The Turbulent Future Of The Energy Sector: Fossil Fuels Vs. Clean Energy

The energy sector in 2025 was marked by turmoil, a state of upheaval that few could have predicted. As the United States continues to prioritize fossil fuels, clean energy projects face an uncertain future. Efforts to terminate these projects, increase costs with tariffs, and eliminate funding sources are expected to persist.

Meanwhile, the global market for clean energy will likely continue to decline in cost, as the US appears to be reverting to the fossil fuel era. The fossil fuel industry’s resistance to heat pump requirements, which promise cleaner air and lower heating and cooling costs, will likely be fierce. However, customers will ultimately reap the benefits, much like they did with the transition from incandescent to LED lighting.

The data center buildout will press on, regardless of the impact on ratepayers. As solar and wind projects are canceled, power generation will increasingly rely on polluting and expensive methane and even resurrected coal plants. According to Bloomberg NEF, battery pack costs have dropped to $108 / kWh and are expected to decline another 3% in 2026. At this level, battery storage becomes cost-effective for blackouts lasting one or two days, not just hours.