Published on: January 21, 2025 / Update from: January 21, 2025 - Author: Konrad Wolfenstein
Trump's energy turnaround: Can the green wave weather the political storms? What does Elon Musk do? – Image: Xpert.Digital
Difficult times for solar & wind: What Trump's policies mean for renewable energy
Back to coal and oil? Trump's influence on the future of the energy transition in the USA
The election of Donald Trump as US President has a significant impact on the renewable energy market in the USA. During his campaign and now at the beginning of his term, Trump has shown a clear preference for fossil fuels and expressed criticism of renewable energy. This creates uncertainty and potential setbacks for the industry.
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Possible developments under Trump
- Reduction of support measures: Trump plans to revise or partially withdraw important laws such as the Inflation Reduction Act (IRA). This could reduce tax credits and other incentives for renewable energy.
- Focus on fossil energies: The new government wants to expand oil and gas production and speed up approval processes. This could affect the competitiveness of renewable energies.
- Regulatory Changes: Trump is expected to loosen environmental regulations and weaken agencies like the EPA. This could make the expansion of renewable energies more difficult.
- Trade policy: Planned tariffs, particularly on imports from China, could increase the cost of solar and wind power components.
Persistence of the sector
Despite these challenges, there are factors that suggest a certain level of resilience in the sector:
- Market dynamics: Falling costs and technological advances are making renewable energy increasingly competitive.
- State Initiatives: Many states, including Republican states, have their own renewable energy goals and benefit from investments in this area.
- Economic benefits: The sector has created many jobs in recent years, which also has support among Republicans.
- International Competitiveness: There are concerns that moving too far away from renewable energy could set the U.S. behind in global competition.
Elon Musk's role and ambitions
Elon Musk, known for his innovations in renewable energy, takes a complex position:
- Support for Trump: Musk was named a member of Trump's Cabinet and has developed a close relationship with the president.
- Ambivalent attitude: Despite his support for Trump, Musk has acknowledged climate change as a serious problem in the past.
- Focus on technology: Musk continues to focus on technological solutions such as electric vehicles, solar energy and energy storage through Tesla.
- Long-term vision: Musk's "Master Plan" aims for a sustainable energy future, even if it has put the time pressure on climate change into perspective.
Overall, the picture is mixed: While the Trump administration is creating challenges for the renewable energy sector, the long-term outlook remains positive due to market dynamics and technological advances. Elon Musk's role is ambivalent - on the one hand he supports Trump, on the other hand he continues to drive innovation in the field of renewable energy through his companies.
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