Trump administration reaches $1.2bn settlement with German energy firm to abandon US wind ventures

The Trump administration has agreed to pay German

The Trump administration has agreed to pay German utility RWE $1.2 billion to terminate several wind power initiatives in the United States, marking another step in the president's long-standing campaign against the renewable energy source.

The settlement, confirmed by both parties on Tuesday, resolves contractual disputes arising from the cancellation of offshore wind leases and development agreements. RWE, one of Europe's largest energy companies, had invested heavily in American wind projects over the past decade, expecting steady regulatory support.

Under the terms, RWE will relinquish all rights to the affected projects and cease any related activity in U.S. waters. The payout compensates the firm for sunk costs, lost future revenue, and legal fees, according to people familiar with the negotiations.

This deal follows a series of similar buyouts

This deal follows a series of similar buyouts with other developers in recent months, as the administration seeks to dismantle wind energy infrastructure it has repeatedly criticized as inefficient and economically unviable. Critics argue the payments amount to a costly taxpayer-funded retreat from clean energy commitments.

Industry analysts note that the cumulative cost of these cancellations could exceed $5 billion, raising questions about the administration's energy priorities and the long-term impact on renewable investment in the country. RWE has indicated it will redirect its US focus toward natural gas and solar projects.

Supporters of the administration's approach say ending wind subsidies will lower electricity prices and reduce reliance on intermittent power sources. Environmental groups, however, warn that such settlements undermine climate goals and erode American competitiveness in the global green energy market.

The RWE agreement is expected to be finalized

The RWE agreement is expected to be finalized within 30 days, pending standard regulatory review.