Five energy policy shifts poised to shape 2026

From sweeping legislative changes to new priorities and evolving market dynamics, here’s what we’re monitoring in the year ahead.

The Energy Dominance Agenda

The Trump Administration launched its energy dominance agenda, beginning with executive orders like Unleashing American Energy and the declaration of a national energy emergency. This agenda aims to deter the development of wind and solar projects, accelerate permitting for oil, gas, and mining, and roll back efficiency and emissions regulations. In November, the Department of Energy (DOE) announced a major reorganization to support the Administration’s energy agenda, including rebranding its Loan Programs Office as the Office of Energy Dominance Financing, or EDF.

EDF’s focus is now on baseload energy and grid reliability, supporting hydrocarbon projects, critical minerals, and advanced technologies like nuclear and geothermal. It has also prioritized infrastructure upgrades, new dispatchable generation, and securing mineral supply chains. The Administration has also begun leveraging equity stakes in private companies to work toward its national security and supply chain independence objectives.

Looking ahead, we’ll be watching how the Trump Administration advances its energy dominance agenda through energy policy, potential expansion of equity stakes in companies, and the creation of new strategic reserves for critical minerals.

A Changing Environment for Energy Investments

The biggest change to U.S. energy policy in 2025 came with the One Big Beautiful Bill Act, signed on July 4. Tax credits for wind, solar, hydrogen, electric vehicles, and most residential upgrades were repealed or scaled back. However, nuclear, geothermal, carbon capture, and clean fuels remain eligible for tax credits, with nuclear projects gaining a location-based bonus. The extension of clean fuel credits and support for advanced technologies such as geothermal signal ongoing opportunities for innovation and growth. Beginning in 2026, the clean energy sector faces stricter rules on foreign content.

Looking ahead, businesses and investors are awaiting guidance on foreign entity of concern restrictions on clean energy, which may affect eligibility for tax credits. There is also interest in whether wind and solar developers will accelerate project construction start dates to meet the July 2026 deadline for claiming investment and production tax credits.

A Renewed Emphasis on Nuclear Energy

As the U.S. faces growth in projected electricity demand, nuclear emerged as a priority energy technology in 2025, with President Trump issuing executive orders to accelerate licensing, testing, and deployment of advanced reactors. The Administration set goals to boost power from existing nuclear plants by 5 GW and begin construction of 10 new reactors by 2030, directing the Loan Programs Office — now EDF — to support new builds, and later announced a loan to restart the Three Mile Island nuclear plant.

DOE also released plans for the U.S. government to buy and own up to 10 large nuclear reactors, potentially using funds from Japan’s $550 billion investment pledge to meet rising electricity demand from AI data centers and manufacturing. DOE’s FY2026 budget request included $750 million for loan guarantees to support small modular and advanced reactors.

Looking ahead, stakeholders are expected to watch to see the Administration’s progress on ambitious nuclear development plans and how it supports the emerging small modular reactor industry.

The Growth of AI & Data Center Demand

Data centers and their immense electricity needs are fueling growth in power demand and prompting corresponding state and federal action. The U.S. electricity demand is expected to grow 25% by 2030 from 2023 levels.

In July, the White House released an AI Action Plan to boost AI adoption and accelerate data center construction. However, meeting the resulting growing power demands is challenged by the interconnection queue, where projects may wait up to five years to connect to the electric grid.

Looking ahead, industries like utilities, construction, real estate, and manufacturing will be waiting to see if data center demand materializes as projected, as well as what comes from the Federal Energy Regulatory Commission (FERC) rulemaking on the interconnection of loads greater than 20 MW. Energy Secretary Chris Wright directed FERC to complete the rulemaking by April 30, 2026, aiming to speed up the interconnection for large loads like data centers.

The Future for Federal Energy Grants

In 2025, the Administration canceled billions of dollars of clean energy and climate grants from the Inflation Reduction Act and Bipartisan Infrastructure Law, prompting investors to reconsider how federal spending would shape the U.S. economy.

Cuts included $7.56 billion in clean energy awards from DOE, including awards to two West Coast hydrogen hubs. One of the largest cancellations was the Greenhouse Gas Reduction Fund (GGRF), a $27 billion program originally aimed at making clean energy more accessible and affordable to households and communities nationwide.

Looking ahead, GGRF awardees are expected to continue with their lawsuits to restore the funding. The Administration has also announced new funding opportunities for activities like critical minerals recovery and battery manufacturing.

As 2026 begins, one theme stands out: change creates opportunity. Policy shifts, rising energy demand, and emerging technologies are likely to continue to shape market dynamics, creating new opportunities for growth.