Renewable Energy Companies Bid For Harris Administration in US Election

This week, the wind energy sector indicated its readiness to increase renewable electricity production in the U.S. and expressed optimism about the upcoming election in November.

On the 15th of August, the Interior Department conducted an auction for offshore wind farm development rights. This auction garnered significant attention, particularly because the sites off Delaware, Maryland, and Virginia are shallow-water locations that are highly sought after. This event was especially notable following the cancellation of a previous auction in the Gulf of Mexico in July, which failed to attract bidders.

The lack of interest in the July auction was partly attributed to the lower wind quality in that area, but it was also influenced by Donald Trump’s announcement in May that he would terminate offshore wind projects if he regained the presidency.

In contrast, the recent auction saw bids totalling approximately $93 million, alleviating concerns about the industry’s viability and suggesting a positive shift in sentiment since Vice President Kamala Harris entered the presidential race.

As reported by Politico, President Joe Biden aims to establish 30 gigawatts of offshore wind power in the U.S. His administration has already approved nine commercial-scale offshore projects and is planning to lease up to 12 additional sites over the next five years.

Renewable energy companies have faired better under Democratic administrations in general. Moving from fossil fuels to more renewable forms of energy has been a shift from the prior administration, allowing California to exceed its grid demand and install numerous large-scale batteries to assist its net zero climate goals.

While there is much room for solar to grow, there have been major advancements in recent years. In 2023, utility-scale solar energy produced 164.5 terawatt-hours (TWh), accounting for 3.9% of the electricity generated in the United States. When including estimated small-scale photovoltaic generation, the total solar output for the year reached 238 TWh.

By the end of 2023, the United States had a combined total of 179 gigawatts (GW) of installed capacity from both photovoltaic systems (utility and small-scale) and concentrated solar power. Many of these advancements in green energy have come from Democrat-run states, opting for alternatives to the traditional grid and generally being more tuned into climate policy.

Aside from solar energy, the Biden-Harris administration has previously allowed for the proliferation of alternative heating technologies that minimise strain on the electric grid. Such policies follow in the footsteps of UK government grants aimed at promoting energy-efficient measures such as air to air heat pump systems.

The U.S. Department of Energy (DOE) announced nearly $85 million in funding for four heat pump manufacturers to boost the production of electric heat pumps, hot water heaters, and components at five factories located in New York, Tennessee, Texas, and Rhode Island. This initiative is part of the Biden-Harris Administration’s Investing in America agenda and represents the second round of awards made under the Defense Production Act (DPA) to enhance domestic production of key clean energy technologies.

The aim of treating climate change as a “defence” policy issue is also a marked difference between prior administrations and the Biden-Harris camp. Pushing for defence measures allows for different prioritising of climate change and signals urgency (at least on the surface) from the policy proposal perspective.

In contrast, the Republican party has iterated a stance against solar and renewables in general. Trump remains a vocal opponent of offshore wind energy, making unfounded claims that wind turbines harm whales. Some speculate that his opposition may be fueled by his unsuccessful attempts to prevent wind farms from being constructed near his golf course in Scotland.

The traditional party line has been that climate change is either a hoax or non-anthropogenic, calling for little action on the matter. This has been a strong dividing line between the two sides of the US government, leaving renewable energy companies with little choice but to side with the Democrats.

However, it is worth noting that while the party representatives espouse different views, opinion is beginning to shift within the conservative voter base. Although few Republicans (12%) see climate change as the most important priority, the voter base does support certain measures, according to a January 2024 survey.

In accordance with the same findings, many Republicans (23%) express limited concern about the impact of climate change and do not see it as a major threat to the country’s state of being. This is in stark contrast with how 59% of Democrats and Democratic-leaning independents view the issue. Many of these voters consider climate change an utmost priority for government action and 78% view it as a major threat to the country.

These views are reflected in the party leadership, but the element of climate denial is far higher in the upper echelons of conservative politicians. Naturally, this has led to there being a marked difference in the renewable sector tends to view the parties as well.