Dec. 22 at 9:02 PM
PickAlpha Mid-Day:
The US Interior Department said Monday it is suspending leases for all five offshore wind farms under construction off the East Coast, citing national security concerns that turbines may interfere with radar. The five projects represent about
$28B of committed capital (per BloombergNEF), and offshore wind-linked stocks sold off – Orsted −13%, Dominion −5.8% intraday (reported).
Tickers:
$D $VWDRY $ICLN
Here’s what matters: This is a regulatory risk repricing tape – the variable is whether “national security” becomes the durable tool to slow/stop projects even after courts push back on broader bans. If the suspension sticks, US offshore wind risk premia go up (higher cost of capital, more delays/cancellations) and the pressure bleeds into renewables beta. If it gets enjoined fast, the trade turns into a sharp mean-revert in the most hit names, but the sector still carries a bigger policy haircut than markets were pricing last week.
