Cancelling five major offshore wind projects could increase electricity costs for customers on the US East Coast by approximately $45 billion over the next decade, according to a new analysis published by the American Clean Power Association (ACP).

The study finds that the five projects, which are already under construction and largely advanced, would collectively deliver nearly 6 GW of electricity to the region—enough to power more than 2.5 million homes—at a time when electricity demand is rising sharply across the country.

Stop-work order raises cost and reliability concerns

The warning comes after the US Department of the Interior issued a stop-work order on December 22 for the five offshore wind projects. The developments serve regions within the PJM, NYISO, and ISO-New England power markets and are mostly more than 70% complete, according to ACP.

The projects have already undergone years of federal review by agencies including the National Oceanic and Atmospheric Administration (NOAA), the Department of the Interior, the Department of War, and other federal offices.

In its analysis, ACP assessed the impact of removing the five offshore wind projects from the power system and translated the results into expected retail electricity rates across 15 states and Washington, D.C.

According to the findings, without these offshore wind resources:

• Wholesale electricity prices would rise significantly, particularly during evening peak hours and winter periods, including severe winter storms such as Fern.

• Power systems would rely more heavily on non-renewable generation, increasing customer exposure to price volatility.

• Grids would lose access to low-cost, winter-peaking clean energy, which helps stabilize prices during periods of high demand.

ACP notes that electricity prices during peak demand are set by the most expensive power plant needed to meet demand. Offshore wind reduces reliance on these high-cost plants by providing steady, lower-cost power, helping to moderate prices.

John Hensley, Senior Vice President of Markets and Policy Analysis at ACP, said the issue ultimately comes down to supply and demand.

“The demand for energy is increasing, and we need all forms of energy to meet this demand—including offshore wind—or customers will end up paying for it,” Hensley said. “These projects lower electricity costs. Delaying or cancelling them puts reliability at risk and forces families and businesses to pay more—plain and simple.”

Hensley added that the consequences of suspending the projects would be felt directly by consumers.

“The suspension of these projects will raise electricity bills for families and businesses along the East Coast. The cost of inaction could be felt in monthly utility bills for years to come,” he said.

ACP urged policymakers to weigh the significant consumer cost impacts of delaying offshore wind development and to pursue solutions that protect national security while ensuring affordable and reliable electricity for the East Coast.

According to the association, maintaining the development of offshore wind is critical to meeting rising demand, stabilizing electricity prices, and supporting long-term grid reliability in the region.