The Evolving State of Green Energy Policy: Lessons from the 2024 Election
As the nation grapples with rising energy demands and the pressing need for decarbonization, the political landscape plays a pivotal role in shaping the future of green energy. The 2024 election showcased how state-level policies continue to drive the clean energy transition, offering insights into bipartisan opportunities, challenges, and the need for action to meet ambitious climate goals.
Energy Policy Beyond Partisanship
Despite the polarized nature of national politics, clean energy initiatives have demonstrated potential for bipartisan support. Heather O’Neill, CEO of Advanced Energy United, highlighted this reality, pointing to utilities facing increasing electricity demand from data centers, factories, electric vehicles, and broader economic growth. "Advanced energy technologies are a low-cost solution to all of these challenges," O’Neill explained.
Texas exemplifies this dynamic. As a traditionally conservative state, it leads the nation in wind and utility-scale solar deployments and is expected to surpass California in grid-connected battery capacity by year’s end. These resources have played a critical role in maintaining grid reliability, as evidenced during the summer's grid emergencies when solar and batteries helped avert outages.
State Leadership in Climate Legislation
Historically, Democratic control has been a prerequisite for advancing robust climate and clean energy legislation. However, exceptions like North Carolina demonstrate that bipartisan collaboration is possible. In 2021, the Republican-led legislature passed a law requiring Duke Energy to reduce carbon emissions by 70% from 2005 levels by 2030 and achieve net-zero emissions by 2050.
The 2024 election has shifted the political landscape, with implications for state climate policies. For instance:
Michigan: Republicans gained a majority in the state House, while Democrats retained control of the Senate and governorship. This mixed control is expected to protect climate policies passed in 2023, such as mandates for 80% carbon-free electricity by 2035 and 100% by 2040.
Minnesota: The political balance hangs in the air with razor-thin margins, but existing laws like the 2023 requirement for 100% clean electricity by 2040 are likely to remain intact.
Pennsylvania: Democratic Governor Josh Shapiro’s carbon cap-and-invest program faces challenges with a Republican-controlled Senate, underscoring the importance of legislative cooperation.
In states like Wisconsin and North Carolina, victories in the election reduced Republican supermajorities, giving Democratic governors more leverage to uphold their climate agendas.
Ballot Initiatives: A Win for Clean Energy
Voters across the country also made their voices heard on green energy through ballot measures. Californians approved a $10 billion climate bond, which includes $850 million for clean energy infrastructure. Collectively, state and local measures passed during this election cycle will funnel $18 billion into climate initiatives, demonstrating widespread public support for a sustainable future.
From Goals to Action: Addressing the Climate Gap
While many states have enacted ambitious climate goals, the path to achieving them is fraught with challenges. A 2023 report from the Environmental Defense Fund revealed that states with decarbonization targets were on track to cut emissions by only 27-39% by 2030, far below the 50% reduction necessary to meet their goals.
Even leading states like California and New York are struggling to deliver on their commitments:
California is lagging in its target to reduce carbon emissions by 48% below 1990 levels by 2030.
New York has yet to finalize a cap-and-invest strategy and is off track for its utility-scale solar and wind goals, though it has succeeded with distributed solar projects.
The stakes are even higher in light of potential rollbacks to federal climate policies. Should changes to the Inflation Reduction Act (IRA) occur, states may find it harder to leverage federal incentives to advance their clean energy transitions. However, the IRA's popularity in both red and blue states provides hope that its core provisions will remain intact, offering vital support for renewables, electric vehicles, and grid modernization.
What Lies Ahead?
The clean energy transition is not just a political or environmental imperative—it’s an economic opportunity. The 2024 election underscored the critical role states play in leading the charge toward a sustainable future, even in the face of political shifts and federal uncertainty.
For policymakers, utilities, and private-sector leaders, the message is clear: the time to act is now. Turning legislative goals into tangible outcomes requires collaboration, innovation, and relentless effort. Despite headwinds, the clean energy momentum remains strong, driven by the urgent need to address climate change and build a resilient energy future.
At Telkes Advisory, we are committed to empowering stakeholders to navigate this evolving landscape, leveraging opportunities for growth while driving impactful, sustainable energy solutions. Together, we can transform the challenges of today into the clean energy successes of tomorrow.
Are you a landowner and want to drive change? Reach out to Telkes and we can help you be part of clean energy for tomorrow.
