Renewables sector is cautious but determined heading into Trump’s second term

In 2025, ongoing load growth in the U.S. will continue driving demand for renewable energy, while the sector simultaneously faces uncertainty due to President-elect Donald Trump’s vow to prioritize fossil fuel-based generation.

Beyond the incoming administration, connecting renewable energy to the grid remains a challenge, with wind and solar constituting the vast majority of capacity in interconnection queues across the country. A lack of sufficient transmission to deliver renewable energy to where it’s needed is also seen as a key challenge. Congress has been considering bipartisan permitting reform legislation that aims to facilitate transmission buildout, but the prospects for such legislation remain uncertain.

Advanced Energy United President and CEO Heather O’Neill said the renewable energy industry is currently “stymied” by bottlenecks, “whether it’s interconnection or siting.”

Despite federal uncertainty, work to solve these bottlenecks is ongoing at the state level, O’Neill said – bolstered by the Federal Energy Regulatory Commission’s Order 1920, which affirmed states’ role in transmission planning, and by emerging solutions to get more out of the current power system like grid-enhancing technologies.

“We know we need to build more, but we also know that we can get a heck of a lot more out of the existing transmission grid,” she said. “When we talk to governors, their staff, commissioners – they want to attract economic development in their state.”

Felisa Sanchez, a partner with law firm K&L Gates’ maritime and finance groups, said that permitting reform legislations could play a significant role if Trump attempts to block offshore wind projects.

“One of the big, key ways that Trump could affect projects is by delaying that permitting process over the next four years,” she said. 

While Trump’s reelection and his strong anti-offshore wind stance have created concerns for the offshore wind industry, Sanchez said project developers “are still engaged in these conversations with the understanding that even if there is a slowdown or a halt to the industry, they anticipate being able to pick up again in four years.” 

Trump is expected to implement even stricter tariffs in his second term, including on imported solar components, which could increase costs and contribute to supply chain constraints. However, as solar technology advances and domestic supply grows to meet demand, prices continue to drop.