USA Trends and Developments Contributed by: Elena Rubinov, George Casey, Heiko Schiwek, Vinita Sithapathy, Pierre-Emmanuel Perais and Clara Pang, Linklaters LLP
traction due to new technologies and corporate inter- est in 24/7 clean power. Many states continue to pursue decarbonisation efforts locally. This support, combined with data cen- tres’ preference for clean energy sources, has spurred transactions focused on renewables. The intersection of increases in electricity demand, the development of nascent renewable technologies, and the gap created by current infrastructure have created fertile ground for new deals. The first months of 2025 saw an increase of 384.6% in renewables-related deal value compared to the second half of 2024. Rather than depressing the market, trends suggest that the removal or phasing out of renewables subsidies and tax incentives by the current administration has pressured companies to diversify and seek new, innovative business models. Changes in the Political and Regulatory Landscape In line with the foregoing, the regulatory landscape for renewable energy development has seen a recent shift, and as such the renewable energy sector has had to adapt to a more fragmented and politically dynamic landscape. The current administration has prioritised the use of fossil fuels over renewable energy development through three major executive orders targeting wind energy. President Trump issued an executive order titled “Temporary Withdrawal of all Areas on the Out- er Continental Shelf from Offshore Wind Leasing and Review of the Federal Government’s Leasing and Permitting Practices for Wind Projects”. This order effectively seeks to stop the leasing and permitting processes for new offshore wind energy projects. On 20 January 2025, President Trump also issued two other major executive orders that affect the permitting process for renewable sources of energy: the “Nation- al Energy Emergency Declaration”, which declared a national energy emergency and directed agencies to use emergency powers under the Defense Produc- tion Act to accelerate the permitting process of fossil fuels (excluding renewable sources); and the execu- tive order titled “Unleashing American Energy”, which deregulated fossil energy production by phasing out
the National Environmental Policy Act (which previ- ously limited permitting for fossil-fuel projects). In tandem with initiatives to limit the growth of renewa- bles, the administration has boosted the fossil-fuel industry. The executive order titled “Protecting Ameri- can Energy from State Overreach” instructs the US Attorney General to block enforcement of state actions seeking to limit the production of coal, oil, natural gas, hydropower, geothermal, biofuel and nuclear energy. Similarly, the executive order titled “Regulatory Relief for Certain Stationary Sources to Promote American Energy” exempts coal-fired power plants from compli- ance with certain provisions in the Clean Air Act. In 2022, the Inflation Reduction Act (IRA) created an incentives programme that jump-started a flurry of deals in the renewables sector. On 4 July 2025, the administration made extensive changes across ener- gy and tax policy through its “One Big Beautiful Bill Act”, which included broad repeals and rescissions of IRA programmes and largely curtailed energy-related credits relating to wind and solar technology, while generally allowing IRA incentives pertaining to other technologies (eg, battery energy storage systems, carbon capture, and nuclear power) to remain. Nuclear energy has also received a renewed focus from investors seeking to capitalise on new, stream- lined approval and permitting processes. An early player has been Microsoft, which entered a joint venture with Constellation Energy to reopen nuclear facilities at Three Mile Island. This move reflects the industry’s curiosity about relying on nuclear energy as a new source to meet the AI-driven increases in electricity demand. Similarly, natural gas infrastructure and midstream assets have attracted new capital as the current administration’s regulatory backing of the natural gas industry has encouraged deal-making in this space. A key example is EOG Resources’ acqui- sition of Encino for USD5.6 billion. This transaction demonstrates the new, strategic approach towards deal-making in the E&I sector, as EOG was able to consolidate its overlapping gas basins and integrate its back office operations to become a new key player in the natural gas industry.
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