Key Takeaways from Infocast’s Projects & Money 2026 Conference

What Project Finance Participants Discussed Heading into 2026

McDermott attorneys attended Infocast’s Projects & Money 2026 conference, where developers, investors, and lenders discussed current topics shaping the project finance market. Across panels and market conversations, participants shared views on project mix, regulatory uncertainty, capital deployment, and evolving development and financing strategies.

Several consistent themes emerged throughout the conference, including during a panel led by McDermott Energy & Project Finance Co-Head Edward Zaelke titled “Investors’ Perspectives on the 2026 Project Finance Landscape,” which featured senior representatives from Encap Investments, BNP Paribas, Allianz Global Investors, and SOLAREIT.

The following takeaways reflect themes raised throughout the conference:

1. A shifting project mix focused on reliability, diversification, and storage.
   Conference participants discussed continued activity in solar and battery storage projects, alongside increased interest in gas-fired, geothermal, and nuclear developments. Several panelists noted that the market appears to be resetting toward traditional energy sources to address reliability needs, while hybrid projects combining conventional and renewable generation were discussed as a potential approach, subject to interconnection constraints. Participants also discussed expectations of a significant increase in deployable energy storage to meet the demand profile of 24-hour data centers.
   1. For a more detailed discussion of recent developments in nuclear project finance, see McDermott’s recent alert on Nuclear Power Project Finance.
2. Capital availability persists, but uncertainty is complicating project financing.
   Participants noted that capital remains available for solar and battery storage projects. At the same time, uncertainty related to potential Section 232 tariffs, the scope and timing of FEOC guidance, permitting challenges, and supply chain considerations—including the availability of rare earth minerals for battery projects—was cited as complicating financing efforts. Many participants commented that market participants are effectively planning and transacting amid limited regulatory clarity.
3. Heightened focus on risk allocation and deal structures.
   Conference discussions highlighted increased lender focus on unresolved project risks, including tariff exposure, permitting delays, and other contingencies. This dynamic was described as contributing to “guarantee creep,” with lenders seeking additional support from sponsors or sponsor parent companies. Participants also noted a renewed interest in large-scale sale-leaseback structures as part of the project finance landscape.
4. Diverging paths among developers, with consolidation and timing pressures.
   Participants observed increasing differentiation between well-capitalized developers and those with more limited access to capital. Conference discussions noted that larger, established sponsors may continue to access traditional project finance, while smaller or more capital-constrained developers may increasingly rely on private credit or alternative financing sources. Participants also discussed an increase in consolidation and M&A activity. In addition, developers were described as becoming more cautious about building long development pipelines, with less capital expected to be allocated to projects unlikely to reach construction readiness by year-end.
5. Evolving views on tax credits, pricing, and demand drivers.
   Conference participants expressed a range of views on the future of tax credits, with many indicating an expectation that credits may not be extended and that the industry should plan accordingly. Several panelists expressed the view that renewable projects remain viable without credits and, in some cases, could benefit from a more disciplined market environment. Participants also discussed expectations around rising power prices and the potential impact on returns. While data center demand was frequently cited as a driver of development, participants also noted differing views on the scale of data center development that will ultimately materialize and emphasized the importance of having projects capable of coming online within a 12- to 18-month timeframe.

Looking Ahead
As these discussions highlight, the project finance market heading into 2026 is characterized by both complexity and opportunity. McDermott’s Energy & Project Finance group works closely with developers, sponsors, investors, lenders, and other market participants across the full lifecycle of energy and infrastructure projects, advising on financing structures, regulatory considerations, risk allocation, and execution challenges. With deep experience across traditional and renewable technologies and an active presence in market dialogues, McDermott is well positioned to help clients navigate evolving conditions and position projects for success.