Growth in U.S. renewable capacity additions will be 45% lower than previously expected, due to the Trump Administration’s raid on clean energy incentives and permitting, according to the International Energy Agency (IEA).
In its annual Renewables 2025 report out on Tuesday, the agency slashed its growth forecasts for clean energy capacity extensions by 45% compared to the growth of about 500 gigawatts (GW) expected last year.
“The forecast for the United States is revised down by almost 50%,” the IEA said.
“This reflects several policy changes, including the earlier phase out of federal tax credits, new import restrictions, the suspension of new offshore wind leasing and restricting the permitting of onshore wind and solar PV projects on federal land.”
Last month, the American Clean Power Association’s (ACP) quarterly report showed that the clean power development pipeline showed virtually no growth, expanding by less than 100 MW to 184.5 GW, solar installations slumped by 23% in the first half of 2025, and Power Purchase Agreements (PPAs) plummeted. These are “early indicators of federal policy attacks and fluctuating trade policy undermining American energy security and economic growth,” ACP said.
“Federal policy actions from nearly every department and an unstable tariff environment have led to a drop in clean power purchasing and planning for the future—despite skyrocketing demand nationwide,” the association added.
U.S. consultancy Atlas Public Policy has estimated that almost $19 billion worth of wind and solar power generation projects have been canceled since President Trump took office.
The IEA’s expectations for U.S. renewable capacity growth are now aligned with unfavorable policies for clean energy this decade. But the Paris-based agency strongly promoting renewables has also cut its growth projections for global additions and for additions in China, the world’s biggest renewables market.
Growth estimates for the world and in China were revised down by 5% each compared to the 2024 forecast.
“China’s shift from fixed tariffs to auctions is impacting project economics and lowering growth expectations,” the IEA said.
By Tsvetana Paraskova for Oilprice.com
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