The US Sustainable Energy Scene (2023-2025)

Sustainable Energy – Powering Forward or Hitting Pause?

The journey of sustainable energy in the United States has been anything but smooth, particularly between 2023 and early 2025. It’s a story of exciting advancements clashing with policy U-turns, and market enthusiasm meeting regulatory hurdles. Let’s dive into the shifting landscape.

Navigating Policy Crosscurrents: Federal Initiatives and Political Realities (2023-2025)

The sustainable energy sector has found itself navigating a complex maze of federal policy. Early 2025 saw a significant pivot with the White House directive “Unleashing American Energy.” This policy aimed to boost domestic fossil fuel production—oil, natural gas, and coal—by encouraging exploration on federal lands, easing regulatory burdens, and revoking several previous executive orders focused on climate change, clean energy, and electric vehicle (EV) adoption.[1] The administration’s goal was to remove “burdensome and ideologically motivated regulations” seen as hindering energy development.[1] This move contrasts sharply with analyses highlighting clean energy’s economic and environmental benefits, and the bipartisan support some incentives from the Inflation Reduction Act had previously garnered.[2] Such policy whiplash can create uncertainty, potentially deterring long-term investment in green technologies.

Alongside these policy shifts, some environmental protections have been rolled back. For example, the Environmental Protection Agency (EPA) moved to ease restrictions on industrial pollution, including mercury.[2] Executive Order 11991, concerning environmental quality protection, was also revoked in January 2025.[1] These actions seem at odds with public opinion, as a 2023 poll indicated that 74% of American voters support stricter EPA limits on particle pollution.[2]

The January 2025 directive also called for a review of existing agency actions to streamline permitting processes, focusing on efficiency and adherence to only “relevant legislated requirements” for environmental considerations.[1] While aimed at speeding up project approvals, these changes could potentially weaken environmental safeguards.

Despite the early 2025 policy redirection, the preceding period saw some bipartisan cooperation on energy legislation. Examples include the Permitting Reform legislation of 2024, a February 2025 bill for year-round E15 sales, the Advanced Nuclear for Clean Energy Act of 2023, and the Circuit Act of 2025.[2] These instances show that common ground is possible, though vulnerable to broader political changes.

Growth in Renewables, and Investment Climate

Even with policy uncertainties, the market has shown a strong appetite for renewable energy. Why? Cost-competitiveness and technological advancements. Onshore wind and solar are often the cheapest new energy generation options.[2] A major milestone was hit in 2024: wind and solar combined generated more electricity (17% or 757 TWh) than coal (15% or 653 TWh) for the first time in US history! Solar generation, in particular, surged by 27% in 2024.[3]

Energy storage is a key partner in this growth. Grid-scale battery storage deployment has been accelerating, nearly tripling globally in 2023.[4] The US added a record 10 GW of utility-scale battery capacity in 2024, crucial for supporting solar power’s expansion.[3] Innovations are on the horizon too, with new battery systems expected in 2025 capable of storing energy for days, not just hours.[4] California’s success in integrating high levels of solar power is a testament to its parallel growth in battery storage.[3]

Beyond the big three (solar, wind, batteries), other clean technologies are advancing. Next-generation geothermal power is becoming more affordable, offering clean, baseload energy. Nuclear energy is seeing a revival due to its carbon-free, 24/7 power capabilities.[4] New technologies are also emerging to electrify industrial heat, with first-of-a-kind fossil-fuel-free cement and steel factories coming online in the US.[4]

The electric vehicle (EV) market is another game-changer. Projections suggest EVs could be cheaper to buy than traditional cars by the end of the decade, even without subsidies.[4] Global EV charger deployment quadrupled between 2020 and 2023.[4] However, the January 2025 White House directive aiming to eliminate the “EV mandate” introduces significant uncertainty here.[1]

Investment trends paint a mixed picture. Globally, clean energy investment hit nearly $2 trillion in 2024, almost double that of fossil fuels.[4] But in the US, early 2025 saw over $14 billion in clean energy projects cancelled or delayed, largely attributed to political uncertainty. Despite this, at least $4.2 billion in new renewable energy, grid, EV, and battery projects were also announced during the same period.[5] The Clean Investment Monitor reported $67.3 billion in clean energy investment for Q1 2025, up 6.9% from Q1 2024, mainly driven by household and business retail purchases.[5]

The American Clean Power Association (ACPA) noted a strong start to 2025, with 7.4 gigawatts of utility-scale solar, wind, and storage installed in Q1. Battery storage capacity surpassed 30 gigawatts, a 65% year-over-year increase.[5] Texas continues to lead in utility-scale solar and onshore wind. However, the industry remains wary of potential policy changes, like the elimination of clean energy tax credits, which could trigger more cancellations.[5]

Persistent Challenges and the Path to a Resilient Sustainable Energy Future

The US sustainable energy transition isn’t without its roadblocks. A major challenge is meeting rising electricity demand (up 3% in 2024) while decarbonizing the power sector. While solar and wind grew, natural gas generation also rose to meet this new demand, leading to a slight increase in power sector CO2 emissions (+0.7%) in 2024, even as electricity’s carbon intensity hit a record low.[3] Critically, 85% of new gas, solar, and wind generation in 2024 met new demand rather than displacing coal, slowing coal’s decline.[3] This “demand dilemma,” fueled partly by AI, data centers, and population growth, means simply adding renewables isn’t enough; deployment must outpace demand growth and actively replace fossil fuels.[2, 3]

Public and community engagement is another crucial factor. Lack of proactive engagement has sometimes led to local opposition to renewable projects, despite broad public support for clean air and water policies.[2] Project cancellations, like RWE’s U.S. offshore wind operations due to “the political environment,” highlight how non-technical factors can derail significant investments.[5]

Ultimately, a resilient and sustainable energy future for the US requires a stable, long-term, and ideally bipartisan, strategic plan. This would provide the policy certainty needed to de-risk investments and ensure a consistent path towards decarbonization, regardless of political cycles.[2]