What's Happening?
The American Clean Power Association (ACP) has reported a significant slowdown in the growth of U.S. renewable energy deployments, attributing this to federal policies under the Trump administration. The ACP's Clean Power Quarterly Market Report highlights that while over 11 GW of new utility-scale solar, wind, and energy storage capacity was deployed in the second quarter of 2025, year-over-year growth was less than 1%. The report points to federal policy obstacles and restrictive mandates as major factors threatening planned energy investments worth hundreds of billions. Energy Secretary Chris Wright has criticized renewable energy, labeling it a 'parasite' on the power grid, and emphasized the need for a marketplace that rewards consistent electricity delivery. The ACP notes that the uncertainty created by bureaucratic delays and unclear demands is stalling growth at a time when the nation requires more energy to support economic expansion.
Why It's Important?
The slowdown in clean energy growth has significant implications for the U.S. energy sector and economy. The ACP's findings suggest that federal policies are undermining American energy security and economic growth by creating uncertainty and hindering investment in renewable energy projects. This could lead to increased reliance on traditional energy sources, potentially raising electricity costs for consumers and affecting the country's ability to meet climate goals. The stalled growth in procurements and higher costs for corporate wind and solar power purchase agreements reflect instability in the purchasing environment, which could deter future investments and innovation in the clean energy sector.
What's Next?
The ACP's report indicates that the clean energy industry is facing a challenging environment due to fluctuating trade policies and changes to tax credit guidance. Developers and purchasers are awaiting further clarity on these issues, which could impact future project planning and investment decisions. The report highlights the need for stable policies to encourage investment and growth in the clean energy sector. As the demand for electricity continues to rise, stakeholders may push for policy reforms to support all forms of energy and ensure affordable power production.
Beyond the Headlines
The ACP's report underscores the political dimensions of energy policy, noting that eight of the top ten states for clean power additions voted Republican in the most recent presidential election. This suggests that clean energy development is not solely a partisan issue and that there is broad support for renewable energy across different political landscapes. The report also highlights the importance of supporting diverse energy sources to meet the nation's growing electricity demands and avoid policies that could limit power production and increase household electricity bills.
