California’s Energy Crisis: Newsom’s Renewable Claims Under Scrutiny

Governor Gavin Newsom recently faced scrutiny at the COP30 United Nations Climate Conference in Brazil, where he highlighted California’s renewable energy successes while downplaying significant challenges. Despite claims of sourcing “two-thirds” of energy from clean sources, California grapples with an escalating energy affordability crisis that has left many residents struggling.

At COP30, Newsom asserted that “nine out of ten days run a portion of the day at 100% clean energy.” However, this statement pertains specifically to electricity, not overall energy consumption. Data from the U.S. Department of Energy indicates that in 2024, California generated only 57% of its electricity from renewable sources, with an additional 7% from nuclear energy. In reality, approximately 15% of California’s total energy consumption is derived from electricity, while over 80% still comes from hydrocarbon fuels, including 58% from petroleum and 25% from natural gas as of 2023.

California has prioritized a transition to renewable electricity for over two decades, closing 11 coal-fired plants and converting others to biomass fuel. The state has also invested in solar capacity, boasting 22 gigawatts of utility-scale solar and another 18 gigawatts from rooftop installations, alongside more than 6 gigawatts of wind energy. Despite these efforts, the financial burden on consumers has intensified.

Electricity prices in California have surged by 116% from 2008 to 2024, contrasting sharply with a national increase of just 33%. As of now, residential electricity costs an average of 32 cents per kilowatt-hour, making it the second highest in the United States, just behind Hawaii. This situation has prompted alarming household expenses, with air-conditioning a medium-sized home potentially costing up to $1,000 monthly during peak summer months.

In his address, Newsom also discussed the state’s ambitious zero-emissions vehicle (ZEV) mandate, which aims to ensure all in-state auto sales are ZEVs by 2035. While this initiative promotes electric and hydrogen vehicles, it also imposes significant costs. As of April 2025, the average price for a new electric vehicle (EV) was around $59,000, compared to $48,700 for a new gasoline vehicle, even with a federal tax credit that was recently eliminated.

The shift toward hydrogen fuel presents its own challenges, with costs for hydrogen at least $14 per equivalent gasoline gallon. Although the California Energy Commission has invested over $200 million in hydrogen fueling stations, the number of operational stations has decreased from a peak of about 65 to just 55 today.

Aiming to further reduce emissions, California’s Advanced Clean Fleets Regulation took effect in 2024, mandating that all trucks operating in the state be zero emissions. However, electric trucks currently cost two to three times more than their diesel counterparts and possess limited range capabilities, complicating logistics for businesses reliant on freight transport.

In a significant development, the U.S. Congress and former President Donald Trump repealed California’s ZEV and ACF regulations last spring, challenging the state’s authority under the 1980 Clean Air Act. The Environmental Protection Agency (EPA) revoked California’s waiver, prompting Newsom to initiate legal action against the federal government to restore these mandates.

Gasoline prices in California are currently the highest in the nation, averaging $4.67 per gallon, eclipsing the national average of $3.07. With refinery closures looming—reducing operational refineries from over 40 in the 1980s to just 13 today—experts warn that gasoline prices could escalate to as much as $8 per gallon.

California’s renewable energy initiatives have not been without setbacks. The Ivanpah Solar Power Facility, once the world’s largest solar plant, is set to close in 2025 after only 12 years of operation due to underperformance and reliance on natural gas. Furthermore, incidents involving grid battery storage systems have raised concerns about safety and reliability. Notably, the Gateway Energy Storage facility near San Diego caught fire for 17 days in May 2024, highlighting the potential risks associated with large-scale battery deployment.

Residents are increasingly feeling the financial strain of California’s energy policies. The 2020 California Solar Mandate requires all new homes to include solar panels, while additional regulations aim to facilitate electric vehicle charging infrastructure. These mandates contribute to rising housing costs, particularly impacting low-income families.

As the state continues to pursue ambitious renewable energy goals, the affordability crisis in California remains a pressing issue. The challenge of balancing environmental initiatives with economic realities underscores the complexities of transitioning to a sustainable energy future, leaving many residents questioning the viability of current policies.