Trump Administration Pauses Offshore Wind Projects Citing National Security Concerns – Dominion Energy Stock Takes A Hit

• The Interior Department stated that the pause would give the administration time to assess whether to mitigate the national security risks posed by these projects.
• In a response to the Interior Department’s order, Dominion called the Coastal Virginia Offshore Wind Project essential for American national security.
• Dominion stated that the CVOW project is within months of generating 2,600 megawatts of power.

Dominion Energy Inc. (D) shares fell nearly 5% in Monday morning’s trade after the Trump administration announced that it is pausing offshore wind leases.

The U.S. Department of the Interior announced that it is pausing the leases for all large-scale offshore wind projects under construction in the United States due to national security risks identified by the Department of War.

The projects affected include the Coastal Virginia Offshore Wind, Vineyard Wind 1, Revolution Wind, Sunrise Wind, and Empire Wind 1. Dominion is currently developing the Coastal Virginia Offshore Wind project.

Retail sentiment on Stocktwits around Dominion Energy trended in the ‘bullish’ territory at the time of writing.

National Security Concerns

The Interior Department stated that the pause in offshore wind leases would give the administration time to work with leaseholders and state partners to assess whether to mitigate the national security risks posed by these projects.

President Donald Trump has previously voiced his opposition to wind projects. Within hours of returning to the White House in January this year, he announced a freeze on new permits for wind energy, while announcing a review of permitting practices for wind projects.

Dominion’s Response

In a response to the Interior Department’s order, Dominion called the Coastal Virginia Offshore Wind Project (CVOW) essential for American national security.

“Stopping CVOW for any length of time will threaten grid reliability for some of the nation’s most important war fighting, AI, and civilian assets. It will also lead to energy inflation and threaten thousands of jobs,” the company said.

Dominion stated that the CVOW project is within months of generating 2,600 megawatts of power.

D stock is up 5% year-to-date and 6% over the past 12 months.

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