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Companies Tell Congressional Committee That Renewable Energy Is Needed to Keep Up With Demand

Summary

Rising energy demand, fueled by artificial intelligence, data centers, and electrification, has intensified debates over the future of U.S. energy policy. At a congressional hearing, energy experts warned that the Trump administration’s rollback of Biden-era tax credits for renewable energy could undermine grid reliability and increase electricity costs. The administration’s freeze on federal funding for wind, solar, and nuclear power threatens planned expansions in clean energy. A study found that repealing these tax incentives could raise household electricity prices by 7% and business costs by 10% by 2026. Grid operators emphasized the need for both renewable and traditional energy sources, while Republicans advocated for more fossil fuel production. However, supply chain constraints on gas turbines could delay new fossil fuel projects. Democrats warned that prioritizing fossil fuels would drive up consumer costs and slow the transition to a more resilient energy grid.

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