Modernizing American Energy Innovation

“DOE has been charged with significantly expanding its support for large-scale energy technology demonstrations and initial deployment. This calls for new ways of doing business with the private sector. DOE needs to sharpen its tools for working with companies and ensure it has the highly trained, fit-for-purpose workforce that it requires.”

– Ernest J. Moniz

Modernizing American Energy Innovation: Five Ways to Re-energize DOE (June 2025) analyzes challenges and opportunities at the U.S. Department of Energy (DOE) as it increases end-to-end support for energy innovation. 

DOE has long played a key role in driving innovation and economic growth, supporting national security, and maintaining U.S. competitiveness. With unprecedented resources granted by Congress through the Bipartisan Infrastructure Law (BIL) of 2021 and the Inflation Reduction Act of 2022 (IRA), DOE is positioned to scale energy innovation like never before. However, the department’s outdated structures are struggling to keep pace with its evolving clean energy mission; recent cuts to staff further threaten the department’s ability to carry out its duties.  

As EFI Foundation’s analysis shows, large spending policies are critical, yet inadequate, for accelerating American innovation. The tools that have worked for past R&D programs have proven inadequate for demonstration and deployment of clean energy technologies. For the United States to compete in the rapidly modernizing global energy system, we must sharpen our innovation tools. Success depends on implementation. 

Through interviews with 20 developers of BIL-funded projects across 29 states, representing $9.7 billion in investments, EFIF found that developers face significant delays due to DOE’s long timelines, unclear processes, and rigid contracting frameworks — stalling progress and leaving critical funds in limbo. 

This analysis draws on these interviews and data to propose five ways to modernize DOE’s energy programs and accelerate American energy innovation. With bipartisan agreement on the need for bold reforms, it’s clear that DOE’s expanded role requires not just more funding, but also effective, agile approaches. 

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