{"id":142328,"date":"2026-06-11T09:33:33","date_gmt":"2026-06-11T09:33:33","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142328"},"modified":"2026-06-11T11:49:05","modified_gmt":"2026-06-11T11:49:05","slug":"united-states-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/united-states-renewable-energy\/","title":{"rendered":"United States: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142328","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-united-states"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Baker McKenzie LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Baker_McKenzie_500dpi_Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Baker McKenzie LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Baker_McKenzie_500dpi_Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in United States<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The United States has one of the world\u2019s largest and most mature renewable energy industries. Investment in clean energy has accelerated substantially since the enactment of the Inflation Reduction Act of 2022 (IRA), which established, among other incentives, the technology-neutral clean electricity production credit under Section 45Y and the clean electricity investment credit under Section 48E of the Internal Revenue Code, alongside the existing production tax credit (PTC) under Section 45 and the investment tax credit (ITC) under Section 48. These incentives have catalyzed significant new project development across all renewable technologies.<\/p>\n<p>While the One Big Beautiful Bill Act of 2025 (OBBBA) has changed this framework by sunsetting tax incentives for solar and wind energy projects, significant tax incentives continue to exist for other technology types, including battery energy storage, geothermal, renewable natural gas, carbon capture and sequestration, advanced manufacturing, and hydrogen. Additionally, certain frameworks like tax credit transferability and tax credit bonus eligibility (namely domestic content and energy communities\u2019 bonuses) continue to exist under the post-OBBBA incentive framework.<\/p>\n<p>Based on data from the U.S. Energy Information Administration (EIA) for 2025, the approximate U.S. electricity generation mix was 41% natural gas, 18% nuclear, 17% coal, 10% wind, 7% solar, 6% hydropower, and 1% other renewables. Carbon-free sources (nuclear plus renewables) comprised 42% of U.S. energy generation in 2025, and installed renewable capacity across all technologies was approximately 400 GW at the end of 2025.<\/p>\n<p><strong>Main Project Types<\/strong><\/p>\n<p><strong><em>Onshore Wind:<\/em> <\/strong>Wind remains the largest renewable electricity source by generation. The U.S. has approximately 158 GW of installed onshore wind capacity, concentrated primarily in Texas (the single largest wind-producing state), the Midwest, and the Mountain West. Individual utility-scale projects typically range from 100 MW to over 1,000 MW. Texas alone hosts several projects exceeding 600 MW.<\/p>\n<p><strong><em>Solar (Utility-Scale PV and Distributed):<\/em><\/strong> Utility-scale solar photovoltaic (PV) has been the fastest-growing generation source in recent years. Installed capacity neared 150 GW at the end of 2025, an increase of 27 GW from the end of 2024. California, Texas, Florida, and the Southwest lead in installed capacity. Utility-scale projects commonly range from 100 MW to over 700 MW. Large-scale projects in excess of 1 GW (often incorporating co-located battery storage) are increasingly common.<\/p>\n<p><strong><em>Battery Energy Storage:<\/em> <\/strong>Co-located and standalone utility-scale battery storage has expanded dramatically, with the U.S. adding more than 15 GW of new storage capacity in 2025 alone. Storage projects are routinely co-developed with utility-scale solar and wind installations or as standalone systems.<\/p>\n<p><strong><em>Hydropower:<\/em> <\/strong>Conventional hydropower remains a significant baseload renewable source at approximately 80 GW of installed capacity, primarily in the Pacific Northwest (notably the Columbia River system) and the Southeast. New conventional large hydro development is rare, though capacity upgrades and pumped storage are active areas.<\/p>\n<p><strong><em>Offshore Wind:<\/em><\/strong> Offshore wind is at an earlier but rapidly evolving stage. The U.S. offshore wind pipeline is concentrated on the Atlantic coast. The Bureau of Ocean Energy Management (BOEM) has leased significant areas of the Outer Continental Shelf (OCS) for offshore wind development under its authority over renewable energy and alternate uses of existing facilities on the Outer Continental Shelf. The pace of project development has experienced headwinds from supply chain pressures, interest rate increases, and adverse federal policy priorities since early 2025.<\/p>\n<p><strong><em>Other Renewables:<\/em><\/strong> Geothermal energy (3 GW installed, primarily in California, Nevada, and Idaho), biomass, landfill gas, and waste-to-energy projects constitute a smaller but established portion of the renewable portfolio.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While the United States does not have a legally binding federal net zero or carbon reduction target enacted at the federal level, many states have carbon reduction goals and many private sector companies are working toward net zero targets.<\/p>\n<p>Under the Biden administration, the U.S. submitted a nationally determined contribution (NDC) under the Paris Agreement committing to a 50\u201352% reduction in net greenhouse gas (GHG) emissions from 2005 levels by 2030 and net zero emissions economy-wide by 2050. However, these commitments were executive branch policy positions, not statutory obligations, and were not ratified by the Senate as legally binding international obligations.<\/p>\n<p>The most significant legislative action in the direction of emissions reduction is the IRA, enacted on August 16, 2022. The IRA amended the Internal Revenue Code to, among other things, add new technology-neutral clean electricity credits under Section 45 and 45Y and Section 48 and 48E, with implementation guidance issued by the Department of the Treasury and the IRS. The IRA does not, however, establish a specific numeric emissions reduction target or a net zero deadline.<\/p>\n<p>The second Trump administration, beginning in January 2025, issued executive orders directing the withdrawal of the U.S. from the Paris Agreement for a second time and rolling back various Biden-era climate executive orders. As a result, the U.S. no longer has an active NDC submission under the Paris Agreement as of 2026. No new federal statutory framework establishing binding net zero or carbon reduction targets has been enacted to date.<\/p>\n<p>At the state level, many states have enacted legally binding net zero or clean electricity targets into law. According to the National Conference of State Legislatures, thirty states, Washington, D.C., and two territories have active renewable or clean energy requirements, while an additional three states and one territory have set voluntary renewable energy goals. Significant examples include:<\/p>\n<ul>\n<li>California has codified a requirement for 100% clean electricity by 2045 (Cal. Pub. Util. Code \u00a7 454.53).<\/li>\n<li>New York has enacted the Climate Leadership and Community Protection Act (CLCPA), requiring 70% renewable electricity by 2030 and net zero emissions by 2050.<\/li>\n<\/ul>\n<p>Additionally, numerous businesses have taken leadership by setting voluntary targets to reduce the greenhouse gas emissions associated with their business activities and supply chains. Robust frameworks exist to measure and validate corporate sustainability targets, and to facilitate corporate renewable energy purchasing through virtual power purchase agreements and similar arrangements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no single, universal statutory definition of \u201crenewable energy\u201d at the federal level in the United States. Instead, multiple context-specific definitions appear across different federal statutes and regulations, each tailored to the specific program or legal regime in which the term appears.<\/p>\n<p>For purposes of the current tax incentive regime introduced by the IRA and continued by the OBBBA, the relevant concept is not \u201crenewable energy\u201d per se but rather \u201cclean electricity\u201d \u2014 i.e., electricity produced at a facility with a greenhouse gas emissions rate that is not greater than zero grams of CO\u2082 equivalent per kilowatt-hour. This technology-neutral approach, reflected in Sections 45Y and 48E of the Internal Revenue Code, means that any qualifying electricity generation technology \u2014 including but not limited to wind, solar, geothermal, nuclear, and hydropower \u2014 can qualify, provided the applicable GHG emissions rate threshold is met. As noted above, tax credit eligibility for wind and solar projects are being sunset on an accelerated schedule relative to other technology types.<\/p>\n<p>The term \u201crenewable energy\u201d or \u201crenewable energy source\u201d appears in several federal statutes with different definitions depending on the purpose. Additionally, different statutory and regulatory definitions exist at the state level for those with renewable portfolio standards. Practitioners should take care to identify the applicable definition for the specific federal or state program, incentive, or regulatory regime in question, as the operative definition of \u201crenewable energy\u201d will differ depending on the context.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key federal regulatory bodies for renewable energy include:<\/p>\n<p><strong>\u2022 Federal Energy Regulatory Commission (FERC):<\/strong> FERC is the primary independent federal agency responsible for regulating the interstate transmission and sale of electricity, including the operation of the wholesale electricity markets in which renewable generators participate. FERC\u2019s key roles in the renewable energy market include: (i) regulating the interconnection of renewable projects to the interstate grid; (ii) overseeing the tariffs and rules of regional transmission organizations (RTOs) and independent system operators (ISOs) that govern electricity markets; and (iii) licensing hydroelectric facilities. FERC does not set renewable energy targets but is a critical gatekeeper for project development through its interconnection and transmission access authorities. FERC also regulates organized wholesale electric markets, which include RTOs and ISOs.<\/p>\n<p><strong>\u2022 Department of Energy (DOE):<\/strong> The DOE plays a central role in renewable energy policy, funding research and development through its national laboratories (including the National Renewable Energy Laboratory (NREL)), administering loan guarantee programs for innovative clean energy projects, and providing data and analysis through the Energy Information Administration (EIA). The EIA publishes energy generation and emissions data relied upon by Treasury\/IRS for administering the clean electricity tax credit regime.<\/p>\n<p><strong>\u2022 Department of the Treasury \/ Internal Revenue Service (IRS):<\/strong> The Department of the Treasury and the IRS are responsible for implementing the clean energy tax credit provisions of the IRA, including issuing proposed and final regulations governing Sections 45Y and 48E. Treasury and IRS determine which facilities qualify for the technology-neutral clean electricity credits based on published GHG emissions rate tables and petition processes. This makes them among the most practically significant federal actors for renewable energy project developers and investors.<\/p>\n<p><strong>\u2022 Environmental Protection Agency (EPA):<\/strong> The EPA plays an important supporting role in the renewable energy regulatory framework through its GHG reporting program, its administration of emissions standards relevant to conventional fossil fuel generation (which, in turn, affects the relative economics of renewables), and its role in environmental permitting of renewable energy projects.<\/p>\n<p><strong>\u2022 State Public Utility Commissions (PUCs) and State Energy Agencies:<\/strong> Given the significant role of state law in regulating retail electricity markets and the absence of a federal renewable portfolio standard (RPS), state-level PUCs and energy agencies are extremely influential. States such as California, New York, Texas, and Illinois have established binding RPS requirements and other programs that shape renewable development within their borders.<\/p>\n<p>Additionally, as discussed in our responses to other questions, private sector players are leading the renewable energy transition by developing, financing, and purchasing the output from renewable energy projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Businesses in the United States access renewable energy through different structures, including green power programs, direct power purchase agreements, \u201cvirtual\u201d power purchase agreements (VPPAs), on-site solar installations, and projects combining renewable generation with battery energy storage.<\/p>\n<p>Businesses are increasingly seeking renewable energy not only for carbon-reduction commitments, but also to secure long-term electricity supply in a market where power demand is rising rapidly. In many cases, companies are pursuing dedicated or near-dedicated renewable generation capacity to support expanding operational needs while also meeting internal decarbonization targets.<\/p>\n<p>The structure selected often depends on whether the relevant state has a regulated electricity market or a competitive retail electricity market. In states with vertically integrated utilities (such as Florida or Georgia), corporate customers may have fewer opportunities to contract directly for renewable electricity and may instead rely more heavily on utility-sponsored renewable programs or bilateral arrangements approved by state utility regulators. By contrast, competitive electricity markets in states such as Texas or Illinois generally provide greater flexibility for direct renewable procurement structures and financial hedging arrangements.<\/p>\n<p>The simplest approach is usually to purchase renewable energy certificates (RECs) through a utility or electricity supplier. These arrangements are easier to implement because the customer generally does not need to own generation assets or negotiate directly with a project developer. They are particularly common among commercial and industrial customers seeking a relatively straightforward mechanism to reduce emissions associated with electricity consumption.<\/p>\n<p>Larger corporate customers continue to use long-term power purchase agreements, particularly financial or \u201cvirtual\u201d power purchase agreements. These arrangements are especially common among technology companies, manufacturers and large energy consumers with operations in multiple states. Financial power purchase agreements allow businesses to support renewable generation projects and obtain renewable energy certificates without physically taking delivery of electricity from a particular project.<\/p>\n<p>While these structures can provide long-term electricity price predictability and support the development of new renewable generation capacity, they are more complex to implement because they require sophisticated contractual arrangements and careful consideration of electricity market rules, accounting treatment, transmission constraints and credit support requirements.<\/p>\n<p>Another increasingly important model is on-site generation, particularly rooftop solar installations combined with battery energy storage systems. This approach can reduce dependence on the electric grid and improve resilience during periods of grid instability or high electricity prices. However, implementation depends heavily on state-level rules governing interconnection to the grid, net metering and local permitting requirements.<\/p>\n<p>Hydrogen projects, renewable natural gas, carbon capture projects and other emerging technologies are also attracting significant interest, although these sectors remain comparatively less mature and are generally more dependent on evolving regulatory frameworks and government incentives.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The business approach has evolved over the past year. While environmental, social and governance considerations remain relevant, companies are increasingly focused on more immediate factors such as rising electricity demand, reliability, price volatility, transmission constraints and uncertainty around tax incentives.<\/p>\n<p>As a result, renewable energy procurement is being considered not only as a sustainability initiative but also as part of broader energy security and infrastructure planning, particularly for sectors experiencing significant growth in electricity demand, such as artificial intelligence, cloud computing, advanced manufacturing and data centers.<\/p>\n<p>At the same time, solar generation and battery storage have continued to expand, with storage playing a growing role in supporting grid reliability and helping to manage intermittency. However, these developments are occurring alongside ongoing challenges in transmission infrastructure and interconnection, which in many cases continue to affect project timing, costs and overall feasibility.<\/p>\n<p>The regulatory and incentive landscape also remains in flux. Although the Inflation Reduction Act continues to provide significant support, businesses and investors are paying closer attention to compliance requirements, timing considerations and potential changes in policy. Financing structures are evolving in parallel, with increased use of transferability and hybrid approaches alongside traditional tax equity.<\/p>\n<p>Businesses and investors are also paying closer attention to geographic differences among U.S. electricity markets. Certain regions continue to experience strong renewable energy growth and supportive state-level policies, while others are prioritizing grid reliability, dispatchable generation and energy affordability. As a result, renewable energy investment decisions in the United States increasingly require a state-by-state and market-by-market analysis rather than a purely federal assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Discussions regarding carbon emissions reduction and energy efficiency remain highly visible and relatively mature within the U.S. business community, particularly among large public companies, financial institutions, infrastructure investors and multinational corporations.<\/p>\n<p>Many businesses now integrate carbon reduction strategies into broader operational, financing and risk management decisions. Corporate customers increasingly assess electricity sourcing, supply chain emissions, building efficiency and long-term energy resilience as part of their overall strategic planning.<\/p>\n<p>The U.S. regulatory framework remains highly fragmented, with energy policy shaped at the federal, state and local levels. As a result, the level of political and regulatory support for decarbonization varies significantly across jurisdictions, and businesses operating nationally must navigate differing regulatory requirements, incentives and permitting regimes depending on project location.<\/p>\n<p>At the federal level, support for clean energy continues primarily through tax incentives, grant programs, loan mechanisms and industrial policy initiatives aimed at encouraging domestic manufacturing and infrastructure investment. Federal agencies also continue to support transmission development, grid modernization and industrial decarbonization efforts. However, the policy environment has become less predictable, prompting developers and investors to focus more closely on eligibility requirements, timing considerations and compliance risks, including domestic content rules and restrictions relating to certain foreign entities.<\/p>\n<p>At the state level, policy approaches differ significantly. Some states maintain ambitious renewable energy and emissions-reduction targets supported by renewable portfolio standards, energy efficiency mandates, electrification initiatives and greenhouse gas reduction programs. Other states place greater emphasis on energy affordability, grid reliability, traditional generation resources or energy independence. As a result, the regulatory landscape remains highly decentralized, and project economics can vary substantially depending on location.<\/p>\n<p>Public discourse around environmental, social and governance initiatives has also become more politicized in certain jurisdictions. In response, some businesses are increasingly framing renewable energy procurement not only in terms of sustainability, but also as a means of securing reliable power supply, managing long-term energy costs and enhancing operational resilience.<\/p>\n<p>Energy efficiency continues to receive relatively broad and consistent support across jurisdictions, as it is widely viewed as one of the most cost-effective ways to reduce energy consumption and manage demand. Utility-administered programs, building performance standards and incentives for efficient technologies remain common features of the regulatory landscape.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the United States, there is no centralized permitting regime for renewable energy and related infrastructure projects. Depending on the project type and location, approvals may be required from federal agencies, state public utility commissions, independent system operators or regional transmission organizations (ISOs\/RTOs), local zoning authorities, environmental regulators and, where applicable, tribal authorities. As a result, development timelines and regulatory risk profiles vary significantly across jurisdictions.<\/p>\n<p>In general, developers must secure rights relating to land access, environmental permitting, construction approvals and interconnection to the electric grid (or, for certain technologies, pipeline or transport infrastructure) before a project can be developed and operated. Land rights are typically obtained through leases, easements, rights-of-way or fee ownership, negotiated with private landowners or governmental entities. Projects on federal lands (e.g., in the western United States) may require additional leasing and permitting from agencies such as the Bureau of Land Management.<\/p>\n<p>Environmental requirements may apply under federal, state and local law, particularly for projects affecting wetlands, endangered species, water resources, cultural resources or federal and tribal lands. Federal review under statutes such as the National Environmental Policy Act may be required for projects involving federal permits, funding or land. Local permitting also plays a significant role, particularly for utility-scale solar, onshore wind and transmission infrastructure, where zoning restrictions and community opposition can materially affect project development.<\/p>\n<p>Interconnection rights are a critical component of project development and financing. Developers must typically apply to connect to the transmission or distribution system through the relevant ISO\/RTO or utility and complete engineering and system impact studies before interconnection rights are granted.<\/p>\n<p>The regulatory framework varies meaningfully depending on the energy source and associated infrastructure:<\/p>\n<p><strong>\u2022 Solar and onshore wind projects:<\/strong> Solar and onshore wind projects are generally regulated primarily at the state and local level and are generally more standardized from a permitting perspective, although local zoning restrictions and local opposition can create delays.<\/p>\n<p><strong>\u2022 Battery energy storage systems:<\/strong> Battery energy storage systems are developed either as standalone projects or together with renewable generation facilities. Regulatory treatment varies by state and market rules, particularly regarding market participation, interconnection procedures and fire-safety requirements.<\/p>\n<p><strong>\u2022 Carbon capture and sequestration projects:<\/strong> Carbon capture and sequestration projects involve overlapping federal and state regulation relating to emissions, underground injection wells, environmental permitting and long-term storage of captured carbon dioxide. Regulatory frameworks in this sector continue to evolve as the industry develops.<\/p>\n<p><strong>\u2022 Hydrogen projects:<\/strong> Hydrogen projects operate within a developing regulatory framework that depends on the method of production, as well as transportation and storage arrangements (including pipeline regulation and safety standards). Projects are often structured to align with federal tax incentives and emerging regulatory guidance.<\/p>\n<p><strong>\u2022 Geothermal projects:<\/strong> Geothermal projects may require additional permitting relating to subsurface resource rights, drilling activities and water usage, and are sometimes regulated similarly to oil and gas development in certain jurisdictions.<\/p>\n<p><strong>\u2022 Hydropower projects:<\/strong> Hydropower projects are subject to extensive federal regulation. The Federal Energy Regulatory Commission generally licenses non-federal hydropower projects and oversees long-term operational compliance requirements.<\/p>\n<p><strong>\u2022 Offshore wind projects:<\/strong> Offshore wind projects involve significantly greater federal oversight because projects are generally located in federal waters. The Bureau of Ocean Energy Management is the principal federal agency responsible for offshore leasing. Offshore projects typically require multiple federal approvals relating to environmental review, maritime impacts, transmission and construction activities.<\/p>\n<p><strong>\u2022 Biomass, biogas and biomethane projects:<\/strong> Biomass, biogas and renewable natural gas (biomethane) projects are often regulated similarly to waste management, agricultural, or gas infrastructure projects, with additional pipeline interconnection considerations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the U.S. government is directly involved, principally as a regulator, landowner, subsidizer, purchaser, and auctioneer, however, the federal government is not involved as a direct owner or operator of national renewable energy companies and there are no plans to do so pursuant to any serious federal policy.<\/p>\n<p>The federal government participates by providing:<\/p>\n<ul>\n<li>Tax Credits<\/li>\n<li>Loan Guarantees<\/li>\n<li>Grants<\/li>\n<li>Federal Land Leasing<\/li>\n<li>Grid and Transmission Approvals<\/li>\n<li>Federal Procurement of Clean Electricity<\/li>\n<li>Research Funding through DOE and National Labs<\/li>\n<\/ul>\n<p>Outside of the federal government there is some movement at the state level towards implementing publicly owned power generation companies (e.g. the New York Power Authority pursuant to the \u201cBuild Public Renewables Act\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewables in the U.S. are governed by a mix of:<\/p>\n<ul>\n<li>Federal legislation;<\/li>\n<li>Environmental, energy, and tax regulation; and<\/li>\n<li>State legislation<\/li>\n<\/ul>\n<p>At the federal level, various administrative agencies have overlapping roles in the renewables sector. These include the Department of Energy (DOE), the Treasury\/IRS, the Federal Energy Regulatory Commission (FERC), the Environmental Protection Agency (EPA), and the Department of the Interior.<\/p>\n<p>Major legislation includes:<\/p>\n<ul>\n<li><strong>Inflation Reduction Act:<\/strong><br \/>\no The single most important renewable energy law.<br \/>\no Secures enduring tax incentives in the form of tax credits for clean energy production and investment.<br \/>\no Establishes transferability to effectively monetize tax credits.<br \/>\no Allows for tax-exempt organizations to participate in tax incentivized projects through a direct-pay option.<\/li>\n<li><strong>Infrastructure Investment and Jobs Act:<\/strong><br \/>\no Focuses on transmission infrastructure, grid modernization, EV charging, hydrogen hubs, battery supply chains, and resilience.<\/li>\n<li><strong>National Environmental Policy Act:<\/strong><br \/>\no Requires large energy projects on or through federal land to undergo environmental review through environmental assessments and environmental impact statements prior to receiving federal approval.<\/li>\n<li><strong>Federal Power Act:<\/strong><br \/>\no Establishes the Federal Power Commission (FPC) (now the Federal Energy Regulatory Commission, FERC) giving it authority over interstate transmission, wholesale power markets, transmission planning, and grid reliability.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the United States has extensive federal and state incentives programs promoting renewable energy. The primary federal incentives are tax-based and were significantly expanded by the Inflation Reduction Act. The federal government does not use typical European-style Contracts for Difference.<\/p>\n<p>Key incentives include:<\/p>\n<p><strong>\u2022 Production Tax Credit (PTC):<\/strong> a per-kWh tax credit for electricity generated by qualifying renewable energy projects (wind, solar, geothermal, etc)<\/p>\n<p><strong>\u2022 Investment Tax Credit (ITC):<\/strong> percentage-based tax credit tied to upfront project costs associated with the development and construction of qualifying renewable energy projects<\/p>\n<p><strong>\u2022 Accelerated Depreciation (MACRS):<\/strong> allows renewable energy assets to be depreciated more quickly for tax purposes accelerating the availability of deductions for same<\/p>\n<p><strong>\u2022 DOE loan guarantees and grants:<\/strong> federal financing support for large-scale energy and infrastructure projects<\/p>\n<p><strong>\u2022 State-level incentives:<\/strong> renewable energy credits (RECs), property tax abatements, sales tax exemptions, and long-term utility procurement contracts<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under U.S. federal and state law, the price of renewable energy itself is not legally linked to natural gas prices. Renewable generators sell power under their own contracts, tariffs, or competitive bids \u2014 not at prices indexed to gas. The broader correlation between electricity prices and gas prices arises from wholesale market mechanics, not from any statutory or regulatory requirement. That said, there is no active federal initiative to reform those market mechanics. The practical path toward reducing gas\u2019s influence lies in the continued buildout of renewables and storage, which organically displace gas as the marginal price-setter during more hours of the day.<\/p>\n<p>On coal, the trend toward planned retirements has been substantially reversed at the federal level. Of the 8.5 GW of coal capacity scheduled for retirement in 2025, only 2.6 GW was actually taken offline \u2014 the lowest annual figure since 2010 \u2014 as DOE emergency orders under Section 202(c) of the Federal Power Act compelled multiple plants to remain operational. At least five coal plants had retirements pushed back or delayed indefinitely since May 2025, driven by surging electricity demand from AI data centers and by DOE orders justified on grid reliability grounds.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The biggest barriers in the United States today are generally not technological, but rather permitting, transmission, financing, and regulatory complexity issues.<\/p>\n<p>Key barriers affecting the renewables industry itself include:<\/p>\n<ul>\n<li>Permitting and environmental review delays (federal, state, and local), especially under NEPA and related litigation.<\/li>\n<li>Transmission constraints and interconnection queues \u2014 many projects wait years to connect to the grid.<\/li>\n<li>Local opposition and siting disputes involving land use, wildlife, fisheries, visual impacts, and noise concerns.<\/li>\n<li>Supply-chain and trade restrictions, including tariffs and customs scrutiny affecting solar equipment and batteries.<\/li>\n<li>Policy uncertainty regarding future tax-credit availability, Treasury guidance, and changes between administrations.<\/li>\n<li>Domestic-content and labor requirements tied to IRA incentives, which can increase costs and compliance burdens.<\/li>\n<li>Foreign investment scrutiny, particularly through CFIUS and national-security review for Chinese or sensitive infrastructure involvement.<\/li>\n<li>Power-price volatility and merchant risk in deregulated markets.<\/li>\n<li>Counterparty credit risk in long-term power purchase agreements (PPAs), especially with smaller corporate buyers.<\/li>\n<\/ul>\n<p>Key barriers affecting businesses seeking renewable energy access include:<\/p>\n<ul>\n<li>Limited transmission capacity in high-demand regions.<\/li>\n<li>Utility and regulatory restrictions in vertically integrated states where direct renewable procurement is harder.<\/li>\n<li>Complexity of PPAs and virtual PPAs, including accounting, collateral, and basis-risk issues.<\/li>\n<li>Interconnection and electrification delays for large industrial or data center loads.<\/li>\n<li>Insufficient firm clean power (storage, transmission, dispatchable generation) for 24\/7 reliability needs.<\/li>\n<li>Fragmented state regulation, meaning rules differ substantially across U.S. markets.<\/li>\n<li>Lengthy development timelines, making renewable supply difficult to secure quickly for large-scale operations.<\/li>\n<\/ul>\n<p>More broadly, the U.S. system is highly decentralized. Projects often require approvals from multiple federal agencies, states, utilities, regional transmission operators, and local governments simultaneously. As a result, even where capital and demand exist, execution risk and timing uncertainty remain among the industry\u2019s largest practical constraints.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The following suite of interrelated project agreements allocating construction, offtake, and financing risk is customary for a new-build renewable energy project:<\/p>\n<ul>\n<li>Interconnection agreements with the relevant transmission provider and, where applicable, shared facilities agreements;<\/li>\n<li>power purchase agreements (PPA), tolling agreement, or alternative offtake arrangement (such as corporate PPAs that are financially settled, various types of merchant exposure hedges);<\/li>\n<li>an engineering, procurement and construction (EPC) agreement for the balance of plant;<\/li>\n<li>key equipment supply agreements and service agreements (e.g., for turbines, solar modules, inverters, transformers or batteries (where the project includes energy storage component));<\/li>\n<li>an operations and maintenance (O&amp;M) agreement.<\/li>\n<\/ul>\n<p>From a financing perspective, projects will also include credit agreements, security documents and, in tax equity structures, partnership or lease agreements (such as partnership flip structures), together with tax credit transfer agreements in tax equity hybrid structures and on a standalone basis where sponsors elect not to utilize tax equity structures, and cash equity (preferred or common) JV agreements. Additional contracts may include land leases, easements, interest rate hedges and ancillary services and capacity agreements in markets with capacity revenue streams.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The United States generally does not restrict the import or export of electricity itself in the renewables sector, but it increasingly regulates the supply chain, ownership, sourcing, and eligibility for subsidies tied to renewable-energy projects.<\/p>\n<p>Key U.S. domestic-content and foreign-entity restrictions include:<\/p>\n<ul>\n<li>IRA domestic-content rules: enhanced tax credits are available if projects use specified percentages of U.S.-manufactured steel, iron, and manufactured products.<\/li>\n<li>Foreign Entity of Concern (FEOC) restrictions: projects using certain Chinese-, Russian-, Iranian-, or North Korean-linked components or ownership structures may lose eligibility for key clean-energy tax credits.<\/li>\n<li>Tariffs and trade measures affecting imported solar panels, batteries, and critical minerals.<\/li>\n<li>CFIUS and national-security review for foreign acquisitions or investments involving sensitive energy infrastructure.<\/li>\n<li>Buy America \/ Buy American requirements attached to federally funded infrastructure and DOE-supported projects.<\/li>\n<li>Critical mineral sourcing rules for EV batteries and related clean-energy supply chains.<\/li>\n<\/ul>\n<p>The practical impact of the FEOC regime is expected to be substantial. The rules are accelerating:<\/p>\n<ul>\n<li>diversification away from Chinese supply chains,<\/li>\n<li>\u201cally-shoring\u201d of manufacturing,<\/li>\n<li>and increased domestic U.S. clean-tech production,<\/li>\n<\/ul>\n<p>but they are also expected to increase project costs, compliance burdens, diligence requirements, and supply-chain complexity in the near term. Developers, lenders, and tax-equity investors are now scrutinizing upstream ownership and component sourcing much more aggressively.<\/p>\n<p>The EU\u2019s Net-Zero Industry Act (NZIA) is not directly applicable in the United States, but it is influencing U.S. policy and markets indirectly by intensifying global competition for clean-tech manufacturing. The NZIA aims to expand EU domestic production, accelerate permitting, and reduce reliance on Chinese supply chains. Its likely effect in the U.S. is to reinforce existing trends toward industrial policy, localization, supply-chain security, and subsidy competition between the U.S., EU, and China for renewable-energy manufacturing investment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>U.S. renewable energy deployment has faced a complex set of challenges over the past year, though the underlying fundamentals remain resilient. Elevated interest rates have increased financing costs for capital-intensive projects, while Middle East tensions and energy price volatility have had limited direct structural impact. Solar and wind remain cost-competitive in most regions, with strong corporate demand from hyperscale data center operators continuing to anchor the market.<\/p>\n<p>The most significant policy development was the enactment of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which compressed the eligibility window for clean electricity tax credits under Sections 45Y and 48E for wind and solar. Projects must either begin construction by July 4, 2026, or be placed in service by December 31, 2027 \u2014 creating a dynamic that has driven a near-term surge in development activity. Energy storage fares considerably better: the Section 48E credit for non-wind and non-solar technologies does not begin phasing out until after 2033. New Foreign Entity of Concern restrictions on supply chain links to China, Russia, Iran, and North Korea add compliance complexity while accelerating domestic manufacturing investment.<\/p>\n<p>On trade, antidumping and countervailing duties on solar imports from Vietnam, Malaysia, Thailand, and Cambodia \u2014 where U.S. Commerce found manufacturers had been routing Chinese government subsidies through their facilities \u2014 have raised module costs substantially. These measures sit on top of existing tariffs and the reciprocal tariffs introduced in April 2025, with separate investigations now underway targeting India, Laos, and Indonesia. The Section 45X domestic manufacturing credit is working in the opposite direction, incentivizing U.S. production of solar modules and battery cells and pointing toward a more self-sufficient supply chain over time.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The United States is experiencing one of the most active periods of energy project development in its history, driven by AI electricity demand, a major LNG export expansion, and record renewable and battery storage deployment.<\/p>\n<p>The hyperscaler data center buildout is the dominant force reshaping energy markets. U.S. data centers have collectively procured more than 80 GW of clean energy, with combined capital expenditure from the major hyperscalers for 2026 projected to exceed $600 billion, with the majority directed at AI infrastructure. One illustration is Constellation Energy\u2019s reactivation of the 835 MW Crane Clean Energy Center (formerly Three Mile Island Unit 1), backed by a $1 billion DOE loan and a 20-year offtake agreement with Microsoft.<\/p>\n<p>On LNG, the U.S. entered 2026 as the world\u2019s largest exporter and new capacity continues to come online.<\/p>\n<p>On renewables, a record 86 GW of utility-scale capacity is planned for 2026, led by solar at just over half of additions, followed by battery storage and wind. Texas dominates the buildout \u2014 hosting around two-fifths of new solar capacity and more than half of planned battery storage additions \u2014 with annual solar generation in the ERCOT grid forecast to exceed coal for the first time. Storage deployment is also expanding into PJM, the Southeast, and the Midwest, driven by reserve margin pressure and data center load growth.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. market has seen rapid growth of battery energy storage systems (BESS) projects, with business models evolving to capture multiple value streams, including energy arbitrage through tolling agreements, capacity and ancillary services payments and upside revenue sharing with corporate offtakers through storage energy services agreements. Developers are deploying both standalone storage projects and adding co-located BESS to operating renewable projects (typically solar-plus-storage), with co-location allowing enhanced grid utilization and improved project economics. While precise percentages vary by region, recent transaction activity suggests a roughly balanced mix, with co-located solar-plus-storage representing a significant and growing share of new utility-scale developments, particularly in ISO markets such as CAISO and ERCOT.<\/p>\n<p>These evolving models are driving greater complexity in financing structures, primarily from diligence perspective, including an increased emphasis on appropriate interconnection rights. Lenders and tax equity investors are placing increased emphasis on revenue stacking assumptions, dispatch risk, and viability of offtake structures (including a mix of tolling agreements, standalone PPAs, or hybrid PPAs). Co-located projects introduce additional structuring considerations, such as allocation of investment tax credits (including standalone storage ITC eligibility under the Inflation Reduction Act), operational integration risk, and the potential combination of investment tax credits and production tax credits within a single project, requiring a separate evaluation of the production tax credits risk profile where the BESS system can charge both from the co-located renewable project and from the grid.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Confidence in emerging sectors such as offshore wind and hydrogen in the United States depends on a combination of regulatory and policy clarity and long-term consistency, stable long-term incentive regimes and build-out of enabling infrastructure. For offshore wind, long-term transmission infrastructure planning and implementation also play a critical role in underpinning bankability.<\/p>\n<p>In both sectors, certainty around supply chain availability and interconnection processes is key. Finally, these emerging sectors require confidence that they can stay competitive and economically viable in a growing energy demand environment, irrespective of the availability of government support schemes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Renewable energy projects in the United States are most commonly financed using a combination of project finance debt and tax equity, sometimes supplemented by investments from cash equity investors. Tax equity is a distinctive feature of the U.S. market, allowing investors to monetize federal tax incentives (such as investment tax credits (ITC) and production tax credits (PTC)) through structures such as partnership flips. These structures are typically paired with non-recourse or limited recourse project finance debt provided by commercial banks and institutional lenders which term converts to back leverage debt at commercial operation date of a project. Larger sponsors are also able to add on preferred or common cash equity investors on top of the project\u2019s capital stack.<\/p>\n<p>In addition to traditional tax equity structures, the Inflation Reduction Act has introduced transferability of tax credits, allowing developers to sell tax credits directly for cash. This has broadened the investor base, adding large corporates implementing large-scale programs to acquire tax credits, and introduced greater flexibility in capital structuring. Projects may also incorporate hybrid tax equity structures where sponsors are able to monetize depreciation benefits and a portion of tax credits through tax equity investors who would then require that remaining tax credits are sold on the open market. In some cases, there may be available certain capital markets solutions such as green bonds or securitizations, particularly for operating portfolios.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The surge in electricity demand from AI data centers is placing the U.S. grid under pressures that existing regulation was not built to manage. U.S. data centers drove a 22% power demand increase in 2025, with demand projected to nearly triple by 2030. The impact is most acute in PJM, the grid serving approximately 67 million customers across 13 Mid-Atlantic and Midwest states.<\/p>\n<p>A central pressure point is interconnection delay. Hyperscalers have responded by pursuing co-location strategies \u2014 siting data centers directly adjacent to power plants and taking power behind the meter \u2014 to bypass transmission queues, raising questions about whether grid upgrade costs are being fairly allocated rather than shifted onto residential and small business ratepayers.<\/p>\n<p>The Federal Energy Regulatory Commission (FERC) has moved to address both issues simultaneously. In December 2025, FERC directed PJM to develop new rules on a compressed timeline \u2014 including revised behind-the-meter generation rules designed to ensure large loads bear their share of network upgrade and ancillary service costs. While the order formally applies only to PJM, it is widely expected to set a national precedent. Separately, the Department of Energy asked FERC to consider an Advance Notice of Proposed Rulemaking (ANOPR) for the interconnection of retail loads greater than 20 MW connecting directly to the transmission system as federal \u2014 rather than state \u2014 jurisdictional assets. FERC has indicated that it will take action on this topic in 2026, though it is expected to occur after this article is published.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6976<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}