The US Department of Energy (DOE) announced on Thursday that it is eliminating several of its key offices dedicated to renewable energy, energy efficiency, and clean energy demonstrations, a dramatic shift that signals a return to fossil-fuel and nuclear priorities under the administration of Donald Trump. 

The reorganization removes the Office of Energy Efficiency and Renewable Energy (EERE), which for decades had supported research, development and deployment of technologies such as solar, wind, and energy-efficient buildings and transportation. Also eliminated is the Office of Clean Energy Demonstrations (OCED), created during the previous administration to help scale up clean energy infrastructure. Other agencies affected include the grid-modernization unit and carbon-management offices. 

In their place, DOE has created new divisions, such as an Office of Hydrocarbons and Geothermal Energy, an Office of Fusion Energy, and reorganized the existing loan program under the new name Office of Energy Dominance Financing. The agency claims that these changes will allow it to deliver on a broader “American energy dominance” agenda, aiming to boost fossil-fuel production, prioritize nuclear and other advanced energy technologies, and ensure “affordable, reliable and secure” power for US consumers. 

The shift away from institutional support for renewables in the United States threatens to slow down global innovation, reduce financing flows, and undercut competitive pressure on fossil fuel–led energy strategies.

Despite the potential disruption stemming from the DOE’s realignment, renewable energy development continues to advance globally. The International Energy Agency (IEA) reported earlier this month that renewables remain the fastest-growing source of electricity worldwide, with solar and wind additions outpacing fossil fuel investments under nearly every forecast scenario. 

Still, many expect headwinds ahead, particularly on financing, regulation and cross-border collaboration. The disruption at the US federal level may reduce grant availability, credit lines and support mechanisms for clean energy projects across the Americas. The consolidation of clean-energy offices into non-dedicated “innovation” divisions may also slow the pipeline of large-scale infrastructure deployments such as grid upgrades, storage, and electric-vehicle charging networks, which depend heavily on coordinated public-private efforts. 

In Mexico, where policymakers have recently underscored the importance of renewable energy, efficiency, and grid modernization, the shift in the US energy agenda arrives at a precarious moment. The country faces ambitious goals for clean-energy expansion and investment in modern electricity infrastructure. Observers warn that weakening US leadership on renewables may reduce momentum for regional cooperation and slow down new financing flows, complicating efforts to scale up solar, wind, and storage deployment.

Still, Mexican clean-energy proponents see opportunity. As the US steps back, Mexico may emerge as a more attractive destination for renewable investment and technology diffusion, particularly if its government and private sector reinforce supportive policies, streamlined permitting, and consistent regulatory frameworks, factors that many analysts already argue are essential for accelerating the country’s clean-energy transition.