Wind industry executives have expressed concerns about potential negative impacts on investor sentiment following the Trump administration’s recent decision to suspend leases on all large offshore wind projects in the U.S., citing national security reasons. Henrik Andersen, the chief executive of Vestas, Europe’s largest wind turbine manufacturer, voiced his apprehensions about the situation, suggesting that the ongoing uncertainty in the offshore wind markets could lead to higher capital costs as investors begin to factor in increased risks.
Andersen described the year 2025 as a “rollercoaster” for offshore wind developers, especially in light of recent stop-work orders issued by the administration. The administration argues that offshore wind technology is costly and unreliable, exacerbating the challenges faced by the industry, which has already been grappling with rising costs and strained supply chains.
Several companies, including Ørsted and Equinor, have reported significant financial impairments related to their U.S. offshore wind projects, while Ørsted has also paused a major development in the UK, known as Hornsea 3. In Japan, Mitsubishi’s withdrawal from multiple projects due to skyrocketing construction costs has further contributed to the industry’s woes.
When asked about the industry’s cost trajectory, Andersen noted that while the cost of capital had remained stable over the past year, uncertainty surrounding offshore wind markets—particularly stemming from developments in the U.S.—could lead to an uptick in capital costs. He emphasized that in a long-term investment landscape, covering risk often necessitates seeking a higher return. This sentiment is fueled by widespread impairments, causing industry players to wonder if they could be affected similarly.
Vestas is currently partnered as a turbine supplier for Equinor’s Empire Wind project—one of five significant offshore wind initiatives that have been halted due to the recent policy changes. Both Ørsted and Equinor are challenging the lease suspensions in court, with hearings scheduled for later this week. Despite these challenges, Ørsted, now the world’s largest offshore wind developer, recently completed a $9 billion rights issue to bolster its finances amid the difficulties it faces in the U.S. market.
Tinne Van der Straeten, the incoming chief executive of WindEurope, remains optimistic about the future of the offshore wind sector in Europe, citing the continent’s geographical advantages. However, she cautioned that realizing this potential would require substantial investments. Wind turbines currently produce approximately a fifth of Europe’s electricity, predominantly from onshore sources, with the industry supporting around 370,000 jobs and contributing about €52 billion to the European GDP.
As Belgian energy minister from 2020 to 2025, Van der Straeten played a key role in advancing the Princess Elisabeth Island energy hub, aimed at linking offshore wind farms in the North Sea. The projected costs for this initiative have risen sharply, from initial estimates of €2.2 billion in 2021 to over €7 billion today.
In an effort to shield Europe’s clean energy sector from being underpriced by Chinese competitors, the European Commission is contemplating “made in Europe” criteria for public tenders related to specific technologies, including wind power. Both Van der Straeten and Andersen expressed opposition to such measures, advocating instead for a fair and open global market. They argued that developing a competitive local supply chain would not yield better solutions and that policymakers should prioritize infrastructure improvements and battery storage to support the growth of renewable energy.
