Trump’s renewable energy restrictions risk power crisis in US

Donald Trump’s policies on renewable energy have sparked concerns over an impending electricity crisis in the United States, with industry leaders warning of rising costs for consumers and a potential advantage for China in the global artificial intelligence race.

During his first week in office, the U.S. president placed a moratorium on offshore wind approvals, initiated reviews of existing wind leases, and halted hundreds of billions of dollars in incentives for green energy. These actions have rattled the energy industry, which has been the fastest-growing and most cost-effective source of new electricity capacity in the U.S. grid amid rising power demand, Caliber.Az reports via foreign media.

By 2028, utilities will need to increase annual power generation by up to 26% from 2023 levels, according to consultancy Bain. This demand surge is being driven primarily by power-intensive data centres supporting AI technologies. Jim Robb, CEO of the North American Electric Reliability Corporation, expressed concerns over limiting power development at such a critical time, stating:

“We’re going to need more juice and a lot of it . . . I’m not sure I see the wisdom in slowing down the development of any resource right now.”

Robb also warned against outsourcing AI-related energy needs, adding:

“I don’t think we want the AI infrastructure of the country to be dependent on the Middle East or China or India or any place else that has the power so that they can develop very quickly.”

Trump’s new energy advisor, Doug Burgum, has argued that the U.S. could lose the “AI arms race” to China unless it increases fossil fuel generation. Meanwhile, the White House has defended Trump’s economic policies, including tariffs, tax cuts, and deregulation, stating that these measures led to strong job growth and energy independence during his first term.

Many energy executives argue that renewables, combined with battery storage, are best suited to meet the country’s growing electricity needs. Gas plants, they note, face longer development timelines, supply constraints, and higher costs. David Mindham, director of regulatory and market affairs at EDP Renewables North America, emphasized the economic risks of shifting focus to fossil fuels:

“It is not in anyone’s interest to drive up energy costs by driving procurement of thermal resources across the grid.”

Experts warn that slowing renewable energy expansion could increase the risk of blackouts. Large developers, including oil giants Shell and TotalEnergies, have already scaled back or withdrawn from projects following Trump’s election win. Claire Broido Johnson, co-founder of Sunrock Distributed Generation, cautioned:

“There will be more blackouts. He is hoping oil and gas will solve all of his problems . . . It just can’t.”

By Vugar Khalilov