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On Tesla’s record, Britain’s backtracking, and an Antarctic ice warning

Current conditions: After walloping Bermuda with winds of up to 100 miles per hour, Hurricane Imelda is veering northeast away from the United States • While downgraded from a hurricane, Humberto is set to soak Ireland and the United Kingdom as Storm Amy in the coming days and bring winds of up to 90 miles per hour • Typhoon Matmo is strengthening as it hits the Philippines and barrels toward China.
The Department of Energy is canceling two regional hydrogen hubs in California and the Pacific Northwest as part of a broader rescinding of 321 grants worth $7.5 billion for projects nationwide. Going after the hydrogen hubs, which the oil and gas industry lobbied to keep open after President Donald Trump came back to office, “leaves the agency’s intentions for the remaining five hubs scattered throughout the Midwest, Midatlantic, Appalachia, the Great Plains, and Texas unclear,” Heatmap’s Emily Pontecorvo wrote yesterday.
The list of canceled projects that Emily got her hands on “does seem to confirm that blue state grants were the hardest hit,” she wrote. But, she found, “many would actually have benefitted Republican strongholds,” including a $20 million grant for a manufacturing plant in Texas that was slated to create 200 jobs.
Tesla’s global deliveries rose 7% in the third quarter, hitting a new record as Americans rushed to buy electric vehicles before the federal tax credit expired on September 30. The automaker delivered 497,099 vehicles in the three months leading up to that date, up from 462,890 in the same period last year, according to the Financial Times. That was well above analyst forecasts of 444,000.
That may do little to turn around the headwinds blasting the EV giant. While the company benefited from buyers scrambling to tap the federal EV tax credit, Tesla sank to its lowest-ever share of the electric vehicle market in August as drivers flocked to offerings from other automakers. It’s not just a problem in the U.S. As Heatmap’s Matthew Zeitlin wrote last month, “Thanks to CEO Elon Musk’s association with right wing politics in the U.S. and abroad, and to fierce competition from Chinese EV leader BYD, Tesla’s sales have fallen dramatically in Europe. Globally, BYD overtook Tesla in sales last year.”
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Kemi Badenoch, the leader of the British Conservatives, has vowed to repeal the United Kingdom’s landmark climate law if her party, colloquially known as the Tories, wins the next election. Eliminating the Climate Change Act, passed almost unanimously under a Tory government in 2008, would dismantle controls on greenhouse gas emissions and remove what The Guardian described as “the cornerstone of green and energy policy for successive governments” for the past 17 years.
The move rankled past Tory leaders. Former Prime Minister Theresa May condemned the campaign pledge as a “catastrophic mistake.” Calling it a “retrograde” step, she said that “while consensus is being tested, the science remains the same.” Alok Sharma, the former Tory minister who led the COP26 climate summit in Glasgow in 2021, told The Guardian in a separate article that a repeal risked “many tens of billions of pounds of private sector investment and accompanying jobs.”
Sea ice in Antarctica reached its third-smallest winter peak extent since satellite records began 47 years ago, according to a new analysis by Carbon Brief. Provisional data from the U.S. National Snow and Ice Data Center showed Antarctic sea ice reaching a winter maximum of just under 6.9 million square miles as of September 17. That’s nearly 350,000 square miles below the average between 1981 and 2010, the historical baseline against which recent changes in sea ice extent are compared. The “lengthening trend of lower Antarctic sea ice poses real concerns regarding stability and melting of the ice sheet,” one expert told the publication.
The finding comes as a “groundbreaking” study the European Geosciences Union published Thursday in the journal Earth System Dynamics found that Antarctic sea ice has emerged as a key predictor of accelerated ocean warming. Using Earth system models and satellite images from 1980 to 2020, the researchers found higher sea ice extent enhances cloud cover, which has a cooling effect overall by reducing incoming solar radiation. As a result, ongoing sea ice loss is linked to larger reductions in clouds, stronger surface warming, and even more ocean heat uptake, accelerating the cycle.
Duke Energy plans to meet surging demand for electricity by increasing its natural gas and battery capacity, keeping coal plants open for up to four years longer than previously estimated, and evaluating new sites for nuclear reactors. The 100-page biennial proposal published this week dials back plans for more renewables such as wind and solar. It also pushed back the earliest start date for a new reactor to 2037, declined to commit to either small modular reactors or large traditional units, and said the utility still needs extra protections against cost overruns before embarking on construction.
In the meantime, the added years of coal burning “will result in millions of tons in additional greenhouse gases over the next decade when combined with other proposed changes to the utility’s fuel mix,” Inside Climate News reported. In a statement to Axios, North Carolina Governor Josh Stein, a Democrat, called on the state’s utilities commission to “require significant changes” and condemned Duke for “retreating from the state’s clean energy future.”
New research by a team of scientists from the U.K. and New Zealand has found that new analytical methods could bolster conservation breeding programs by offering a better understanding of why eggs don’t hatch. The researchers used fluorescent dyes to discover that nearly 66% of 174 unhatched eggs examined in the study had been fertilized, whereas previous methods suggested that only 5.2% had been fertilized. “There are many different factors that contribute to breeding success,” Gary Ward, a co-author from the London-based ZSL Institute of Zoology, said in a statement, “and the more understanding we can have into why an egg might not hatch, the more we can refine our care for these birds and the better chance of recovery we can give them.”
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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 executive director 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.