The U.S. Department of Energy moved to de-obligate or revise billions in financing for clean energy projects while prioritizing natural gas and nuclear power.
The U.S. Department of Energy (DOE) announced it will restructure or eliminate $83.6 billion in loans and conditional commitments, shifting focus away from renewable energy sources like solar and wind in favor of baseload power like gas and nuclear.
Along with this action the DOE has renamed the loaning organization, the Loans Programs Office to the Office of Energy Dominance Financing (EDF).
The action follows a review of the Biden administrations $104 billion principal loan obligations, “including approximately $85 billion rushed out the door in the final months after Election Day,” said a press statement from DOE.
The department stated that nearly $30 billion has been or is being de-obligated, while an additional $53.6 billion is undergoing revision.
According to the department, approximately $9.5 billion in subsidies for wind and solar projects were eliminated. These funds are being redirected toward baseload energy sources, including natural gas, nuclear power, and coal-fired facilities.
The agency said that the changes are intended to prioritize grid reliability and lower electricity costs for consumers.
