A major American energy company has launched a legal challenge against an executive order from the Trump administration that has brought construction of a crucial offshore wind project to a standstill.
Legal Battle Over "Arbitrary" Wind Farm Halt
Dominion Energy Virginia filed a lawsuit in federal court late on Tuesday, 24 December 2025, seeking to overturn what it calls an "arbitrary and capricious" government directive. The order, issued by the Interior Department on Monday 23 December, halted construction on the Coastal Virginia Offshore Wind (CVOW) project and four other major wind developments along the US eastern seaboard.
The company argues the order is unconstitutional and represents the latest in a series of irrational agency actions targeting the offshore wind industry. Dominion is urgently requesting a federal judge to issue a temporary restraining order to allow work to resume.
National Security Concerns and Mounting Costs
The Interior Department's Bureau of Ocean Energy Management (BOEM) suspended the projects citing unspecified national security threats. In letters to the developers, BOEM stated it needed a minimum of 90 days to determine if these perceived threats could be mitigated.
However, Dominion Energy contends the sudden stop is causing catastrophic financial damage. The project, which has been under construction since early 2024, was scheduled to become operational early next year, generating enough clean power for approximately 660,000 homes.
The company revealed the delay is costing it over $5 million per day in losses just for the specialised vessels required for round-the-clock construction. Dominion warned that these costs would ultimately be borne by its customers or the company itself.
Political Backlash and Project Implications
The halted projects include the Vineyard Wind development in Massachusetts, Revolution Wind serving Rhode Island and Connecticut, and New York's Sunrise Wind and Empire Wind projects. Democratic governors in the affected states have pledged to fight the Trump administration's order, characterising it as part of a broader push against renewable energy sources.
Dominion emphasised that its Virginia project is essential to meet surging energy demands, largely driven by dozens of new data centres in the region. U.S. District Judge Jamar Walker has scheduled a hearing on the request for a temporary restraining order for 2 p.m. on Monday 30 December.
The Bureau of Ocean Energy Management did not immediately respond to requests for comment on the ongoing litigation.
