The Department of Energy announced it will restructure or eliminate $83.6 billion in loans and conditional commitments, shifting focus away from renewable energy sources like solar and wind in favor of baseload power like gas and nuclear.
Along with this action the DOE has renamed the loaning organization, the Loans Programs Office to the Office of Energy Dominance Financing (EDF).
The action follows a review of the Biden administrations $104 billion principal loan obligations, “including approximately $85 billion rushed out the door in the final months after Election Day,” said a press statement from DOE.
The department stated that nearly $30 billion has been or is being de-obligated, while an additional $53.6 billion is undergoing revision.
According to the department, approximately $9.5 billion in subsidies for wind and solar projects were eliminated. These funds are being redirected toward baseload energy sources, including natural gas, nuclear power, and coal-fired facilities. The agency said that the changes are intended to prioritize grid reliability and lower electricity costs for consumers.
(Read: “Solar cost of electricity beats lowest-cost fossil fuel – even without tax credits”)
The department maintains $289 billion in available loan authority. It identified six sectors it will fund, notably excluding renewable energy and battery energy storage. The EDF will administer funds to:
- Nuclear
- Coal, oil, gas and hydrocarbons
- Critical materials and minerals
- Geothermal
- Grid and transmission
- Manufacturing and transportation
Secretary of Energy Chris Wright said the office will now focus on supporting the private sector through energy projects that provide consistent power rather than intermittent generation.
Recent analysis finds that solar and battery energy storage costs have fallen enough where cost-competitive “anytime electricity” is available around-the-clock.
The department has already begun closing loans under the new priorities, including a deal to restart the Three Mile Island nuclear facility. A coal-powered fertilizer plant in Indiana also received support.
Meanwhile, many solar and storage developers that had received conditional commitments under the previous administration must now navigate a revised landscape where federal backing is no longer guaranteed for renewable technologies.
The department noted that $85 billion of the original portfolio was finalized in the final months of the Biden administration, a timeline the current leadership described as “rushed.”
The move signals a departure from federal support for the energy transition as previously defined, focusing instead on traditional energy production and nuclear expansion.
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