The Trump administration has reached a new agreement to shut down offshore wind projects, this time with Invenergy, a Chicago-based energy developer that will receive $765 million in exchange for giving up four leases off New York, California and Maine. The company will redirect resources towards natural gas plants in the Midwest and geothermal initiatives in the western United States, effectively shifting its operational focus towards energy sources the current federal government considers more reliable and less expensive than offshore wind.
Trump pays Invenergy $765 million to walk away from offshore wind leases
The agreement with Invenergy is the third deal of this kind completed in recent months. The administration had already signed a $928 million reimbursement with TotalEnergies and an $885 million agreement with several joint ventures, bringing the total amount allocated to the cancellation of offshore wind leases to more than $2.5 billion. According to the Associated Press, these operations have halted eight projects, including Leading Light Wind, a development already cancelled in 2025 that could have reached 2.4 GW of capacity, enough to power more than one million homes.
Interior Secretary Doug Burgum defended the decision, arguing that Invenergy had recognised the value of investing in baseload energy and infrastructure capable of delivering direct benefits to American consumers. The administration’s position rests on the idea that natural gas, as a dispatchable source, and geothermal energy, which can provide continuous low-emission power, can deliver faster and more stable results than offshore wind development.
However, industry operators and observers point to the location of the new generation capacity as the main issue. Developers had planned the cancelled leases to supply high-demand coastal areas, particularly the Northeast and the Atlantic coast, where the power grid already faces pressure and demand continues to rise because of data centres, electrification and air conditioning. Gas plants in the Midwest or geothermal facilities in the West can increase total national capacity, but without adequate transmission infrastructure, that new production will not reach the areas that actually need it.
The economic dimension of the operation adds another layer of controversy. The use of public money to reimburse leases awarded under the previous administration has triggered criticism from some states and several political figures, who have questioned both the use of funds and the procedure followed by the federal government. For developers, on the other hand, these agreements can offer a way out of projects that have become uncertain and politically exposed. Invenergy itself has not ruled out a possible return to offshore wind in the future.
The overall result is a significant reduction in planned wind capacity along the US coast. The effectiveness of the strategy will depend on the administration’s ability to build the transmission infrastructure needed to connect new generation sites with the markets that actually require additional electricity.
