Recently, the news that US President Trump nominated Chris Wright as Secretary of Energy has caused heated discussions in the global energy industry, especially the photovoltaic industry. As an absolute supporter of the traditional fossil fuel industry, Chris Wright’s appointment will undoubtedly have an impact on the US energy policy and the global energy transformation. So, how much impact will Chris Wright’s appointment as US Secretary of Energy have on the photovoltaic industry?
As a heavyweight who will soon be at the helm of US energy policy, Chris Wright’s background has attracted much attention. It is understood that Chris Wright graduated from the Massachusetts Institute of Technology with a major in mechanical engineering, and studied electrical engineering at the University of California, Berkeley and the Massachusetts Institute of Technology.
In terms of career, Chris Wright has a bigger background. He served as the CEO of Liberty Energy, an oilfield service company. He is not only a leader in the oil industry, but also one of the important fundraisers of the Republican Party. It is reported that he has generously donated nearly $230,000 to Trump’s campaign platform this year.
In terms of energy policy advocacy, Chris Wright’s attitude is clear and firm. He once publicly stated: “The world runs on oil and gas, and we need oil and gas. Calling for getting rid of fossil fuels within 10 years is an ‘absurd timetable’.” He believes that it is unrealistic to get rid of fossil fuels in the foreseeable future, and the current energy system should not be hindered before the new energy system is established. He also claimed that solar and wind energy “are not pure clean energy” and criticized the US government’s subsidy policy. And asserted: “No matter how much money is invested, how many climate policies are formulated, and how many actions are taken, the real energy transformation has not yet happened.”
Trump highly affirmed Chris Wright’s professional background and achievements when nominating him, saying that Chris Wright is a leader in the energy field and has worked in many fields such as nuclear energy, solar energy, geothermal energy, oil and gas. Most importantly, he is one of the pioneers who helped the United States launch the shale revolution, promoted the United States’ energy independence, and reshaped the global energy market and geopolitical landscape. The nomination of Chris Wright as Secretary of Energy also reflects the Trump administration’s main position in the energy field, that is, it is more inclined to support the traditional energy industry and may relax previous restrictive regulations on shale gas mining and coal use.
It is reported that Trump has publicly stated many times that he wants to revive the coal industry and criticized the previous government for over-emphasizing renewable energy and ignoring job creation. The joining of Chris Wright is very likely to prompt the US energy policy to further tilt toward traditional energy. This will undoubtedly have a profound impact on new energy, especially the photovoltaic market.
As we all know, the United States is one of the world’s important photovoltaic markets, and Chinese photovoltaic companies occupy an important position in the US market. According to a report by Reuters, as Chinese companies have flocked to the US photovoltaic manufacturing industry, the number of new photovoltaic manufacturing plants has surged, and Chinese companies’ market share in the United States has continued to increase. It is expected that by 2025, the production capacity of solar panels of Chinese companies in the United States will reach at least 20GW, enough to meet about half of the US market demand. However, if the Trump administration reduces investment in new energy, the demand for photovoltaic products may be affected.
In addition, the Trump transition team plans to cancel the $7,500 tax credit policy provided by the Biden administration for electric vehicle consumers, which may also cause heavy damage to the US electric vehicle transformation and energy transformation, and then affect the photovoltaic industry.
However, the general trend of global energy transformation is irreversible. As the issue of climate change has received increasing attention worldwide, more and more countries have begun to take action to reduce greenhouse gas emissions and shift to a cleaner and more sustainable development model. As an important part of renewable energy, the photovoltaic industry will continue to improve its position in the global energy structure.
Some people believe that in the United States, although the Trump administration may prefer traditional energy, the photovoltaic industry still faces many development opportunities. For example, the U.S. Department of Energy is at the forefront of competition for liquefied natural gas exports, and the construction and operation of liquefied natural gas export facilities require a lot of electricity support, which provides a certain market development space for the photovoltaic industry. At the same time, with the development of artificial intelligence, electric vehicles and the growth of cryptocurrencies, the demand for electricity in the United States has surged for the first time in 20 years, which has also brought new opportunities for the development of the photovoltaic industry.
At the same time, changes in U.S. energy policies may not only prompt Chinese photovoltaic companies to pay more attention to the innovation and cost control of photovoltaic technology and improve the market competitiveness of their products. It will also accelerate the pace of Chinese companies to expand into other overseas markets, reduce their dependence on the U.S. market, and achieve diversified development of their own businesses.
