President Donald Trump announced that his administration will not approve any new solar or wind power projects in the United States. He cited concerns that such projects consume excessive farmland and negatively impact farmers. This decision comes amid rising electricity demand in parts of the country, particularly driven by data centers and artificial intelligence applications, which are straining the nation's largest energy grids and contributing to increasing household power bills. In some states within the PJM grid, electricity bills have risen faster than the national average of 6.3%, with New Jersey experiencing a 13.3% increase. Solar industry executives have warned that the administration's stance could lead to a power shortage and further spikes in electricity prices. Additionally, analysts have noted that a Section 232 investigation into wind turbine components could result in tariffs, potentially increasing offshore wind project costs by 10% and raising their levelized energy cost by 4%. Despite the administration's position, some experts argue that solar and wind energy are not more expensive than coal and do not require subsidies.
Electricity Prices Are Surging. How the Political Fallout Could Hit Companies, Too. https://t.co/JS1qbyn0vg Trump is certainly wrong that solar and wind are more expensive than coal. Don't subsidize wind or solar; they don't need it.
Capstone analysts said in a note that if the Trump administration's Section 232 probe of wind turbines and their components leads to tariffs, input costs of an offshore wind project would likely rise by 10% and its levelized energy cost by 4%. https://t.co/przmyvKDcN
"Utilities brace for staggering power demands from AI, data centers in Wyoming The industry’s proposals for Wyoming would more than double the state’s electrical capabilities, challenging protections for the average ratepayer." https://t.co/uEjyHFgB7W