Stout is pleased to present our 1H 2025 Energy Industry Update. Through our team’s ongoing dialogue with leading market participants and recent transaction experience, we provide a semi-annual analysis of key trends and broader market health. Some key topics include:

• U.S. electricity load demand is expected to hit new record levels in 2025 and 2026, growing at 2.2% annually. Forecasted demand growth is expected to be driven largely by commercial and industrial usage, notably from data centers.
• The pace of energy-related capital deployment has waned significantly over the last twelve months in response to a higher observed cost of capital, tighter constraints around access to external capital, and fewer exit opportunities.
• The Big Beautiful Bill takes aim at key aspects of the Inflation Reduction Act and increases the development risk associated with portions of the renewable sector.