DOE Modernization to Unleash American Energy Innovation

America has the most advanced and innovative energy companies and venture capital ecosystem, which are investing billions of dollars to address the challenges of tomorrow’s energy supply. Those challenges are expected to be significant, as electricity demand surges due to the growth of artificial intelligence and domestic reshoring. Energy costs and security are at the forefront of concern, with the U.S. in fierce competition with China’s investment in energy technology and deployment.

With its world-class laboratories and focus on energy innovation, the Department of Energy has been a vital catalyst and partner for the private sector in driving technological breakthroughs and commercial successes. However, to effectively address current challenges, the Department must operate at the highest level of efficiency and be fully responsive to industry needs.

In December 2024, C3 Solutions partnered with the Emerson Collective to undertake an extensive and unprecedented effort to gather recommendations from over 40 venture-backed energy companies and leading members of the U.S. energy technology investment community. These firms—spanning advanced manufacturing, nuclear innovation, software-driven systems, and grid technologies—shared candid feedback on issues and potential opportunities to improve the Department of Energy’s ability to partner effectively with companies at the forefront of energy innovation. The insights from those interviews were provided to the incoming administration in a transition memorandum to help shape their plans and initiatives.

Since then, much of the incoming administration’s policy and program priorities have started to take shape. Despite recent efforts to restructure and refocus DOE, much of what was identified in December 2024 remains directly relevant and can guide DOE through the remaining three and a half years. The issues addressed included structural barriers that hinder DOE’s ability to move at the speed of the market—outdated timelines, procedural inefficiencies, and misaligned incentives—that transcend partisan politics.

Addressing these challenges will be crucial for the United States to sustain its energy leadership and confront both domestic and global competition directly. The following recommendations, derived from previous interviews and based on the experiences of entrepreneurs and investors, are practical within existing authorities and aim to generate the greatest impact where it is most needed. This is not a call for new mandates or massive increases in spending. Instead, it is a plan to unlock what DOE already oversees—its labs, funding authority, and platform—and to use these resources to foster a more innovative, competitive, and energy-secure United States.