Shares of renewable energy companies are sinking on reports that the U.S. government has halted construction on a major wind power project.
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The U.S. Bureau of Ocean Energy Management has issued a stop-work order for the Revolution Wind Project off the coast of Rhode Island even though the project is 80% complete and 45 out of 65 wind turbines have been installed.
News that construction of the wind project has been stopped sent the stocks of NextEra Energy (NEE), Clearway Energy (CWEN), and Northland Power (TSE:NPI) lower on Aug. 25. The halt of the Revolution Wind Project was especially hard on the project’s developer, Danish energy company Orsted (ORSTED), whose share price has fallen 16% on the day.
Sign of the Times
The construction halt on the wind farm is the latest example of the U.S. government moving away from renewable energy projects under President Donald Trump. The Trump administration has also canceled funding that supported solar energy adoption as it focuses on boosting the oil and natural gas sectors.
For Orsted, the construction halt in Rhode Island comes as it seeks to raise capital to help fund its large wind turbine infrastructure projects. Earlier in August, the company announced plans for a $9.4 billion U.S. rights issue. On Aug. 25, management said they planned to continue with the proposal, noting that it had the support of stakeholders, which include the Danish government.
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