RWE, Germany’s largest power producer, has recently declared it will scale back its U.S. offshore wind efforts considerably. This amendment goes into effect in March 2025. The firm is taking a more ten-foot-pole-type approach to its future activities in the US market. This decision is a welcome response to the changing tides. RWE has not yet stated that it is pulling the plug on all its offshore wind developments. In fact, the company has all but shuttered its operations to dwarfing levels.
In a statement released ahead of the company’s annual meeting on April 30, 2025, CEO Markus Krebber addressed the company’s strategic shift. He noted, “In the US… we have stopped our offshore activities for the time being.” This announcement is further testament to the company’s goal to reconsider how and where it invests in the energy sector’s long-term, transformative transition.
RWE currently owns three active offshore wind leases in US waters, located near New York, Louisiana, and California. The firm just recently won a $5.6 million lease away from Louisiana, further establishing its dominance on the state’s home turf. Despite these substantial investments, RWE’s proposed offshore wind project off Northern California—the Canopy project—is already running into delays. It’s not projected to wrap up until about 2034. This is a big deal of a project. When finished, it is projected to feed enough electricity to power more than one million homes.
The Canopy offshore wind project was previously expected to start generating electricity in the early 2030s. However, the delays and RWE’s recent announcement indicate a shift in focus toward a more cautious and measured approach in the US market. Almost 50% of RWE’s installed renewable capacity is based in the US, highlighting the importance of this market for the company’s overall strategy.
In 2022, RWE invested $1.1 billion to secure an offshore wind area lease in the US, reflecting its commitment to expanding its renewable energy footprint. Recent policy reversals and growing uncertainty about offshore wind’s operational model have caused RWE to change course. Today, their executives focus on managing risk, rather than going after growth at all costs.