Commodities June 29, 2026 07:06 AM

Permitting Changes Threaten $121 Billion in U.S. Wind, Solar and Storage Investment

Wood Mackenzie finds 92 GW of early-stage projects face heightened federal scrutiny after policy shifts that lengthen agency reviews

By Leila Farooq
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A Wood Mackenzie report says changes to U.S. permitting policy under the Trump administration have stalled approvals for renewable projects, placing more than $121 billion in early-stage wind, solar and storage investments at risk. The study identifies 92 gigawatts of capacity - roughly enough to power 69 million homes - now subject to added federal oversight, and notes that delays have already led to cancellations and stalls on federal land.

Permitting Changes Threaten $121 Billion in U.S. Wind, Solar and Storage Investment
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Key Points

  • Administrative changes that require senior-level sign-offs and expanded federal reviews put over $121 billion in early-stage wind, solar and storage investment at risk.
  • A total of 92 GW of clean energy projects - about enough to power 69 million homes - are now subject to heightened federal scrutiny; roughly 32% of the U.S. early-stage renewable pipeline is affected.
  • Sectors impacted include renewable energy developers, utilities and capital providers tied to project financing, while federal agencies such as the Army Corps of Engineers and the Department of Defense are identified as sources of review-related delays.

Policies enacted under the Trump administration that have slowed the permitting process for renewable energy projects are imperiling more than $121 billion of early-stage investment and hindering the development of wind, solar and storage capacity needed to meet rising power demand, according to a report published on Monday by energy research firm Wood Mackenzie.

The report highlights a contrast between the administration's stated intention to fast-track energy infrastructure to support the artificial intelligence boom and its broader stance opposing renewable energy. Wood Mackenzie examined a set of early-stage projects valued at $121 billion that face investment risks because of permitting delays.

In total, the research firm identified 92 gigawatts of clean energy projects now facing heightened federal scrutiny - a portfolio of capacity the report says is about enough to power 69 million homes. Those projects entered additional review following policy changes enacted last year, including a Department of the Interior directive that requires renewable energy permits at every stage to receive approval from senior officials.

According to the report, those measures have extended timelines for projects that involve federal agencies. The expansion of federal review applies not only to projects on public land but also to many developments on private land that nevertheless require federal permits for wetlands, wildlife protections or access roads.

Wood Mackenzie identifies permitting in wetland areas, which is overseen by the U.S. Army Corps of Engineers, as the primary constraint on private land projects. The firm also points to sluggish airspace reviews conducted by the Department of Defense as a specific bottleneck affecting wind developments.

Overall, roughly 32% of the United States' early-stage renewable pipeline is now subject to this additional federal scrutiny, the report finds.

Lawmakers from both parties in Congress have sought to pass legislation intended to speed permitting for large projects. Wood Mackenzie noted that a bill passed by the House of Representatives last year would meaningfully accelerate review timelines.

"Permitting remains one of the most critical barriers to advancing new projects, and without more coordinated and predictable processes, delays and uncertainty will continue to weigh on development timelines and investment decisions," said Gaby Ackermann Logan, a research associate at Wood Mackenzie.

The report also says the policy shift, coupled with federal funding withdrawals, is already affecting projects in the field. Wood Mackenzie estimates that around 7 GW of capacity on federal land was cancelled or stalled in 2025.

Wood Mackenzie's findings link the recent administrative changes and stretched agency reviews to tangible impacts across the early-stage renewable pipeline, and the firm underscores permitting as a central factor shaping near-term development and investment outcomes.

Risks

  • Delays tied to expanded federal permitting reviews threaten investment decisions and project timelines for wind, solar and storage developers, affecting the pace of capacity additions.
  • Permitting bottlenecks in wetland areas overseen by the U.S. Army Corps of Engineers and slow airspace reviews by the Department of Defense present specific constraints that could lead to further cancellations or stalls.
  • Policy shifts combined with federal funding withdrawals have already led to around 7 GW of capacity on federal land being cancelled or stalled in 2025, introducing uncertainty for investors and developers.

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