Electricity represents just 21 percent of total global energy use, with fossil fuels and other sources filling the gaps to keep societies running, though their dominance is expected to fade regardless of circumstances. According to the International Energy Agency, the proportion of energy from electricity could rise to twice that level over the coming ten years. Well-known factors like widespread electrification, the rise of electric vehicles, expanding data centers, and artificial intelligence advancements are pushing the globe to ramp up electricity production, distribution, and storage capabilities significantly. Unfortunately, global infrastructure falls far short of meeting this explosive growth in requirements.
Throughout the year, the United States has pursued initiatives to boost its internal energy output substantially. A key aspect involves signaling a renewed commitment to nuclear energy not seen in decades. In January, an executive order called Unleashing American Energy directed authorities to dismantle barriers and standards tied to electricity production. While the main emphasis was on dismantling environmental restrictions that hinder oil, natural gas, and coal extraction, it also cleared obstacles for developing fresh nuclear facilities. Later, in May, another directive expressed intent to promote the rollout of cutting-edge nuclear systems.
As leaders in the AI revolution, major technology firms have pursued notable agreements to secure additional electricity supply. Meta entered a 20-year agreement with Constellation to control the energy from the Clinton Power Station, maintaining the 1.1-gigawatt plant after its state incentives end next year. Microsoft secured a similar 20-year arrangement with Constellation for the output from reactor 1 at Three Mile Island, rebranded as the Crane Clean Energy Center. On November 18, the Department of Energy supported this initiative with a $1 billion loan approval. Beyond tech giants' involvement, efforts continue to revive idle reactors, such as the Palisades facility in Michigan. This year, the Department of Energy provided a $1.52 billion loan to restart the 800-megawatt site.
Technology powerhouses are also investing in emerging nuclear ventures aimed at constructing innovative reactor designs. For example, Google has supported Kairos Power's initiative to develop multiple compact, modular units. Amazon, on the other hand, has funded X-Energy and outlined its strategy for a project in Washington State.
The renewed interest in nuclear energy extends beyond the United States, with various nations expanding their capacities. The World Nuclear Association reports 70 reactors in progress across 15 countries. Nations including Russia, India, Argentina, Turkey, South Korea, Japan, and Brazil are among those advancing new projects.
China leads with 33 reactors currently in development and approved 10 additional ones in April, as noted by the Nuclear Business Platform earlier this year. The report highlights how China's approach of constructing several units simultaneously has drastically reduced expenses. In contrast to the UK's Hinkley Point project, where two reactors exceed $60 billion in costs, each Chinese reactor is projected at $2.7 billion.
Developing a nuclear power plant involves a lengthy timeline, often spanning nearly a decade for construction alone, plus extra years for essential approvals before groundbreaking. As a result, any substantial transformation in the US energy infrastructure will unfold over decades, not short periods. This raises doubts that the current nuclear focus might obscure efforts to expand fossil fuel production.
One significant outcome of the Big, Beautiful Bill was the removal of incentives for the American solar sector. As covered in July, this legislation has undermined local solar panel production, allowing China to solidify its lead in renewables. Complementing this, the US Department of Energy established a $625 million program to rejuvenate the coal sector and reactivate outdated plants. Additionally, it has issued deals to enhance the nation's strategic oil reserves.
In September, Energy Secretary Chris Wright told BBC News that concerns over fossil fuel mining were unfounded, predicting fusion energy would integrate into the grid within ten years. A former head of fracking firm Liberty Energy, Wright faced criticism from climate specialists for issuing a document full of inaccurate or deceptive claims. Likewise, on November 20, the Department of Energy reorganized its structure, dissolving units focused on renewables and efficiency while creating the Office of Fusion.
Although the US has weakened its solar manufacturing base, the broader push for renewables persists. The International Energy Agency forecasted in October that renewable sources would expand by 4.6 terawatts by 2030, matching the total output capacity of China, the European Union, and Japan together. Solar is anticipated to account for 77 percent of this increase, even amid subsidy cuts in the US and challenging conditions in China.
Policy decisions have led to a notable reduction in US projections for domestic energy growth. Nevertheless, solar's advantages endure, including its status as the quickest and most economical method for adding capacity in numerous locations, suitable for both large-scale grids and standalone setups. It also proves valuable in isolated regions lacking robust energy supplies, helping to lessen reliance on fossil fuels. This year, the clean energy organization Ember documented solar's progress, noting its contribution to global electricity rose from 1 percent in 2015 to 8.8 percent in the first half of 2025.
Rob Gardner, vice president of the Solar Manufacturers for America Coalition, stated that AI's electricity requirements are propelling US solar development. He explained that AI projects require rapid power additions to achieve anticipated profits, and American solar offers the swiftest and least expensive option. Gardner referenced a recent Federal Energy Regulatory Commission projection estimating 92.6 gigawatts of solar capacity coming online by July 2028.
The United States is placing considerable reliance on fusion energy to offset historical dependence on fossil fuels. This year, the Department of Energy unveiled a strategy to transition fusion from research to practical application. It aims to align federal efforts to address key deficiencies in scientific knowledge, materials, and technologies. Over the next three years, priorities include planning reactor sites and identifying fuel supplies. By the end of the decade, the goal is to establish major fuel processing facilities to support private fusion operations.
Should fusion become viable, it promises benefits similar to nuclear fission but with reduced drawbacks. Whereas fission extracts energy by splitting atomic nuclei, fusion does so by combining light atoms into heavier ones, mimicking the sun's core where intense heat fuses hydrogen into helium. Fusion involves radioactive elements, but deuterium and tritium can be derived from water and lithium.
The ITER project, an immense experimental fusion device in France, stands as the largest of its kind once active. Supported by countries like the US, EU, and China, it seeks to produce electricity and refine fusion methods. The initiative asserts that global reserves of necessary materials could sustain fusion operations for over a millennium. Moreover, it offers safety advantages, including no generation of persistent hazardous waste, zero meltdown potential, and materials unsuitable for weaponry.
Fusion remains theoretically achievable and could resolve numerous energy challenges, yet practical implementation lags. Engineering obstacles persist en route to a feasible commercial system. This year marks a turning point, with fusion designated a national strategic imperative by the International Atomic Energy Agency. Over 160 fusion experiments operate globally, each tackling barriers to abundant energy.
Beyond ITER, prominent countries are advancing their fusion efforts. China's Experimental Advanced Superconducting Tokamak, or EAST, has achieved a milestone in sustained energy output. Early this year, it maintained a stable plasma for 1,066 seconds.
A promising development is the growing private investment in fusion. Firms such as Commonwealth Fusion, Type One Energy, Helion, and Pacific Fusion are developing proprietary systems. These endeavors have attracted billions in capital, though validation of their methods will require considerable time.
Stuart White, representative for Tokamak Energy—a UK-Japan venture originating from the UK's Atomic Energy Authority focused on fusion innovation—shared insights. In 2022, their device attained plasma temperatures of 100 million degrees Celsius, a remarkable feat but insufficient for widespread electricity supply. White anticipates the field will dedicate the coming decade to enlarging prototypes to identify viable commercial routes. He mentioned programs like the UK's STEP, slated for 2040 operations, and views the US timeline for the mid-2030s as ambitious.
White emphasized that beyond resolving core scientific hurdles, establishing a robust supply chain for components is crucial. He pointed to manufacturing strengths in Japan and China for producing essential fusion hardware. This groundwork, though gradual, will hasten long-term progress. Additionally, he noted that regulatory oversight for fusion is expected to be milder than for fission reactors, facilitating faster builds and lower expenses upon deployment.
Ultimately, fusion cannot rapidly fulfill global decarbonization demands within urgent timelines. White suggested it would integrate with other sustainable sources gradually over the next 50 years, rather than abruptly replacing existing infrastructure. Therefore, international policies should emphasize expanding renewables instead of banking solely on near-term fusion breakthroughs.