be redesigned around less developed local supply chains.
"Operating in a smaller, local market drives up costs and makes projects more expensive," he asserts.
The combination of regulatory constraints, economic losses, and pressure on the value chain threatens to reshape Europe"s role in the offshore wind development of the United States, leaving European companies with reduced scope for action and returns.