US energy dynamics extend far beyond Washington

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At adelphi in Berlin, German and US experts explored how state policy, growing power demand and battery storage are changing the landscape for transatlantic energy cooperation.

US energy policy is shaped at many levels. Federal decisions matter, but so do state governments, regional electricity markets, utilities and local investment conditions. This complexity was at the heart of Understanding US Energy Dynamics: Opportunities for Germany to Engage, co-hosted by Atlantik-Brücke, adelphi consult and adelphi global.

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Sebastian Muschter, CEO of adelphi, and Julia Friedlander, CEO of Atlantik-Brücke, opened the event. Jennifer Morgan, former State Secretary and Special Envoy for International Climate Action, delivered a keynote before moderating the discussion with Heiko Willenberg of RWE, Zachary Karas of PowerCo, Minnesota Representative and DFL Floor Leader Jamie Long, and Tom Opdyke of the R Street Institute. Long and Opdyke joined virtually.

German companies need to understand that US states play a very important role in shaping energy policy.

– Jennifer Morgan

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A recurring theme was the speed at which new energy capacity can be brought online. Participants noted that long delivery times for gas turbines are strengthening the near-term case for technologies that can be deployed more quickly. With US electricity demand rising, driven in part by the rapid growth of data centres, renewables and battery storage continue to account for a large share or planned new capacity. This market momentum is continuing even as the federal policy environment shifts. Renewables and storage remain well positioned to meet rising power demand, while improvements in permitting, siting and grid infrastructure can unlock further growth.

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Battery storage featured prominently as well. Rapid technological progress is strengthening its role in the US energy system, particularly as questions of reliability and rising demand become more important.

Renewable energy is currently the fastest technology to reach the market.

– Heiko Willenberg

The discussion also showed how strongly conditions differ across US states and regions. For German companies, this means looking beyond federal policy and understanding local markets, political priorities and communities.

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Narratives matter, too. Reliability, resilience, competitiveness and cost are increasingly important frames for discussing energy in the US. Participants stressed the value of engaging across political perspectives and at state and community level.

Solar has become too cheap to ignore.

– Representative Jamie Long

adelphi consult and adelphi global support transatlantic energy cooperation through Energy Partnerships with the USA and Canada and by supporting the Clean Economy Bridge which aims to strengthen exchange between stakeholders in Germany, the US and Canada.

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US energy dynamics extend far beyond Washington