Trump Energy secretary: ‘We're going to get blamed' for rising power prices — but they're Democrats' fault

Politico

2 hours ago

In Iowa, Wright touted the importance of the Ames lab's critical materials research to help reduce dependence on Chinese supply chains. The trip was part of his goal of visiting all 17 of the Energy Department's national laboratories this year.
His visit also came just before the Treasury Department on Friday released new policy guidance that will make it even harder for wind and solar projects to use tax credits that Republicans phased out as part of their recently passed budget law — though the changes did not go as far as some in the clean energy industry had feared.
Democrats say Trump's policies could cause prices to rise by taking inexpensive clean power sources off the grid while pulling the rug out from under companies' plans to use the Biden-era incentives from the Inflation Reduction Act. Some power industry leaders have also cautioned that aggressive efforts to restrict development of wind and solar energy could raise electricity prices at a time when demand is soaring.
Iowa's senior senator, Republican Chuck Grassley, has joined Sen. John Curtis (R-Utah) in placing holds on three of Trump's nominees after failing to secure assurances on the new tax credit rules. Grassley was not present at the lab, although he offered tentative praise Friday for the new Treasury guidance, saying in a statement that the language 'seems to offer a viable path forward for the wind and solar industries.'
In the interview with POLITICO, Wright said solar and wind projects that have already started the construction process should continue to qualify for tax credits. He said he has 'sympathy' for renewable energy developers concerned that retroactively disqualifying projects under development could expose companies to financial risk and disrupt their business plans.
Treasury's new guidance applies only to projects that start construction on or after Sept. 2.
'Within the administration, there's dialogues about, how do we handle this?' Wright said. 'People are mad about wind and they want to shut it down. There's people, of course, that love it, and want more of it. But we got to balance those things. And if a business invested a lot of money and made a plan, that's a legitimate interest. If you have projects under construction right now that meet that requirement, they're going to get the tax credits.'
Ernst told POLITICO on Thursday at a press conference during the lab tour that she has been continuing to urge the Trump administration not to harm ongoing wind projects in Iowa.
'There are a number of projects that have been planned already, and we would like to see those continue to qualify,' Ernst said.
Wright has frequently criticized wind energy — long a favorite target of Trump's — and in a recent X post argued that wind-powered projects are 'subsidized, inefficient, unreliable, land hogs that drive up electricity prices.'
But in the interview, Wright conceded that Iowa, which has some of the cheapest power prices in the country, has proved that a grid powered by wind energy can be successful in certain contexts.