Orsted's Wind Project Victory: Temporary Relief Amid Trump's Renewable Energy Clashes

In a significant legal development, Orsted saw a rise in shares as a U.S. federal judge permitted the resumption of its nearly completed offshore wind project, which had been halted by the Trump administration. This ruling marks a temporary victory for the renewable energy sector despite ongoing political challenges.

The injunction offers Orsted some respite from daily financial losses estimated at $2 million since the stop-work order on August 22, but the future of the Revolution Wind project remains uncertain. Analysts warn that the White House could appeal or introduce further regulatory hurdles, continuing its campaign against the industry.

While this ruling temporarily reduces the risk of a credit downgrade, Orsted remains vulnerable to political risks in the U.S. market. The Danish company, in partnership with Skyborn Renewables, is committed to resuming construction as quickly as possible to avoid further cost escalations and financial setbacks.

(With inputs from agencies.)