RWE will receive $1.22 billion to give up offshore wind leases tied to U.S. projects.
Why it matters: The deal puts a price tag on unwinding federal offshore wind leases, not just delaying them. It also shows how much the government is willing to pay to clear projects that face an uncertain permitting path.
- RWE will give up offshore wind leases tied to projects off New York, California and Louisiana, AP reported.
- AP said the leases could have supported about 7 gigawatts of capacity, enough for more than 5 million homes.
- The deal is the fifth offshore-wind buyback agreement the Trump administration has reached with energy companies this year.
- The agreement follows similar settlements with developers including TotalEnergies and Invenergy.
The Trump administration agreed to pay RWE $1.22 billion in exchange for the German energy company giving up offshore wind leases tied to projects off New York, California and Louisiana, according to AP.
AP said the leases could have supported about 7 gigawatts of offshore wind capacity, enough for more than 5 million homes. The company said there is no path forward to permit the projects in the U.S. for the foreseeable future, according to The Guardian.
The deal is the fifth offshore-wind buyback agreement the administration has reached with energy companies this year, AP reported. AP also said the administration has reached similar settlements with developers including TotalEnergies and Invenergy.
The Interior Department and RWE have not publicly detailed the full settlement terms in the materials reviewed for this brief.
By the numbers
- 1.22 billion - amount the Trump administration will pay RWE
- 7 gigawatts - offshore wind capacity AP said the leases could have supported
- 5 million homes - rough number of homes AP said that capacity could power
Yes, but: The reporting available here confirms the payment and the lease buyback, but not the full settlement terms or lease identifiers.