The Danish wind energy company Ørsted has reported significant losses linked to new U.S. policies that complicate wind farm development, directly attributing its challenges to actions taken by President Donald Trump. Following months of criticism from Trump regarding the wind energy sector, Ørsted’s share value has dropped nearly a third, prompting the company to reconsider its investment strategies in the United States.
In July 2023, Trump unveiled plans to restrict the growth of solar and wind energy projects through his One Big Beautiful Bill Act. This initiative prioritizes the expansion of fossil fuel and nuclear energy, raising concerns among renewable energy producers. Ørsted’s difficulties illustrate a broader trend, as several companies in the wind energy sector are now hesitant to invest in U.S. projects due to the financial and political instability created by these new regulations.
The situation became more precarious for Ørsted after it informed shareholders of the urgent need to raise funds to support its U.S. expansion plans. The company indicated that recent developments in the U.S. market have severely impacted its ability to secure investments, particularly for its offshore projects along the eastern seaboard. Traditionally, Ørsted finances its developments by selling stakes in projects during their development phases. However, the declining value of domestic wind projects has curtailed this strategy.
Trump’s Policy Shift and Its Impact
Trump’s approach marks a stark reversal from the policies of the Biden administration, which had sought to enhance the renewable energy landscape through various incentives, including tax breaks. These measures were designed to facilitate a transition away from fossil fuels. In contrast, Trump’s current policies aim to undermine this progress, pushing for increased fossil fuel production.
Earlier in January 2023, Trump ordered a review of offshore wind permitting and leasing, disrupting an industry that was just beginning to recover from pandemic-related supply chain issues. This review has led to greater uncertainty, with Trump also issuing a stop-work order on a project by Norwegian energy firm Equinor. The combination of these factors has made investors wary, further complicating the landscape for wind energy development.
Despite these challenges, Ørsted remains committed to completing its Sunrise Wind project off the coast of New York and the Revolution Wind project near Rhode Island. The company is attempting to raise the necessary $9 billion to move forward, although CEO Rasmus Errboe acknowledged that Ørsted and the industry are facing “extraordinary situations” due to adverse market conditions.
Future of Renewable Energy Under Threat
The U.S. Department of the Interior has compounded the challenges by indicating that new solar and wind project approvals will now require additional scrutiny from the Interior Secretary’s office. This has led to delays in permitting, further hindering progress in renewable energy initiatives. The agency’s focus on environmental concerns, including the impact of wind farms on local wildlife, has also slowed down project approvals.
Trump’s long-standing opposition to wind energy is not new. His criticism dates back to 2009 when he protested against wind turbines near his golf course in Aberdeenshire, Scotland, describing them as “ugly” and detrimental to tourism. Recently, during a visit to the United Kingdom, Trump reiterated his disdain for wind energy, suggesting that countries should revert to fossil fuels and abandon wind power initiatives.
Once considered a favorable environment for renewable energy investment under the Biden administration, the U.S. landscape now appears increasingly uncertain. Renewables companies like Ørsted and Equinor, which had previously planned major projects, are now facing significant hurdles due to Trump’s aggressive stance against wind energy. The investment outlook has dimmed, leading to a loss of public confidence and increased difficulties in securing funding for new developments.
