Posted on April 29, 2025 by Jeremy Harrell
This op-ed was originally published by The Washington Times on April 28, 2025. Click here to read the entire piece.
The first 100 days of the new Trump administration have reshaped the energy landscape. Reliable, affordable energy is a top priority as the president seeks to unleash a new era of American energy dominance. Lower energy prices can usher in a true golden age for U.S. consumers. Done well, this agenda can also reduce global carbon dioxide emissions.
This dynamic is underscored by the president’s work to recruit new artificial intelligence and data center investments to the U.S. These investments can lead to economic development and will require rapid energy demand growth when paired with an American manufacturing resurgence, increasing U.S. energy demand by as much as 18% over the next decade, according to data from the North American Electric Reliability Council. Energy prices are one of the most important cost drivers in these energy-intensive industries.
A rapid increase in supply is required to maintain affordable costs for all American consumers. The U.S. must rapidly deploy all types of new American power. To effectively deploy these new technologies at speed, the administration will need to break down permitting barriers to accelerate the buildout of new energy infrastructure like pipelines, transmission, and other grid-enhancing technologies.
In addition to streamlining the permitting process to increase and maximize new investments, minimizing the tax burden on developers is another essential part of this equation. Maintaining low corporate rates is certainly going to help, but tax incentives also play an enormous role in minimizing investment risk and keeping prices low. Fortunately, some key incentives will not require drastic policy changes like the green new deal or a heavy-handed government regulation.
Existing incentives authored or supported by Republicans in Congress under current law are critical for American leadership in new, affordable, 24/7 American power. These forms of power include advanced nuclear, geothermal, hydropower, natural gas with carbon capture, and even new breakthroughs in fusion technology. Key incentives, like 48E/45Y technology-neutral electricity credit; the 45X advanced manufacturing credit; the 45Q carbon capture, utilization, and storage credit; and the 45V hydrogen credit, can reduce the costs for American producers and support the manufacturers and the mineral supply chain across the economy. Simply put, consumer prices go up if the U.S. doesn’t lower the tax and energy cost burden for American producers and manufacturers.
Click here to read the full article
