Musk takes a chainsaw to 'energy dominance'

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Feb 28, 2025

Elon Musk is making waves by targeting the very agencies that aided his rise in the energy sector. Indiscriminate budget cuts are threatening nuclear security and grid operations, raising alarms about critical infrastructure. A new executive order could slow regulatory decisions, impacting electricity markets significantly. Meanwhile, the EPA's efforts to reclaim green funding raise eyebrows, and Texas faces challenges as gas developers abandon projects while clean energy, like solar and batteries, continues to thrive without subsidies.

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ANECDOTE

DOE Layoffs

Elon Musk's Department of Government Efficiency laid off thousands of DOE workers, including nuclear security specialists and grid operators.
The administration reversed some cuts after realizing they jeopardized critical infrastructure.

INSIGHT

BPA Layoff Impacts

Bonneville Power Administration (BPA) layoffs didn't save money, as the agency is funded by electricity sales, not taxpayers.
Layoffs at BPA impact grid reliability, economic development, and specialized expertise in rural areas.

ANECDOTE

DOE Expertise Loss

DOE experts respond to energy emergencies like wildfires and hurricanes, providing crucial on-the-ground support.
The arbitrary layoffs discourage experienced professionals from joining government service.

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Elon Musk built Tesla with help from government loans and carbon credits. Today, he's swinging a chainsaw at the very agencies that launched his empire — while directly undermining President Trump's "energy dominance" agenda.

In this episode of Open Circuit, we examine the impact of the Department of Government Efficiency's indiscriminate cuts. When these cuts hit nuclear security teams and grid operators at the Bonneville Power Administration, officials had to hastily reverse course. What are the real-world impacts to critical infrastructure?

We also explore how a sweeping executive order could restructure federal energy regulation. FERC — traditionally an independent, technical body — will now require White House approval for decisions. How could it slow down decisions and impact electricity markets?

And at EPA, officials are attempting to claw back $20 billion in legally committed green bank funding, prompting a federal prosecutor to resign rather than pursue what she saw as a baseless investigation. What does the EPA's approach tell us about the administration's lack of strategy?

Then we turn to Texas, where market forces are telling a different story. Despite a $5 billion subsidy program for gas plants, developers are walking away. French energy giant Engie recently abandoned two projects, citing equipment shortages and rising costs.

Meanwhile, clean energy is thriving without subsidies. Solar and batteries set new performance records last year, with zero-carbon power now providing 47% of Texas electricity. What does Texas tell us about the role of gas in the new era of load growth?

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Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.