Two of the world's largest renewable energy companies, Germany's RWE and Siemens Energy, voiced concerns on Wednesday over challenges facing the U.S. offshore wind industry under President-elect Donald Trump, cautioning that delays may impact project timelines. RWE, the world's second-largest offshore wind developer, and Siemens Energy, a leading manufacturer of offshore wind turbines, reflected on the potential hurdles Trump's administration may bring to the sector, which the president-elect has criticized.
“Given the results of the U.S. elections, we see higher risks than before for the timely implementation of offshore wind projects there,” said RWE's CFO Michael Mueller, adding that investments in U.S.-focused projects like RWE's 3 GW Community Offshore Wind joint venture with National Grid may face delays. “We have to expect that investments in our projects will come later than originally planned,” he noted.
Siemens Energy CEO Christian Bruch also highlighted regulatory uncertainties around future offshore projects, expressing concern over delays in permitting, particularly for projects planned in the late 2020s and early 2030s. Siemens is slated to supply turbines for U.S. offshore projects with a combined capacity of 4.2 GW.
Concerns surrounding Trump's policy stance, including his earlier opposition to offshore wind, have made investors cautious. Gilles Guibout of AXA Investment Managers commented, “In renewables, the U.S. don't want to do offshore wind anymore. This business might disappear…there's a paradigm shift.”
In response to potential regulatory instability, RWE announced a €1.5 billion share buyback as an alternative investment approach amid uncertainty in the U.S.
Source: Reuters
