In one of his initial presidential actions, Donald Trump issued an executive order possibly derailing the budding offshore wind industry in America.
The order, signed on a Monday, halted federal leases for offshore wind development on the outer continental shelf—a location far enough offshore for consistent, high wind speeds yet accessible.
Clear in the order, is its exemption of leasing related to other purposes including, oil, gas, minerals, and environmental conservation.
The directive does not impede projects associated with signed contracts. However, it compels the Secretary of Interior to scrutinize existing contracts with a view to amending or terminating them.
Despite its scanty appearance in U.S. waters, the offshore wind industry was showing prospects for growth—a potential threatened by the recent order. Currently, there are only a few offshore wind farms in operation in the U.S, with a capacity of 174 megawatts as of May’s end.
Despite its high costs compared to other power sources, offshore wind, due to its constancy and closeness to key population hubs—and data centers—had been deemed appealing. In fact, data operators in Europe have shown interest in signing deals. One prime example was Google’s move to purchase 478 megawatts of offshore wind power to power two of its data centers in the Netherlands.
Generally in the U.S, offshore wind has been bogged down by public opposition, lack of necessary infrastructure for building and installing turbines, and availability of affordable and windy land favorable for onshore turbines.
While Trump’s executive order doesn’t obliterate offshore wind entirely, seeing that the majority of offshore wind development happens abroad, the industry is probably going to mature in other countries, leaving companies ready to tap into the U.S market when it reopens.
Original source: Read the full article on TechCrunch
