Trump’s broadside against wind industry puts projects that could power millions of homes at risk
A view of the turbines at Orsted’s offshore wind farm near Nysted, Denmark, September 4, 2023.
Tom Little | Reuters
President Donald Trump promised to unleash U.S. energy dominance, but his sweeping executive order targeting wind power puts a pipeline of projects at risk that would generate enough electricity for millions of American homes.
The order Trump issued on his first day in office indefinitely paused new offshore wind leases in U.S. coastal waters and halted new permits pending the completion of a review. The order jeopardizes proposed projects on the East Coast that have not yet secured permits totaling 32 gigawatts of power, according to data from the consulting firm Aurora Energy Research.
“At the moment, it’s really hard to see how any of these projects will be able to move forward,” said Artem Abramov, head of new energies research at the consultancy Rystad. Like Aurora, Rystad estimates that around 30 gigawatts of projects on the U.S. East Coast are at risk.
Those projects, if realized, would provide enough combined power for more than 12 million homes in the U.S., according a CNBC analysis of data from the Energy Information Administration. The order is not expected to impact projects under construction totaling about 5 gigawatts, according to Aurora.
Trump has abandoned commitments made during the Biden administration to fight climate change, withdrawing the U.S. for a second time from the Paris agreement. He has focused on boosting fossil fuel production, opening U.S. coastal waters to oil and gas leasing on the same day he withdrew those waters for wind.
Trump’s order will jeopardize the efforts of states in the Mid-Atlantic and Northeast to transition away from fossil fuels and decarbonize their electric grid, Abramov said. New York, New Jersey and Virginia, for example, have ambitious clean energy goals adopted at the state level. But they are too far north to rely on solar with battery for power, Abramov said.
“If you want to achieve the future where the power generation in New York or New Jersey or Virginia is completely fossil free, if that’s the ultimate goal, there are not so many alternatives to offshore wind,” Abramov said.
The order could ultimately force states to rely more on carbon-emitting natural gas, according to Rystad and Aurora. But it is virtually impossible for a state like New York to meet its climate goals and ensure an adequate energy supply, particularly downstate in the New York City metro area, without offshore wind, said Julia Hoos, who heads Aurora’s U.S. East division.
Power projects waiting in line to connect to the electric grid in downstate New York through 2027 are almost entirely wind and transmission, Hoos said.
“There is virtually no possibility to bring online new gas in the next 18 to 24 months, unless there’s a significant reform or there’s some sort of fast track to bring online that gas, so you really can run into reliability issues,” Hoos said.
But more natural gas generation will likely be built later in the decade on the back of Trump’s policies, Hoos said. Investor sentiment was already shifting toward gas before the election results due in part to the need for reliable power to meet demand from artificial intelligence data centers, Abramov said.
Immediate impact
Two weeks after Trump’s order, New Jersey decided against moving forward for now with the Atlantic Shores project, which stood to become the first offshore wind development in the state. The state utilities board cited “uncertainty driven by federal actions and permitting” and European oil major Shell pulling out of the project.
“The offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence,” Gov. Phil Murphy said in a statement backing the board’s decision.
Murphy, who has set a goal to achieve 100% clean energy in New Jersey by 2035, said he hoped “the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”
Offshore wind in the U.S. “has come to a stop, more or less with immediate effect” in the wake of Trump’s order, Vestas Wind Energy Systems CEO Henrik Andersen told investors on the company’s Feb. 5 earnings call. Denmark’s Vestas is one of the world’s leaders in manufacturing and servicing wind turbines.
Industry headwinds
Trump’s order deepens the challenges of an industry that was already facing an uncertain outlook after years growth.
Wind has surged as power source in the U.S. over the past 25 years from 2.4 gigawatts of installed generating capacity to 150 gigawatts by April 2024, according to data from the Energy Information Administration. Generation from wind hit a record that month, surpassing coal-fired power. Wind currently represents about 11% of total U.S. power generation.
But the industry has struggled against supply chain bottlenecks and high interest rates. Offshore wind was already the the most expensive form of renewable energy, Abramov said. Developers in the U.S. have faced a lot of cost certainty due to the challenges of building on water as opposed to land, Hoos said.
“The industry was hoping that the cost would come down,” Abramov said. “We haven’t seen any projects in the United States which was able to achieve lower levelized cost of energy.”
The world’s largest offshore wind developer, Denmark’s Orsted, decided on Feb. 5 to ditch its goal to install up to 38 gigawatts of renewable energy capacity by 2030. Orsted also slashed its investment program through the end of the decade by about 25% to range of 210 to 230 billion Danish crowns (about $29 billion to $32 billion), down from 270 billion crowns previously.
Orsted’s Sunrise Wind and Revolution wind projects that are under construction offshore New York and New England respectively should not be impacted by Trump’s order, CEO Rasmus Errboe told investors the company’s company’s Feb. 6 earnings call. Future developments, however, may be at risk.
“We are fully committed to moving them forward and deliver on our commitments,” Errboe said. “We do not expect that the executive order will have any implications on assets under construction, but of course for assets under development, it’s potentially a different situation.”
The order also should not impact Coastal Virginia Offshore Wind, the largest such project under construction in the U.S. at 2.6 gigawatts of power, Dominion Energy CEO Robert Blue told investors on the utility’s Feb. 12 earning call.
“Stopping it would be the most inflationary action that could be taken with respect to energy in Virginia,” Blue said. “It’s needed to power that growing data center market we’ve been talking about, critical to continuing U.S. superiority in AI and technology.”
Looking for clarity
The wind industry lobby group American Clean Power in a Jan. 20 statement described Trump’s order as a blanket measure that will jeopardize domestic energy development and harm American businesses and workers. The president’s order contradicts the administration’s goal to reduce bureaucracy and unleash energy production, ACP CEO Jason Grumet said in the statement.
The ACP is now trying to get clarity from the Trump administration on how the executive order will be implemented, said Frank Macchiarola, the group’s chief advocacy officer. It’s unclear, for example, when the review of permit and lease practices will be complete, Macchiarola said.
A spokesperson for the Interior Department simply said the department is implementing Trump’s executive order when asked for comment on a detailed list of questions. When asked when the review of permit and lease practices will be complete, the spokesperson said any estimate would be hypothetical.
The wind industry is committed to working with the Trump administration, supports the president’s push for energy dominance agenda and is making the case that renewables have a key role to play in that agenda as the largest new source of electricity in the U.S., Macchiarola said.
“When past administrations have chosen to stifle American energy development that has been almost universally viewed as a mistake,” Macchiarola said.
Onshore wind permitting has also been halted pending the review, but the part of the industry is unlikely to face a substantial impact, Rystad’s Abramov said. Wind farms onshore are almost entirely built on private rather than federal land, he said. The market is also already saturated and adding capacity is largely dependent on building out more energy storage first, the analyst said.
Offshore wind, however, is a much less mature market in the U.S. and was viewed as major growth opportunity for the industry, Abramov said. But that appears to changing rapidly.
“They don’t see the U.S. as a market for continuous offshore wind expansion as long as this order is in place,” the analyst said.
— CNBC’s Gabriel Cortes contributed to this report.
For most of human history, currency was a direct claim on tangible, productive output. Before the abstraction of government fiat or cryptocurrency, value was stored in things that required real work and resources, bushels of grain, livestock, gold, assets with their own direct productive output: horses, and tragically, slaves.
These were the foundational assets of economies, representing a direct link between labor, resources, and stored value.
As we accelerate into an all-electric, all-digital age, this fundamental link is re-emerging, but with a new unit of account. The 21st-century economy, defined by automated industry, robotic, electric transport, and now power-hungry artificial intelligence, runs on a single, non-negotiable input: electricity. In this new paradigm, the real base currency, the ultimate representation of productive capacity, is the kilowatt-hour (kWh).
The kWh is the new economic base layer.
Last week, I was in Bijiashan Park at night overlooking Shenzhen, arguably the most technologically advanced city on earth, built over the previous few decades, partly on cheap electricity, cheap labor, and manufacturing innovations.
I could see the giant high-voltage power lines coming over Yinhu Mountain to power the constant light show that is Shenzhen at night. I couldn’t help but think about how cheap electricity and a strong grid have been critical to China’s exceptional economic rise.
As you stroll around the city, you see power everywhere. There are charging stations at every corner, including insane 1 MW charging posts, electric cars and trucks, trucks that carry batteries to electric scooter shops, which are also literally everywhere.
Everything moves on electric power. Industries are powered by electricity, and now, with the advent of AI, virtually everything is increasingly processed by LLMs, which are ultimately powered by electricity through power-hungry data centers.
In a world where everything runs on electricity, electricity itself becomes the currency of civilization.
It is measurable, divisible, storable, and universal – all qualities that a currency needs, but unlike fiat and crypto, it’s actually directly linked to productive output. No politics. No inflation. Just physics.
This concept is not merely academic; it appears to be the quiet, guiding principle in China. While others debate the merits of decentralized digital tokens, China is executing a multi-pronged strategy that treats electricity as the foundational strategic asset it has become.
First, China is building the “mint” for this new currency at an incredible, world-changing scale, and it has retained absolute state control over its distribution. Its deployment of new electricity generation, particularly from renewables, is staggering. The country met its 2030 target of 1,200 gigawatts of renewable capacity five years early, in 2025.
In 2024 alone, renewable energy accounted for a record 56% of the nation’s total installed capacity, with clean generation meeting 84% of all new demand.
Here’s a comparison of electricity generation between China and the US:
If this chart doesn’t scare the West. I don’t know what will. The trend is not reversing any time soon. In fact, it appears to be accelerating as China is doubling down on solar and nuclear.
State-owned monoliths manage this entire system, primarily the State Grid Corporation of China (SGCC), the world’s largest utility. For better or worse, this centralized control allows the state to execute massive national strategies impossible in a liberalized market, such as building an Ultra-High-Voltage (UHV) grid to transmit power from remote solar and wind farms in the west to the power-hungry industrial hubs on its coast.
Second, China wields its control over the grid as a precision tool of industrial policy. China’s average electricity rate of $0.084/kWh is cheaper than most of the rest of the world, but its power lies not in the base price but in its strategic application. The government deploys a “Differential Electricity Pricing” policy: a “stick” that penalizes low-tech, high-consumption industries with higher rates, and a “carrot” that provides preferential pricing to incentivize strategic sectors.
The most potent example is in the AI sector. China is now offering massive electricity subsidies, cutting power bills by up to half, for data centers run by giants like Alibaba and Tencent. The condition for this cheap power is that these companies must use locally-made, Chinese AI chips, such as those from Huawei.
China is spending its “electricity currency” to directly fund the growth of its domestic AI chip industry and sever its dependence on foreign technology. This same logic applies to its global dominance in green tech, where state-subsidized firms like BYD benefit from a state-controlled industrial ecosystem built on reliable, managed power.
Third, and possibly the most explicit exemplification of China viewing electricity as the base currency is its moves against cryptocurrency.
In 2021, the government banned all cryptocurrency transactions and mining. While the official reasons cited financial stability, the move might have had a deeper, strategic intention.
From the state’s perspective, it was a tool for capital flight, allowing wealth to bypass government controls. But in a world where electricity rules, cryptocurrencies are, in effect, a competing “currency” that burns the foundational asset (electricity) to create a decentralized store of value.
By banning crypto, China simultaneously reclaimed its monopoly on economic control and shut down a massive, “wasteful” leak of its most precious resource. It freed up that generating capacity to be strategically allocated to its preferred industries, like AI and manufacturing.
China’s actions, viewed together, are a clear and coherent strategy. By massively investing in and securing total state control over its domestic electricity supply (the “mint”), using its price as a tool to fuel strategic industries, and banning decentralized competitors that consume the same resource, China is making a clear bet. It has been recognized that in an age where all productivity is powered by the grid, the ultimate source of national power is not gold, fiat, or crypto, but the state-controlled kilowatt-hour.
The Blockchain and Crypto: Ledger vs. Furnace
This perspective brings a critical nuance to the role of blockchain technology. In an economy where electricity is the base currency, the blockchain makes perfect sense, but only as a ledger, not as a store of value.
A distributed ledger is the ideal technological layer to act as the accounting system for this new economy. It can track the generation, transmission, and consumption of every kilowatt-hour with perfect transparency. It can automate complex industrial contracts and manage the grid’s load balancing without a central intermediary. In this sense, blockchain is the “banking software” for the electricity standard.
However, “Proof of Work” cryptocurrencies like Bitcoin face a fatal contradiction within this paradigm. They aim to serve as a store of value by burning the base currency (electricity) to secure the network. If the kilowatt-hour is the 21st-century equivalent of gold, then Bitcoin mining is akin to melting down gold bars to print a paper receipt. It destroys the productive asset to create a derivative token.
Bitcoin is quickly losing credibility as a classical safe store of value. It trades like a security, at least over the last year, and its value is only whatever the next moron is willing to pay, with no valuable asset behind it.
China’s strategy reflects this precise understanding. While they ruthlessly banned Bitcoin mining (the “furnace” that wastes the asset), they have simultaneously championed the Blockchain-based Service Network (BSN) and the Digital Yuan. They have embraced the ledger to track and control their energy economy, while rejecting the supposed asset that destroys it.
This is a trap that crypto fans often fall into. They recognize the value of the blockchain, which is real, but they mistakenly broadly assign the same value to cryptocurrency, which is simply an application of the blockchain.
Electrek’s Take
What I’m trying to explore in this op-ed is the idea that if the present is electric and the future is even more electric, then it makes sense for electricity to be the foundation of the economy.
If electricity is the backbone of global trade and the metric of productivity, the kWh ultimately becomes the real currency of a truly electrified world.
And I think China has figured this out, as evidenced by its new electricity generation surpassing the rest of the world combined and by its ban on cryptocurrency.
They are going to let the rest of the world hold the crypto bag while they have more electricity generation than anyone to power their industries, which are already taking over the world.
I think the rest of the world should learn from this. Instead of pouring capital into meme coins and made-up stores of value, we should invest in electricity generation and storage.
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![Classic Jeep Grand Wagoneer gets a battery electric makeover [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/grand-wagoneer_EV_2.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Texas-based tuning firm Vigilante 4×4 is known for its wild, high-horsepower Jeep SJ Hemi restomods – but they’re more than just a hot rod shop. To prove it, they’ve developed a bespoke, all-electric skateboard chassis designed to turn the classic Jeep Grand Wagoneer into a modern, desirable electric SUV.
The scope of the Vigilante 4×4 electric chassis project is truly impressive. More than just a Jeep SJ frame with an electric drive train bolted in, the chassis is a completely fresh design that utilizes precise 3D scans of the original SJ Wagoneers, Grand Wagoneers, and J-Trucks to establish hard points, then fitted with low-slung battery packs to give the electric restomods superior weight balance, a lower center of gravity, and objectively improved ride and handling compared to its classic, ICE-powered forefathers.
The result is a purpose-built platform that delivers power to the wheels through a dual-motor system – one mounted in the front, and one at the rear – to provide a permanent, infinitely variable four-wheel drive system that offers both on-road performance and the kind of off-road capability that made the Grand Wagoneer famous in the first place.
Vigilante 4×4 electric Jeep SJ
“This isn’t a replacement for our Vigilante HEMI offerings,” reads the official copy. “It’s a total revisit of the Vigilante platform under electric power.”
The company emphasizes that its new chassis is still in the prototype stages. As such, there are no specs, there is no pricing, there are no range estimates. Despite it all, the response from Jeep enthusiasts has already been strong. “Keep in mind this is our first prototype,” a spokesperson said. “There’s still a lot of work to be done – but the journey has begun.”
Electrek’s Take
Retro done wrong – think the Dodge Charger Daytona EV or VW ID.Buzz – is a disaster. Always. If that nostalgic tone is just a little bit off, the song doesn’t work. The heartstrings don’t pull. Done right, however, the siren song of nostalgia will have you putting a second mortgage on your house to put a Singer Porsche or ICON Bronco in your garage.
It’s too soon to tell what side of that line the Vigilante 4×4 Jeep SJ will eventually fall, but one thing (at least) is certain: it’s closer to the mark than that Wagoneer S.
SOURCE | IMAGES: Vigilante 4×4, via Mopar Insiders.
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