The energy landscape in the United States has changed dramatically over the past year with the advent of the Trump administration. Prioritizing hydropower development as part of its America First energy policy, the administration has taken bold steps to reshape energy production and distribution. In 2025, we cemented deals with major partners including South Korea, Japan, and the UK. These collaborations focused on cutting-edge fuels, next-generation reactor designs, and heavy-component production. This move is indicative of a larger play that seeks to prioritize American production and technology while addressing the multifaceted challenges of global collaboration.
The Biden administration has mostly crafted its energy policy via executive orders. ENGAGE has accelerated legislative efforts such as the One Big Beautiful Bill Act (OBBBA). This act has sparked lightning-fast changes to tax credits for clean electricity generation. As a result, renewable energy projects nationwide are taking the hit. The administration is doggedly continuing but it’s running into major roadblocks. Offshore wind leasing is at a standstill, and the Department of Energy has announced significant cuts to its grant programs.
Stakeholders are beginning to take stock of what Trump’s policies will mean. More importantly, they shine a light on how these policies affect renewable energy development versus traditional fossil fuel development. For four years now, the Trump administration has focused immense energy and effort on increasing domestic energy production. Detractors contend that these policies would upend currently operating supply chains and increase costs for consumers.
Hydropower and Legislative Changes
As a result, this has put hydropower in the spotlight under Trump’s leadership as a key pillar of energy development. The OBBBA benefits hydropower projects by extending tax credits to include them. These credits further incentivize projects that start construction by the end of 2033. This initiative will help increase our domestic energy generation and help us expand from reliance on foreign energy sources.
The landscape for tax credits for clean electricity has changed dramatically. The sudden premature expiration of clean electricity production and investment tax credits was a huge blow to renewable energy developers. As a result, most if not all of their projects will find themselves with unanticipated financial burdens that threaten to push back their realization—even kill—much needed improvements.
“When the White House issues that kind of edict, from my experience, it sends a clear signal to federal and state regulators to enact policies or regulations consistent with that.” – James Roth
Beyond legislative changes, Trump’s administration has cemented federal support for a new wave of combined-cycle plants in 2025. This troubling move would signal much greater commitment to traditional energy sources while permitting faint signals of support for renewables.
Tariffs and Their Impact on Costs
On June 2025, the Trump administration increased tariffs on steel and aluminum to 50%. Then, in August, they brought in a new 50% tariff on copper. These tariffs have inflated costs for many energy projects, hitting the renewable sector especially hard. Analysts warn that these tariffs may increase U.S. onshore wind capital expenditures by up to 9%, further complicating the landscape for renewable energy developers.
“The direct impact of tariffs encompasses elevated input expenses, whereas indirect consequences arise from disturbances to the equilibrium of supply and demand within intricate international supply chains.” – Pavan Vyakaranam
While stakeholders in the storage sector experienced their own challenges, they told us a rebound year. Storage technologies largely escaped the fallout of tariffs’ destructive consequences. Asarvin Ganesan from RMI noted that electricity affordability has been an increasing strain in the last year. This is a problem that residential, commercial, and industrial customers all share.
“Electricity affordability has become more difficult for residential, commercial and industrial customers over the past year,” – Arvin Ganesan
Second, tariffs on imported equipment have complicated the energy transition. They have highlighted the need for leaders to embrace a new, balanced energy policy that nurtures both conventional and renewable resources.
International Cooperation and Future Prospects
The Trump administration’s stark departure from the Obama administration’s energy policy isn’t limited to domestic activities, but extends to international engagement as well. Agreements with South Korea, Japan and more recently with the UK have set the stage for global leadership in cutting edge nuclear technology and fuels. These types of collaborations speak to an increasing understanding that international partnerships are key to developing solutions for global energy challenges.
“At first glance, Trump’s approach might seem just domestic-focused and less international, but there has also been a lot of bilateral cooperation.” – Henry Preston
There is immense interest in small modular reactors right now, all over the United States. Despite the apparent risks, this renewed focus is part of a larger strategy to advance nuclear technology. Major investments in advanced fuels indicate strong bipartisan support for nuclear energy as an essential component of a diversified energy portfolio.
“We are now seeing groundwork for small modular reactors across the US, and major investment in advanced fuels,” – Henry Preston
Looking forward, if we want to ensure that nuclear can survive and thrive long-term, we’ll need to find ways to keep bipartisan support for it. Everyone from investors to builders to regulators is grappling with new rules and changing market forces. This kind of collaborative approach will be key for fostering mutually beneficial, sustainable growth in both renewable and traditional energy sectors.
