Jigar Shah, the energy loan chief for the Biden administration, has overseen the allocation of billions of dollars in loans to renewable‑energy companies since the programme was created in 2005. The Department of Energy’s loan programme, which finances solar farms, wind farms, advanced biofuels and nuclear power, is now at the centre of a growing anxiety among green‑energy executives.
Uncertainty over future federal funding – which is set each year through the appropriations process – has left many companies “nervous and confused”, according to industry leaders. Some firms that received loans during the Biden era are already weighing the prospect of moving part or all of their operations outside the United States.
European outreach intensifies
Bloomberg reports that Shah is meeting officials in Brussels to discuss how the European Union can absorb firms that fear a cut‑back in US support. European officials have been urged to act swiftly, with one source saying they “need to be quick about it”. The EU’s own climate agenda – the European Green Deal – together with funding programmes such as Horizon Europe and financing from the European Investment Bank, is being presented as a ready alternative for companies seeking stable, long‑term support.
Plug Power exemplifies the dilemma. The company secured a $1.6 billion federal loan guarantee in the final week of the Biden administration, but has since announced layoffs of more than 200 workers in New York, citing “economic” reasons. Chief executive Andy Marsh said the firm will now turn its focus to the European market, pointing to the EU Green Deal and the UK Energy Act as evidence of an “opportunity funnel worth over $21 billion”. Plug Power is still attempting to receive the $1.6 billion guarantee from the Department of Energy.
Other borrowers face similar predicaments. Battery maker Li‑Cycle received a $375 million loan in November 2024 but halted operations in May. Solar provider Sunnova was approved for a $3 billion loan guarantee and is reported to be close to bankruptcy. Energy Secretary Chris Wright has warned that some loans may be cancelled, stressing that funding must “make life for the American people better”.
The Department of Energy’s loan programme has been praised for fostering new energy technologies, yet it has also attracted criticism for limited transparency and accountability. With funding determined by annual appropriations, companies that depend on the programme face an environment of uncertainty that is now prompting a potential exodus to Europe.
Should the United States curtail its loan commitments, the EU’s existing mechanisms – from the Green Deal to Horizon Europe and the European Investment Bank’s financing schemes – could provide a lifeline for firms seeking to continue developing renewable‑energy projects without the risk of sudden funding loss.