By George L. Strobel II
In an age defined by technological competition, particularly in artificial intelligence (AI), the United States cannot afford to neglect the foundational pillars of national power: energy security and military dominance. Yet House Resolution 1 (HR 1), as currently under consideration in Congress, threatens to do just that. By significantly undercutting the nation’s ability to meet surging energy demands, HR 1 not only jeopardizes America’s global leadership in AI but also runs counter to decades of core Republican values rooted in national defense and energy independence.
Core Republican Principles: Defense First, but Necessarily Supported by Energy Independence
For generations, the primacy of national defense has been a bedrock Republican principle. America’s emergence and continuation as the world’s superpower have been based on military and industrial might . . . made possible by the energy necessary to drive this superiority. Without abundant energy supply, America would not have been able to rally the manufacturing required to put ships, planes, tanks, and armament forward in the World Wars. The Great White Fleet, U.S. troop action in Europe and the Pacific, the nuclear Navy, forward presence, victory in the Cold War, international stability and keeping regional conflicts in check . . . all made possible by our energy dominance. As America finds itself locked in a high-stakes competition with China—and increasingly with other actors—for AI supremacy, the need for secure and scalable energy has never been more urgent.
According to Elon Musk in a recent interview with David Faber of CNBC (May 21, 2025), three pillars are essential for AI dominance:
- Chips – led by U.S. firms like Nvidia.
- Transformers – essential for converting raw electricity into usable power (for all energy sources).
- Energy – the lifeblood of data centers and machine learning infrastructure.
While the U.S. currently leads in chips, energy generation is emerging as the critical bottleneck.
A Legacy of Republican Support for All-of-the-Above Energy
The Republican Party has historically advocated for an “all-of-the-above” energy strategy—promoting oil, gas, nuclear, and renewables alike to ensure U.S. energy dominance.
- The Energy Policy Act of 2005, enacted under President George W. Bush with Republican control of both chambers, launched the original Investment Tax Credit (ITC) for solar—a landmark step that catalyzed American renewable innovation.
- That support has been bipartisan and continuous, with extensions under multiple administrations, including President Trump’s extension of tax credits for renewable energy in 2018 and 2020.
These policies were never about partisanship; they were about practical national strength, economic resilience, and energy independence. In fact, the Energy Policy Act’s key objectives included: Increasing Energy Production, Promoting Energy Efficiency, Modernizing the Grid, and Supporting Renewable Energy. Removing key support for renewable energy as HR 1 does in its current form structurally impacts each of these four tenants.
Surging Demand, Shrinking Supply
The challenge ahead is stark. According to ICF International, a major U.S. consultancy, electricity demand is expected to rise by 25% by 2030 and by 78% by 2050—driven by AI, cloud computing, EVs, advanced manufacturing, and crypto-mining.
As Elon Musk warned in the previously mentioned CNBC interview, the next chokepoint is not chips, but electricity generation. Musk’s company, xAI, is building a gigawatt-scale data center—equivalent to a nuclear power plant’s output—just to meet internal AI compute needs.
Musk predicts that “power generation challenges will arise by mid-to-late next year [2026],” and he’s far from alone in that concern.
HR 1 Would Devastate Planned Energy Projects
Despite this, HR 1 would cut deeply into the heart of America’s future energy supply and its ability to meet the forecasted increase in energy demand..
Analysis by David Riester and Paul Hildebrand of Segue Sustainable Infrastructure estimates that if HR 1 was enacted:
- 48% of planned renewable energy projects (solar, battery, wind) through 2033 would be canceled.
- 245 GW of planned capacity—$371 billion in investment—would disappear.
- These projects account for two-thirds of new grid capacity through 2033, meaning HR 1 would set back U.S. energy expansion by a full two-thirds.
This is not a marginal reduction—it’s a catastrophic contraction at a time when energy needs are exploding. Even more, it is elimination of ongoing technological advancement, manufacturing renaissance, and energy export opportunities.
Natural Gas and Nuclear Cannot Fill the Gap
While some might hope natural gas could offset these losses, Riester and Hildebrand’s analysis (which is consistent with other reviews) is sobering:
- New gas plants take 5–10 years to develop and construct.
- Equipment backlogs, especially gas turbines have 4–5-year lead times, making quick buildouts impossible.
- Even if constructed, gas-generated power would cost 25–30% more than solar/wind/storage alternatives.
Nuclear energy, while essential and rightly supported by President Trump’s latest executive orders, requires at least 8 years or more to bring new plants online. Moreover, the political stability of that support across administrations remains uncertain, as does public acceptance of safety and siting.
A Threat to National Security and AI Leadership
This is more than an energy debate—it’s a matter of national security.
- Artificial Intelligence leadership depends on scalable, reliable power.
- China is rapidly outpacing the U.S. in energy infrastructure, both in solar and nuclear. Beijing’s massive state-backed power grid expansion is designed specifically to support AI and military technologies.
- In a potentially concerning development, President Trump recently announced approval for Persian Gulf nations to purchase Nvidia’s most advanced AI chips—a region already overflowing with energy. This shift risks empowering states whose interests may not always align with the U.S., and particularly providing them the opportunity for additional development and technology innovation.
If HR 1 passes, the U.S. would be capping not only its own energy growth, but its leadership, just as the world enters an era where energy is THE deciding factor in technological and military supremacy.
Conclusion: HR 1 is a Strategic Energy Policy Mistake
HR 1 undermines the Republican Party’s Energy Policy principles, and particularly its longstanding commitment to:
- Energy independence.
- National security.
- Unleashing innovation through competitive infrastructure.
Reducing our energy capacity when demand is poised to skyrocket—especially from transformative technologies like AI—puts the U.S. economy, security, and global standing at risk.
The path forward must be clear, and boldly supported: America needs a recommitment to: “all-of-the-above” energy policy, an aggressive expansion of our power infrastructure, and rejection of legislation like HR 1 that weakens America’s future. In this new era of energy-driven competition, to falter is to fall behind, and to fall behind is to surrender.
By George L. Strobel II
In the wake of last month’s massive blackout that disrupted power across Spain, Portugal, and parts of southern France for more than twelve hours, speculation ran wild over the cause of the blackout. Was it a cosmic event? A technical breakdown? Or a sign that Europe’s increasingly renewable-heavy energy infrastructure was reaching a breaking point? Now, with the dust settled and new reports emerging, the truth behind the blackout is finally coming to light—and it’s far more surprising than expected.
Speculation and Theories Abounded
In the immediate aftermath of the April 28th blackout, theories flourished. Online forums, energy blogs, and news outlets were ablaze with conjecture. One of the earliest and most widely circulated theories was that a solar flare—a powerful burst of radiation from the sun—had disrupted satellite communications and sensitive electrical equipment on the ground.
Others believed it might have been a technical glitch, the kind of random error that occasionally plagues even the most advanced infrastructure. Some energy analysts and critics of renewable energy pointed to the “lack of grid inertia”—the stabilizing effect typically provided by large spinning turbines in fossil fuel or nuclear power plants—as a key vulnerability in Spain’s increasingly green power mix. They argued that without this buffer, the grid might have been too fragile to handle even minor fluctuations.
A Grid Rich in Renewables
At the time of the blackout, Spain’s electric grid was indeed operating on an unusually high proportion of renewable energy. According to data from Red Eléctrica de España (REE), the national electric operator, the composition of Spain’s grid on April 28 was heavily tilted toward renewables:
- Solar: 59%
- Wind: 12%
- Nuclear: 11%
- Natural Gas: 5%
- Other sources: 13%
REE’s publicly available dashboard showed that at 12:30 p.m., the grid had more than enough power—32 gigawatts (GW) were being supplied for a national demand of just 25 GW. Not only was the grid meeting local needs, but it was also exporting power: 2.6 GW to Portugal, 0.87 GW to France, and 0.78 GW to Morocco. In light of these statistics, suggestions that the blackout resulted from a shortfall of supply or the quality of its sources were cast into doubt.
Still, Spain’s plan to phase out nuclear energy by 2035 added fuel to critics’ concerns about the long-term viability of such a renewable-heavy strategy.
The Truth Emerges: A Hidden Stress Test
Now, new reporting from The Telegraph has shed light on the true cause—and it was not a cosmic event, a grid malfunction, or a failure of Spain’s clean energy ambitions. Instead, it was a deliberate experiment (The Telegraph, May 23, 2025).
According to sources cited by The Telegraph, the blackout originated at a substation in Granada at exactly 12:30 p.m. Within five seconds, cascading failures occurred at two other substations—Badajoz and Seville. In that blink of an eye, over half the grid’s supply vanished, plunging large portions of Iberia into darkness.
But it wasn’t a glitch. It was a stress test—an unscheduled and secret simulation designed to evaluate the resilience of Spain’s grid under high renewable penetration. Details remain murky, including who authorized the test and why it was carried out without public notification or coordination with neighboring countries.
Implications and Fallout
The revelation has sparked a mix of relief and outrage. On one hand, the blackout was not caused by any inherent weakness in renewable energy or the grid’s ability to handle it. On the other, the idea that an experimental procedure—one capable of knocking out power for millions—was conducted in secret is deeply troubling to many.
But Spain’s reliance on renewable energy was not the source of the problem. In fact, as more solar facilities are constructed in junction with battery storage, grid resiliency will only strengthen. This doesn’t mean that more doesn’t need to be done to bolster power infrastructure and grid cybersecurity – that clearly is required. But expansion of renewable energy should not pause because of this event.
In the coming weeks, scrutiny of Spain’s energy governance is expected to intensify. What’s clear now, however, is that misinformation about the blackout was just as widespread as the blackout itself—and the truth is even more electrifying than fiction.
Sources:
The Telegraph. “Spain’s Blackout Story Is Disintegrating.” Published May 23, 2025. https://www.telegraph.co.uk/business/2025/05/23/spains-blackout-story-is-disintegrating/
As Republicans look to broker a sweeping budget deal, top GOP leadership in the House of Representatives unveiled a series of cuts this week to the provisions of the Inflation Reduction Act (IRA) aimed at tackling climate change. This includes proposing to curtail tax credits for clean electricity generation and domestic clean technology manufacturing. To enact the proposed language would deal a swift blow to U.S. efforts to cut emissions and transition to cleaner energy sources. It would also stifle a surge in manufacturing investment that has swept much of the country.
“It will come to a screeching halt without the credits,” says George Strobel, co-CEO at Monarch Private Capital, which finances solar projects. “That’s just the way it is.”
Since the language was announced on May 12, many Senate Republicans, who would need to approve the measure before it becomes law, have balked, fearing that such a pullback would kill jobs in their home states and harm American businesses. For that reason, they say, the language should represent a starting point, certain to be revised in the lengthy negotiations necessary to approve the changes. “Anything that comes over from the House, almost by law, we’ve got to redo,” Alaska GOP Senator Lisa Murkowski told reporters.
Seasoned legal and transaction management professional brings deep experience in renewable energy investments to support Monarch’s growing clean energy portfolio.
ATLANTA (GLOBE NEWSWIRE) – Monarch Private Capital (Monarch), a nationally recognized impact investment firm that develops, finances, and manages a diversified portfolio of projects generating both federal and state tax credits, is pleased to welcome Thomas Barnes as Manager, Renewable Energy.
In this newly-created role, Barnes will facilitate all aspects of investment execution, including onboarding, investment alignment, fund documentation, underwriting/closing, and subsequent fundings. He serves as a key liaison between Monarch’s investors and developer partners, working with internal placement, project management, operations, and asset management teams—ensuring a seamless and #bestinclass transaction process.
Barnes brings extensive tax credit structuring and legal experience to Monarch. Prior to joining the firm, he held several roles within the renewable energy division at U.S. Bank, most recently serving as Syndications Project Manager. In that role, he led investor communications and due diligence efforts, negotiated transaction documents, and facilitated the closing of tax credit investments. Earlier in his tenure at U.S. Bank, Barnes served as an Asset Manager, overseeing a portfolio of renewable energy investments and supporting risk mitigation efforts across legal, tax, and credit functions. Before transitioning into renewable energy finance, Barnes practiced law for nearly a decade, focusing on corporate transactions and contract negotiation for a wide range of clients and industries.
“Thomas brings a rare combination of legal acumen and transaction execution experience to our already strong team,” said Bryan Didier, Partner and Managing Director of Renewable Energy at Monarch Private Capital. “His ability to manage complexity, collaborate across functions, and drive high-quality outcomes for our investors will undoubtably enhance our #everbetter, #bestinclass execution process.”
In addition to his transaction responsibilities, Barnes will contribute to process innovation, cross-functional collaboration, and risk management strategies across Monarch’s clean energy portfolio.
“Monarch is known for its thoughtful, high-performing culture, and I’m excited to be a part of a team that prioritizes excellence and investor success,” said Barnes. “I look forward to contributing to a strong foundation that enables the firm to continue scaling with impact.”
Barnes earned his Juris Doctor from the University of Minnesota Law School and a Bachelor of Arts in English from the University of St. Thomas. Committed to giving back, he has volunteered with organizations including Catholic Charities, Feed the Children, and Project Offstreets, and has mentored and coached youth in both Minneapolis and Denver.
For more information about Monarch Private Capital, visit www.monarchprivate.com.
About Monarch Private Capital
Monarch Private Capital manages impact investment funds that positively impact communities by creating clean power, jobs, and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film, and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers, and lenders participating in these federal and state programs. Headquartered in Atlanta, Monarch has offices and professionals located throughout the United States.
Solar industry experts say it has too much Republican support, and makes so much sense economically, that the solar industry will keep growing.
President Donald Trump has been clear that his vision for America’s energy landscape prioritizes fossil fuels. He has curtailed federal funds for renewable energy—and has voiced his personal distaste for those projects, particularly wind farms. He’s talked about ramping up coal and increasing oil drilling, and he’s threatened to completely undo the Inflation Reduction Act (IRA).
But even amid all that, the solar industry is still somewhat optimistic about its future. Solar just makes sense, industry players say—especially if we need to increase our energy production, and do so fast.
“I keep on reminding people that solar energy is as competitive as natural gas now, it’s as cheap as any form of energy, and it can be built quicker than any form of energy.”
says George Strobel, cofounder and co-CEO of Monarch Private Capital, which invests in renewable energy and affordable-housing projects.
“There is some surprising support—at least as far as the [Trump] administration is concerned—for the solar industry, coming from the utility sector.”
By Bryan Didier, Steven Lorch, Irina Tsveklova and Jonathan Macke
Last year—particularly the fourth quarter—saw a significant uptick in transfers of advanced manufacturing production credits (AMPCs) described under Section 45X.
Between the Weil and Monarch teams, we have had the opportunity to work on a significant number of these AMPC transfers. Many of these transfers successfully closed; however, others did not, with lessons learned in both circumstances.
This article provides background to the AMPC and our observations on the AMPC transfer market as we look forward to closing legacy 2024 transactions and to new opportunities in 2025.
Background to the AMPC
Section 45X was enacted as part of the Inflation Reduction Act of 2022 (the IRA). The U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) issued proposed regulations under Section 45X on December 14, 2023 and final regulations (the Final Regulations) on October 24, 2024.
Taxpayers may claim the AMPC for the domestic production and sale of eligible components (Eligible Components) to an unrelated person or, with a special election, a related person (each, a Component Buyer). Eligible Components include solar and wind energy components, inverters, qualifying battery components and certain critical minerals.
The AMPC is a production tax credit which is claimed based on the volume of Eligible Components produced by the taxpayer during the taxable year. The AMPC rate under Section 45X varies depending on the type of Eligible Component produced and the production method utilized by the taxpayer.
Taxpayers generally may claim the AMPC for Eligible Components produced and sold after December 2022 but, for components other than critical minerals, the AMPC will phase out starting in 2030 and terminate completely by 2033…
The 200-megawatt facility in Texas will be capable of powering more than 40,000 homes
ATLANTA (GLOBE NEWSWIRE) – Monarch Private Capital (Monarch), a nationally recognized impact investment firm that develops, finances and manages a diversified portfolio of tax credit projects, and Invenergy, a leading developer, owner and operator of sustainable energy solutions, are pleased to announce the successful closing of nearly $170 million in tax equity financing for the Samson Solar Energy Center II project, located in Lamar County, Texas. The project, developed by Invenergy, will bring significant economic benefits to the region, including construction jobs, substantial landowner payments, and more than $27 million in local taxes and payments to the county and local school district throughout the life of the project.
The Samson Solar Energy Center II is a 200-megawatt (MW) solar power facility slated to begin commercial operations later this year. Once completed, Samson II will generate enough clean electricity to power over 40,000 homes. The project is part of Invenergy’s Samson Solar Energy Center, a five-phase, 1,310-MW development that is the largest solar energy center in Texas. Collectively, the Samson Solar Energy Center will produce enough energy to power 300,000 homes and help advance Texas’s leadership in clean energy.
“We’re proud to have worked with Invenergy on the tax equity solution for the Samson Solar Energy Center II,” said Bryan Didier, Partner & Managing Director of Renewable Energy at Monarch Private Capital. “This investment is another important milestone for our team, and we’re excited to partner with Invenergy on a project that is providing skilled jobs and clean energy to a community that has experienced economic hardship.”
Brian Bortman, Senior Vice President of Finance & Capital Markets at Invenergy, added, “The tax equity financing of Samson II marks another significant milestone for our flagship project. This innovative transaction is a testament to Invenergy’s strong financial partnerships and our unmatched capabilities to accelerate clean, reliable energy at scale.”
Marathon Capital acted as the exclusive financial advisor to Invenergy on the transaction.
“Securing the tax equity investment for Samson Energy Center II was a significant step towards advancing the broader Samson Solar Energy Center project,” said Greg Andiorio, Managing Director, Tax Credit Advisory at Marathon Capital. “It was a pleasure to work with the Invenergy and Monarch teams on this important transaction.”
About Monarch Private Capital
Monarch Private Capital manages impact investment funds that positively impact communities by creating clean power, jobs and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film and other qualified projects. Monarch Private Capital has long-term relationships with institutional and
individual investors, developers, and lenders participating in these federal and state programs. Headquartered in Atlanta, Monarch has offices and professionals located throughout the United States.
About Invenergy
Invenergy is accelerating cleaner, more reliable, affordable energy. Invenergy and its affiliated companies develop, build, own, and operate large-scale renewable and other clean energy generation, transmission and storage facilities in the Americas, Europe, and Asia. Headquartered in Chicago, Invenergy has regional development offices in the United States, Canada, Mexico, Spain, Japan, Poland, and Scotland.
Invenergy and its affiliated companies have successfully developed more than 31,000 megawatts of projects that are in operation, construction or contracted, including wind, solar, transmission infrastructure and natural gas power generation and advanced energy storage projects.
About Marathon Capital
Marathon Capital is the largest independent investment bank dedicated to servicing the clean economy. Throughout its 25-year history, the firm has played a pivotal role in many of the groundbreaking and transformative transactions for new and emerging sectors, consistently delivering exceptional results for its clients. The firm is a leading global financial adviser across M&A, equity capital markets, debt capital markets, tax credits, offtake, and energy transition. Marathon Capital is headquartered in Chicago, with offices in New York, Houston, San Francisco, San Diego, London, and Calgary with local presence in Madrid and Seoul. www.marathoncapital.com
The IRS warns against a new scam involving clean energy tax credits under the Inflation Reduction Act (IRA). Unscrupulous tax preparers are misleading taxpayers into improperly claiming these credits, especially on Form 1040. Monarch urges taxpayers to consult with knowledgeable advisors when making tax credit investments.
Key Points:
- Scam targets individuals claiming clean energy credits they can’t benefit from.
- Taxpayers are urged to consult trusted tax professionals.
- Inappropriate claims can lead to future compliance actions, repayment, interest, and penalties.
- Stay informed and protect yourself. More details on the IRS website.
This is another example where scammers are trying to use the complexity of the tax law to entice people into claiming credits they’re not entitled to… we urge people to use a reputable tax professional before claiming complex credits like clean energy.
IRS Commissioner Danny Werfel
Monarch Private Capital, a nationally recognized impact investment firm that develops, finances, and manages a diversified portfolio of projects generating both federal and state tax credits, and Elawan Energy, a global operator in the renewable energy industry, are pleased to announce the substantial completion of two utility-scale solar projects in Q4 2023. The projects, located in Hill County and Bosque County, Texas, mark a significant milestone in the companies’ commitment to clean energy and sustainability.
The projects include Pitts Dudik, which boasts a capacity of 60.26 MWdc, and Dileo, which contributes an additional 86.67 MWdc. Together, these projects represent a total capacity of approximately 147 MWdc, providing clean and renewable energy to the region.
“We’re proud to have joined forces with Elawan Energy on these strategically-sited solar projects,” said Bryan Didier, Partner & Managing Director of Renewable Energy at Monarch. “Pitts Dudik and Dileo are great examples of tax credit equity investments. Not only are they accelerating the energy transition to sustainable resources, but they are also fostering economic growth, job creation and innovation in their Texas communities.”
The positive impacts of these projects extend beyond clean energy generation. Over the next 40 years, the projects are expected to abate 4,688,232 CO2e MT, equivalent to the greenhouse gas emissions from over a million gasoline-powered passenger vehicles driven for one year, and will create nearly 600 jobs.
“Delighted to announce the completion of two solar projects in partnership with Monarch, bringing clean and renewable energy to Hill and Bosque counties,” said Gonzalo Rodriguez Tortosa, Business Development Officer and Chief Operating Officer at Elawan Energy North America. “We want to thank both counties for their continued support and are very happy that the projects will have a positive impact on the local communities, helping not only from an economic perspective but also in the reduction of greenhouse gas emissions.”
For more information on Monarch’s renewable energy tax equity investments, please contact Bryan Didier by emailing bdidier@monarchprivate.com. For more information on Elawan’s integrated solutions, please contact Gonzalo Rodriguez Tortosa by emailing gonzalo.rodriguez@elawan.com.
About Monarch Private Capital
Monarch Private Capital manages impact investment funds that positively impact communities by creating clean power, jobs, and homes. The funds provide predictable returns through the generation of federal and state tax credits. The Company offers innovative tax credit equity investments for affordable housing, historic rehabilitations, renewable energy, film, and other qualified projects. Monarch Private Capital has long-term relationships with institutional and individual investors, developers, and lenders participating in these federal and state programs. Headquartered in Atlanta, Monarch has offices and professionals located throughout the United States.
About Elawan Energy
Elawan Energy is a global player in the renewable energy sector, providing integrated solutions throughout the green energy lifecycle, including promotion, development, construction, operation, maintenance, and sale of energy produced by solar, wind, and mini-hydro power plants. Operating in 14 countries and employing over 150 people, Elawan Energy is a part of ORIX Corporation.