Ørsted’s Revolution Wind project, which would be located just offshore of Rhode Island, has run into a significant legal hurdle. The project would need to stop all work indefinitely due to national security issues. This surprise turn of events stops a project that has taken almost ten years to plan from continuing forward. The development’s primary purpose will be to deliver large amounts of clean, renewable energy to Rhode Island and Connecticut.
Despite challenges, Revolution Wind has come a long way from the starting gate. The project received all required federal and state permits. On November 17, 2023, it was finally granted approval for its Construction and Operations Plan. Once we received final federal approval last fall, construction began in earnest. As it stands today, the project is approximately 80% complete, and we’ve already installed 45 of the 65 wind turbines. Once operational, Revolution Wind will deliver clean, renewable power to more than 350,000 homes in both states.
Background and Progress of the Project
The appraisal for Revolution Wind’s Construction and Operations Plan started more than nine years ago. This process illustrates the profound level of regulatory oversight that offshore wind projects undergo in the United States. Ørsted has cemented its commitment to provide Rhode Island 400 megawatts (MW) via the execution of 20-year power purchase agreements. Further, the company will supply 304 MW to Connecticut.
Even with these accomplishments, the recent pause casts a long shadow on the future direction of the project. Matthew Giacona, the acting Director of the Bureau of Ocean Energy Management (BOEM), is doing his part to respond to national security concerns. He makes sure that anything that happens offshore doesn’t interfere with other legitimate uses of EEZs, high seas, and territorial seas.
“BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas.” – Matthew Giacona, BOEM acting Director
Implications of the Stop-Work Order
The stop-work order is an extraordinary event with tremendous implications for Ørsted and its Revolution Wind project. The company may need to engage further with relevant permitting agencies to clarify or resolve the issues raised by the halt. Further, they might seek to intervene/litigate to guarantee that construction is forthcoming on the proposed timeline.
Ørsted, for example, lamented the growing regulatory uncertainty that has developed around offshore wind projects in the United States. The rare occurrence of this situation exemplifies the paradoxical considerations that must be addressed when balancing responsible energy development with national security interests.
“The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US.” – Ørsted
Future Prospects
In short, Ørsted is meeting today’s challenges, today. The company continues to stick by its efforts to get ready for its imminent planned rights issue, underwritten by its majority owner – the Danish state. The company’s been in action mode trying to steer through the regulatory minefield. Its goal is to achieve commercial operations for Revolution Wind by the second half of 2026.