New Energy Strategy Under the Trump Administration
Energy Secretary Chris Wright hasn’t put anything in writing about the Trump administration’s new energy approach. He did, however, describe it as “one big beautiful bill,” aiming to, as he noted, remove the “nonsense and distortions from the energy market.” This plan is intended to unleash American businesses and generate energy that doesn’t rely on subsidies.
Yet, since the bill’s passage, some critics have claimed it could raise energy costs. But this assertion seems misdirected.
The legislation aims to streamline permits, expand federal leases, and promote technology-neutral reforms. In other words, it paves the way for U.S. companies to harness a variety of energy sources to meet the growing demand.
Increased energy production means more competition, which could help lower costs for consumers and businesses alike. Perhaps most notably, this bill sends a strong signal to the energy sector, indicating that the U.S. government is ready to embrace American innovation for the future.
This energy-intensive future isn’t just on the horizon; it’s approaching quickly. Artificial intelligence, while poised to revolutionize the global economy, is expected to place significant pressure on the energy grid. A recent analysis suggests that the electricity demand solely from AI could reach 326 terawatt hours by 2028—equivalent to what all current U.S. data centers consume, and capable of powering nearly a quarter of American homes. Without the new energy legislation, this demand could overwhelm an already fragile grid, leading to shortages and increased costs.
To meet the rising energy demands of the U.S., a reliance on fast, flexible, and scalable power is essential. This is where innovation from the private sector plays a pivotal role.
Small Modular Reactors (SMRs)—compact, factory-built nuclear units—are a groundbreaking advancement. The U.S. currently leads globally in developing this technology. These systems are engineered to deliver consistent baseload power wherever necessary, from data centers to rural areas, and unlike traditional reactors, they can be built rapidly and deployed efficiently.
However, the energy sector has been hindered by permitting delays, endless litigation, and political obstacles, stifling growth and keeping prices artificially elevated. Under Biden’s administration, policies have constrained oil and gas development and created a model that struggles to meet U.S. energy needs while increasing vulnerability to foreign suppliers. This has resulted in higher prices and greater uncertainty.
The new bill aims to change this dynamic. It facilitates the transition of next-generation nuclear technology from prototypes to the power grid, ensuring supply can keep pace with demand, ultimately aiming to bring prices down.
Battery technology is another area where the U.S. is striving to enhance its competitive edge against China’s dominance in critical minerals and EV infrastructure. Recent reports highlight advancements in American-made solid batteries, which promise to be safer and last longer than traditional lithium-ion batteries.
Yet, like nuclear innovations, battery advancements have been stifled by policies that favor established businesses at the expense of competition. The reforms tied to this new bill aim to dismantle that favoritism, promoting a market-driven approach that could lower costs for consumers.
The strength of U.S. energy production lies in its independence from governmental oversight or global supply chains. The resources, innovative spirit, and engineering talent exist within the country. The government just needs to allow these elements to flourish.
Thus, this new energy policy, championed by Secretary Wright and other members of the Trump administration, aims to revitalize innovation, progress, and prosperity. By stepping away from Biden’s outdated energy strategy, which has proven slow and costly, the goal is to return to a model that rewards performance over political allegiances—betting on the ingenuity of the American people.
With a different direction now in place, some critics remain hesitant, wanting to pull back on initiatives that could accelerate progress. Nevertheless, the momentum driven by AI, industrial evolution, and global competition is undeniable, and resisting it would not serve the country well.
Supporting the new law and its vision can help realign the U.S. on a trajectory toward prosperity. By modernizing permits and nurturing innovation, the country can better position itself for future challenges and opportunities.
Embracing this change is essential—perhaps even urgent.
