How Judge Saved $4.5bn Vineyard & Iberdrola Windfarm Project
A federal judge has permitted Vineyard Wind to resume work on its landmark Massachusetts offshore wind development, marking a significant turn for the US energy sector.
The ruling, delivered on Tuesday by US District Judge Brian Murphy in Boston, stays a suspension order issued by the Department of the Interior in late December 2024.
The administration had previously halted this project, alongside four others, citing concerns about national security and potential radar interference based on newly classified information.
This judicial reprieve allows developers to bypass what was intended to be a 90-day pause while underlying lawsuits seek to permanently block the government’s interference.
Project scale and financial structure of Vineyard Wind
Vineyard Wind is a colossal financial and engineering undertaking, valued at approximately US$4.5bn.
The project is a 50:50 joint venture between Avangrid (controlled by Spain's Iberdrola) and Copenhagen Infrastructure Partners (CIP).
For construction and finance executives, the project is seen as a bellwether for the viability of large-scale renewable infrastructure in North America.
The project is already 95% complete and has been actively sending power to the regional grid for over a year. Despite the construction halt, the administration had allowed the facility to continue its existing electricity generation during the legal dispute.
Arbitrary suspensions and construction reprieve
The court’s decision was influenced by the argument that the government’s stop-work order was "likely arbitrary and capricious".
Judge Murphy noted that the national security issues raised by federal authorities related primarily to wind farm operations rather than the act of construction.
He also said that the project would suffer irreparable harm if the suspension were allowed to continue.
Vineyard Wind is the fourth of five paused offshore projects to receive such a reprieve. While others move forward, Ørsted’s Sunrise Wind remains subject to suspension, with a critical hearing scheduled for 2 February 2026.
Installation and commissioning hurdles
The timing of the stay is critical for the project's technical completion. According to court filings, Vineyard Wind 1 – an 806 MW facility – has only one full wind turbine remaining to be installed at the site.
The developer also needs to complete blade replacements on 10 turbines and oversee the commissioning of the final 18 units.
The suspension jeopardised these final steps, particularly as specialised installation vessels are chartered under strict project schedules.
In a statement following the ruling, the company said: "As the legal process proceeds, Vineyard Wind will continue to work with the Administration to understand the matters raised in the Order."
Economic multipliers and supply chain resilience
From a sustainability and economic perspective, the impact of the project extends far beyond the Massachusetts coast.
The Oceantic Network, a leading offshore renewable energy organisation, highlighted that Vineyard Wind 1’s supply chain stretches across 37 states and has driven more than US$1.6bn-worth of direct investments.
The developer is now refocusing its efforts on coordinating with contractors and federal authorities to ensure a safe restart.
In its court complaint, it emphasised that the project was originally slated for full capacity delivery by 31 March 2026, a target that the suspension had directly threatened.
Regional grid security and future litigation
The project’s completion is viewed as vital for the energy security of the New England region.
Liz Burdock, CEO of Oceantic Network, emphasised the necessity of the project for stabilising energy costs during peak demand, saying: "Vineyard Wind is critical to securing not only Massachusetts’ electric grid, but the regional grid serving millions of residents that depend on the continued, reliable delivery of electricity, especially during these cold winter months.
"Offshore wind performs well during the winter season, stabilising rising energy costs for local communities that depend on peaker plants today for adequate supply, which forces families to pay more for the power they need."
A developer spokesperson added: “Vineyard Wind will focus on working in coordination with its contractors, the federal government, and other relevant stakeholders and authorities to safely restart activities, as it continues to deliver a critical source of new power to the New England region.”
