The cancellation of nearly 1,900 power projects in 2023 has raised significant concerns over the future of energy generation in the United States. According to a report from Cleanview, a leading organization that tracks energy trends, a staggering 93% of these scrapped projects were green energy initiatives, including large-scale solar farms and offshore wind facilities. The report highlights a troubling disconnect between the increasing demand for electricity, particularly driven by advancements in artificial intelligence, and the dwindling capacity to meet that demand.
Cleanview’s findings reveal that 1,891 power projects were canceled this year, amounting to a combined generation capacity of approximately 266 gigawatts. For context, the state of Texas has a net generation capacity of around 168 gigawatts during peak summer months, as reported by the Energy Information Administration. One gigawatt can power about 750,000 homes, underscoring the scale of the cancellations and the impact on future energy supply.
The report warns of potential consequences for grid reliability, affordability, and the United States’ competitiveness in the global AI landscape. “The current trajectory is unsustainable,” the report states, noting that the nation is simultaneously approving unprecedented electricity demand while canceling essential generation projects.
Policy Changes and Local Opposition Drive Cancellations
The cancellations have been attributed to a variety of factors, including shifts in federal policy and local opposition. President Donald Trump’s administration has been particularly influential, with actions to halt the development of offshore wind and certain solar projects contributing to the loss of critical energy infrastructure. The Cleanview report points to over $679 million in federal funding cuts for offshore wind initiatives and a broader effort to slow the renewable energy sector as significant contributors to the project cancellations.
In particular, New York’s Independent System Operator (ISO) faced the cancellation of 13.2 gigawatts of projects, while New England lost 11 gigawatts of wind capacity and California saw 2.5 gigawatts of offshore wind projects scrapped. Additionally, local opposition to large-scale energy projects has played a critical role, as developers face increasing resistance from communities concerned about aesthetic impacts and other issues.
Compounding these challenges are rising costs and interconnection hurdles. The report indicates that Louisiana and Missouri experienced the highest interconnection costs in the Midcontinent Independent System Operator’s region, with costs averaging around $928,000 and $915,000 per megawatt, respectively. These factors, combined with a supply chain crisis affecting gas infrastructure, have led to the cancellation of over 4 gigawatts of gas power projects in 2023.
Future Implications and Calls for Action
Looking ahead, industry experts warn that the trend of project cancellations is likely to continue. With the Inflation Reduction Act’s subsidies for wind and solar projects set to expire in the coming two years, developers are under pressure to meet critical construction and operational targets. The Republican-led Congress recently terminated federal tax credits for renewable energy development, further complicating the outlook for new projects.
Thomas, an analyst at Cleanview, urged policymakers to reconcile their energy affordability goals with the need for substantial project development. He stated, “President Trump, Energy Secretary Chris Wright, and Interior Secretary Doug Burgum need to lead the charge by matching their ‘all of the above energy’ rhetoric with action.” He emphasized the necessity for state leaders to implement meaningful permitting reforms to facilitate energy infrastructure development.
As the demand for electricity continues to rise—expected to increase by at least 100 gigawatts by 2030, with half attributable to data centers—the ability to balance supply and demand is more critical than ever. Clean energy advocates argue that renewable energy projects, when combined with effective storage solutions, can quickly respond to immediate energy needs, offering a sustainable path forward.
The current landscape presents a complex challenge for energy stakeholders, requiring a concerted effort to address policy inconsistencies, local opposition, and infrastructural barriers. The future of energy generation in the United States may depend on how effectively these challenges are met in the coming years.
