Jefferies expects challenges for U.S. offshore wind sector in 2025

Eversource Energy

03/04/2025 15:56

** Analysts at Jefferies say the outlook for U.S. offshore wind sector is weaker in 2025 under President Donald Trump despite a significant increase in projected electric demand in the past year

** The sector will be weighed down by factors such as legal risks, tariffs and supply chain concerns - Jefferies

** "Data centers demand 24/7 electricity with an emphasis on timely construction. Unfortunately, offshore wind is neither low cost nor speedy," - Jefferies

** The cost of offshore wind projects is materially higher than almost all other competing sources such as natural gas, onshore renewables and nuclear energy - brokerage

** Jefferies adds it does not see buying opportunities in Dominion Energy D.N and Eversource Energy ES.N

** Shares of both utilities were down marginally in morning trade

(Reporting by Vallari Srivastava in Bengaluru)

((Srivastava.Vallari@thomsonreuters.com;))