But those reviews, conducted through DOD’s Military Aviation and Installation Assurance Siting Clearinghouse, have not been occurring since April, claim developers, states and proponent groups, who described the stoppage as a politically motivated, de facto moratorium, according to federal district court Judge Karin Immergut's ruling. The Aug. 6  opinion ordered an injunction while a federal lawsuit proceeds.

The order mentioned that at least 106 onshore and offshore wind projects in 21 states representing at least $47 billion in investment remain in approval limbo. That is the claim of the May 31 lawsuit brought by developers and clean energy groups that was joined last month by 18 states and Washington, D.C. 

Noting that DOD has not complied with regulatory deadlines for security reviews, Immergut, appointed by President Donald Trump in 2019, stressed that the agency “cannot pick and choose which parts of this legal regime to follow,” ordering it to resume reviews and submit status reports every 30 days. 

“For months, wind projects capable of supplying millions of homes and businesses with low-cost power have been needlessly obstructed, as electricity costs and demand soar,” Phelps Turner, senior attorney for U.S. clean energy at the Environmental Defense Fund, said in a statement. 

Plaintiffs argue that before stopping the reviews, DOD did not alert any projects to special risks and that its broad halt of all projects is unlawful, creating delays that could cause them to miss federal tax credit deadlines and risk investor pullout or cancellation. 

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In oral arguments and other statements, DOD claimed the review pause was part of a new assessment of risks “actively evaluating land-based wind energy projects to ensure they do not impair national security or military operations.” In a media statement last month, DOD said it was “actively evaluating” projects in a complex process “to balance renewable energy development with the protection and preservation of testing, training, and operational readiness.”

A provision mandating a similar restart was added as an amendment by Sen. Angus King (I-Maine) to the fiscal 2027 defense authorization bill, which passed the Senate Armed Services Committee in July. But that bill remains stalled in the Senate over procedural issues. The House passed its version of the bill last month but it does not include the wind review restart, which Republicans had earlier blocked from being included. Congress will take up the legislation in September.

Federal judges have rejected other administration moves to restrict the sector, overturning in rapid succession in January and February Trump stop-work directives against five offshore Atlantic coast projects that now are completely or largely built.

As such, the administration appears to be having more success using direct payouts to developers to have them revoke leases for prospective wind projects, 

German energy developer RWE became the latest target, with the firm announcing Aug. 6 that it would give up leases won in Biden-era auctions for sites off New York, California and Louisiana in return for a $1.22-billion federal refund—the largest package so far. Those projects were in early stages of development. “After careful consideration, it was determined there is no path forward to permit these projects in the U.S. for the foreseeable future,” the company said. The agreement resolves RWE's claims against the U.S. government, but the firm did not address whether the payment covers its lease payments and other development costs.

The company will invest about the same amount in new U.S. natural gas projects, but told industry publication Recharge that it was not specifically required to. “RWE determines where and how to deploy capital across its energy portfolio based on where it can deliver the greatest, more immediate value,” a company spokesperson told the publication. 

RWE said it remains a leader in renewable energy outside the U.S. with 18 offshore wind farms operating, four under construction and others in development—including 6.9 GW of capacity secured in the most recent U.K. wind auction.

The developer's agreement to exit its U.S. leases makes it one of six to do so, with a total of nearly $4 billion in refunds. “These buyouts are not one-for-one ‘swaps’ for another kind of energy,” said Hillary Bright, executive director of wind advocacy group Turn Forward. “When you eliminate future utility-scale power sources from busy population centers, you need a clear Plan B to avoid future grid stress. Replacing coastal offshore wind with LNG in Louisiana does nothing to address rising ratepayer affordability concerns, reliability challenges, or potential gaps in power supply in the Northeast and mid-Atlantic.” 

Seven Democratic-run states, including New York, sued the administration in June over the first deal with France-based TotalEnergies. California has also sent a notice of intent to sue over two cancelled projects off the state’s central coast.

Dominion Wind Project's Mixed Results  

Meanwhile, while Virginia utility Dominion Energy and its would-be buyer, NextEra Energy, are optimistic that the former’s 2.6-GW Coastal Virginia Offshore Wind project, the largest in the U.S., will provide returns when finished, CEO Robert Blue acknowledged Aug. 7 that administration tariffs on imported components are a factor in the project's increased cost hikes. 

Project cost has risen to about $11.7 billion, up $288 million from its most recent cost estimate in April, he revealed in Dominion's latest results, citing “costs associated with revisions to prior steel and aluminum guidance.” Tariffs raised costs for imported steel, aluminum and copper by 50%, he said. Other cost factors included revised network upgrade costs assigned by grid operator PJM Interconnection. The company also said it estimates it will complete all work on the project by the end of 2027, extended from early next year.

The project uses mostly imported components, including 176 Siemens Gamesa 14.7-MW turbines and monopiles made in Germany.

Blue said 31 turbines with a capacity of more than 450 MW are installed “averaging approximately two days of operations per installation from jack up to jack down, in line with our prior assumptions [and] rivaling the magnitude of some of our fossil units.”

Dominion has already used the wind power to help meet record demand peaks set this summer in Virginia, he noted. “This allows the project to clearly demonstrate technical feasibility and deliver energy to the grid well before the final turbine begins to spin,” Blue stated. 

Dominion also will begin seeking state and federal approvals in its next quarter for the NextEra Energy merger that could reach financial close by the end of 2027.