Did you know that the renewable energy sector is growing at an unprecedented rate? It can create millions of jobs while at the same time address the energy shortage that affects various parts of the globe.
America used to be the leading force when it came to renewable energy. However, the new administration has taken several steps that instead of helping this sector thrive, has had the opposite effect, i.e., it has significantly harmed it. This article discusses some of the developments that have taken place recently and their implications.
How Trump’s Action Made Things Worse for the Renewable Energy Sector
The Center for American Progress Action Fund presented a report that shows the Trump Administration recently suppressed the otherwise excellent growth of renewable energy. If this type of energy bill was allowed to fly, it could have helped curb the current energy crises we are facing and would have created a lot of jobs.
Regulatory Actions
The Trump Administration has repealed and replaced the Clean Power Plan which was administered during Obama’s Presidency. The policy oversaw or would oversee to reduce the carbon emission from power plants. It will incentivize renewable energy growth in the energy sector.
The policy was first implemented in 2016 and it was hoped this move will create at least 500,000 jobs before 2030. It was the replacement plan and would have helped against renewable energy buildouts as well as no new jobs.
Economic Policies
President Trump introduced tariffs on the important solar cells and model for the next four years, this made solar energy development more expensive, ripping apart any economic significance. This move alone leads to the loss of several jobs and project keystones.
Legislative/Fiscal Policies
Recently, Trump became very vocal about excluding the bill from the tax extenders bill as it passed the critical tax credit provisions. The provision was for solar, wind, electric vehicles with excellent storage technologies. This will stunt the creation of new clean energy jobs. Trump Administer will also cut it from agency budget funding for renewable energy development.
Blocking Renewable Development on Federal Land
During the Trump Administration, the US Interior Department Bureau of Land Management had a hard time and finally failed to hold the American Recovery and Reinvestment Act of 2009, which can set a precedent for successful clean energy stimulus programs that can help benefit the economy. The investment tripled with solar generation capacity over two years and helped to increase wind generation capacity with over to 60% over two years.
If Congress wanted to stabilize the renewable energy industry and the employment in the current pandemic, they would have kept the ball alive as it would have during the current epidemic. This bill could have created several jobs and improve the economy. The stimulus package could use extensions of clean energy tax credits which can phase out right after the amendment to the American Energy Innovation Act.
If this bill was used properly, the tax credits can be refunded. It would also help congress extend the commence construction and safe harbor which can help us against the disruptions we are facing amid Covid19.
Interesting related article: “What is Renewable Energy?“