The US Administration's pulse against the offshore wind power has taken another step forward. According to documents filed in federal court in Washington, the Department of Justice intends to request the BOEM the cancellation of the approvals of New England Wind, the double project of Avangrid (Iberdrola) off the coast of Massachusetts.
The movement comes in the middle of the boosting offshore wind power and a broader offensive that has already forced the halt of work on other complexes in the Atlantic, including Revolution Wind (Rhode Island/Connecticut), and has reopened the review of SouthCoast Wind. In parallel, the markets have calibrated the regulatory risk, while several banks maintain that the effect on Iberdrola will be limited.
What's changing for New England Wind 1 and 2
The area of New England Wind It is located about 48 kilometers south of Barnstable (Massachusetts) and was divided into two permits: NEW 1 and NEW 2. Federal approval came in 2024, with planning that included around 2 GW of power to supply around 900.000–1.000.000 households, an announced direct investment from 8.000 million and a CO2 reduction equivalent to retiring hundreds of thousands of cars per year over their useful life.
Now, the Department of Justice has informed the court of its intention to ask for the revocation of approval of the construction and operation plan before the BOEM. The request is part of a contentious process initiated by ACK for Whales and other local organizations, which allege failures in the processing and alleged violations of federal environmental regulations.
The White House argues that the rethinking of offshore wind power seeks to ensure a sustainable fishing and lower energy prices, while the concession for other marine uses (such as oil and gas) has not suffered the same setback. As soon as he took office, the president signed an executive order that temporarily suspended new auctions and demanded a review of leasing criteria and authorizations.
The Revolution Wind hiatus and new legal battles
The most forceful precedent has been Revolution Wind, a project aimed at supplying electricity to about 350.000 households in Rhode Island and Connecticut. With more than 80% of the works completed (45 of 65 turbines already installed), the BOEM issued a suspension of work for national security reasons. For the states, the halt compromises port investments, employment, and the winter electricity supply at an agreed price of 9,8 cents/kWh during 20 years.
The reaction has come through the judicial route: Ørsted, the park's developer, has requested precautionary measures to reactivate construction, while Rhode Island and Connecticut have announced their own lawsuits against the federal government. The Department of the Interior has avoided commenting on ongoing litigation, while at the same time opening the door to reconsider approvals on other projects, such as SouthCoast Wind.
The official justification points to risks to the radar and the possibility of drone swarm attacks, a thesis questioned by defense experts. In fact, in the file of Revolution Wind el Defense Department noted that, under specific conditions, the impact on its operations was insignificant and avoidable.
Market reactions and impact on Iberdrola
On the financial front, JP Morgan considers that a possible withdrawal of permits in New England Wind 1 and 2 would have a really small effect At Iberdrola: the previous fixed-price contracts were terminated due to unfeasibility, NEW 1 does not have a current PPA y NEW 2 is not awarded. Morgan Stanley agrees that no material implications are expected because it is a initiatives pre-FID, a position that is supported by RBC, Caixabank, Kepler y SabadellFor Oddo and Alantra, the financial risk is limited and the company has acted prudently.
From a corporate perspective, the United States is one of the investment axes from Iberdrola: from the 36.000 billion plan until 2026, around 35% is heading to the country, with more than half of the new renewable investment focused on offshore wind in the US, UK, France and Germany. The company has stated that a possible stoppage will not jeopardize its growth portfolio, and its price has barely suffered.
The sector notes, however, the exceptional nature of halting projects with all licenses and advanced works, something unusual in other geographies. In parallel, the group is already operating and continues to complete works in Vineyard Wind 1 (806 MW), another milestone for offshore wind power in the New England region.
In the absence of firm resolutions, the regulatory board is moving quickly: the Department of Justice has announced that it will ask BOEM to rescind the approvals of New England Wind, while other projects on the eastern coast are being reconsidered. The outcome could be revocations, returns to the file, or mitigation adjustments. In this context, the industry is adjusting plans and contracts while awaiting regulatory clarity.