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US President Donald Trump issued an executive order to suspend all funding disbursements under the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA).

The action aims to reassess the processes for issuing grants, loans and contracts and redirect the focus to promoting “America’s affordable and reliable energy and natural resources”.

The order has sent shockwaves through the renewable energy and electric vehicles sectors, which have significantly benefited from IRA and IIJA support. At immediate risk include a $9bn loan to Michigan-based utility DTE Energy and a $3.5bn loan to Oregon-based utility PacifiCorp, funding that has been agreed upon but not yet distributed.

Following Trump’s election victory in November, the Biden administration rushed tens of billions in loan commitments to clean energy developers. A Biden administration official highlighted that roughly 84%, equating to $96.7bn, of IRA clean energy grants had already been allocated before Trump’s return.

Tax credits provided by the IRA are unlikely to be impacted. 

NextEra Energy has partnered with GE Vernova to develop natural gas-fired power generation projects in the US.

The projects will predominantly supply electricity to AI data centres and other significant power consumers. The collaboration aligns with the increasing demand from Big Tech’s data centres for natural gas-fired electricity amidst uncertainty over federal support for renewable energy under the new Trump administration.

Up to 2029, NextEra and GE Vernova aim to initiate power generation projects that might integrate natural gas plants with solar energy and battery storage.

NextEra CEO John Ketchum highlighted that the agreement is in its initial phase, which involves land acquisition, development, gas transportation and the construction of power plants with turbines that have long delivery times, potentially extending the timeline to 2030.

He noted that in contrast to the lengthy development process for gas-fired plants, solar projects and onshore wind projects can be completed in 18 months and 12 months, respectively.  

Portugal’s government is planning to develop a 10GW offshore wind cluster in the Atlantic Ocean in a significant step towards the country’s first offshore licence auction, scheduled for 2025. 

Environment Minister Maria da Graca Carvalho noted that Portugal intends to allocate and install 2GW through power auctions by 2030, with ambitions extending beyond that target: “Later, depending on the process’s maturity, we may gradually move towards licensing up to 10GW. We are taking decisive steps in this area.” 

Germany’s BayWa, Irish-Spanish consortium IberBlue Wind, fund manager Copenhagen Infrastructure Partners and a joint venture between Portugal’s Galp and France’s TotalEnergies have all shown interest in the upcoming auction.

Portugal currently has a small floating wind project with a capacity of 25MW off Viana do Castelo, owned by Ocean Winds, a joint venture between EDP and Engie.

The country has a target of meeting 51% of its final energy consumption with renewables by 2030. 

Poland has taken a significant step towards establishing its first nuclear power plant by approving funding of up to 60.2bn zlotys ($14.7bn). The cabinet, led by Donald Tusk, adopted a draft bill that permits the government to increase the capital of state-owned utility company PEJ, which will be responsible for constructing 3.75GW reactors along the Baltic coast. 

Poland aims to complete the nuclear power plant by 2036, intending to replace ageing coal-fired plants and ensure a stable electricity supply while transitioning to cleaner energy sources. Wojciech Wrochna, a government official overseeing critical infrastructure, noted that discussions with the EU could extend beyond one year. Following these negotiations, Poland plans to finalise agreements with Westinghouse Electric and Bechtel Group. 

In August, Poland announced an investment of 4.6bn zlotys ($1.2bn) from its 2025 budget to kickstart the development of the nuclear power plant. The initiative is part of a broader strategy to diversify the nation’s energy mix and lower electricity costs. 

The US Treasury department announced the final rules for the section 45V Clean Hydrogen Production Tax Credit, established under the Inflation Reduction Act, with notable adjustments from the draft plan published in December 2023. 

One of the most significant changes is the inclusion of nuclear power in the category of electrolytic hydrogen production, qualifying for the $3 per kilogram (kg) credit, provided the project helps to prevent the retirement of nuclear reactors. The inclusion of nuclear power has positively impacted various nuclear stocks, with Constellation’s shares rising 4.7%, Vistra’s 8.5% and Oklo’s 25% immediately following the announcement. 

Under the final rules, methane-based hydrogen producers may also qualify for the full credit ($3/kg). 

The final rules have also delayed the deadline for green hydrogen producers to demonstrate that their production is powered by renewables on an hourly basis, rather than annually. The start date to meet the hourly requirement has been pushed back two years from the draft plan to 2030.