Trump 2.0 is approaching, and the U.S. new energy industry is launching a "self-rescue" action
In Washington, executives from the new energy industry met with Republican lawmakers before the December holidays to adjust their industry advocacy strategies. Unlike past campaigns that promoted "clean and affordable," they began to emphasize the ability of renewable energy projects to "meet energy demands."
As Trump is about to begin his second term, the U.S. renewable energy industry faces unprecedented policy uncertainty. Industry executives are "showing their skills," trying to complete orders or establish connections with Republican members of Congress before the new government takes office, hoping to find a glimmer of hope amid the upcoming changes.
Industry investment may decrease by $350 billion
Since Biden signed the Inflation Reduction Act, investments in areas such as solar energy, wind energy, and battery storage in the U.S. have significantly increased.
According to data from the American Clean Power Association, approximately $75 billion in new projects were connected to the grid from September 2022 to March 2023.
However, Trump's strong opposition to the act has made the outlook for the renewable energy industry uncertain. Although a complete repeal is not expected, parts of the act are likely to be cut.
Industry experts say that if Trump fulfills his promise, renewable energy investment could decrease by as much as $350 billion over the next decade, which could have a devastating impact on the entire industry.
Competing for projects, seeking lawmakers
To save their companies, many industry executives are trying to complete project investments before the new government officially takes office. Many companies have accelerated equipment orders and project progress before the New Year to secure existing tax incentives.
Some industry executives are pinning their hopes on the Republican Party. In Washington, industry executives went to Congress to meet with Republican lawmakers just before the December holidays to adjust their industry advocacy strategies. Instead of emphasizing that projects are "clean and economical," they began to highlight the ability of renewable energy projects to "meet energy demands."
There are also "industry-friendly individuals" in Trump's new government. Executives are hopeful about Trump's nominee for Secretary of the Interior, Doug Burgum, believing he may take a pragmatic approach to renewable energy. While supporting the coal and oil industries during his governance of North Dakota, Burgum also actively promoted wind energy development, which accounted for 36% of the state's electricity generation in 2023.
Meanwhile, Trump's nominee for Secretary of Energy, Chris Wright, although advocating for fossil fuels, is also seen as a business leader supportive of green energy.
Tesla CEO Elon Musk is also a candidate of interest. Tesla not only produces electric vehicle batteries but is also committed to large-scale energy storage projects and home solar systems.
With the continuous rise in electricity demand, especially with the proliferation of artificial intelligence data centers and electric vehicles, many industry insiders believe that the national demand for electricity will become an important driving force for the development of the renewable energy industry. Jim Murphy, president of Invenergy, pointed out: "Everything is now related to demand, and we need to meet this demand as soon as possible."