New Energy Innovation

Wind and solar may be facing a political and policy squeeze in the U.S., but that’s not the whole story. A new generation of clean, reliable, and flexible energy technologies — linear generators, geothermal, fuel cells, and advanced nuclear — is emerging.

Three forces are converging to create this inflection point:

1. Policy Realignment — The One Big Beautiful Bill is an attempt to dislodge subsidies for solar and wind energy, but hidden within this legislation are long-term incentives for more scalable power sources, including nuclear power and the potential for geothermal and other innovative, long-term energy options. Essentially, it’s an attempt to downplay intermittent energy sources that can be unreliable, such as solar and wind, and seek more scalable, long-term, and reliable power.
2. Market Repricing — Capital is now flowing into these new, innovative, and longer-term energy sources, such as new forms of nuclear energy and geothermal energy. Solar and wind are being repriced, and capital allocations are also putting large projects, such as offshore wind power in the Baltic, at risk. There is a fundamental reset for capital allocations to long-term but consistent power sources.
3. Demand Shock — AI and cloud infrastructure are driving unprecedented new power needs, and Big Tech is emerging as the innovator and buyer of these new innovative technologies and energy approaches. Reliable grid infrastructure and constant supply are critical. Additionally, maintaining a cost-effective supply available to consumers is essential not only for technical but also for political viability.

Early leaders and developers, backed by Amazon and Google, are proving that these technologies are no longer speculative. They are moving toward implementation and scale.

The Shift Beneath the Headlines

An interesting example is Maersk’s logistics hub in Torrance, California. Here are rows of electrified 18-wheelers charging from devices that aren’t tied to the grid. These linear generators are quiet, efficient, and can run on renewable natural gas, hydrogen, or conventional fuels, giving them the agility that diesel or grid-only solutions can’t match. It is a quiet yet startling innovation, and represents the potential for a seismic shift.

This illustrates a turning point in the energy transition. Political developments have been framed as a setback for green energy, but the reality is more nuanced. By trimming subsidies for wind and solar, the law has inadvertently redirected capital and attention toward firm, controllable power — exactly what’s needed to complement the intermittent power generation from wind and solar, and meet the rising demand for consistent, clean, and reliable energy.

Why This Matters

The first two decades of the clean energy build-out were dominated by wind and solar technologies that are low-cost, scalable, and quickly deployable. However, these technologies face diminishing marginal value as penetration increases; adding more intermittent power creates grid instability.

There have been recent examples of surges in power supply leading to economic inefficiencies and disruptive pricing. Additionally, when solar and wind power fail, backup generation can be inefficient, resulting in power outages. This is a critical issue that wind and solar will never solve. Consistent, reliable power is essential.

The second wave of renewable power will be defined not by the cheapest marginal megawatt-hour, but by the most reliable and location-flexible megawatt-hour.

Policy Reorientation

The “Big, Beautiful Bill” is an attempt to reallocate resources to reliable energy sources. It takes incentives away from wind and solar, and it is probably inefficient when it comes to other sources of clean energy. But reliability is key, not just for the future of the electrical grid, but also for artificial intelligence and other advanced technologies, which require essential, consistent, and abundant energy.

It is only these new energy technologies, such as innovative nuclear energy and geothermal energy, that can provide that. The policy shift is hopeful that it will incentivize this investment in transition. This new policy isn’t anti-clean energy — it’s pro-reliability. Geothermal, fuel cells, linear generators, and advanced nuclear technologies all benefit from provisions that create long-term incentives and encourage substantial investment in these technologies.

Market Repricing

After a bruising 2023 for climate tech financing, global equity flows rebounded nearly 60% in 2025. Capital is now moving toward technologies with integration value — assets that enable higher renewable penetration without sacrificing grid stability.

This repricing phase is shaking out weaker players and clearing the field for innovators with scalable business models. Big technology companies with vested interests in scalable artificial intelligence server farms and other hard assets driven by substantial energy use are the primary movers. Now, demand is driving pricing and incentivizing significant investment in new supply for energy and resources.

Demand Shock from AI and Cloud

Data centers — particularly those serving AI workloads — are projected to double their U.S. power consumption by 2030. Big Tech, which helped commoditize wind and solar energy, now requires consistent, abundant, and available power with seamless interconnection.

Amazon and Google are already backing developers to secure nuclear capacity for their campuses. Fuel cells are providing mission-critical power to Oracle’s data operations, and additional investment in nuclear fusion and other unique power sources is being developed and accelerated on an ongoing basis. The enormous balance sheets focused on compressing the timeline and technology development for these new energy sources can lead to spectacular results. But these are still unproven technologies, and the risks remain, regardless of the scale of capital invested.

Now What?

The story is no longer about clean and renewable energy. Solar and wind have their place, but capital investment and policy incentives are now focused on reliable, low-cost, controllable, domestic energy at a time when demand curves are steepening. For the first time in years, the policy, market, and demand signals are aligned in favor of a portfolio of solutions that are testing the edges of technology and development, and were also simply narrow and niche markets. That is no longer the case.

If the 2010s were about scaling wind and solar, the 2020s will be about integrating firm, flexible power into the digital and industrial backbone of the economy.