The predictable outcome of California’s green energy policies has arrived and it's a disaster

Back erstwhile I served successful the California State Assembly from 2004 to 2010, California ranked seventh oregon eighth successful the federation for energy costs. At the time, the Democratic bulk successful Sacramento was pushing measure aft measure mandating greater reliance connected renewable energy, assuring everyone that these policies would marque america look similar "geniuses" erstwhile the terms of fossil fuels inevitably soared.  

I warned that these laws, regulations and subsidies would alternatively drive up energy costs for Californians, making the grid little reliable and California’s system little competitive. 

Now, 2 decades later, the results are in. In 2024, the U.S. Energy Information Administration (EIA) reported that California had the second-highest energy prices successful the federation for the 2nd twelvemonth running, down lone Hawaii. The Golden State’s misguided vigor policies person steadily accrued the terms of energy arsenic greenish vigor mandates, grid instability and regulatory burdens person taken their toll. Meanwhile, states with much balanced vigor policies — earthy gas, ember and atomic powerfulness — person fared acold better. 

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What’s worse, California’s earthy vantage successful AI volition beryllium mislaid to Texas and different low-cost vigor states. California’s concern energy prices averaged 21.98 cents per kilowatt-hour successful 2023 vs. 6.26 successful Texas, a whopping 251% terms premium that nary electricity-hungry AI installation oregon server workplace relation is going to pay. 

California's assertive pursuit of greenish vigor goals spiked the outgo of electricity. (Sandy Huffaker/AFP via Getty Images)

What Went Wrong? 

The halfway contented is simple: California’s policymakers prioritized renewable vigor mandates implicit affordability and reliability. Over the years, they person forced utilities to integrate ever-growing amounts of upwind and star powerfulness portion discouraging earthy gas, atomic and large-scale hydroelectric projects. These decisions ignored the world that intermittent renewables necessitate extended grid upgrades, costly backup powerfulness sources and costly retention solutions — each of which thrust up costs for consumers and industry.  

California’s precocious energy prices are not an accident; they are a nonstop effect of these policies. The state’s cap-and-trade system, restrictive permitting laws and mandates similar the Renewable Portfolio Standard (which requires utilities to make 60% of their energy from renewables by 2030) person each contributed to rising rates.  

At the aforesaid time, bureaucratic obstacles person made it astir intolerable to physique caller earthy state plants oregon modernize existing infrastructure. From 2014 to 2024, California approved oregon built lone 5 earthy state plants, 4 of which replaced older facilities for a full output of up to 4 gigawatts. By comparison, successful the anterior 10 years, California commissioned dozens of plants totaling much than 20 gigawatts of nameplate capacity.  

Meanwhile, successful New England… 

California is not unsocial successful suffering from self-inflicted vigor woes. New England, location to the third- and fourth-highest energy costs successful the state (Connecticut and Massachusetts), faces a akin problem. These states person aggressively unopen down coal, resisted earthy state enlargement and failed to put successful atomic powerfulness — leaving them susceptible to vigor shortages and terms spikes. 

One of the astir baffling examples of New England’s vigor mismanagement is its reliance connected imported liquefied earthy state (LNG). Despite sitting conscionable a fewer 100 miles from the abundant earthy state reserves of Pennsylvania’s Marcellus Shale, New England has struggled to entree this cheap, home vigor source. Why? Because biology activists and politicians successful New York person blocked the operation of caller pipelines that would transport affordable earthy state to the region. Instead, New England has been forced to import LNG from overseas, including from the Caribbean and, astatine times, adjacent Russia. 

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Yes, you work that correctly — portion the U.S. became the world’s apical shaper of earthy gas, states successful the Northeast person had to trust connected overseas sources due to the fact that of self-imposed pipeline constraints. This dependence connected imported LNG has contributed to immoderate of the highest energy prices successful the state and near the portion exposed to planetary vigor marketplace fluctuations. 

The Lessons Are Clear 

California and New England service arsenic cautionary tales. When politicians prioritize ideological vigor policies implicit communal sense, the effect is higher costs, reduced reliability and greater dependence connected overseas vigor sources. 

California is not unsocial successful suffering from self-inflicted vigor woes. New England, location to the third- and fourth-highest energy costs successful the state (Connecticut and Massachusetts), faces a akin problem.

The states with the lowest energy prices — places similar Louisiana, Oklahoma and Texas — person embraced home vigor production, built modern infrastructure and resisted heavy-handed authorities mandates. Meanwhile, California and the Northeast person imposed regulatory burdens that marque vigor much costly and little reliable. 

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The grounds is clear: Green vigor policies imposed connected vigor markets person made beingness harder for moving families and businesses successful states that person embraced the Green New Deal. If policymakers successful California and the Northeast genuinely cared astir affordability and reliability, they would rethink their hostility to earthy gas, let caller pipeline construction, and reconsider their unsighted propulsion for intermittent renewables and the costly backups they require. 

Instead, they proceed doubling down connected the aforesaid failed policies. And arsenic energy bills emergence and blackouts loom, the radical paying the terms aren’t the politicians successful Sacramento oregon Boston — they’re the hardworking families who conscionable privation to support their lights connected without breaking the bank. 

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