Energy minister John Hayes is being promoted to the Cabinet Office, with construction minister Michael Fallon stepping in to take over the energy brief.
Mr Hayes has been a prominent supporter of nuclear new build, telling CN last year he had an “unbridled enthusiasm” for the sector.
Mr Hayes will become a minister without portfolio and adviser to the prime minister, while Mr Fallon is to remain at the Department for Business, Innovation and Skills with an expanded brief.
He will develop the government’s business policy, as well as co-ordinating energy policy.
The Department for Energy and Climate Change said the move work join up low-carbon industry work - in areas such as nuclear energy and wind power - with the supply chain.
Secretary of state Edward Davey said: “John and I have worked well together as an effective team, and I’m especially grateful for his work on steering the Energy Bill through Parliament. I wish him well in his new post.
“I am delighted to welcome Michael Fallon to DECC. He brings with him a wealth of business experience and will make an excellent addition to the team.
“He will help to cement the links I’ve been making across Government as energy is such a critical industry for the UK’s growth prospects, and the creation of green jobs.”
Minister Michael Fallon said: “Both departments share a strong focus on business and the economy and I am delighted to be given the opportunity to build on their cross cutting work on this agenda.
“This week has seen the launch of important industrial strategies for the nuclear and oil and gas sectors to secure future billions of investment, thousands of jobs and a diverse energy mix. A strategy for offshore wind will be completed in the coming weeks.
“Energy policy has a key role to play in securing sustainable future growth in the economy, strengthening supply chains, keeping people’s bills down and tackling climate change”.