A new study by Energy Innovation reveals that US utility customers could save $5 billion annually by 2030 if the country prioritizes clean energy over a fossil-fuel heavy approach to meet projected electricity demand growth. The research models two scenarios: one where the US doubles down on gas and coal to meet a 21% jump in demand growth by 2030, and another where clean energy options including solar, wind, and battery storage meet all forecasted demand. Under the clean energy scenario, carbon-free sources would account for 62% of grid generation while fossil fuels make up 38%, compared to 43% clean energy in 2025. The Trump administration's fossil-forward approach would result in $30 billion annually in higher customer bills by 2030, on top of the average 16% increase in electricity bills households have paid over the past 18 months.
The United States accounted for approximately one-third of the rise in global carbon emissions in 2025, according to a comprehensive Energy Institute report. This surge was primarily driven by higher natural gas prices that prompted US power producers to increase coal usage, reversing a decade-long trend toward cleaner fuels. US coal consumption jumped 10 per cent last year, helping to lift overall global emissions despite continued growth in renewable energy sources. The report, produced in partnership with Ember, Kearney Institute, and KPMG, highlights how North America's increase bucked the 10-year trend of emissions falling by 0.7 per cent, making this year's growth pattern particularly unusual and raising urgent policy questions about the clean energy transition. The findings from the report underscore the significant impact of economic factors on energy choices and subsequently on environmental outcomes.
According to Energy Innovation's Brendan Pierpont, the two biggest risks to reliability are exactly what the Trump administration is doing: stymieing projects already under development, and generally creating an uncertain investment environment. The research shows that in 2025, solar, wind, and batteries accounted for about 90% of the new capacity added to the grid, in part because those projects are faster to build than new fossil infrastructure and storage costs are falling rapidly. In the first quarter of 2026, solar and storage alone accounted for the vast majority of new power added to the grid, demonstrating the market's preference for clean energy solutions. However, the Trump administration is blocking aging coal and gas plants from retiring, subsidizing new fossil fuel plants, and canceling offshore wind projects while slow-walking clean energy approvals on federal lands.
Despite the US coal surge, global energy-related demand continued to grow with total energy supply rising 1.7 per cent from 2024. As reported by Reuters, renewable power generation climbed 9.1 per cent, led by a 30 per cent surge in solar energy production. This growth in renewables contributed the biggest share of the overall energy demand increase, demonstrating the ongoing global shift toward cleaner energy sources despite challenges in specific regions. The report confirms that renewables provided the largest contribution to overall energy demand growth, even as coal consumption increased significantly in the US, with the largest contribution to energy production growth coming from renewable energy sources.
Electricity demand rose faster than supply, increasing 3 per cent year-on-year, driven by electric vehicles, data centres, and artificial intelligence applications. According to the report, this demand growth outpaced supply availability, creating additional pressure on the energy sector. Global oil consumption rose 1.3 per cent in 2025 to 103 million barrels per day, compared with a 1.1 per cent increase in 2024, while production grew 3.5 per cent. In China, gasoline and diesel use declined, extending a trend seen in 2024. Growth in gas demand was concentrated in Europe, the Middle East, and North America, with Europe and India accounting for a large share of imports. The research emphasizes that both pathways assume grid reliability can be maintained across a wide range of weather conditions, though the clean energy approach avoids volatile gas and coal fuel prices that utilities directly pass on to ratepayers.
