The economy will undoubtedly dominate President Trump’s upcoming State of the Union address to Congress. The president spent the past year touting his “energy dominance” agenda. To date, however, one segment of the energy sector has been noticeably and mistakenly left out — advanced energy.
Instead of recognizing and supporting fast-growing and flexible sources of U.S. energy — natural gas, solar, and wind generation; energy efficiency, demand response, and storage — the administration proposed a bailout for uncompetitive coal and nuclear power plants.
While the tax bill Trump signed kept in place the phaseout of wind and solar tax credits, it failed to give the same treatment to fuel cells, combined heat and power, and storage (among others) after two years of unmet promises.
{mosads}Most recently, the president imposed a 30 percent tariff on low-cost solar panels that will raise the price for customers, including the growing number of leading companies that are sourcing their electricity from renewable resources, even as it will do little to help domestic manufacturers. Fortunately, the most damaging impacts of these policies were avoided through the work of bipartisan congressional champions of advanced energy and independent regulators.
Now, going into the second year of his term, President Trump should embrace the advanced energy industry as a key contributor to America’s growing energy dominance. Once thought of as futuristic and premium-cost technologies, the advanced energy industry is now a major economic driver throughout the United States. All told, the industry pumps $200 billion into the economy annually, as much as pharmaceutical manufacturing and more than the beer industry.
The industry supports more than 3 million American jobs, as many as retail stores. The industry is strong and growing, whether it’s wind manufacturing in Iowa and Michigan, solar installations in North Carolina and Nevada, energy storage projects in Arizona and Indiana, or energy efficiency upgrades in every state. These projects not only represent millions of jobs, but these technologies are now competitive with traditional energy options, bringing cost-savings to businesses and consumers.
Recent stories highlight the economic and customer benefits of advanced energy throughout the United States. Battery storage projects paired with solar and wind have hit record-low prices, winning competitive bids in Colorado and demonstrating that the technology is ready for prime time today. Sales of plug-in electric vehicles (EVs) have grown at a compound rate above 50 percent annually since 2011, registering a full 1 percent of new vehicle sales in 2017, and more rapid growth is expected. Increasing deployment of advanced energy technologies helped our grid hold up through the recent hurricanes, extreme cold, and even the “bomb cyclone” to keep the lights on for Americans.
In 2018, the Trump administration can further its goal of energy dominance by embracing policies that remove barriers to investment in advanced energy technologies and ensure that all energy technologies get to compete on price and performance.
Advanced energy provides reliable, resilient, and affordable power to Americans every day. From the White House to State Houses around the country, policymakers should look to capitalize on the benefits of the industry, not stand in the way of its growth. As the president addresses the nation, more than 3 million American workers will be watching to see where they fit in to the administration’s energy dominance agenda.
Malcolm Woolf is senior vice president for policy and government affairs for Advanced Energy Economy, a national business organization.