Court Forces DOD to Resume Wind Reviews as RWE Takes $1.2B Federal Buyout
A federal judge ordered the U.S. Defense Department to resume stalled national security reviews of wind projects, even as developer RWE took a $1.22 billion federal buyout to walk away from three U.S. lease sites, ENR reports.
Market Impact
Portland, Oregon federal judge Karin Immergut ruled Aug. 6 that DOD and the FAA unlawfully halted mandated reviews of wind turbines taller than 200 feet since April, a stoppage plaintiffs called a politically motivated moratorium. The order affects at least 106 onshore and offshore projects across 21 states representing roughly $47 billion in investment. Immergut, a Trump appointee, ordered DOD to resume reviews and file status reports every 30 days, rejecting the agency’s claim that it was conducting a new risk assessment. Eighteen states and Washington, D.C. joined the underlying lawsuit last month.
The ruling is the latest in a string of court losses for the administration, which saw stop-work orders against five Atlantic offshore projects overturned in January and February. But the administration has found more traction using direct payouts: RWE announced Aug. 6 it would surrender leases off New York, California and Louisiana in exchange for the $1.22 billion refund, the largest such deal yet, becoming the sixth developer to exit U.S. leases for a combined nearly $4 billion in refunds. RWE said it will invest a similar amount in new U.S. natural gas projects but was not required to do so. Separately, Dominion Energy’s 2.6-GW Coastal Virginia Offshore Wind project, the largest in the U.S., has climbed to about $11.7 billion in cost, up $288 million since April, partly due to 50% tariffs on imported steel, aluminum and copper. Completion has slipped from early 2027 to the end of 2027, though 31 of 176 turbines are already installed and delivering power.
What It Means for Subcontractors
- Onshore and offshore wind subs with scopes tied up in DOD/FAA siting reviews can expect movement again: the court order requires resumed reviews and 30-day status reports, so bid packages stalled since April may reopen in coming months, though timelines remain uncertain pending appeal.
- Subs holding or bidding on RWE-affiliated scopes off New York, California and Louisiana should treat those projects as dead. RWE joins five other developers that have taken federal buyouts totaling nearly $4 billion, and its statement that there is “no path forward” for those sites for the “foreseeable future” signals full cancellation, not delay.
- Firms with committed labor, cranes, or vessels tied to offshore wind construction should hold off on additional capital mobilization until permitting stabilizes. Even active, near-complete projects like Dominion’s Coastal Virginia Offshore Wind are seeing cost overruns (up $288 million since April) and schedule slips (into late 2027) driven by tariffs on imported steel, aluminum and copper, a signal that pricing risk on imported turbine and monopile components remains high.
- Electrical, marine and heavy-lift contractors still working active offshore wind sites, such as Dominion’s, should reprice contracts to account for the 50% tariff impact on imported steel, aluminum and copper before locking in new subcontract terms.
- Keep bidding on wind scopes given the court’s pro-development ruling, but track the pending appeal and DOD’s 30-day compliance reports before committing crews or equipment to new project starts.
