Pauses on federal permits and leases for U.S. wind energy projects are leaving major energy firms such as Shell, Orsted, and TotalEnergies in limbo. President Trump’s position on wind farms was never in doubt while on the campaign trail. He frequently lambasted the aesthetics and environmental effects of on and offshore wind farms, and as the administration continues to move at breakneck speeds eliminating and downsizing projects, wind energy is the latest in the President’s crosshairs. 

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The process for obtaining federal permits for land-based wind projects involves multiple agencies, including the Army Corps of Engineers, the Bureau of Land Management, and the Federal Aviation Administration. The Lava Ridge Wind Project in Idaho has become a focal point of the controversy, and despite receiving initial approval for a scaled-down version, Senator Jim Risch (R-Idaho) successfully lobbied President Trump to halt the project. citing Senator Risch has also expressed a shared dislike of windmills, and the executive order initiated a review of the decision, promising a “comprehensive analysis.”

In 2023, wind energy contributed approximately 10% of large-scale electricity generation in the U.S., as reported by the Energy Information Administration, primarily from land-based initiatives. 

The industry is grappling with uncertainty regarding tax credits from the 2022 Inflation Reduction Act, which former President Trump has labeled a scam. In anticipation of potential tax changes, developers accelerated their project timelines between the election and December 31, such as placing equipment orders or commencing site work. These early actions can demonstrate that construction has begun, thereby securing access to current tax credits, even if projects are finalized later under a different tax framework.

Despite these setbacks, the offshore wind sector had approximately four gigawatts of projects under construction by the end of the third quarter of 2023. While developers are busy with current projects, the uncertainty surrounding future permits is a major concern, impacting planning. The complex supply chain, which extends to states like Louisiana, adds another layer to the challenges facing the wind sector. Industry leaders emphasize the need for certainty to ensure future investments and the long-term viability of the sector, and hope that the broader pause on permitting will eventually be lifted.