The US government has moved to challenge a major offshore wind project owned by Iberdrola’s US arm, Avangrid, signaling a reversal of permits granted under the previous administration.

The U.S. Department of Justice (DOJ) has requested that a federal court remand the permit for review. The approval, granted initially in July 2024 by the Bureau of Ocean Energy Management (BOEM), is now under scrutiny. The DOJ argues that the original environmental and operational assessments may have overlooked key impacts and seeks a complete reevaluation of the project.

As part of the new legal filing, the DOJ has requested that ongoing litigation be paused while the review is conducted — a strategy also applied to other offshore wind projects this year.

This project is among the most significant planned offshore wind developments in the New England region, representing a substantial commitment to renewable energy. However, this new regulatory challenge has cast uncertainty over its future.

This legal push is part of a broader trend under the current US administration, which has stepped up scrutiny and regulatory interventions against offshore wind projects. The challenge to Avangrid’s project raises important questions about the stability of the US offshore wind sector.