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In the closing minutes of the first presidential debate tonight, Donald Trump’s attacks on Kamala Harris took an odd, highly specific, and highly Teutonic turn. It might not have made sense to many viewers, but it fit into the overall debate’s unusually substantive focus on energy policy.
“You believe in things that the American people don’t believe in,” he said, addressing Harris. “You believe in things like, we’re not gonna frack. We’re not gonna take fossil fuel. We’re not gonna do — things that are going to make this country strong, whether you like it or not.”
“Germany tried that and within one year, they were back to building normal energy plants,” he continued. “We’re not ready for it.”
What is he talking about? Let’s start by stipulating that Harris has renounced her previous support for banning fracking. During the debate, she bragged that the United States has hit an all-time high for oil and gas production during her vice presidency.
But why bring Germany into it? At the risk of sane-washing the former president, Trump appears to be referencing what German politicians call the Energiewiende, or energy turnaround. Since 2010, Germany has sought to transition from its largest historic energy sources, including coal and nuclear energy, to renewables and hydropower.
The Energiewiende is often discussed inside and outside of Germany as a climate policy, and it has helped achieve global climate goals by, say, helping to push down the global price of solar panels. But as an observant reader might have already noticed, its goals are not entirely emissions-related: Its leaders have also hoped to use the Energiewiende to phase out nuclear power, which is unpopular in Germany but which does not produce carbon emissions.
The transition has accomplished some of its goals: The country says that it is on target to meet its 2030 climate targets. But it ran into trouble after Russia invaded Ukraine, because Germany obtained more than half of its natural gas, and much of its oil and coal besides, from Russia. Germany turned back on some of its nuclear plants — it has since shut them off again — and increased its coal consumption. It also began importing fossil fuels from other countries.
In order to shore up its energy supply, Germany is also planning to build 10 gigawatts of new natural gas plants by 2030, although it says that these facilities will be “hydrogen ready,” meaning that they could theoretically run on the zero-carbon fuel hydrogen. German automakers, who have lagged at building electric vehicles, have also pushed for policies that support “e-fuels,” or low-carbon liquid fuels. These fuels would — again, theoretically — allow German firms to keep building internal combustion engines.
So perhaps that’s not exactly what Trump said, to put it mildly — but it is true that to cope with the Ukraine war and the loss of nuclear power, Germany has had to fall back on fossil fuels. Of course, at the same time, more than 30% of German electricity now comes from wind and solar energy. In other words, in Germany, renewables are just another kind of “normal energy plant.”
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That said, the U.S. EV maker also reported record fourth-quarter deliveries.
Tesla reported today that it had delivered 495,570 cars in the last three months of the year, and 1,789,226 in 2024 as a whole. That represents a decline in annual sales from 2023 — Tesla’s first annual decline in more than 10 years, back when the company’s deliveries were counted in the hundreds or single-digit thousands — although the fourth quarter figure is a record for quarterly deliveries.
Analysts polled by Bloomberg expected 510,400 deliveries for the fourth quarter, while Tesla had forecast around 515,000 deliveries to meet its “slight growth” goals. The company had cited “sustained macroeconomic headwinds” weighing on the broader electric vehicle market in its most recent investor letter, and again referred to “ongoing macroeconomic conditions” to explain the miss on deliveries. In the fourth quarter of 2023, Tesla deliveries stood at 484,507, with 1,808,581 for the year as a whole.
Going forward, Tesla buyers in the United States are likely to lose out on up to $7,500 in federal subsidies as the incoming Trump administration puts its stamp on energy and environmental policy. Tesla’s chief executive, Elon Musk, has supported ditching EV credits.
The below-expectations deliveries dragged on the stock, which traded down more than 4.5% in early trading Thursday. Tesla shares have otherwise been on a tear, rising around 75% in the last six months before today, with especially torrid performance following the 2024 United States presidential election.
The Chinese car company BYD is in a virtual tie with Tesla for annual battery electric vehicle sales, with 1,764,992 delivered in 2024, the company announced Wednesday. While Tesla’s 2024 sales confirm that the U.S. company maintains a narrow lead over BYD, the Chinese automaker’s sales are growing at a rapid clip — electric sales increased by over 12% for the year, compared to the slight fall in Tesla sales from 2023 to 2024.
While Tesla’s car business appears to have stalled to some extent — though it was buoyed by the release of a new model, the Cybertruck, which is already the third best-selling electric vehicle in the United States — the company’s energy storage business is another story. The company said that in the fourth quarter of last year it had deployed 11 gigawatt-hours of storage, and 31.4 gigawatt-hours in the year as a whole. If Tesla’s deployment rate in 2025 merely matched its fourth quarter rate, it would mean 40% annual growth.
We’re powering data centers every which way these days.
The energy giant ExxonMobil is planning a huge investment in natural gas-fired power plants that will power data centers directly, a.k.a. behind the meter, meaning they won’t have to connect to the electric grid. That will allow the fossil fuel giant to avoid making the expensive transmission upgrades that tend to slow down the buildout of new electricity generation. And it’ll add carbon capture to boot.
The company said in a corporate update that it plans to build facilities that “would use natural gas to generate a significant amount of high-reliability electricity for a data center,” then use carbon capture to “remove more than 90% of the associated CO2 emissions, then transport the captured CO2 to safe, permanent storage deep underground.” Going behind the meter means that this generation “can be installed at a pace that other alternatives, including U.S. nuclear power, cannot match,” the company said.
The move represents a first for Exxon, which is famous for its far-flung operations to extract and process oil and natural gas but has not historically been in the business of supplying electricity to customers. The company is looking to generate 1.5 gigawatts of power, about 50% more than a large nuclear reactor, The New York Timesreported.
Exxon’s announcement comes as thepower industry has reached an inflection point thanks to new demand from data centers to power artificial intelligence, electrification of transportation and heating, and new manufacturing investment. The demand for new power is immense, yet the industry’s ability to provide it quickly is limited both by the intermittent nature of cheap renewable power like solar and storage — plus the transmission capacity it requires — and by theregulatory barriers and market uncertainty around building new natural gas and nuclear power. While technology companies are starting to invest in bringing more nuclear power onto the grid,those projects won’t begin to bear fruit until the 2030s at the earliest.
Exxon is also not the only energy giant looking at behind-the-meter gas.
“This county is blessed with an abundance of natural gas,” Chevron chief executive Mike Wirthsaid at a recent event hosted by the Atlantic Council. “I think what we’re likely to see is that gas turbine generation is going to be a big part of the solution set, and a lot of it may be what’s called behind the meter … to support data centers.”
At the same time, the so-called hyperscalers are still making massive investments in renewables. Google, the investment firm TPG, and the energy developer Intersectannounced a $20 billion investment “to synchronize new clean power generation with data center growth in a novel way,” Google’s President and Chief Investment Officer Ruth Porat wrote in a company blog post on Tuesday.
While Google was a pioneer in developing new renewable power to offset emissions from its operations and recently formed a partnership with Microsoft and the steel company Nucor to foster energy technology that can deliver clean power 24/7, this new project will be focused on “co-locating grid-connected carbon-free energy and data center investments into closely-linked infrastructure projects.”
These projects — the data centers and the clean power generation — would be sited close to each other, however they would not be behind the meter, a Google executive told Canary Media. Instead, Intersect will build “new clean energy assets in regions and projects of interest,” according to the blog post, with Google then acting as an offtaker for the power “as an anchor tenant in the co-located industrial park that would support data center development.” The Google data center and the Intersect-built power “would come online alongside its own clean power, bringing new generation capacity to the grid to meet our load, reduce time to operation and improve grid reliability.”
“This partnership is an evolution of the way hyperscalers and power providers have previously worked together,” Sheldon Kimber, Intersect chief executive, said in a press release. “We can and are developing innovative solutions to rapidly expand clean power capacity at scale while reducing the strain on the grid.”
But ... how?
President-elect Donald Trump on Tuesday rocked the energy world when he promised “fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals” for “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America,” in a post on Truth Social Tuesday.
“GET READY TO ROCK!!!” he added.
Trump has frequently derided regulatory barriers to development, including in his announcements of various economic and policy roles in his upcoming administration. His designee for Secretary of the Interior, Doug Burgum, for instance, will also head a
National Energy Council that will “oversee the path to U.S. ENERGY DOMINANCE by cutting red tape … by focusing on INNOVATION over longstanding, but totally unnecessary, regulation.”
When Trump
announced his nomination of Lee Zeldin to head the Environmental Protection Agency, he said Zeldin would “ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American business.”
Current interpretations of existing laws dictate that any project constituting a major federal action (e.g. one that uses public lands) must be reviewed under the National Environmental Policy Act, the country’s signature permitting law. Federal courts are often asked in litigation to sign off on whether that review process — although not the outcome — was sufficient.
Regardless of any changes Trump may make to the federal regulatory system as president, that infrastructure is already in flux. The D.C. Circuit Court of Appeals recently issued a ruling that throws into doubt decades of NEPA enforcement. Also on Tuesday, the Supreme Court heard a separate case on the limits of NEPA as it relates to aproposed rail line expansion to transport oil from Utah’s Uinta Basin to refineries on the Gulf of Mexico. Although the court is unlikely to issue a decision until next year, its current membership has shown itself plenty willing to scrap longstanding precedent in the name of cutting the regulatory state down to size.
Trump did not support his announcement with any additional materials laying out the legal authorities he plans to exercise to exempt these projects from regulation or proposed legislation, but it already attracted criticism from environmentalists, with the Sierra Club describing it as a “plan to sell out communities and environment to the highest bidder.It’s also unclear whether Trump was referring to foreign direct investment in the United States, of which there was $177 billion in 2022,according to the Department of Commerce.
Trump’s appointed co-deregulator-in-chief, for one, approved of his message today. “This is awesome 🚀🇺🇸,” Elon Musk wrote on X in response.