Federal permitting delays and funding withdrawals could disrupt 92 gigawatts of planned U.S. clean energy capacity as electricity demand rises, according to Wood Mackenzie. The affected wind, solar and storage projects represent more than $121 billion in potential investment.
The energy research firm said policy changes had already contributed to the cancellation or inactivity of 7 GW of projects on federal land during 2025. Greater federal scrutiny now exposes another 12 GW on federal land and 80 GW on private property to delays or cancellation.
Overall, about 32% of the early-stage U.S. renewable energy pipeline faces additional federal review. Wood Mackenzie detailed the findings in its official announcement, published on June 29, 2026.
Federal Reviews Affect Public and Private Land
The added scrutiny follows a July 2025 Interior Department memorandum that centralized reviews for wind and solar developments involving federal agencies. A separate Interior Department order announced in August called for tighter oversight of projects the department described as environmentally damaging.
Projects on private property can still require federal approval for wetlands, wildlife impacts or access roads. Wood Mackenzie identified wetlands permitting as the main constraint on private land, while Department of Defense airspace reviews have slowed some wind developments.
Solar projects located on or near private wetlands face some of the greatest exposure. The permitting difficulties are concentrated in Oregon, Alabama, Maine, Minnesota and Montana, while energy storage developments have also been affected.
Delays Come as Data-Center Demand Grows
The potential loss of new generating capacity comes as AI data centers increase pressure on the U.S. electricity system. BloombergNEF forecasts that U.S. data-center power demand will reach 106 GW by 2035, up from about 40 GW in 2025.
Renewable energy has supplied most recently added U.S. capacity. Solar, battery storage and wind accounted for nearly 90% of the record 53 GW of generating capacity installed in 2025, according to the source material.
The Federal Energy Regulatory Commission has ordered six regional grid operators to review or revise their rules to connect data centers and other large electricity users more quickly. The action addresses large-load connections, but delays continue to affect new generating projects entering regional grids.
Wood Mackenzie research associate Gaby Ackermann Logan said unpredictable and poorly coordinated permitting processes would continue to affect project schedules and investment decisions. The firm noted that congressional proposals could shorten approval timelines, but projects are already experiencing cancellations and delays.
Featured image credits: Magnific.com
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