Dominion Energy (D) Stock Drops 5% on Major Project Pause

• The Trump administration paused leases for five major East Coast offshore wind projects, including Dominion Energy’s (D) Coastal Virginia Offshore Wind, citing national security risks from radar interference caused by turbine blades and reflective towers.
• Dominion Energy shares fell 4.76% to $56.60 in early trading as the Interior Department seeks mitigation options with leaseholders and state partners to address Pentagon-identified concerns.

CNBC reports that the Trump administration has paused leases for five major offshore wind projects on the U.S. East Coast, citing national security concerns identified by the Pentagon. The affected developments include Dominion Energy’s (D) Coastal Virginia Offshore Wind, along with Vineyard Wind 1, Revolution Wind, Sunrise Wind, and Empire Wind 1.

Interior Secretary Doug Burgum announced the immediate suspension, emphasizing the need to protect American security amid evolving threats. The Department of the Interior stated that the move allows time to collaborate with leaseholders and state partners to evaluate mitigation options for identified risks.

Unclassified government reports have long indicated that the rotation of massive turbine blades and the reflective surfaces of highly visible towers generate radar interference, known as “clutter.” This phenomenon can obscure genuine moving targets and produce false signals, potentially compromising air defense, maritime surveillance, and other critical radar operations near densely populated East Coast regions.

The pause affects the largest offshore wind initiative in the United States, Dominion Energy’s Coastal Virginia Offshore Wind project, which is designed to deliver substantial clean energy capacity. Shares of Dominion Energy (D) declined 4.76% to $56.60 in early trading following the announcement.

This decision aligns with the administration’s broader priorities, favoring reliable energy sources while addressing defense vulnerabilities. The Interior Department highlighted that the proximity of these large-scale projects to population centers and military assets amplifies the concerns raised in classified assessments. Developers now face uncertainty as federal agencies review potential technical solutions to reduce radar impacts without halting progress entirely.

The action underscores ongoing tensions between advancing renewable energy infrastructure and safeguarding national defense capabilities in an era of advancing adversary technologies.

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