California, despite Governor Gavin Newsom’s assertions of progress in clean energy, continues to grapple with the nation’s second-highest electricity prices, having surged 127% since 2010. The state’s commitment to renewable sources like wind and solar, however, is increasingly being scrutinized for its role in driving up costs and destabilizing the grid. Critics argue that the transition to green energy has led to an overreliance on intermittent sources, which require costly backup systems to maintain reliability. This has resulted in higher electricity bills for consumers, with residential rates now exceeding 30 cents per kilowatt-hour in some areas.
Newsom, an emerging Democratic presidential candidate, has faced accusations of shifting blame for these price hikes. He has pointed to former President Donald Trump’s policies as a cause, suggesting that Trump’s approach to energy has hindered clean energy progress. However, the article questions the validity of these claims, pointing out that California’s energy crisis predates Trump’s term. Instead, it highlights the role of government subsidies, such as the federal production tax credit, which have distorted energy markets by allowing renewable energy providers to undercut traditional sources like coal and gas. These subsidies, the article argues, have led to a decline in reliable baseload power and an overreliance on expensive battery storage.
The shift in energy generation has been dramatic. Between 2010 and 2024, the U.S. electricity capacity grew by 16%, but dispatchable sources like coal, gas, and nuclear have declined significantly, while wind and solar have expanded seven-fold. This trend has accelerated in recent years, with over 1,900 megawatts of fossil fuel capacity retired and more scheduled for shutdown. The replacement of these sources with subsidized wind, solar, and batteries is contributing to the current energy cost crisis. Critics argue that the lack of grid stability due to reliance on intermittent sources has led to higher costs for energy, as the system must be fortified with reliable power sources to ensure consistent supply.
The article also criticizes the Biden administration’s policies, suggesting that their push for clean energy has exacerbated the situation. Meanwhile, the Trump administration’s proposed reforms, such as the One Big Beautiful Bill Act, are seen as a potential solution. These reforms aim to roll back regulations that have stifled fossil fuel production and prioritize affordable, dispatchable energy sources. The article concludes that California’s energy crisis reflects a broader national issue, with the transition to green energy delivering unaffordable, unreliable electricity that hampers economic growth. Americans, it argues, need a grid that powers prosperity rather than one that bankrupts it.