German energy giant RWE has announced a temporary halt to its U.S. offshore wind operations due to the challenging political landscape created by the Trump administration. This decision follows a gradual scaling back of its activities, with CEO Marcus Krebber officially stating that the offshore division is now closed, as outlined in a speech for the company’s Annual General Meeting scheduled for April 30.
Despite the setback in offshore wind, RWE’s ventures in the U.S. have not come to a standstill. Krebber emphasized that the company’s onshore wind, solar energy, and battery storage projects are thriving. “At the start of this year, we reached an important milestone when our U.S. generation capacity hit 10 gigawatts (GW),” he noted, highlighting that an additional 4 GW of capacity is already secured for construction.
RWE has become the third-largest renewable energy company in the U.S. through its subsidiary, RWE Clean Energy, with about half of its installed renewable capacity located in the country. The company has made significant investments in both onshore and offshore projects, holding development rights in states like New York, Louisiana, and California.
In response to the evolving political environment, RWE has updated its investment criteria for future U.S. projects. The company will only proceed with investments if several conditions are met:
- All necessary federal permits must be secured.
- Tax credits must be guaranteed.
- Relevant tariff risks must be mitigated.
- Onshore wind and solar projects must have confirmed offtake agreements at the time of the investment decision.
These stringent requirements reflect RWE’s cautious approach in navigating the current regulatory landscape.
RWE’s commitment to the U.S. market is underscored by its substantial investments in offshore wind leases. In 2022, the company paid $1.1 billion for the New York lease area, planning to develop the 3 GW Community Offshore Wind project in collaboration with the UK’s National Grid. This project is expected to power over a million homes and was projected to come online in the early 2030s.
Additionally, RWE secured a $5.6 billion lease in the Gulf of Mexico in 2023, as the sole bidder, while its Canopy Offshore Wind project off Northern California is anticipated to be completed in the next decade.
As RWE reassesses its strategy in the U.S. offshore wind sector, the company remains committed to fostering renewable energy development through onshore projects. By navigating the complexities of the political landscape and adhering to strict investment criteria, RWE aims to maintain its position as a leader in the renewable energy market.
