RWE takes $1.2 billion Trump offshore wind buyout as $4 billion exit toll mounts
German utility abandons U.S. projects as administration pays developers to quit; ClearView estimates $2 billion in remaining leases still open for settlement.
The Trump administration agreed to pay RWE $1.22 billion on Thursday (2026-08-06) to cancel the German utility's planned U.S. offshore wind projects, bringing the government's total settlement outlay this year to roughly $4 billion, according to figures compiled by Rigzone. More than 20 leases valued at nearly $2 billion remain outstanding, ClearView Energy Partners estimated, making further deals likely.7
The RWE payment is the largest single buyout since TotalEnergies received almost $1 billion in March to walk away from lease areas in the New York Bight and Carolina Long Bay. "The Trump administration is pulling all the levers it can to constrain the offshore wind industry to the few projects already under construction or in service," said Timothy Fox, an analyst at ClearView. "And they seem likely to succeed."7
TotalEnergies Chief Executive Patrick Pouyanné said in March that "considering the development of offshore wind projects isn't in the country's interest, we have decided to renounce offshore wind development in the United States." The French company redirected the settlement funds to oil and gas investments in the U.S., according to statements at the time.7
The administration has spent close to $2 billion in taxpayer money on lease buyouts this year, with April alone accounting for more than $2 billion in allocated funds across several major agreements, according to PowerMag. Agencies have blocked 165 wind projects nationwide, the outlet reported. In June, the administration paid Invenergy affiliates $765 million for four leases; Duke Energy received $129 million to abandon offshore wind plans off North Carolina at the end of that month.3,5,6
The settlements eliminate projects before construction, which distinguishes them from two offshore farms already generating power — Ørsted's Revolution Wind and Dominion Energy's Coastal Virginia Offshore Wind. Both remain under construction but have started delivering electricity. Revolution Wind is on track to reach full capacity this year, according to reports from late May.2
Dominion has predicted its Virginia project will save ratepayers $5 billion in fuel costs over the first decade of operation. That forecast assumed avoided purchases of natural gas and coal for conventional generation, a cost structure now rendered moot for the cancelled projects.2
New York's attorney general sued the administration in early June (2026-06-02) over the TotalEnergies deal, arguing the buyout exceeded legal authority. The case is pending. Other legal challenges to the lease cancellations have failed, sources familiar with the litigation told EENews in late May.4,2
Invenergy said in June it would "focus on delivering reliable, affordable energy for our customers and supporting disciplined investment at scale," a statement that made no mention of offshore wind. The company received its $765 million payout shortly after, according to EnergyVoice.5
ClearView's $2 billion estimate for remaining leases suggests the government's total cost for unwinding the offshore wind pipeline could approach $6 billion if all outstanding leaseholders accept offers. Fox's assessment that project developers and financiers are "likely to be wary of investing in such a capital-intensive industry" points to the difficulty of reviving U.S. offshore wind after this round of exits, even if a future administration reverses policy.7
European developers that accepted Trump buyouts continue building offshore wind farms outside the U.S. Ocean Winds, which took deals to abandon two U.S. developments in late April, has hit milestones on projects across the Atlantic, Canary Media reported in early May. RWE operates large-scale offshore wind farms in the North Sea and has projects under construction in multiple European markets.1
The question now is whether the dozen or more remaining leaseholders will follow RWE, TotalEnergies and the others in requesting buyouts, or attempt to preserve optionality by holding the leases. With no new federal lease sales scheduled and existing projects facing permitting blocks, the economic case for waiting is thin. Each additional settlement will clarify whether the administration's offshore wind reversal is a temporary policy swing or a structural reset in U.S. renewable capacity planning.