The Trump administration has agreed to pay $765 million to Invenergy to terminate four offshore wind leases, including one off the coast of California. The deal redirects funds toward natural gas-fired power plants in the Midwest and geothermal projects in the western U.S., according to the U.S. Department of Energy.
The terminated leases include sites in the New York Bight, the Central Coast of California (Morro Bay), and the Gulf of Maine. This marks the third such agreement this year, following similar deals with TotalEnergies and Golden State Wind/Bluepoint Wind, totaling over $2.6 billion in reimbursements for abandoned wind projects.
Immediate Action & Core Facts
- $765 million will be paid to Invenergy to cancel four offshore wind leases.
- Funds will be redirected to fossil fuel and geothermal projects, per the Department of Energy.
Deeper Dive & Context
Policy Rationale
Interior Secretary Doug Burgum stated the leases were sold under assumptions that have since been disproven, including concerns over national security and the reliability of wind energy. The administration argues the shift supports "dependable, secure energy infrastructure" and lowers utility costs.
Industry and Environmental Response
- Wind Industry: Critics argue the move undermines renewable energy goals and wastes taxpayer funds.
- Fossil Fuel Advocates: Supporters highlight the focus on reliable energy sources and economic benefits for states like Indiana, Wisconsin, and Missouri.
Remaining Leases
Only three offshore wind leases remain off California—one near Morro Bay and two near Humboldt Bay.
Previous Deals
- March 2024: $1 billion paid to TotalEnergies to abandon leases off North Carolina and New York.
- April 2024: $885 million paid to Golden State Wind/Bluepoint Wind for leases off California, New Jersey, and New York.
The administration has not specified whether further wind lease cancellations are planned.