Since coming into power, U.S. President Donald Trump has made his intention to pivot away from green energy in favour of fossil fuels clear. During his first month in office, he signed executive orders aimed at boosting U.S. oil and gas production and exports by declaring a national energy emergency, removing regulatory barriers, and expediting permitting approval for oil and gas projects. Meanwhile, he signed orders aiming to make it more difficult to develop new wind farms, introducing an indefinite ban on all awards of federal permits and leases for both onshore and offshore wind projects. 

Despite this clear attack on renewable energy, the sector is continuing to grow thanks to widescale investment in a range of green energy and clean tech projects nationwide, and a high level of support from both Democrat and Republican voters. In recent months, several U.S. oil and gas majors have called on the government for greater stability in energy policies, including the continued provision of the financial incentives set out in former President Biden’s Inflation Reduction Act (IRA). This response from Big Oil came following several threats by Trump to pause much of the IRA financing, an initiative that Trump called the “Green New Scam. Greatest scam in history, probably.”

As Trump does his best to halt U.S. green energy production, renewable energy companies are working together to prove just how much the U.S. needs them. Wind and solar projects are relatively quick and cheap to build compared to other energy developments, such as oil, gas, and nuclear power. This is extremely important at a time when U.S. energy demand is soaring. 

The CEO of NextEra Energy, John Ketchum, recently stated in an interview, “Our message to the administration is, let’s be realistic about this… If you take renewables and storage off the table, we’re going to force electricity prices to the moon.” Several other industry leaders have called out the government’s aim to halt green energy development by stating their essential role in providing new power to the grid. 

The energy demand in the U.S. is expected to grow by as much as 50 percent over the next 15 years, driven primarily by the construction of data centres, the increase in domestic manufacturing, and the widespread uptake of electric vehicles. Meanwhile, wind, solar, and battery storage are projected to make up 93 percent of the new electric capacity added to the U.S. grid in 2025, demonstrating the key role the industry now plays in power generation. 

To fill the power gap in the wind and solar energy sector, which, by nature, cannot deliver a stable 24-hour energy supply, the U.S. is investing heavily in battery storage. In fact, U.S. battery storage additions could reach record levels this year, with 18.2 GW of utility-scale battery storage expected to be added to the grid, higher than the record figure of 10.3 GW added in 2024. For this reason, NextEra’s Ketchum expects wind, solar, and battery projects to play a major role in the future of the U.S. energy mix because, together, they can provide stable, clean energy to the grid and developers can generally construct these types of projects far faster (within 12 to 18 months) than developing natural gas units. 

While the cost of new gas power plants has almost tripled since the inflation shock of 2022, wind and solar development prices have increased far more modestly. Further, scientists are making strides in solar and wind power technology, meaning that renewable energy projects are becoming far more efficient year on year. 

As President Trump strives for a fossil-fuel-dominant U.S. energy mix, other politicians are seeing the potential of greater diversification for boosting energy security. This month, several members of Congress signed a letter urging the administration to maintain incentives for low-carbon power sources, such as wind, solar, hydropower, nuclear, and geothermal. 

In addition to helping to rapidly boost the U.S. power supply, the expansion of renewable energy capacity is also helping to bolster the U.S. economy. A recent independent study by American Clean Power suggested that the IRA could provide a fourfold return on taxpayer investment, growing the economy by $1.9 trillion over the next ten years. The law is also expected to increase clean energy jobs from around 3 million in 2022 to more than 6.5 million by 2032.

Nevertheless, several Trump administration officials remain sceptical about the benefits of a green transition. The new U.S. Energy Secretary Chris Wright recently stated, “Wind has been singled out because it’s had a singularly poor record of driving up prices and getting increasing citizen outrage, whether you’re a farm or you’re in a coastal community.” Wright added, “Everywhere wind and solar penetration have increased significantly, prices went up.” Although this statement is not entirely true, it certainly conveys his stance on renewable energy. 

U.S. wind and solar energy developers are battling to prove to the Trump administration that they are relevant and that the expansion of the U.S. green energy capacity is vital at a time when the country’s energy demand is growing exponentially. However, being heard is no easy feat with a government that is clearly more committed to fossil fuels. 

By Felicity Bradstock for Oilprice.com

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