Following the Democrats’ gains in the US midterm elections, permitting reform could become a key area of bipartisan cooperation to accelerate renewable energy deployment and expand the country's electricity infrastructure. According to an analysis published by Wood Mackenzie, the election results could put the modernisation of the US permitting framework at the centre of the energy policy agenda, with implications for wind and solar development, high-voltage transmission and power generation.

For the renewable energy sector, one of the proposals highlighted by the consultancy is the Restoring Renewable Energy Parity Act. The initiative would require the US Department of Defense to sign mitigation agreements for pending wind, solar and transmission projects, while reversing executive actions targeting renewable energy.

However, Wood Mackenzie notes that wind development faces additional uncertainty given President Donald Trump's opposition to the technology and the federal government's control over offshore leasing. The consultancy considers that the industry's strongest opportunity lies in securing the inclusion of wind in broader, multi-technology permitting legislation, alongside congressional oversight of its implementation.

Transmission permitting is another central priority. Wood Mackenzie reports that congestion costs in the US exceed $10 billion annually, while high-voltage transmission completions during the 2020s have remained below half the pace recorded in the 2010s. The Bipartisan American Affordability and Jobs Act (BAAJA), identified by the consultancy as the most likely route to permitting reform, would establish a one-year deadline for environmental assessments under the National Environmental Policy Act (NEPA), protect issued permits against revocation and limit post-approval litigation to 150 days. However, the allocation of costs for transmission lines crossing multiple utility territories and benefiting several states remains an unresolved legislative challenge.

Bipartisan permitting reform could accelerate wider energy infrastructure development

Beyond its implications for renewables and transmission, BAAJA brings together a broader coalition of clean energy developers, oil and gas producers, mining operators and trade unions. Its provisions include a two-year deadline for completing NEPA environmental impact assessments, restrictions on federal agencies revoking permits and a 150-day window for litigation following project environmental approvals. It would also establish a nine-month timeline for evaluating water quality dredge and fill permits required for new gas pipelines.

Wood Mackenzie identifies gas-fired power infrastructure as another major potential beneficiary. The consultancy forecasts 166 GW of net new natural gas-fired capacity between 2026 and 2035, requiring additional pipelines and connections. It also reports that behind-the-meter gas demand is approaching 6 billion cubic feet per day (bcfd), equivalent to around 6% of US domestic gas demand excluding LNG and piped supply.

The broader challenge is also reflected in electricity demand projections. Wood Mackenzie expects US power load to increase by 3% between 2026 and 2035, while wholesale electricity prices could rise by 46% over the same period in its base-case scenario, partly driven by data centres and power infrastructure development.

Nevertheless, the consultancy cautions that a Democratic-controlled Congress does not guarantee legislative progress under a Republican White House. President Donald Trump retains veto authority, while federal agencies could also limit the impact of legislation that passes. Wood Mackenzie therefore identifies permitting reform as the most likely area for bipartisan progress, although its eventual implementation remains uncertain.

Clean energy associations call for faster permitting

Following the election results, the American Clean Power Association (ACP) highlighted permitting modernisation as essential to unlocking new infrastructure and meeting rising electricity demand. In a statement issued on 4 November, its CEO, Jason Grumet, said that voters had made clear that affordable and reliable energy was a priority.

According to ACP, the US clean power industry directly employs more than 400,000 people and has nearly 388 GW of clean power capacity in operation, enough to supply more than 83 million homes. The association estimates that modernising the permitting process could unlock more than $800 billion in new infrastructure investment and over 350 GW of additional clean energy capacity, helping to control electricity prices and ensure reliable supply.

The Solar Energy Industries Association (SEIA) also identified energy affordability as a central issue in the midterm elections. Its CEO, Tim Pawlenty, said the solar and storage industry looks forward to working with newly elected federal and state leaders to bring more affordable and reliable electricity online and deliver the energy savings sought by American households and businesses.