Goldman Sachs Predicts Temporary Pause for U.S. Offshore Wind Projects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: SeekingAlpha
Stop-Work Order Impact: The U.S. Department of the Interior issued a stop-work order on large offshore wind projects, including those by Dominion Energy and Eversource Energy, due to national security concerns, with an expected suspension duration of about 90 days.
Market Reactions: Following the announcement, shares of Dominion Energy and Eversource Energy fell, but analysts from Goldman Sachs believe the long-term impact on these companies will be limited, as the affected projects are nearing completion.
Financial Implications: Dominion's Coastal Virginia Offshore Wind project is expected to begin delivering power in early 2026 and is already factored into customer rates, while Eversource may face financial obligations if Revolution Wind is canceled, despite having sold its stake.
Broader Industry Concerns: The suspension affects multiple near-completion projects and raises questions about permitting risks for offshore wind developments in the U.S., with Goldman Sachs maintaining a Neutral rating on Dominion and a Buy rating on Eversource.
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Analyst Views on D
Wall Street analysts forecast D stock price to rise
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 62.050
Low
59.00
Averages
64.36
High
70.00
Current: 62.050
Low
59.00
Averages
64.36
High
70.00
About D
Dominion Energy, Inc. provides regulated electricity service to about 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 500,000 customers in South Carolina. It is a developer and operator of regulated offshore wind and solar power and the producer of carbon-free electricity in New England. Its Dominion Energy Virginia segment is composed of Virginia Power’s regulated electric transmission, distribution, and generation operations, which serve homes and businesses in Virginia and North Carolina. Its Dominion Energy South Carolina segment consists of DESC’s generation, transmission, and distribution of electricity to customers in the central, southern and southwestern portions of South Carolina and the distribution of natural gas to residential, commercial and industrial customers in South Carolina. Its Contracted Energy segment includes non-regulated electric generation fleet and renewable natural gas operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Legal Requirement: Virginia and North Carolina laws mandate that anyone planning to dig must call 811 at least three business days prior to starting work to ensure underground lines are marked, thus reducing threats to public safety.
- Excavation Risks: Homeowners and contractors who fail to call 811 risk striking underground utilities, which can lead to service disruptions, fines, property damage, or even serious injury or death, highlighting the importance of safe digging practices.
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See More
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See More
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- Scale and Potential: The project plans to install 176 wind turbines, expected to provide 2,600 MW of power, enough to supply energy to over 600,000 homes, positioning it as the largest offshore wind project in the U.S.
- Cost Increase: Project costs have escalated from the initial $9.8 billion to approximately $11.5 billion, partly due to tariffs and a stop-work order issued by the Trump administration, highlighting the impact of policy changes on project economics.
- Legal Challenges: Following a federal judge's preliminary injunction granted on January 16, construction was allowed to resume, preventing potential irreparable harm from delays, underscoring the importance of the legal environment for renewable energy projects.
See More
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- Tech Companies' Commitments: Major tech firms like Microsoft and Anthropic have pledged to cover additional electricity costs from their data center projects and invest in community initiatives, which may help alleviate public concerns and garner community support for their operations.
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See More
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- Community Protests: Despite attempts by the NAACP and other civil rights organizations to delay the meeting to avoid conflicts with primary elections, the MDEQ proceeded with the vote on election day, leading to community dissatisfaction over the decision-making process and perceived neglect of local voices and environmental impacts.
- Legal Challenges Ahead: The NAACP and Southern Environmental Law Center plan to sue xAI for operating natural gas turbines without federal permits, alleging that the company understated emissions in its application, which could pose health risks to the community.
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- Community Opposition: The NAACP has submitted a letter to the environmental agency requesting the meeting be postponed and moved closer to the facility to allow affected residents to participate, highlighting the community's strong discontent with xAI's plans and concerns over air quality and health issues.
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