Year after OBBBA, clean energy projects resist federal challenges

The Surging Energy Demand and the Shift to Renewable Sources

The demand for energy continues to surge globally, driven by factors like the rise of AI-driven data center development and electrification efforts. This growth is no fairy tale, like the whimsical depiction of Hades’ booming energy empire in the musical Hadestown. Instead, it is influenced by real-world events, including conflicts in oil-rich nations like Russia and Iran, and economic uncertainties. Yet, traditional fossil fuel resources, though abundant, are finite and contribute significantly to climate change. Therefore, alternatives such as nuclear, solar, and wind energy are essential.

Interestingly, the concept of ‘alternative energy sources’ has gradually shifted to become ‘clean energy resources’. According to research, solar and battery storage accounted for 91% of all new electricity-generating capacity in the first quarter of 2026, marking a significant transition towards clean, renewable energy.

Historically, the U.S. Supreme Court recognized as early as 50 years ago that fossil fuel-based energy resources would not suffice to meet the increasing energy demand. The court emphasized the need for energy conservation and the development of alternative energy sources.

The shift towards clean energy has also been encouraged by government policies, such as the 2024 Inflation Reduction Act (IRA), which introduced significant tax incentives for renewable energy projects. However, the trajectory of clean energy has faced challenges, particularly from policy changes under the Trump administration.

Impact of Federal Policies on Clean Energy Development

The Trump administration initiated measures under the One Big Beautiful Bill Act (OBBBA) to terminate the IRA’s tax incentives. Since January 2025, several executive orders have been issued that have significantly slowed down or restricted clean energy projects. Measures included complex review procedures, slow administrative approvals, and even a halt on offshore wind projects.

However, recent court rulings are challenging these policies. For instance, a Massachusetts federal judge blocked a Trump executive order that had paused wind projects, terming it arbitrary and capricious. In August, another federal judge mandated the Department of Defense to restart reviews of applications for wind projects that had been stalled for months.

Despite these wins, the impact of the federal campaign against clean energy remains significant. A BlueGreen Alliance report indicates that Trump administration policies have led to the cancellation or delay of projects worth nearly $83 billion since 2025.

The Future and Persistence of Renewable Energy

Despite the challenges, the clean energy industry continues to persevere. Developers are pushing forward with their clean energy projects, supported by banks and tax equity. Factors contributing to this resilience include intact state policies mandating the purchase of energy from renewable sources, attempts to complete projects in time to qualify for the last IRA tax credits, and continued legal challenges against anti-clean energy policies.

Moreover, record heatwaves are testing the capacities of electrical grids across the country, highlighting the need for a diverse energy portfolio that includes clean energy sources. As we face unprecedented power demands and the urgent need to reduce carbon emissions, it is clear that sensible energy policies should promote clean energy sources.