US Renewables in the Trump Era
Picking the Brain of an AI Bot
We “picked the brain” of our preferred AI bot through the following question:
Question: “How can the renewable energy industry re-invent itself to align with the current US administration policies?”
The answers and the ensuing exchange are worth pondering. Here is what our AI bot came up with:
Answer: “To align with the current US administration's policies, the renewable energy industry can focus on several key strategies:
A1: Enhance Supply Chain Resilience: Strengthening domestic supply chains for critical materials and technologies is essential. This includes increasing the production and processing of rare earth minerals and other key components used in renewable energy technologies.
A2: Invest in Innovation and Manufacturing: Expanding domestic manufacturing capabilities for renewable energy technologies, such as solar panels, wind turbines, and batteries, can help reduce reliance on imports and create jobs. This aligns with policies aimed at boosting American manufacturing and innovation.
A3: Leverage Federal and State Policies: Taking advantage of federal and state policies, such as the Bipartisan Infrastructure Law and the Inflation Reduction Act, which provide significant funding and incentives for clean energy projects. Additionally, adhering to updated efficiency standards and emissions regulations can help meet policy goals.
A4: Promote Clean Energy Adoption: Encouraging the adoption of clean energy technologies through consumer incentives, education, and partnerships with local governments and businesses. This can help increase the market share of renewable energy and support the administration's emissions reduction targets.
A5: Focus on Energy Storage and Grid Modernization: Investing in energy storage solutions and modernizing the electric grid to accommodate a higher share of renewable energy. This can improve grid reliability and support the integration of intermittent renewable sources.
By implementing these strategies, the renewable energy industry can better align with the current US administration's policies and contribute to a sustainable and resilient energy future.”
Humm…
The answers made sense but seemed a bit odd given the Trump administration’s rhetoric. So, we asked the following:
Question: “Are the above answers aligned with the current Trump administration policies?”
Answer: “The strategies I mentioned earlier align more closely with the policies of the Biden administration rather than the current Trump administration. The Trump administration's energy policies focus on different priorities:
B1: Fossil Fuel Development: The Trump administration emphasizes increasing domestic production of fossil fuels, including oil, natural gas, and coal. This includes lifting restrictions on drilling and expanding natural gas exports.
B2: Energy Dominance: The administration aims to achieve "energy dominance" by maximizing the use of America's natural resources. This involves prioritizing energy independence and reducing reliance on foreign energy sources.
B3 - Deregulation: There is a strong focus on reducing regulatory burdens on the energy industry. This includes rolling back environmental regulations to facilitate easier and faster development of energy projects.
B4: Nuclear and Hydroelectric Power: While renewable energy sources like wind and solar are not a primary focus, the administration supports the development of nuclear and hydroelectric power as reliable baseload energy sources.
B5 - Lowering Energy Costs: The administration prioritizes lowering energy costs for consumers over reducing emissions. This approach contrasts with policies that emphasize transitioning to clean energy to combat climate change.
These policies reflect a significant shift from the previous administration's focus on renewable energy and emissions reductions.”
Question: “Well then, consider my earlier question with the current Trump administration.”
Answer: “To align with the current Trump administration's policies, the renewable energy industry can focus on several key strategies:
C1: Emphasize Fossil Fuel Integration: While renewable energy remains important, integrating it with fossil fuel development can align with the administration's focus on energy dominance. This includes hybrid projects that combine renewable sources with natural gas or other fossil fuels.
C2: Promote Nuclear and Hydroelectric Power: The administration supports nuclear and hydroelectric power as reliable baseload energy sources. Investing in these areas can align with policy priorities and provide stable energy supply.
C3: Streamline Permitting and Regulations: Taking advantage of the administration's efforts to reduce regulatory burdens can help expedite renewable energy projects. Streamlining permitting processes and navigating deregulation can be beneficial.
C4: Focus on Cost Reduction: Prioritizing cost-effective renewable energy solutions can align with the administration's goal of lowering energy costs for consumers. This includes improving efficiency and reducing the overall cost of renewable energy technologies.
C5: Leverage Domestic Resources: Utilizing domestic resources for renewable energy projects can support the administration's emphasis on energy independence and reducing reliance on foreign energy sources.
By implementing these strategies, the renewable energy industry can better align with the current Trump administration's policies while continuing to contribute to a diverse and resilient energy future.”
Energy dominance, the “all of the above” way.
Our Take and Conclusions
Our AI bot came up with some valid strategies that are either part and parcel of the new administration’s policies, are in great alignment with such policies, or can be tweaked to better align with the current administration’s policies. We’ll briefly discuss these strategies below.
Invest in Innovation, Supply Chain Resilience, Home-Based Manufacturing and Domestic Resources: Despite headwinds that can be implied from a superficial read of the current administration’s rhetoric, supply chain resilience can be enhanced through home based manufacturing which is a major focus of the administration. Innovation is never a bad idea, and with the new administration’s focus on home-based manufacturing, it takes on more steam and significance. Tariffs also put additional urgency on innovation because innovation produces more efficient designs which may negate the effects of tariffs.
Leverage Federal and State Policies: This is still possible while prior favorable polices are still in effect and in states that have established Renewable Portfolio Standards (RPS) or goals.
Promote Clean Energy Adoption: Nowadays, clean energy is competitive, in addition to being clean and indispensable as a critical component of the energy mix. Promoting clean energy is easy if the industry works to counter mis-information on clean energy.
Focus on Energy Storage and Grid Modernization: This is an absolute requirement for integrating renewables into the grid and increasing their share of the energy mix.
Energy Dominance with Emphasis on Fossil Fuel Integration: While fossil fuels are low hanging fruits that are useful to establish energy dominance, they are not sustainable and their extraction is bound to become costlier and costlier as the reserves dwindle. True and sustainable energy dominance is best achieved through sustainable means such as renewable energy. President Trump talked about renewable energy generation next to a fossil fuel facility. Fossil fuel facilities take years to build and bring online. Renewable energy projects, on the other hand, are quick to build out and deploy. With surging demand for electricity, energy is needed from all sources. Renewable resources are ideal vehicles to facilitate fossil fuel integration and the desired energy dominance.
Deregulation and Permitting Streamlining: Deregulation would benefit all energy sources especially renewable energy which has long suffered from lengthy and complicated permitting processes.
Lowering Energy Costs: In this regard, renewable energy has the greatest potential for continued lowering of energy costs. We have seen strong lower cost trends with solar panels and battery storage. Solar panels and wind turbines are more and more efficient resulting in lower costs. Continued focus on cost reduction is critical.
As we see it, the US renewable energy industry is poised to continue to thrive under the Trump administration.
