The Trump administration is again attempting to revive the struggling coal and nuclear power industries. Subsidies are planned throughout 2025. This initiative follows a failed attempt in 2017 to prop up these energy sources.
The administration's new plan hinges on the increased energy demands of artificial intelligence. AI development requires significant power. The goal is to provide a stable energy source for this growing sector.
Industry analysts are skeptical. Previous efforts to save coal and nuclear plants faced significant hurdles. Three nuclear plants closed since 2020. Coal usage has plummeted to 17 percent of the US power mix.
The 2017 plan faced price competition from gas and renewable energy. Taxpayers would have been responsible for billions. This new attempt could face similar economic pressures.
The success of this initiative depends on AI's continued growth and energy consumption. The administration will likely face opposition from renewable energy advocates. The long-term impact on energy prices remains uncertain.
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