Renewable energy producer RWE has stopped offshore wind activities in the U.S. amid ongoing political and regulatory uncertainty, its CEO said in a speech manuscript released April 25 ahead of the company’s annual general meeting next week.

RWE CEO Markus Krebber described the market environment as positive for electricity demand and noted the company hit a milestone of 10 gigawatts (GW) of generation capacity in the U.S. with another 4 GW secured. However, Krebber said RWE has stopped its offshore wind activities for the time being as the Germany-based utility’s onshore wind, solar and battery storage projects continue to be developed.

“We remain cautious given the political developments. We have introduced higher requirements for future investments in the U.S.,” Krebber said in the speech. “All necessary federal permits must be in place. Tax credits must be safe harbored and all relevant tariff risks mitigated. In addition, onshore wind and solar projects must have secured offtake at the time of the investment decision. Only if these conditions are met will further investments be possible, given the political environment.”

The move comes at a time when electricity needs across the U.S. are expected to climb as industrial and manufacturing facilities, data centers and other consumers demand more power.

The offshore wind sector remains among U.S. President Donald Trump’s targets. One of the president’s first acts in office in January was issuing an executive order that temporarily stopped new wind leasing and permitting until the completion of a review to determine whether there is a need to end or amend such leases and identify legal bases to do so. The review focuses on the ecological, economic and environmental necessity of wind energy leases. Trump is a known opponent of wind energy, despite the renewable energy source’s role in meeting growing energy needs.

RWE is among the world’s largest offshore wind energy producers. The company operates nearly 20 offshore wind farms globally. In the U.S., RWE and partner National Grid are developing the 3.3-GW Community Offshore Wind project in the New York Bight area. The offshore wind project could provide enough electricity to power more than 1 million homes, according to the project’s website.

RWE also has an offshore wind development underway offshore California, where it won a lease area in 2022 to develop up to 1.6 GW of floating wind, and a wind initiative in the Gulf of Mexico offshore Louisiana.

Just last week, the U.S. Bureau of Ocean Energy Management was directed by Interior Secretary Doug Burgum to immediately order the stop of construction for the Empire Wind project offshore New York. The project is being developed by Equinor.

The U.S. offshore wind activity halt by RWE followed news in March that the company plans to cut spending by more than $10 billion net (US$10.9 billion) through 2030 globally. At the time, the company cited as reasons regulatory uncertainties, supply chain constraints, geopolitical risks and higher interest rates.

“Global uncertainties have recently increased significantly. Global political tensions are palpable,” Krebber said in the speech released April 25. “New tariffs are putting a burden on the trade system. Supply chains have become more fragile. Inflation and financing costs are higher than in recent years. We have to carefully consider these risks when making investment decision.”

RWE’s annual general meeting is scheduled for April 30.

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