Mend It, Don’t End It: It’s Time to Reset Clean Energy Policy by Focusing on Price/Performance Parity (P3)

Investment Rating - The report advocates for a reset of U.S. clean energy policy, emphasizing an innovation-driven strategy rather than reliance on subsidies and mandates [3][7]. Core Insights - The report argues that U.S. clean energy policy has been overly focused on the Green New Deal approach, which is deemed costly and ineffective. It suggests that the focus should shift to achieving price/performance parity (P3) for clean energy technologies to compete with fossil fuels [3][5][6]. - It emphasizes the necessity for government involvement in technology development and deployment, as markets alone cannot deliver competitive clean energy technologies [3][19]. Summary by Sections Introduction - The Trump administration's approach marks a departure from previous energy policies that emphasized a green transition. The report stresses the importance of not ignoring clean energy while being skeptical of forced market interventions [4][5]. Price/Performance Parity (P3) - P3 is defined as the point at which new clean energy technologies can compete with fossil fuels in terms of cost and performance. Achieving P3 is crucial for the global adoption of clean energy technologies [8][9][10]. Challenges of Current Policies - The report critiques the Biden administration's reliance on subsidies and regulations, arguing that this model is unsustainable and ineffective for achieving P3 [11][12][13]. Government's Role - The report outlines the essential role of government in funding basic and applied research, supporting pilot projects, and facilitating the commercialization of clean energy technologies [19][22][23]. Recommendations for Policy Reset - The report proposes six steps for the Trump administration and Congress to reset clean energy strategy, including cutting unnecessary funding, increasing R&D budgets, enacting regulatory reforms, and developing tools for P3 assessments [24][25][26][27][28][29]. Conclusion - The report concludes that adopting a P3 strategy would significantly enhance U.S. energy security and contribute to realistic solutions for global climate change [30].