Offshore Wind Energy Sector Gears Up for Election Results

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Offshore Wind Energy Sector Gears Up for Election Results

In Atlantic City, New Jersey, leaders in the U.S. offshore wind energy sector are entering a period of uncertainty with the upcoming presidential elections, and concerns are growing about the potential impacts of a possible victory by Donald Trump on November 5. While industry representatives maintained a neutral public image at the American Clean Power Association's Offshore Windpower conference this week, they privately expressed concerns about the future of their projects should Trump return to office, as he has vowed to eliminate offshore wind initiatives.

Republican candidate and former President Trump has clearly stated that if re-elected, he would issue an executive order to cancel offshore wind projects on his first day, citing environmental and wildlife concerns. This stance sharply contrasts with that of Democratic Vice President Kamala Harris, who advocates aggressive offshore wind targets as part of the current Biden administration.

The offshore wind sector is already experiencing a challenging year; in addition to project cancellations and postponed lease auctions, challenges have arisen from a construction accident at the country’s first major offshore wind project. The competitiveness of the election race further heightens industry concerns.

Jason Grumet, CEO of the American Clean Power Association, acknowledged the additional tension the election brings to the conference, emphasizing broader anxieties felt due to the polarized political climate in the U.S.

Conversations with at least twelve conference attendees, including two offshore wind development executives, revealed a shared concern about possible setbacks in the sector's progress if Trump hampers the federal permitting process for projects. However, none of these industry representatives wished to make recorded statements. Similarly, other executives and regulators avoided discussing the specific implications of a Trump presidency, stating a commitment to working with any administration.

Doreen Harris, CEO of the New York State Research and Development Authority, reaffirmed New York's goal of installing 9 Gigawatts of offshore wind energy by 2035, regardless of the election outcome. Equinor also issued a statement via email, maintaining a neutral stance and emphasizing that developing renewable energy and domestic supply chains are non-political issues.

A White House advisor on renewable energy noted that a Trump presidency could lead to a decline in federal offshore wind leasing activities, adding another layer to the current challenges facing the sector. Carl Fleming, a partner at McDermott Will & Emery, stated that the offshore wind sector might struggle to meet the Biden administration's goal of 30 GW by 2030, irrespective of the election outcome.

The conference coincided with the Biden administration’s first offshore wind leasing auction in the Gulf of Maine, which resulted in a relatively modest bid of $22 million. Some industry observers linked this lukewarm response from developers to the anxious climate surrounding the upcoming election.

This article has been contributed to by Reuters.

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