Duke Energy Ends US Wind Projects after US$129m Settlement

Duke Energy has terminated plans for an offshore wind development off North Carolina's coast following negotiations with the Trump administration, opting instead to redirect US$129m towards nuclear power, natural gas infrastructure and grid modernisation projects.

The energy provider accepted a buyout settlement from the White House, becoming the latest company to exit offshore wind commitments amid federal pressure against the sector.

The agreement covers Duke's Carolina Long Bay lease, positioned approximately 22 miles south of Bald Head Island in Brunswick County, which has projected generation capacity to serve more than 300,000 homes.

According to the settlement terms announced by Interior Secretary Doug Burgum on 29 June, Duke will relinquish the lease and reinvest an equivalent amount into alternative energy projects across the Carolinas.

This marks the fourth such arrangement the Trump administration has negotiated since taking office.

Previous settlements include compensation of approximately US$1bn to TotalEnergies in March, US$885m to Ocean Winds and US$765m to Invenergy.

Strategic shift in energy investment

Duke's filings with state regulators suggest the company has already begun reassessing its offshore wind position before the federal intervention.

The energy provider concluded that offshore wind currently fails to offer the most reliable or cost-effective energy source for its service territory, according to documents submitted to state government.

The company cited escalating project costs, extended development timelines and accelerating electricity demand driven by population expansion and industrial growth as factors in this evaluation.

Duke's Carolina Long Bay lease was auctioned alongside the TotalEnergies site in 2022 during a federal leasing round, and both projects have now been cancelled.

Kodwo Ghartey-Tagoe, the Executive Vice President and CEO of Duke Energy Carolinas, framed the settlement as an opportunity to reallocate capital more effectively.

"This settlement allows Duke Energy to refocus US$129m in ways that directly benefit our customers and communities in the Carolinas," he said.

"Under the agreement, Duke Energy will reinvest nearly US$129m in additional generating capacity, which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability, support continued growth in the Carolinas and keep costs as low as possible."

According to reporting from Bloomberg, Duke expects to complete the reallocation of these funds by year end.

Administration's transactional approach evolves

The Trump administration's strategy for curtailing offshore wind development has adapted following legal challenges to earlier executive actions.

When President Donald Trump signed an order on his first day in office calling for an indefinite halt to new wind farm approvals, federal courts repeatedly blocked enforcement through injunctions.

A subsequent attempt to suspend construction on existing projects citing national security concerns met similar judicial resistance.

The lease buyout model has allowed the administration to circumvent court intervention entirely.

Doug Burgum defended the Duke agreement in terms of energy affordability and national priorities.

"President Trump's vision of unleashing affordable, reliable American energy for our country's communities and using common sense to put the American people first is being implemented," he says.

"Duke Energy will now be able to convert a national security concern into projects that will lower the costs for its customers in North Carolina and surrounding states."

According to journalist Adrijana Buljan, the government has paid approximately US$2.7bn in lease buyouts during 2025 alone.

The cumulative value of these transactions reflects the administration's willingness to deploy substantial capital to reshape the US energy portfolio.

Market implications and corporate responses

European energy company RWE has indicated it expects full reimbursement exceeding US$1.2bn for three leases acquired off New York, California and the Gulf of Mexico.

The German company's CEO Markus Krebber has stated that legal action remains an option if compensation is not provided.

A coalition of around 50 US organisations sent an open letter to RWE urging the company to resist federal buyout offers.

"We urge RWE not to cut deals with a regime that has no respect for either legal norms or climate reality," the letter reads. "The Trump administration will not last forever. Submitting to its fossil fuel whims sets a dangerous precedent and exposes RWE to serious reputational risk."

The situation raises questions about corporate autonomy when government clients reverse course on energy procurement.

Whether companies accepting compensation face obligations to redirect funds towards fossil fuel projects or retain discretion over capital allocation remains unclear.

Serene Hamsho, the Founder and President of the Offshore Wind Academy, discussed the administration's campaign and its market consequences in an interview with Energy Digital earlier this year.

"It's a significant setback for the US market in the short term, and I won't pretend otherwise," she says.

"When a major developer accepts a billion dollars to walk away from its US offshore wind portfolio, that signals a policy environment where long-term investment confidence has eroded."

Serene notes that capital flows follow favourable regulatory conditions: "Capital and talent will go where the conditions are right.

"What the US risks is falling behind in an industry it was well-positioned to lead, and that's a real cost that will be felt in jobs and in the energy mix for years."

The pattern of buyouts could indicate a broader reorientation of energy sector growth strategies, with companies potentially redirecting offshore wind capital towards markets with more stable policy frameworks or alternative domestic energy infrastructure projects that align with current federal priorities.