Renewable-energy developers knew US President Donald Trump preferred oil and gas to solar and wind — and long opposed offshore turbines. But they were hoping he wouldn’t throw roadblocks in front of other clean-power projects.
After the last week, they’re not so sure.
First came word that the US Army Corps of Engineers had paused permitting on renewable-energy projects, even on private land. Then, the corps abruptly announced the pause had been lifted.
Trump’s first administration encouraged fossil fuel development, but it largely treated renewables with benign neglect, allowing solar and wind projects to move forward. Last week’s moves, combined with his suspension of offshore wind leasing, suggest that attitude may have changed.
“What we’re seeing now is the potential risk that the Trump administration may not only favor conventional resources, but may try to undermine renewables as well,” said Timothy Fox, a managing director of the Washington-based research firm ClearView Energy Partners.
“This could very well cause renewable project developers to reconsider or pause on their end,” he said.
For a capital-intensive sector like power, policy certainty is crucial. Nobody wants to start building a solar or wind farm only to find out they may not be able to get required government approvals.
Encore Renewable Energy, for example, received notice last week that the corps had paused a review of one of its projects, said Lauren Glickman, the Vermont-based company’s vice president of policy and communications.
“That type of pause would prevent us from legally going forward with construction,” she said. “This could delay a project that literally was supposed to be completed and energized this year.”
The power industry was already wondering what would happen to tax credits approved under former President Joe Biden. There’s even uncertainty over whether Trump’s threatened tariffs on Canada and Mexico would apply to electricity.
Investors have taken notice, with utility analysts questioning Xcel Energy Inc. leadership about the permitting pause during the company’s earnings call Thursday. Chief Executive Officer Bob Frenzel struck a hopeful tone.
“I’m optimistic that our capital plans for ‘25 and beyond are going to remain intact,” he said.
–Josh Saul and Arvelisse Bonilla Ramos, Bloomberg News
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