Rising Electricity Prices Have Nothing to Do with Renewables Incentive Rollbacks or Trump Administration Policies

     I recall reading a news story a few weeks ago about a Democratic strategy to blame rising electricity prices on Trump and his policies. The strategy is not based on reality. The last thing the Dems need is another bumbling energy policy rooted in misconceptions and a lack of understanding of energy markets and technologies. The Trump policies that drop subsidies for wind, solar, batteries, and other clean tech have not even taken full effect. The stopping of wind power projects by the Trump administration will likely lead to slightly lower power prices compared to developing the projects, several of which have contracted for power prices exceeding whole power prices by concerning magnitudes It is essentially guaranteed that the offshore wind projects, if built and subsided would be paid by consumers, first as subsidies paid by taxpayers and next by those same taxpayers as power ratepayers paying higher rates. Electricity rates are always higher where grid penetration of wind, solar, and batteries is highest. High upfront costs are one reason. Renewables proponents always point out that power delivery prices are lowest for renewables. This is true, but only when they are available. Delivering the power may be cheaper, but building it, integrating it, and managing it is not cheaper.    

     The argument that rising electricity prices are due to renewables incentive rollbacks or Trump administration policies is an absurd one. The Dems need to abandon this tack if they want to be taken seriously about energy. While I think Rahm Emanuel had some great ideas about foreign policy as ambassador to Japan, his recent op ed in the Wall Street Journal, titled: ‘Rising Electricity Price? Thank Trump,' is misinformed and simply incorrect. While I only got the opening snippet on my side of the pay wall, I also got the opening snippet of the Journal’s rebuttal, where it was noted that Emanuel’s op-ed:

“…demonstrates an ignorance of basic economics. Mr. Emanuel claims that subsidies paid to green-energy providers reduce the cost of electricity. The opposite is true. The billions of dollars paid out to green-energy providers—almost $70 billion for wind and solar alone between 2020 and 2023—don’t come down from on-high. Taxpayers foot the bill.”

     When the so-called Big Beautiful Bill was passed just weeks ago, some activists began saying that it would increase the cost of electricity, an assertion not based in fact. The bill actually keeps a lot of Biden’s subsidies aside from those on EVs, solar, and wind power. Personally, I think the subsidies for solar and wind should continue or be reduced, and those for EVs should have been reduced rather than eliminated.

     Robert Bryce called Emanuel’s op-ed silliness and “a load of flapdoodle.” While power prices went up an average of 10% since January, pretty much all of those increases were already in the works and expected in 2024. Bryce goes on to cite public opposition to wind and solar projects, which has led some Democratic states to override local zoning ordinances against such projects. He also points out ill-advised plans to close more coal plants by 2030 in light of increasing power demand and uncertain supply.

     Attempts to pin rising power prices on Trump will backfire as they should. Until the Dems can be realistic about energy economics and technological capabilities and limitations, their policy positions about energy will be hard to take seriously. Energy idealism has created problems, including high power costs. Energy realism is the solution, and the Dems better get with it.

    

 

References:

 

Mitsubishi Says Sayonara To Offshore Wind, Rahm’s Silliness, XOM Spotlights Power Demand, & Gratitude For One Year With Paid Subscribers On Substack: Four (free) notes on a Sunday afternoon. Robert Bryce. September 21, 2025. Mitsubishi Says Sayonara To Offshore Wind, Rahm’s Silliness, XOM Spotlights Power Demand, & Gratitude For One Year With Paid Subscribers On Substack

Rising Electricity Price? Thank Trump: Bigger bills are a direct result of the One Big Beautiful Bill Act, which cut green-energy subsidies. Rahm Emmanuel. Wall Street Journal. September 17, 2025. Rising Electricity Price? Thank Trump - WSJ

Big Electric Bill? Thank the Energy Subsidies. Wall Street Journal. September 21, 2025. Big Electric Bill? Thank the Energy Subsidies - WSJ