Massive Solar Tariffs, Fast-Track Energy Permits, & Big Wins for EV Batteries

Seismic shifts are reshaping America's energy landscape as the Biden administration concludes a year-long investigation with massive tariffs on solar imports. The shocking 3,521% duty imposed on Cambodian products has sent shockwaves through the industry, with similar punitive measures hitting Vietnam (400%) and Thailand (375%). These tariffs target countries representing 75% of US solar panel imports worth nearly $13 billion annually—a critical supply chain disruption that will reverberate through the renewable sector.

Meanwhile, Pennsylvania's electricity market braces for price shocks as Governor Shapiro establishes new capacity auction parameters that could see costs skyrocket. With rising demand from data centers colliding with stagnant supply, capacity charges could balloon from 6-10% of wholesale electricity bills to a staggering 20% or more—a substantial burden for consumers already facing economic pressures.

The Trump administration has dramatically accelerated permitting for energy projects on federal lands, compressing environmental review timelines from years to mere weeks. This emergency process explicitly excludes renewable energy while fast-tracking fossil fuels, mining, and other traditional energy sources. The Department of Interior's vague assurances about environmental compliance leave many questions unanswered about long-term ecological impacts.

On the technology front, General Motors has quietly surpassed Tesla in US battery manufacturing capacity while simultaneously slashing production costs. Their $60/kWh cost reduction in 2023, with another $30/kWh projected, puts GM on track to hit the industry's holy grail—$100/kWh batteries. Equally impressive are developments from Stellantis and Factorial Energy, whose solid-state batteries demonstrate rapid charging capabilities essential for mainstream EV adoption.

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Episode Transcript

Speaker 1 (00:00):
Well, after a year-long investigation that
predated the Trumpadministration, the US set new
anti-dumping and countervailingduties on solar imports from
Cambodia, malaysia, thailand andVietnam, finding them guilty of
exporting to the US at belowtheir cost of production.
The tariff levels came to manyas a surprise, as a 3,521%

(00:21):
increase on Cambodian solarimports might well do.
It suffered in particular as ithad ceased participation in the
investigation.
These tariffs are a big dealfor a number of US solar
installers, with the countryimporting almost $13 billion
worth of panels from these fourcountries, representing over 75%
of total imports last year.
And these fees will be on topof anything the Trump

(00:42):
administration imposes in itswider tariff efforts.
Unnamed companies exportingfrom Vietnam will see tariffs of
almost 400%, with Thailand at375% and Malaysia looking better
at 34%.
Suggested by PennsylvaniaGovernor Josh Shapiro to

(01:02):
establish a price cap and pricefloor for its next two capacity
auctions set to occur over thecoming year and affecting the
2026, 2027, and 2027, 2028delivery years that will
commence on June 1st.
This action will set a newfloor of about $175 per megawatt
day and a ceiling of $375,replacing the former $500

(01:25):
ceiling and $0 floor.
So these next two years aregoing to be pretty ugly for
electricity consumers, as thesecosts are passed on to them
based upon how much they consumeduring each of the five system
peak hours during the year.
Pgm reserve margins are low.
Little new firm capacity is insight and demand is rising, in
part because of massive datacenter interconnection requests,

(01:47):
although many of these willtake some time to come online.
The supply-demand imbalance islikely to push prices to the
high side.
Putting this in perspective,last year's $269 per megawatt
day price was the only timeauction results had ever cleared
over $175.
Just two years ago, the pricecleared under $29 per megawatt

(02:08):
day, with the year prior atslightly over $34.
Looked at another way, capacitymay shoot from between being 6
to 10 percent of the overallwholesale bill in recent years
to as much as 20 percent or moreA tough pill to swallow these
days.
Well, the US government justannounced a new emergency
permitting process for energyand mining projects on federal

(02:31):
lands, with approval times forthese projects cut significantly
.
The Department of Interior saidthat projects analyzed in an
environmental assessment thattypically take up to one year
will now be reviewed withinapproximately 14 days.
Projects requiring a fullenvironmental impact statement
typically a two-year processwill be reviewed in roughly 28
days.

(02:51):
The DOI justified that decisionsaying it was in response to
President Trump's declaration ofan energy emergency.
In that declaration, trumpcited increased energy demand,
particularly from data centers.
The accelerated energypermitting process will only
apply to fossil fuel projectsgeothermal power, coal, uranium

(03:11):
and other critical minerals,biofuels and kinetic hydropower.
Other renewable energy projectsneed not apply.
The DOI also said it willemploy other ways to comply with
environmental protection, butoffered no concrete examples and
will be quote adopting analternative National
Environmental Policy Actcompliance process to allow for
more concise documents and acompressed timeline.

(03:33):
Unquote.
General Motors now exceeds Teslain US battery production
capacity.
According to Bloomberg, nef,its $2.3 billion Altium cell
plant is currently operating atpartial capacity, while its
Lordstown Ohio joint venturewith LG Energy Solutions has
already achieved mass production.
At a recent Bloomberg NewEnergy Finance Summit, gm's VP

(03:54):
of Battery and Energy, kurtKelty, said that GM had cut
battery costs by $60 perkilowatt hour in 2023, with
further cost reductions of $30per kWh expected, resulting in
costs as low as $100 per kWh, a50% decrease from 2023.
Also on the battery front,automotive groups Stellantis and

(04:16):
US battery developer FactorialEnergy have successfully
validated solid-state batterysales for EVs, part of their
joint effort to create ademonstration fleet of Dodge
Charger Daytonas equipped withsolid-state batteries next year.
Stellantis invested $75 millionin Factorial in 2021, joining
Mercedes-Benz, which begantesting solid-state technology

(04:37):
in a modified EQS in February.
Solid-state cells promisehigher energy density and faster
charging, and the two companiesclaim that the cells support a
state-of-charge increase from15% to over 90% within 18
minutes.
Well, what do you get at ISO NewEngland when you combine the
Easter holiday with mild tempsand blue skies?

(04:58):
When you combine the Easterholiday with mild temps and blue
skies, you get record lowenergy consumption, with
preliminary data showing demandat only 5,318 megawatts on the
afternoon of April 20th 2025.
This is the fourth year in arow that Grid has seen a new
record, but this year's recordeclipsed last year's by 1,200
megawatts lower.
That is, if you can use theword eclipse to talk about solar

(05:20):
.
The reason for this phenomenonis combined normal low demand,
heating and cooling load ispretty low in mid-spring,
combined with huge amounts ofrooftop solar that the grid
operator sees only as an absenceof demand.
Estimated on-site solar peakedat around 6,600 megawatts.
Of course, then, when the sunset, demand more than doubled.

(05:40):
So a lot of generation, mostlygas, gen and hydro facilities
had to be kept on standby, asthey typically are in these
solar-heavy spring days.
Well, thanks for watching.
We'll see you again soon.