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On offshore wind's defense, Three Mile Island, and virtual power plants

Current conditions: Heavy hail storms across Belgium, France, and Italy have injured at least 30 people • Powerful winds are churning up dust storms that are blanketing broad swaths of Delhi, India’s capital region • The United Nations just warned that El Niño weather patterns have an 80% chance of returning by September, threatening to supercharge weather extremes.
New York Attorney General Letitia James led a group of Northeast states in a lawsuit against the Trump administration to pay TotalEnergies nearly $1 billion to abandon its two offshore wind leases in the United States. The lawsuit comes on the heels of reporting by Heatmap’s Emily Pontecorvo that found, contrary to the administration’s announcements, the U.S. government’s agreement with Total didn’t actually require any new investments in fossil fuels, as the administration strongly implied, and that the payment may not have actually met the requirements to be drawn from a federal coffer designed to fund legal settlements. “After repeatedly losing in court, this administration cooked up a sham deal to pay a foreign energy company hundreds of millions of taxpayer dollars to abandon offshore wind and invest in oil and gas instead,” James said in a press release. “We are fighting back to stop this illegal agreement that threatens to erase over a thousand union jobs and cheat millions of New Yorkers out of clean, affordable energy.” New Jersey, Connecticut, Maine, Massachusetts, Rhode Island, and Vermont joined the litigation.
Meanwhile, New York State lawmakers are preparing to pass legislation enacting a one-year moratorium on large centers by the end of the week, Assembly Speaker Carl Heastie told Gothamist, as Democrats caution that the grid can’t handle the new demand. On X, reporter Jimmy Vielkind warned that it’s unclear whether Governor Kathy Hochul would sign the bill. Data from the website Data Center Map shows that the state has more than 130 data centers, nearly half of which are located in the New York City metropolitan area.

The House of Representatives voted Tuesday to pass a package of bills aimed at bolstering development of geothermal energy in the U.S. The package overhauls geothermal-specific rules for permitting and land sales to speed up the timelines for deploying the technology. In a statement, Representative Alexandria Ocasio-Cortez, a progressive from New York who is widely discussed as a potential contender for the 2028 Democratic presidential nod, thanked her Republican colleagues for working across the aisle on the legislation. “At a time of extreme political polarization, this package shows that Congress can still come together on commonsense solutions to better the lives of the American people,” she said.
Meanwhile, the Trump administration is eliminating a network of sensors designed to track environmental changes off America’s shores. A decade ago, the U.S. government built a $368 million deep-ocean observation system to monitor coastal environments and marine life and track the shifting ocean currents that affect global weather patterns. Not for long. On Tuesday, The New York Times reported that the National Science Foundation planned to “dismantle” the system, removing more than 900 deep-sea instruments anchored off Oregon, Washington State, Alaska, North Carolina, and the Irminger Sea between Greenland and Iceland. The federal agency said the decision to scrap the Ocean Observatories Initiative aligns with a “wider strategy to have a nimbler approach to prioritizing support for evolving scientific priorities.” But Craig McLean, a former acting chief scientist at the National Oceanic and Atmospheric Administration during President Donald Trump’s first term, said the move “reflects the further lack of understanding that the current administration has of scientific value and scientific merit.” He added: “By dismantling such a system, we push the United States back yet again into a rear seat in global scientific leadership.”
The world’s meager capacity to remove carbon dioxide from the atmosphere already falls far short of what’s needed to bend the curve on climate change. Now, as Emily wrote of a new report, “the chasm is widening.” On Tuesday, the academic consortium behind the State of Carbon Dioxide Removal report put out the third version of the analysis. The findings are sobering. While research and deployment of carbon removal technologies has made progress in the past two years, it is still not growing quickly enough to reach the scale required to support the Paris Agreement temperature limits. “We’re seeing a lot of signs that there’s still growth happening,” Morgan Edwards, an assistant professor of public affairs at the University of Wisconsin, Madison, and one of the authors, told Emily. “But we need to see a step change in both early indicators like investment and also actual deployments” between now and 2030, in addition to major emission reductions.
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The Federal Energy Regulatory Commission has given Constellation Energy, the nation’s largest operator of nuclear plants, approval to transfer the right to connect to the grid from its Eddystone gas-fired plant outside Philadelphia to the Three Mile Island nuclear plant. The approval marks a major step forward for Constellation’s plan to turn the defunct atomic station into its new Crane Clean Energy Center and begin producing electricity as early as next year. Previously, PJM Interconnection, the regional grid operator, had warned that the plant could not begin supplying new power until 2031. But Constellation said this week’s waiver puts it back on track for a 2027 restart.
Meanwhile, Europe’s top producer of nuclear fuel is ramping up its capacity in the U.S. Urenco, the nuclear fuel enricher co-owned by the British and Dutch governments, on Tuesday announced plans to expand capacity at the only U.S. commercial uranium enrichment facility by nearly 50%, marking what it called a major commitment to strengthening the domestic supply chain. The multi-billion-dollar investment will increase the output from the firm’s National Enrichment Facility in Eunice, New Mexico. “For more than 15 years, Urenco USA has provided its U.S. utility customers with a reliable domestic supply of enriched uranium to power their nuclear reactors,” Boris Schucht, the chief executive of Urenco Global, said in a statement. “This expansion reinforces our commitment to a resilient U.S. nuclear fuel supply chain focused on meeting the long-term needs of our customers as well as supporting U.S. energy security through continued investment by Urenco.”
Virtual power plants — software that can tap into networks of distributed energy resources such as solar panels and batteries to supply the grid in times of need — are having a moment as demand from data centers runs laps around any new supply. And while my colleague Katie Brigham recently outlined the steep challenges this technology faces, the deals keep coming. On Tuesday, Google announced a three-year deal with the VPP provider Voltus to supply up to 100 megawatts of new electricity capacity from distributed resources in the country’s highly stressed largest grid, PJM Interconnection. “Under the agreement, Voltus will orchestrate flexible distributed resources — such as batteries and smart thermostats — to reduce energy demand when the grid needs it, paying the local homes and businesses who participate,” Michael Terrell, Google’s global head of advanced energy, wrote in a blog post. “This enables new capacity for the system, channels investment into local communities, and strengthens the grids that serve our data centers.”
Nearly a year after launching a new company focused on manufacturing next-generation medium-voltage power electronics that can better integrate solar, wind, and data centers onto the grid, former Tesla executive Drew Baglino has struck a major deal. His new startup, Heron Power, just inked an agreement with LG Energy Solution to integrate its solid-state transformer technology with the South Korean battery giant’s energy storage systems in the U.S. “This collaboration reflects a shared commitment to advancing American energy manufacturing and delivering next-generation infrastructure at scale,” Baglino, who serves as Heron’s chief executive, said in a statement. “By engineering a holistic solution together, we are unlocking higher power density, greater efficiency, and faster deployment for developers building the grid of the future.”
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The companies just launched a major VPP play.
For all the hype surrounding virtual power plants, they’re still a niche player on the U.S. electric grid. A new partnership between three of the biggest residential energy companies in the country — Tesla, Sunrun, and Renew Home — aims to recast VPPs into a leading role.
The companies announced on Wednesday that they have more than 16 gigawatts of dispatchable VPP capacity available today to deliver to utilities and data center developers throughout the country. That’s about the same as 16 nuclear reactors, except instead of generating power round the clock from a central plant, the companies aggregate unused electricity capacity from thousands of individual home solar and battery systems and programmable thermostats, and can make it available for several hours at a time.
Today, the companies bid these resources into electricity markets as a sort of bespoke grid service. A few times per year — often in the summer months when demand spikes — the grid operator in California might ask Sunrun to switch on its VPP to prevent a blackout. That means Sunrun’s rooftop solar and battery customers all either begin exporting excess power to the grid or rely more on their energy storage systems for their own power needs, reducing strain on the grid. Tesla operates similar programs, some in partnership with Sunrun. Renew Home, which spun out of Google Nest, does the same thing but with thermostats and water heaters, nudging temperatures on thousands of devices up or down during peak demand hours.
“A lot of our assets are enrolled in a contract where they can be used up to 20 times per year,” Paul Dickson, the president and chief revenue officer of Sunrun, told me. Now the company, along with its partners, are making the pitch to utilities and hyperscalers to view VPPs as 365-day resources, and more fully integrate them into their grid planning.
It’s a “turnkey” solution, the companies wrote in a press release, “deployable in months, not years,” that requires “no additional hardware, software, interconnection, water, or land usage for offtaking parties.”
VPPs also typically kick back some of the proceeds they earn from the electricity market to the residential customers hosting the solar panels, batteries, and programmable thermostats providing the power, meaning they can meet growing energy demand while helping to lower household energy bills. Sunrun and Renew Home paid out a combined $67 million in customer rewards last year.
About 60% of the 16 gigawatts the companies have available are tied to Renew Home’s enrolled devices, with the remaining 40% coming from Sunrun and Tesla’s solar and battery assets, Dickson told me. The capacity is also spread out geographically. There’s about 1.7 gigawatts available in Texas — the second largest data center market in the country, Dickson pointed out. There’s 300 megawatts available in Virginia, which the companies expect to grow to 500 megawatts by 2030.
“Unlike a traditional power plant that's fixed in size, this number grows every single day as the combined three companies continue to add additional capacity,” Dickson said. Sunrun alone plans to more than double its energy storage capacity by the end of 2028.
If utilities and large industrial customers buy the VPP pitch, the companies will be able to expand even more quickly, he added. If regulators or utilities come back and say, we’ll take your existing capacity today, and if you can add another gigawatt in the next year, here’s what we’ll pay, Sunrun could potentially reduce the upfront cost to customers to host the solar and battery installations, driving faster adoption.
The new partnership follows a similar announcement earlier this month from the VPP company Voltus, which signed a three-year agreement with Google. Voltus will provide up to 100 megawatts per year of capacity for Google in PJM, the country’s largest (and most constrained) electricity market covering much of the Midwest and mid-Atlantic. In that case, however, Voltus is using the deal with Google to finance the VPP, with the capacity set to come online by 2027.
The Tesla/Sunrun/Renew Home group is simply announcing they are open for business — they haven’t signed up any offtakers yet. Dickson told me the companies wanted to “make everybody aware that there is this uncontracted capacity, and make sure that it goes to the place that it can be most impactful.” Wednesday’s announcement is accompanied by a live map that shows where the capacity is. The companies did, however, already bid over a gigawatt of capacity into PJM, the larger energy market that Virginia is a part of, as part of its emergency procurement to meet near-term load growth in the region, and are waiting to hear if they were selected.
Last year, the electrification advocacy group Rewiring America published a paper arguing that hyperscalers could free up grid capacity for at least a third of the load growth expected from data centers if they paid for residential households to get heat pumps. All of that capacity would simply be the result of swapping inefficient appliances for more efficient versions, reducing the overall energy use of the homes. If hyperscalers also financed residential solar and storage upgrades, they could more than meet data center demand, the report posited.
That’s not how these VPP proposals are going to work — residential customers will still have to pay something to Sunrun and Tesla for their solar panels and batteries. But Ari Matusiak, the founder and CEO of Rewiring America, told me he viewed these new VPP partnerships as a step in that direction. Today, energy markets are largely bifurcated between residential market activity and large industrial customers. “Where we are going is toward a world where we think about the household as actual energy infrastructure and not simply an end of the line billpayer,” he said. “Once you start doing that, it changes the economics of how those household upgrades are treated and what the opportunities are.”
Current conditions: The warehouse fire in Boyle Heights is raging for a third day, spewing dark smoke over the Downtown Los Angeles skyline • The death toll from Western Europe’s heatwave has reached into the dozens • An 18-wheeler carrying more than 400 beehives overturned in eastern Texas and filled a small neighborhood with more than 2 million honeybees.
Wally World is soon to be powered by the atom. On Tuesday, Walmart announced a 15-year deal with Constellation, the nation’s largest operator of nuclear plants, for a chunk of the electricity coming from the Dresden Clean Energy Center in Illinois. The agreement included about 176 megawatts of wholesale supply from the two-reactor station southwest of Chicago, including 30 megawatts of expanded generating capacity through “uprates” — upgrades that allow operators to get more power out of an existing unit. Over the past two years, tech giants such as Google, Microsoft, and Meta, have bought shares of the power coming from nuclear power stations as the companies sought steady supplies of clean electricity for their burgeoning data centers. But the Walmart deal stands out as one of the first to involve a major brick-and-mortar retailer. “We’re constantly evaluating new capabilities and energy solutions that help ensure the electricity we rely on is dependable, responsibly produced, and built to support long-term growth,” Shayne Wahlmeier, Walmart’s senior vice president of energy, said in a statement.
The Trump administration just unveiled one of its biggest bets on nuclear power yet. The Department of Energy announced $17.5 billion in low-interest loans for utilities to pay for the equipment needed to order new Westinghouse AP1000 reactors. The program marks arguably the most significant effort yet to reclaim U.S. control over its flagship reactor design. While the two 1,100-megawatt units completed at Southern Company’s Alvin W. Vogtle Generating Station in 2023 and 2024 were the first installed in the U.S., China has been building its own version of the reactors at an industrial scale for years. The program will support up to 10 reactors, including two per venture with as many as five utilities. The power companies, currently in talks with the administration, have not yet been named. But Dan Sumner, the chief executive of Westinghouse Electric, told The Wall Street Journal the deal “really kick-starts fleet-scale nuclear development in the United States.” As my colleague Robinson Meyer wrote last night: “I hesitate to praise the project's climate bonafides at the risk of discouraging the Trump administration, but it is worth noting that if this project were to succeed, it would be one of the largest state-assisted build-outs of zero-carbon electricity in recent American history. But it would still take some time to arrive: These reactors aren’t forecast to come online til 2035.”
Yet another behemoth solar farm has come online. On Tuesday, the developer rPlus Energies said its Green River Energy Center had started operations. The facility in central Utah with 400-megawatts of solar panels and 1,600 megawatt-hours of batteries is now the largest solar-and-storage plant within PacifiCorp’s six-state territory out west, including Oregon, Washington, California, Utah, Wyoming, and Idaho. “Operation Gigawatt is about ensuring Utah has the reliable, homegrown energy needed to power opportunity for generations,” Utah Governor Spencer Cox, a Republican, said in a statement. “Green River Energy Center represents the kind of large-scale energy investment we need to deliver reliable energy, support rural Utah, and help power the next generation of prosperity across our state.”
The opening comes as solar is now generating more U.S. power than coal, as I told you recently.
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The Supreme Court ruled Tuesday that Exxon Mobil has the right to sue a Cuban-owned company to recoup more than $70 million in 1960 dollars from an oil complex seized by the Cuban government after Fidel Castro’s revolution. Havana later transferred the ownership of the refinery, terminals, plants, and service stations to Corporación Cimex, the state-owned conglomerate. The lawsuit could now see the oil major try to recover more than $1 billion in losses. “Today’s decision is a critical moment in a 60 year effort to be compensated for what the Cuban government illegally seized,” Exxon spokesperson Todd Spitler told E&E News in an emailed statement. “It reflects two things: the merits of our argument and the fact that our company will fight a good fight for as long as it takes.”
The Trump administration understands the importance of refining cobalt — that’s why, as I reported last year, the Pentagon’s Defense Logistics Agency is pumping money into a startup that promises a new and cheap way to process the mineral. Canada’s Sherritt International started shutting down its Fort Saskatchewan refinery after the U.S. expanded sanctions on Cuba, halting exports of a feedstock supply needed for the plant in Alberta, Canada. The move, in addition to the Supreme Court ruling, come amid intensifying pressure by Washington on the Cuban regime.
California is once again following a New York trend. Just weeks after Albany sued to stop the Trump administration’s bid to pay TotalEnergies to give up its offshore wind projects, Sacramento is joining the litigation. “At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear,” California Attorney General Rob Bonta said in a statement. “California won’t stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends; we’re putting the Administration on notice that we intend to sue.”
Rob checks in with Commodity Context’s Rory Johnston as the Iran War (hopefully) draws to a close.
When Iran closed the Strait of Hormuz earlier this year, experts projected oil prices would go to $200 a barrel. But then… they didn’t. In fact, while gasoline prices rose in the United States, and Europe and Asia suffered higher costs, the resulting energy crisis wasn’t even as bad as what followed Russia’s 2022 invasion of Ukraine.
Why? China. The country seems to have absorbed the costs of Trump’s war of choice by releasing hundreds of millions of barrels from its strategic stockpile. On this episode of Shift Key, Rob is joined by Rory Johnston, an oil markets researcher and the author of the Commodity Context newsletter. They discuss China’s massive (and quiet) intervention, why it’s “the most important thing we learned” from the Iran War, and what it means for the future of energy and geopolitics. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
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Mentioned:
China Oil Demand Doubts, Rory’s 2023 article about Chinese strategic stockbuilding
Previously on Shift Key: Why the Iran Ceasefire Hasn’t Ended the Energy Crisis, featuring Rory
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Music for Shift Key is by Adam Kromelow.