White House Chronicle

News Analysis With a Sense of Humor

Trump Hostility To Wind And Solar Has Utilities Treading Softly

by Leave a Comment

This commentary was originally published in Forbes.

President Donald Trump reiterated his hostility to wind generation when he arrived in Scotland for what was ostensibly a private visit. “Stop the windmills,” he said.

But the world isn’t stopping its windmill development and neither is the United States, although it has become more difficult and has put U.S. electric utilities in an awkward position: It is a love that dare not speak its name, one might say.

Utilities love that wind and solar can provide inexpensive electricity, offsetting the high expense of battery storage.

It is believed that Trump’s well-documented animus to wind turbines is rooted in his golf resort in Balmedie, near Aberdeen, Scotland. In 2013, Trump attempted to prevent the construction of a small offshore wind farm — just 11 turbines — located roughly 2.2 miles from his Trump International Golf Links, but was ultimately unsuccessful. He argued that the wind farm would spoil views from his golf course and negatively impact tourism in the area.

Trump seemingly didn’t just take against the local authorities, but against wind in general and offshore wind in particular.

Yet fair winds are blowing in the world for renewables.

Francesco La Camera, director general of the International Renewable Energy Agency, an official United Nations observer, told me that in 2024, an astounding 92 percent of new global generation was from wind and solar, with solar leading wind in new generation. We spoke recently when La Camera was in New York.

My informal survey of U.S. utilities reveals they are pleased with the Trump administration’s efforts to simplify licensing and its push to natural gas, but they are also keen advocates of wind and solar.

Simply, wind is cheap and as battery storage improves, so does its usefulness. Likewise, solar. However, without the tax advantages that were in President Joe Biden’s signature climate bill, the Inflation Reduction Act, the numbers will change, but not enough to rule out renewables, the utilities tell me.

China leads the world in installed wind capacity of 561 gigawatts, followed by the United States with less than half that at 154 GW. The same goes for solar installations: China had 887 GW of solar capacity in 2024 and the United States had 239 GW.

China is also the largest manufacturer of electric vehicles. This gives it market advantage globally and environmental bragging rights, even though it is still building coal-fired plants.

While utilities applaud Trump’s easing of restrictions, which might speed the use of fossil fuels, they aren’t enthusiastic about installing new coal plants or encouraging new coal mines to open. Both, they believe, would become stranded assets.

Utilities and their trade associations have been slow to criticize the administration’s hostility to wind and solar, but they have been publicly cheering gas turbines.

However, gas isn’t an immediate solution to the urgent need for more power: There is a global shortage of gas turbines with waiting lists of five years and longer. So no matter how favorably utilities look on gas, new turbines, unless they are already on hand or have set delivery dates, may not arrive for many years.

Another problem for utilities is those states that have scheduled phasing out fossil fuels in a given number of years. That issue – a clash between federal policy and state law — hasn’t been settled.

In this environment, utilities are either biding their time or cautiously seeking alternatives.

For example, facing a virtual ban on new offshore wind farms, veteran journalist Robert Whitcomb wrote in his New England Diary that the New England utilities are looking to wind power from Canada, delivered by undersea cable. Whitcomb wrote a book, “Cape Wind: Money, Celebrity, Energy, Class, Politics and the Battle for Our Energy Future,” about offshore wind, published in 2007.

New England is starved of gas as there isn’t enough pipeline capacity to bring in more, so even if gas turbines were readily available, they wouldn’t be an option. New pipelines take financing, licensing in many jurisdictions, and face public hostility.

Emily Fisher, a former general counsel for the Edison Electric Institute, told me, “Five years is just a blink of an eye in utility planning.”

On July 7, Trump signed an executive order which states: “For too long the Federal Government has forced American taxpayers to subsidize expensive and unreliable sources like wind and solar.

“The proliferation of these projects displaces affordable, reliable, dispatchable domestic energy resources, compromises our electric grid, and denigrates the beauty of our Nation’s natural landscape.”

The U.S. Energy Information Administration puts electricity consumption growth at 2 percent nationwide. In parts of the nation, as in some Texas cities, it is 3 percent.

 

Rare Earths Are a Crisis of Government Neglect

by Leave a Comment

An old adage says “a stitch in time saves nine.” Indeed. But it is a lesson seldom learned by governments.

As you struggle through TSA screening at the airport, just consider this: It didn’t have to be this way. If the government had acted after the first wave of airplane hijackings in the early 1960s, we might never have had the Transportation Security Administration.

The government and the airlines should have done something very simple: Put locks on the cockpit doors. It was discussed among the airlines, at the Federal Aviation Administration, and at the White House Office of Science and Technology.

Then came Sept. 11, 2001, and governments acted. Massively — even too much too late.

When it comes to the emerging crisis over rare earths, whose supply and processing is almost totally controlled by China, successive administrations have sighed and done nothing. 

As the uses for rare earths have increased dramatically, the calls for the United States to do something to alleviate this dependence have been constant and loud. Action hasn’t corresponded.

The modern world runs on the 17 rare earths which are great enhancers.

Notable for sounding the alarm has been John Kutsch, executive director of the Thorium Alliance, which promotes the use of thorium as a nuclear reactor fuel.

The need for rare earths is huge in the United States — as is our attendant vulnerability.

“There is no piece of modern technology that does not use rare earths or other technology metals. There are no drones, windmills, electric cars, computers, lasers, radar systems, magnets of quality, or medical devices, which are not 100-percent reliant on China for components using their critical materials,” Kutsch told me.

It is a giant vulnerability and Kutsch and his colleagues have been drawing attention to it for 15 years.

“We have been telling the decision makers in Washington and at the Pentagon for 15 years that China will use rare earths as an economic weapon. And we were always told that they would not. Well, now the U.S. is cut off,” he said.

According to Kutsch, and others, “rare earths aren’t rare at all.” They are difficult to mine and process and, as with much else, it has just been easier and cheaper to import them from China. 

Additionally, production in the U.S. has been hampered because rare earths are found in conjunction with thorium. Thorium is a fertile but not fissile nuclear material. That means that it can’t be used in a reactor, without having the reaction initiated by a fissile material, like uranium.

But its classification as a nuclear source material means it must be inventoried and stored as a nuclear material and is classified by the Nuclear Regulatory Commission as such. This makes mining and processing rare earths challenging and expensive in the U.S.

Kutsch lamented, “Every year, Florida produces enough rare earth ore to supply the western world’s needs. We choose not to process any of that rare earth material because it would create a small amount of slightly radioactive material.

“So, we have given up on any materials refining in the U.S. and have decided to put our entire economic and national security fate in the hands of our number one adversary.”

Even if the limiting factors of associated thorium were dealt with — a national thorium bank and registry has been proposed — rare earths wouldn’t begin to flow  overnight.

We simply don’t have the expertise in mining but especially in processing rare earths. Hell, it is hard enough to get our mouths around some of the names. Try saying Praseodymium and Neodymium.

The near-future looks like this:

1. We probably have enough stockpiles held by rare earth-using companies to last for several months, but shortages will start appearing after that.

2. The military is believed to have a better stockpile, enough for a year or longer.

3. Users initiate elaborate workarounds, like using a more plentiful but less effective metal.

3. Manufacturers may reduce the size or efficiency of systems that use rare earths, like a smaller motor in an electric car.

The essential role of rare earths is as a multiplier. A wind turbine produces at least five times more electricity because of the use of exceedingly small amounts of rare earths.

What does seem outrageous, is that the U.S. has embarked on a nasty trade war with China without understanding the People’s Republic has a grip below the belt. Ouch!