New York is pausing its ambitions and halting the planning of an underwater transmission network as President Donald Trump strangles the offshore wind sector. 

It is the latest of several states and developers to step back from such efforts since fall 2024. 

New York’s most recent solicitation for wind turbines remains in play, but it is behind schedule, and the finances of the proposals submitted in 2024 might be altered by the recent loss of tax credits. 

And of course, any of the proposals that rely on the planned underwater grid will need a different strategy. 

The New York Public Service Commission on July 17 shut down the process to build an underwater transmission network to bring electricity to shore from the hundreds of wind turbines the state hopes to see spinning off its coastline. 

With the Trump administration actively thwarting offshore wind development, the goal of 9 GW of offshore wind capacity by 2035 is out of reach, the PSC said. 

It became necessary to stop the planning of a transmission network to serve wind turbines that will not soon be built, lest New York ratepayers be liable for unknown and potentially large expenses. 

Unlike wind turbine developers, who begin to collect their ratepayer-funded subsidies only when their project enters commercial operation, the transmission developer would be eligible for cost recovery immediately — even if the wind turbines the wires were to connect to were delayed or never built, even if the wires themselves never were built, only planned. 

PSC Chair Rory Christian lamented the pause being placed on the state’s offshore wind program, which has been in the works for more than a decade. He blamed the Trump administration’s “deliberate and systematic action” to block offshore wind in New York and in other states. 

“We at the commission cannot in good conscience ask New York ratepayers to shoulder the cost and risk of a project where we know we’ll be stymied going forward,” he said. 

The early projects — South Fork Wind, Empire Wind 1 and Sunrise Wind — rely on radial lines, each sending their own export cable ashore in different locations. There is limited space for routing and landing such cables in the crowded downstate region, however, so the strategizing turned to a meshed design where multiple wind projects would use a single export line built through a separate transmission project. 

The now-withdrawn Public Policy Transmission Need (PPTN) was formally identified by the Department of Public Service in June 2023 (22-E-0633). It called for NYISO to solicit and evaluate proposals for a transmission project that could deliver 4.8 to 8 GW from multiple wind farms to NYISO Zone J (New York City). 

At the time, it seemed like New York had a good chance of achieving its 9-GW goal. But since then, little in the offshore wind sector has proceeded as state planners had hoped. 

Developers canceled contracts that no longer were viable and rebid them at much higher prices. An entire solicitation had to be canceled due to the specified turbine not being available. Proposals were withdrawn ahead of the 2024 presidential election and paused afterward. Trump’s Day One directive froze some development in U.S. waters outright and cast paralyzing uncertainty over other efforts. A federal stop-work order was slapped on Empire Wind 1 for a time. 

Most recently, the budget reconciliation bill throws future projects’ finances into turmoil by eliminating tax credits and introducing new challenges with foreign components. 

Against this backdrop, NYISO issued the PPTN solicitation in April 2024. NYISO reported in October 2024 that all 28 proposals received from four developers were eligible for evaluation. 

On June 25, NYISO presented an analysis to stakeholders showing that preliminary independent estimates of the cost of those projects ranged from $7.9 billion to $23.9 billion. 

NYISO was on track to potentially select a project later in 2025 under terms of the PPTN, which would result in costs beginning to accrue for ratepayers. 

DPS staff looked for ways to pause, modify or break the PPTN down into phases but found none. They recommended the PSC withdraw the PPTN. 

The commissioners voted 6-0 for this move July 17, and each expressed worry, frustration or even anger beforehand. 

“We live at a moment when a philosophical battle is going on between those vying to wield the levers of governmental power at all levels. The battle is not between right and left, but between empiricism and magical thinking,” Commissioner John Maggiore said, adding: 

“But we should not respond with our own form of magical thinking — sustaining a zombie process that could result in transmission lines to nowhere will not help us achieve our 9 GW legal mandate. It will just end up costing already-stressed ratepayers more money for which they will get nothing in return.” 

Christian said the state remains convinced of the importance and value of offshore wind but must defer it to a future where federal policy is more supportive. 

Offshore wind has been a centerpiece of New York’s decarbonization strategy, but it is only one piece, he said: “In the meantime, we have to focus our attention on building the clean energy infrastructure we can, to advance to completion while remaining focused on progress toward meeting the state’s goals.” 

The New York State Energy Research and Development Authority, a lead agency in the energy transition and manager of the offshore wind solicitations, said later July 17 that it will use this pause to refine its efforts to support the industry in New York State and engage with stakeholders and the supply chain. 

It also said it’s continuing to process its fifth wind solicitation, which attracted four developers in 2024 and is lagging behind the expected timeline for completion. 

Many stakeholders and interested parties who submitted comments to the DPS about the PPTN earlier in 2025 had urged that the PSC not give up on it. 

Some expressed regret that it did. 

“Now is not the time for us to hold back the potential contribution of any energy source,” Turn Forward Executive Director Hillary Bright said. 

The New York League of Conservation Voters said it was deeply disappointed. “While the federal government continues to undermine progress on clean energy, New York should be doubling down on our commitment to become energy independent, not stalling it.” 

The Alliance for Clean Energy New York and its New York Offshore Wind Alliance said: “Offshore wind projects can take more than a decade to develop, spanning far beyond state and federal election cycles. We encourage New York State to continue developing infrastructure in the near-term that will enable new generation to come online, addressing reliability and affordability for New Yorkers.” 

Christian acknowledged these sentiments before the vote but said ignoring the Trump administration’s hostility to offshore wind would be “incredibly risky” for ratepayers: “Offshore wind is unique in that the federal government has a direct permitting and financial role, and the federal government has repeatedly and deliberately withdrawn its support.”