US Weighs Reconsideration of Virginia Offshore Wind Approval as Policy Review Intensifies

The Trump administration is considering whether to send federal approval of a major offshore wind project in Virginia back to the Interior Department for reconsideration, raising fresh uncertainty around one of the most advanced renewable energy developments in the United States.

According to a court filing submitted this week, the Interior Department is reviewing Biden-era approvals for offshore wind projects as part of a broader reassessment of federal energy policy. The review follows a July order by Interior Secretary Doug Burgum directing the agency to end what he described as preferential treatment for wind and solar power and to reexamine existing leasing and permitting decisions.

The filing, submitted in U.S. District Court for the District of Columbia, indicates the department will evaluate whether a formal remand of the Virginia project’s approval would be appropriate. In recent months, Interior has sought court permission to reconsider permits for several offshore wind projects, reflecting President Donald Trump’s longstanding criticism of offshore wind as costly and visually disruptive.

The project in question-Dominion Energy’s $11.2 billion Coastal Virginia Offshore Wind development-is significantly further along than most U.S. offshore wind initiatives. The project is designed to generate enough electricity to power about 660,000 homes and is expected to be operational by the end of next year. Construction milestones already achieved include the installation of all 176 monopiles, completion of deepwater cable installation, and one of three offshore substations.

The court filing was made jointly by Interior and three conservative groups, including the Committee for a Constructive Tomorrow, which sued the department last year over its approval of the project. Both sides have asked the court to extend a pause in the litigation until early February while the review proceeds. Dominion has agreed to the stay but maintains it does not accept the validity of any potential remand or review.

Reconsideration of already-approved offshore-wind projects intensifies delivery-risk pricing for US offshore wind, and it affects lender, insurer and offtaker confidence for the whole pipeline, not just the project under review. Our sustainability-due-diligence and market-intelligence teams help clients evaluate what these dynamics mean for US offshore-wind investment strategy.