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AM Briefing

Trump Pays Duke Energy $129 Million to Kill Offshore Wind

On FERC’s independence, North Dakota, and Ecuador’s bombed regulator

Trump and turbines.
Heatmap Illustration | Getty Images

Current conditions: Temperatures in Washington, D.C., are set to top 90 degrees Fahrenheit before approaching triple digits by mid week • In Taipei, temperatures north of 90 degrees are giving way to thunderstorms all afternoon • June’s “strawberry moon,” as the first full moon of the strawberry-picking season is known, rose last night.


THE TOP FIVE

1. Trump pays Duke Energy $129 million to abandon its offshore wind lease

The Department of the Interior has struck a deal with Duke Energy to pay the utility $129 million in exchange for abandoning a lease for an offshore wind project in federal waters off North Carolina. In a statement Monday, Duke’s chief executive in the Carolinas, Kodwo Ghartey-Tagoe, said the company would reinvest nearly all the money the federal government refunded into new generating capacity, “which may include advancing new nuclear and natural gas generation, and grid enhancements to strengthen reliability.” The announcement came less than two weeks after the Trump administration unveiled a $765 million deal with Invenergy to quash four proposed offshore wind sites, as Heatmap’s Emily Pontecorvo reported.

2. Supreme Court strips FERC and NRC of independence

The Supreme Court on Monday ruled that the White House has the power to fire commissioners at independent agencies without showing cause, overturning a nearly century-old precedent and granting President Donald Trump new powers over the federal regulatory state. That, as Heatmap’s Matthew Zeitlin wrote yesterday, directly overhauls the historical separation of powers at the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission, whose members the president appointed but whose culture of not answering to the White House directly created the appearance of being above short-term political concerns. “Agencies like FERC tend not to be as explicitly politicized or partisan as, say, the Environmental Protection Agency, which is led by a single administrator who serves at the pleasure of the president, or the National Labor Relations Board or Federal Election Commission, which oversee areas of law and policy with stark partisan and ideological stakes,” Matthew wrote. “This is partly because FERC justifies decisions on electricity and natural gas policy with reference to ‘technical expertise.’” In the near term, that won’t mean much since the current leadership of FERC and the NRC are closely aligned with the Trump administration. But in an era of eroding institutional trust, the new dynamic could eat away at the credibility of key regulators.

3. North Dakota regulators approve a transmission line

In Texas, regulators are weighing challenges to a transmission line from landowners who say the wires follow a route that unnecessarily intersects with their properties. In North Dakota, however, utility regulators last week passed that point, instead issuing a route permit for a controversial high-voltage transmission line in the eastern half of the state. Utilities first proposed the route for the 92-mile JETx line last summer. “This decision, as with any other decision, has to be based on the law, and then the record and the facts of the case,” Public Service Commissioner Jill Kringstad told the North Dakota Monitor.

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4. U.S. coal use surged 13% last year

U.S. emissions surged 3.2% last year on the back of a 13% spike in coal-fired power generation, a sign of soaring demand for electricity. Still, solar offered a bright spot, growing by 28% last year. That’s all according to the latest data from the Energy Institute’s annual Statistical Review of World Energy. But the big takeaways were in fossil fuels. Among them: The U.S. remains the world’s top producer of oil and gas, and Canada has consolidated its positions as the world’s No. 4 driller of crude. As a result, “the center of gravity of global oil supply has structurally shifted,” Wafa Jafri, the British lead for energy and natural resource strategy at the accounting giant KPMG, said in a statement. “The Americas now produce 20% more oil than the Middle East, a shift that would have been unthinkable at the start of the century.”

Meanwhile, small-scale solar is making an impact in New York. New analysis by the Energy Information Administration shows that electricity demand falls midday in the state, a phenomenon the agency attributes to the rise of small solar installations in the state. The merits of distributed solar are even more obvious in places like Pakistan, where the grid is prone to going down. The country added a whopping 27 gigawatts of rooftop solar between 2023 and 2025, according to new data in PV Tech.

5. Renewables deals increasingly come with batteries

Just building intermittent renewables without storage is going out of fashion. Investment behemoth Brookfield Asset Management now says that contracts that pair new generation with battery storage are replacing pure renewables deals. In an interview with Bloomberg, Arnaud Jouvin, the head of Brookfield’s global energy strategy, said customers increasingly demand access to solar or wind systems with batteries. “There’s a lot of renewables being built in many markets, and the attractiveness of these renewable megawatt-hours in the middle of the day is declining to a point where many large offtakers no longer want standalone solar,” he said.

THE KICKER

Police outside the Arcom headquarters. Rodrigo BUENDIA / AFP via Getty Images

If the U.S. had hoped to secure the minerals it needs from Latin America instead of China, it may have to reconsider at least two Andean nations. Bolivia is in the midst of fierce protests and boycotts designed to thwart the new government’s efforts to develop a private mining industry. Now one of Ecuador’s mineral agencies has suffered a bomb attack. Early Monday morning, a bomb went off at the Quito headquarters of the country’s mining regulator, Arcom, blowing out several floors of windows.

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Climate Tech

The World’s First Subsea Geothermal Well Had 8.7 Seconds of Glory

Endurance Energy hoped its generator would run for a full year, but the team isn’t afraid of the “error” in “trial and error.”

An Endurance installation.
Heatmap Illustration/Endurance Energy, Getty Images

About 300 miles off the Oregon coast, a mile beneath the ocean’s surface, a startup just drilled the world’s first subsea geothermal well. And for a grand total of exactly 8.7 seconds, its prototype power plant generated about 2 kilowatts of net power. It wasn’t quite the result the Seattle-based Endurance Energy was hoping for — the company’s goal was to run its 100-kilowatt generator for a full year. But it’s not nothing.

“We really proved with this mission that a geothermal well could be drilled and completed on the seafloor, and doing that within 21 months of the company existing I think is really a testament to our pace of progress,” Endurance CEO Andrew Redd told me.

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Green
AM Briefing

‘Starting to Fray’

On Greenland’s deepsea mining ban, Indonesia floating nuclear, and a solar boom

Data center construction.
Heatmap Illustration/Getty Images

Current conditions: Hurricane Trudy has weakened from its peak as a Category 2 storm but still threatens up to 8 inches of rain as it swirls off Baja California • A nor’easter is howling through the Mid-Atlantic this week, hammering the coast with winds of up to 70 miles per hour • A humid overcast has settled over Paris this week as French authorities struggle to regain control after protests over living costs gave way to anarchic riots.


THE TOP FIVE

1. America’s AI infrastructure boom ‘is starting to fray’

At least 47 major data center projects have been delayed, withdrawn, or blocked so far this year, according to data the regulatory intelligence service RegLayer shared with the Financial Times — and that may be a “conservative estimate.” Just 35% of planned data centers are “credible,” analysts told the newspaper, as more than 1,000 communities across the United States now have restrictions on artificial intelligence infrastructure. The data comes as investors look increasingly jittery about AI following ChatGPT-maker OpenAI’s missing a key revenue metric this year.

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Blue
Spotlight

A Giant Data Center Offers a Permitting Reform Test Case

What would happen to Project Jupiter if the Bipartisan American Affordability and Jobs Act is passed?

Project Jupiter.
Heatmap Illustration/Project Jupiter, Library of Congress

One of the nation’s largest data centers is struggling under permitting woes. So let’s play a game: would the bipartisan permitting bill in Congress make the path easier, or might the federal legislation be irrelevant to large hyperscalers under development today?

Meet Project Jupiter, a mega project in southern New Mexico in Dona Ana County under development by Oracle and OpenAI, with financial backing from SoftBank and political support from the Trump administration for being a part of Stargate, a major Trump administration public-private initiative boosting AI development. Project Jupiter would be one of the largest data centers in the country if completed and currently is expected to run on a microgrid powered by fuel cells converting gas to electricity, which the developers claim will burn much cleaner than a typical off-grid gas turbine power plant.

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