Key facts
- Stalled permits for renewable energy projects threaten over $121 billion in investment and slow development.
- 92 gigawatts of clean energy projects face heightened federal scrutiny.
- Permitting changes and federal funding withdrawals have led to the cancellation of 7 gigawatts of generating capacity on federal land in 2025.
- Permitting in wetland areas, overseen by the U.S. Army Corps of Engineers, is identified as a primary constraint on private lands.
- Wind projects are being delayed by sluggish airspace reviews conducted by the Department of Defense.
- About 32% of the U.S. early-stage renewable pipeline is now subject to additional federal scrutiny.
Stalled permits for renewable energy projects, driven by policies from the Trump administration, are jeopardizing over $121 billion in investment and hindering the development of 92 gigawatts of clean power capacity, according to a report by Wood Mackenzie. These delays are occurring even as electricity demand, particularly from AI data centers, is rapidly increasing.
The report indicates that changes in permitting processes and federal funding withdrawals have already led to the cancellation or stalling of 7 gigawatts of generating capacity on federal land in 2025. The heightened federal scrutiny, which affects approximately 32% of the U.S. early-stage renewable pipeline, could lead to the cancellation of an additional 12 gigawatts on federal land and 80 gigawatts on private property.
Permitting challenges are concentrated in areas like Oregon, Alabama, Maine, Minnesota, and Montana. Solar projects near private wetlands are particularly at risk, while wind farms face scrutiny over airspace regulations. The U.S. Army Corps of Engineers oversees wetland permitting, and the Department of Defense conducts airspace reviews, both contributing to delays.
Despite these hurdles, renewables, including solar, batteries, and wind, accounted for nearly 90% of the record 53 GW of new generating capacity added in 2025. Efforts are underway in Congress to address these permitting bottlenecks, with a bill passed by the House of Representatives aiming to accelerate timelines. However, experts note that without more coordinated and predictable processes, delays and uncertainty will continue to impact development and investment decisions.