‘Chilling Signal to Investors in US Market’ | Backlash from Industry, NY State Agencies After US Gov’t Suspends Empire Wind 1 Mid-Construction

April 18, 2025, by Adrijana Buljan

US renewable energy industry organisations and New York state agencies, as well as the Governor, have responded with criticism to the decision of the US Department of the Interior (DOI) to halt construction on Empire Wind 1. The move has been called a “chilling signal” to investors in the US market by the CEOs of Oceantic Network, ACP, as well as the New York State Energy Research and Development Authority (NYSERDA).

“The irrefutable harm created by this action will send a chilling signal to any party investing in the U.S. market, all of whom rely on regulatory certainty.”–Doreen M. Harris, President and CEO, NYSERDA.

Following the order from the DOI, Equinor said the company was complying and took immediate steps to start suspending relevant marine activities on Empire Wind 1, the first offshore wind farm that will connect to New York City’s grid.

Equinor Freezes Empire Wind 1 Construction, Considers Appealing US Gov’t Order

Wind Farm Update

While the project was paused in order to undergo additional review of its permitting process, as announced by the new US government in the executive order issued on 20 January, the suspension of an offshore wind farm that had already started construction and kicked off investments and contract execution has sparked backlash from the industry and both New York Governor and state agencies.

“Stopping an already fully permitted project is bad for New York workers, bad for New York energy needs, and bad for business. This action shows the world that federal commitments aren’t worth the paper they are printed on”, the New York Department of Public Service (DPS) said in a statement released on 17 April.

“[Like] the on-again off-again tariffs—pulling the rug out from a project that already received the required federal permits a year ago frustrates business predictability, hampers financial investment and ultimately increases costs.”

The DPS also stated that the responsibility for the negative impact the order will have on the economy and employment lies solely with the federal administration.

The president and CEO of NYSERDA, which runs the state’s offshore wind procurement, said Empire Wind 1 was New York’s largest energy infrastructure project in 50 years and that this action goes against the Trump administration’s prioritisation of independent and locally produced energy.

“This project underwent extensive and robust federal reviews, having received all state and federal permits – including securing the lease for the project site from the former Trump administration – and is already under construction with strong support from the local Sunset Park community and more than 1,500 construction workers currently employed”, said Doreen M. Harris, president and CEO of NYSERDA.

“The federal government’s interference not only ignores the reality surrounding the future energy security of our state and country, it’s fueled by a shortsighted, political agenda that ignores the well-demonstrated economic benefits that this industry can provide as the state and nation work to ensure an affordable, reliable and abundant energy supply for future generations. The irrefutable harm created by this action will send a chilling signal to any party investing in the U.S. market, all of whom rely on regulatory certainty.”

The move being a “chilling signal” to investors is also what the US industry organisations American Clean Power (ACP) and Oceantic Network said in their response to the announcement from the DOI. Oceantic Network also shared supply chain information about Empire Wind 1, which shows that, among other things, 102 US companies hold a total of 112 contracts for Empire Wind.

“Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda. With skyrocketing energy demand and increasing consumer prices, we need streamlined permitting for all domestic energy resources. Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment”, ACP CEO Jason Grumet said in a statement on 16 April.

“These political reversals are bad policy, whether applied to pipelines or wind farms. We encourage the Administration to quickly address perceived inadequacies in the prior permit approvals so that this project can complete construction and bring much needed power to the grid. At the end of the day, reliable energy systems depend on reliable political systems.”

Oceantic Network urged the Department of the Interior to lift the order.

“Stopping work on the fully federally permitted Empire Wind 1 offshore project should send chills across all industries investing in and holding contracts with the United States Government. Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses – beyond those in the offshore wind industry – that their investment in the U.S. is not safe”, said Liz Burdock, president and CEO of Oceantic Network.

According to Oceantic Network, Empire Wind’s supply chain spans more than 23 states and has brought more than USD 1.6 billion (approximately EUR 1.4 billion) in investments to the US, including substantial investments in Texas, South Carolina, Louisiana, Ohio, and Kansas.

The data provided by Oceantic shows 3,500 people in the US are working in the Empire Wind’s supply chain, with 102 domestic companies holding a total of 112 contracts for the project.

The US offshore renewable energy industry organisation said that with the halt of construction work, thousands of jobs and the investments in the supply chain supporting Empire Wind were now at risk.