In a significant setback for the Trump administration’s energy policies, a federal judge has ruled that construction on the Revolution Wind offshore wind farm can resume, overriding a stop-work order issued just weeks ago. The project, a joint venture between Ørsted A/S and Eversource Energy, is poised to deliver 704 megawatts of clean power to Rhode Island and Connecticut, marking a critical step in the U.S.’s push toward renewable energy dominance. U.S. District Judge Royce Lamberth described the administration’s halt as “the height of arbitrary and capricious,” arguing that it lacked sufficient justification and inflicted “irreparable harm” on the developers and the broader clean energy sector.

The decision comes amid escalating tensions between federal regulators and the burgeoning offshore wind industry, which has faced repeated political headwinds. Revolution Wind, nearly complete with foundations already installed off Rhode Island’s coast, was abruptly paused in August when the Interior Department cited vague environmental concerns. This move echoed broader executive actions, including a January executive order pausing all new offshore wind leases for reviews of environmental impacts and taxpayer costs, as reported in various outlets.

Legal Battle and Immediate Implications

Judge Lamberth’s preliminary injunction, issued from the U.S. District Court in Washington, D.C., not only lifts the stop-work order but also signals potential vulnerabilities in the administration’s strategy to curb renewable projects. According to court documents, the judge found no evidence that continuing construction would cause the harms claimed by the government, such as risks to marine life or navigation. Instead, he highlighted the economic fallout from delays, including millions in daily losses for contractors and suppliers.

Ørsted’s shares surged following the ruling, climbing as much as 8% in Copenhagen trading, as noted by Bloomberg. The company, a global leader in offshore wind, emphasized that resuming work could allow the farm to begin generating power by late 2026, aligning with state mandates for carbon reduction. Industry analysts view this as a bellwether for other stalled projects, potentially emboldening developers to challenge similar federal interventions.

Broader Policy Context and Industry Reactions

The Trump administration’s opposition to offshore wind has been consistent, with actions like rescinding designated wind energy areas in federal waters, as detailed in posts on X and confirmed by energy experts. This stance contrasts sharply with previous administrations’ support, which saw the sector grow from nascent pilots to multi-gigawatt commitments. Revolution Wind, valued at around $5 billion, represents a linchpin in New England’s energy transition, expected to power over 350,000 homes and create thousands of jobs in manufacturing and installation.

Environmental groups and state officials hailed the decision as a victory for climate action. Rhode Island Gov. Dan McKee stated that work could restart immediately, per reports from The Providence Journal. However, critics, including some fishing communities, argue that rapid development overlooks long-term ecological effects, a concern echoed in the administration’s initial halt.

Future Challenges and Economic Stakes

Looking ahead, the ruling may prompt appeals from the Interior Department, prolonging uncertainty in an industry already grappling with supply-chain disruptions and rising costs. Offshore wind costs have fluctuated, with estimates for 2025 deployments pegged at around £51 per megawatt-hour in some analyses, though U.S. projects face higher hurdles due to regulatory scrutiny. The decision underscores the judiciary’s role in balancing executive power with economic imperatives, potentially influencing upcoming elections where energy policy remains divisive.

For insiders, this case highlights the fragility of renewable investments amid political shifts. Ørsted and Eversource must now accelerate to meet timelines, navigating weather windows and labor availability. As Ars Technica reported, the judge’s sharp rebuke of the stop order as baseless could deter future arbitrary interventions, fostering a more stable environment for offshore wind’s expansion in the U.S. Ultimately, Revolution Wind’s resumption may accelerate the nation’s shift to sustainable power, but it also exposes the ongoing tug-of-war between innovation and regulation.