Global wind energy leader cuts investment plans through 2030

Another major player in wind energy is responding to Donald Trump taking office as president. Danish company Ørsted, the global leader in offshore wind energy, has revised its strategy and is cutting its projected investment through 2030. One of the key factors is uncertainty surrounding wind projects off the coast of the United States.

Ørsted announced a reduction in its investment programme. It had originally planned to invest EUR 36.1 billion by 2030, but the revised budget will now be between EUR 28.1 billion and EUR 30.7 billion.

The decision comes as global wind farm construction stagnates amid rising costs and adverse market conditions, compounded by high interest rates. These have affected the profitability of several projects, forcing major players to reassess their plans for the coming years. This is the opposite of the development needed to meet ambitious climate targets.

Despite the expected slowdown and uncertain outlook, the Danish company reported a net profit of around EUR 2.1 billion in 2024. This contrasts with a loss of more than EUR 2.6 billion recorded in the previous year. Another Danish global player in wind energy, Vestas, had a strong year, benefiting primarily from its order backlog and growth in onshore wind farm projects.

Support from the new U.S. administration is not expected

Wind projects are also significantly affected by political uncertainty in the United States, which is increasing pressure on offshore wind energy players. With Donald Trump back in office, projects that had not yet been approved have been frozen, complicating the industry's growth prospects. The situation also limits economies of scale and slows the momentum of new investment.

The impairment of projects, which amounted to more than EUR 2 billion in 2024, was primarily related to cost overruns and delays affecting some offshore projects in the United States. For example, two key projects, Revolution Wind and Sunrise Wind, are facing supply chain disruptions and construction-related expenses.