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Data is elusive — and expensive.
Today, if a company claims to run on “100% clean power,” that generally means it’s adding up its electricity use for the entire year, then offsetting any fossil fuel-generated electricity through the purchase of renewable energy certificates, a.k.a. RECs. So a New York-based firm using natural gas to power its data center at night can offset that dirty power by purchasing RECs generated by a California-based solar farm in the middle of the day, so long as energy production and procurement happen within the same year.
We call this system “annual matching,” and it may not be much longer for this world.
The U.S. Treasury Department announced in December that, to qualify for the most generous subsidies under the Inflation Reduction Act’s hydrogen production tax credit, clean hydrogen must be produced using a relatively new source of carbon-free electricity generated within the same hour it’s used and in roughly the same location. The hourly matching requirement, which will take effect in 2028, could compel utilities, grid operators, energy producers and consumers to adopt new systems for clean energy accounting, ultimately laying the groundwork for a 24/7 clean electricity market that extends far beyond the hydrogen sector.
Energy system experts generally hailed the move, and not just because without it, electricity-hungry hydrogen production could potentially do more harm to the climate than good. Annual matching, also, is no longer serving its original purpose of incentivizing the buildout of new renewables. When wind and solar were more expensive than fossil fuels, developers could make up the cost difference by selling annually-matched RECs. But today, wind and solar are often the cheapest energy options available.
That’s not to say everyone was in favor of hourly matching, however. Many of the companies that underpin the U.S.’s clean energy generation and accounting systems, some major hydrogen players, and even a number of Senate Democrats say that moving to hourly matching in the next four years could not only prove too logistically challenging, but also lead to infeasibly high costs for clean hydrogen that will hamper the growth of the emerging industry. More than a year of furious lobbying, public commenting, and punditry over the future of America’s nascent hydrogen industry hinges on this question: Can we pull off verifiable 24/7 clean energy?
There’s an emerging ecosystem of companies trying to help do just that. Granular Energy is a European startup creating software to help utilities and power suppliers move toward 24/7 energy matching by telling them where and when clean energy is most needed. “When you get down to the hourly level,” Natalie Valentin, Granular’s commercial lead for North America, told me, “it can help drive investment in the types of technologies — whether it’s battery storage, clean firm generation, or renewable generation.”
Utilities and power suppliers generally have hourly generation data on hand, Valentin said. It’s just that the energy attribution certificates they receive from tracking systems and registries for renewable energy credits don’t usually include this information. “This data is very readily available,” she told me. “What we’re helping to do is put it into a tool that creates transparency, it streamlines the operations, it has that audit trail that's preventing any double counting.”
Granular links the information from energy certificates with the utility or power provider’s internal metering data to provide an hour-by-hour snapshot of the supplier’s energy mix. That then gives energy suppliers the ability to offer hourly-matched green power programs to their customers.
All of this would be simpler if electricity customers had insight into their hourly electricity usage in the first place, or if the tracking systems provided suppliers with time-matched certificates upfront. But as it stands, most customers don’t have meters that provide this level of detail, making it difficult for them to understand where their energy is coming from. And out of the nation’s 10 renewable energy credit tracking systems and registries, seven don’t report hourly information.
The three that do include the nation’s largest grid operator, PJM, the nonprofit Midwest Renewable Energy Tracking System, and the North American Renewables Registry. Seattle-based LevelTen Energy will utilize the data from these three entities to create a new marketplace for buying, selling, and managing hourly-matched energy certificates, to be launched later this year in regions where hourly tracking exists. LevelTen is building this platform in partnership with the Intercontinental Exchange, a tech company that operates global financial exchanges. Other partners include Google and Microsoft, each of which has announced plans to move to hourly matching by 2030.
“We’re looking to provide an end-to-end experience so people can indicate, here's where we have demand,” explained Katie Soroye, a LevelTen executive. Crucially, the platform will also ensure that hourly matching certificates are retired once they’re purchased to prevent double-counting.
The hope is that the seven tracking systems that lack hourly matching capabilities will soon be either persuaded or mandated to develop them, leading to a country-wide granular certificate marketplace — something the clean hydrogen tax rules were designed to help expedite. Once the mandate is finalized, the Center for Resource Solutions found, most of the tracking systems could phase in hourly matching within two years.
That doesn’t mean they’re eager to make the change, with many citing cost, low demand, and in some cases lack of data availability and confusion over how to handle a more complex dataset as top concerns with hourly matching. Cost is also a major concern for the hydrogen industry overall.
“To the extent that 24/7 works, it has to increase hydrogen prices,” said Aaron Bergman, a fellow at the nonprofit research group Resources for the Future, although he acknowledged that hourly matching is also likely to reduce emissions. “Now, I think what’s challenging is, is that going to be enough to interfere with the ability to really start building out green hydrogen?”
The American Clean Power Association thinks so. Its members estimate “a 20-150% price premium for hourly matched hydrogen production” because electrolyzers, the devices used to make clean hydrogen, will only be able to operate when clean electricity is available. The trade group recommends waiting until 2032 to implement hourly matching, saying this will give the market more time to mature and lower prices through economies of scale.
The whole industry is hardly aligned on this question. Seven companies, including the world’s largest hydrogen producer, filed a joint letter with Treasury officials before the draft rules were released urging them to require 24/7 hourly matching by 2028. “Hourly matching will catalyze cutting-edge, flexible electrolyzer technologies and establish a flourishing and world-leading domestic U.S. advanced electrolyzer manufacturing base,” the letter said.
The rule-making process will continue with a public hearing scheduled for later this month. But assuming the hourly-matching requirement stays, it will certainly add momentum to what’s become a movement for 24/7 clean electricity. Even the U.S. federal government has committed to sourcing 100% of their facility’s electricity from carbon-free sources, half of which will be hourly matched by 2030.
“Time is ticking,” said Bergman. “It’s really standing up something that is relatively new in a relatively short period of time.” Some degree of delays and logistical roadblocks may prove inevitable. But, he said, “it certainly can be done.”
Editor’s note: This story has been updated to clarify that a new platform from LevelTen Energy is distinct from the Granular Certificate Trading Alliance.
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The U.S. central bank left its interest rate target unchanged for the fifth time in a row.
Interest rate relief isn’t coming anytime soon for renewables. As widely expected, the Federal Reserve chose to keep rates unchanged on Wednesday, despite intense pressure from President Trump and two Republican Fed governors to lower rates.
The Fed maintained the benchmark short term rate at a range of 4.25% to 4.5%. During the press conference that followed the rate announcement, Fed Chair Jerome Powell gave no indication that the board will lower rates at the Fed’s next meeting in September, either. That’s contrary to Trump’s claims to reporters after the meeting. “We have made no decisions about September,” Powell said. “We don’t do that in advance. We’ll be taking that information into consideration and all the other information we get as we make our decision.”
High interest rates are particularly detrimental to renewable energy projects, as my colleague Matthew Zeitlin has noted many times over. The long-term benefit of renewables, of course, is that the wind and the sun are free (and effectively inexhaustible) fuel sources. The short-term tradeoff, however, is that renewables are capital-intensive, requiring high upfront costs to get up and running. The highest proportion of the lifetime cost of a renewable energy generator, such as a wind turbine or a solar farm, is in building it. Elevated interest rates make it that much more difficult to lure investors and borrow the significant capital necessary to build out renewable infrastructure.
“The lack of interest rate relief means that construction loans, which are floating-rate loans tied to market conditions, will command higher interest rates and raise the total project costs for energy developers,” Advait Arun, senior associate of energy finance at the Center for Public Enterprise and a Heatmap contributor, told me over email. “Developers rushing to build solar and wind energy between now and next summer to take advantage of tax credits will have to pay out these higher interest costs as they build.”
Though the Fed’s decision was unsurprising, the circumstances surrounding Wednesday’s meeting were out of the ordinary. For the first time since 1993, multiple Fed governors cast no votes on a rate decision. Christopher Waller and Michelle Bowman, both Republicans appointed by Trump, have voiced their preference for the Fed to lower rates by a quarter of a percentage point.
Additionally, Trump himself has been vocal about his views on chopping interest rates,— even going so far as to publicly threaten to fire Powell and appoint himself as head of the central bank, though he is legally unable to make good on his promise. Trump also recently criticized the Fed’s $2.5 billion building renovation project, singling out Powell for cost overruns. At the press conference on Wednesday, Powell emphasized the importance of the Fed’s independence from outside influence. “If you were not to have that, there’d be a great temptation of course to use interest rates to affect elections, for example,” he said.
While it may appease Trump, cutting interest rates won’t hold back the major energy price shocks that are very likely on their way. “Cutting rates sooner rather than later might make it easier for market actors to weather the coming shocks, but — crucially — they will not address the fiscal policy issues that created the shocks,” Arun noted. “However helpful rate cuts might be, they are not a solution to tariffs, tax credit uncertainty, and, soon, sharp spikes in electricity prices.”
The end of consumer electric vehicle tax credits isn’t great, but clawing back federal funding has been even worse.
Trump’s One Big Beautiful Bill took a huge bite out of the climate economy. One segment that emerged largely unscathed, however, is advanced climate tech. Companies working on nuclear, geothermal, battery storage, biofuels, and carbon capture may be shaken by the volatile business environment and a tad worried about provisions such as foreign entities of concern rules that could make their supply chains more complicated. But as of now, they can pretty much proceed with business as usual.
There is one big exception to that, however: The growing ecosystem of electric vehicle charging startups. Not only did OBBBA take a hammer to consumer EV tax credits, Trump also paused funding for key federal charging initiatives on his first day in office. While the startups I talked to were notably blasé about the former situation, executives are seriously worried about how attempts to clawback funding for charging infrastructure will impact the industry as a whole.
The outlook isn’t entirely bleak. Highway fast charging — generally the domain of larger companies such as Tesla, Electrify America, and ChargePoint — has actually seen solid growth so far this year despite the obstacles. But figuring out how to make charging work in urban centers and outlying communities has been a hot market for venture-backed companies over the past few years. And now some of them are facing a moment of reckoning.
“Cities are still pushing forward, but I would say there is a capital-C caution that’s being applied,” Tiya Gordon, founder of the curbside EV charging company It’s Electric, told me. “I think they feel that they need to get it right, and this is true for us as well as a startup. There’s not a margin for error in this environment.”
It’s Electric’s core innovation is siphoning off spare electrical capacity from buildings in cities to run its curbside Level 2, a.k.a. non-fast-charging EV charging network, negating the need for what can be a lengthy and complex grid interconnection process. The company then shares a portion of its revenue with the building owners who agree to the arrangement.
Just days before Trump took office, the startup was awarded $2.2 million from the Department of Transportation’s Charging and Fueling Infrastructure program to deploy curbside charging in Washington, D.C., legally obligated money that the new administration is now trying to rescind. That award remains in legal limbo. “We are proceeding as if we can’t count on that,” Gordon told me. “It’s sand through your fingers in an hourglass.”
That funding came on top of the company’s numerous awards from the Joint Office of Energy and Transportation, an interagency collaboration between the Department of Energy and the Department of Transportation created under the Bipartisan Infrastructure Law. Now the Joint Office has been effectively dismantled as former employees took deferred resignations and Trump has tried to revoke the funding awarded to It’s Electric and other startups.
All of this represents a significant financial setback for It’s Electric, as Gordon told me nondilutive funding — largely from federal and state grants — represents nearly half of the company’s total capital raised to date.
Gordon is hoping states will step into the breach, as climate leaders such as California and New York have thus far stood by their EV expansion plans. But Gordon has already noticed cities employing more diligence than ever when it comes to selecting partners. “They’re really going deep, they’re really taking time, they’re not rushing into any awards. So time is a big factor that represents caution,” she told me. And when it comes to the amount of chargers that cities seem to be looking to build, “the numbers are a little bit more modest.”
She mainly credits this pullback to the whiplash that Trump’s attempt to rescind funding for EV charging has caused. Compared to that, whatever deceleration the end of EV tax credits will cause in consumer uptake is a secondary concern.
“Honestly, that doesn’t really impact us at all,” Jeffrey Prosserman, CEO at Voltpost told me of the tax credits. His company retrofits lampposts in cities and suburbs, turning them into Level 2 EV charging platforms. “At the end of the day, EV adoption will either increase X or Y percent in a given year, but it’s going to continue to increase year over year. We’re past the tipping point, going from early adopters into the mainstream,” he told me.
EV prices are still falling, large businesses still want to electrify their fleets, and self-driving cars — which are far better suited to electric drivetrains — are still getting people excited, all of which should continue to fuel demand for a charging buildout. So while Prosserman acknowledged that nixing the consumer tax credits could “slow adoption by a couple percentage points,” he’s optimistic that the next political cycle will see a resurgence in support.
Like Gordon, however, he is quite concerned about the holdup in funding for both the Charging and Fueling Infrastructure program, or CFI, and its sister initiative, the National Electric Vehicle Infrastructure program, or NEVI. “It creates challenges for the EV charging companies like Voltpost, but it really fundamentally creates challenges for the cities and the general public who expected to have access to charging through these programs,” he told me. “That’s not to say that there isn’t a path forward. It’s just that the path that effectively the entire sector was operating on for the last few years has been reconfigured.”
NEVI is a $5 billion program that aims to build out a national charging network along highways, while CFI allocates $2.5 billion to deploy charging infrastructure in cities, towns, and hard-to-reach areas. Both were stood up in 2021 by the Bipartisan Infrastructure Law.
Politicians, industry analysts, and transportation officials alike have heavily critiqued these programs over the years for appearing to lack urgency, as building a network from scratch has proven to be an enormously complex and cumbersome undertaking. The former executive director of the joint office, Gabe Klein, said at a conference last year that the NEVI program wouldn’t really hit its stride until sometime between 2026 and 2028. Then Trump entered the White House and paused funding for both initiatives, creating a major roadblock for “the entire U.S. EV sector,” Prosserman told me.
Much like It’s Electric, Voltpost started the year by winning CFI funding to deploy its chargers in Washington, D.C,. and also secured a number of awards through the Joint Office of Energy and Transportation. With all of that money now tied up in lawsuits challenging Trump’s attempts to freeze the programs, Voltpost’s plans for growth have slowed. “We’re taking a more conservative approach for this year,” Prosserman told me, saying that while the company will eventually seek to raise a Series A it’s “not actively raising that Series A right now, given the macro situation.”
Prosserman said he’s been disappointed to see the general pullback in climate tech venture funding in the first half of 2025. “You have a group of investors who frankly said they are mission aligned, but are now taking a pause, not a stop, given the macroeconomic conditions, and having to wait until the dust settles to see how to reconfigure their portfolios,” Prosserman said. For now, he told me that Voltpost is leaning into its private-sector partnerships such as those with AT&T and Zipcar.
Not all charging companies have experienced this whiplash of funding awards and rescissions, though. SparkCharge, which makes portable, battery-powered fast chargers for commercial fleets and businesses, hasn’t received any NEVI or CFI grant money. The startup primarily serves customers by dispatching off-grid chargers on-demand or setting up stand-alone deployments, which are not core focus areas of either program.
The startup’s Chief Financial Officer David Piperno told me he’s glad that SparkCharge hasn’t relied on such capital, as it’s managed to “become a profitable enterprise with zero incentives, no state funding, no government funding.” That, he said, has allowed the company “to take a different approach to EV charging and be more innovative and have a variable pay-as-you-go model.” So far that seems to be working out pretty well, as it announced $30.5 million in new funding in May through a combination of equity financing and a venture loan.
Reaching former President Joe Biden’s goal of installing 500,000 publicly accessible EV chargers by 2030 still might be a longshot, though, especially as long as the Trump administration continues to target all things EV-related. And yet, charging executives remain relatively upbeat about the sector’s long-term fortunes.
“If you drive one of these vehicles, compared to what you had before, it’s just a superior car, right?” Piperno said, arguing that should continue to power steady consumer growth, even if it doesn’t happen as quickly as experts once predicted. While growth in EV sales increased by 40% in 2023, that slowed to just about 10% last year, as concerns over the availability of charging infrastructure, price, and range persist. “I think everyone thought that [the EV adoption] curve was going to be a lot faster. But I think that’s really normalized over the past few years already, and we don’t, quite frankly, see it normalizing much more than it has.”
At least now, executives told me, there’s more certainty regarding the policy landscape than at the beginning of the year. That holds especially true for startups that are willing and able to operate under the assumption that they might never see much of their recently awarded federal funding — at least anytime soon.
“The expression was, wait and see, wait and see, wait and see,” Gordon told me of Trump’s first months in office and the uncertainty around EV incentives and funding programs. “And now we waited and we saw, and it’s gone. And so we mourn and we move on, right?”
On NRC drama, Big Tech’s thirst, and Uplight’s for-sale sign
Current conditions: From Japan to California, the Pacific is preparing for tsunamis after one of the strongest earthquakes ever recorded struck the eastern coast of Russia • The Deep South is bracing for stifling temperatures • Hurricane Iona, the first named storm of the 2025 hurricane season in the Central Pacific, has reached Category 3 strength as it passes south of Hawaii.
It’s official: The Trump administration is going after the endangerment finding. The 2009 decision that greenhouse gases pose a danger to human life established the federal government’s legal right to rein in planet-heating emissions under the Clean Air Act and is the bedrock to virtually all national climate regulation. A rule proposed by the Environmental Protection Agency on Tuesday would scrap the finding and wipe out existing greenhouse gas rules on automobiles and heavy trucks. Also on Tuesday, the Department of Energy issued a report that “concludes that CO2-induced warming appears to be less damaging economically than commonly believed, and that aggressive mitigation strategies may be misdirected.”
The outcome of the rollback in the near term is likely years of lawsuits. As Harvard Law School’s Jody Freeman told Heatmap’s Emily Pontecorvo: “It doesn’t take effect for 30 days after it’s final. But yes, at that point, they get sued. These rules go to the D.C. Circuit Court of Appeals because that’s what the Clean Air Act says, and usually it would take about a year or so for a D.C. Circuit decision to happen. So now you’re in 2027. You can see the timeline on this stretching out.” In followup remarks by email, Freeman said: “From a legal perspective, the most aggressive argument they’re making is that they CANNOT regulate GHG emissions at all. If the Supreme Court agrees with that, a future administration can’t fix this. The backup arguments are more subtle and say, we have DISCRETION to use a different method to calculate a contribution toward endangerment, and we can consider many things other than science when making the endangerment finding. If the courts buy these arguments, a future administration could reverse course and rebuild.”
Since President Donald Trump first appointed Annie Caputo to the Nuclear Regulatory Commission in 2017, the Republican has made a name for herself as an industry-friendly champion of faster deployments of new reactors. Reappointed by former President Joe Biden in 2022, her term stretches through 2026. But on Tuesday, Caputo resigned, as I reported yesterday as a midday scoop in my Substack newsletter, Field Notes. The official reason she gave in the email she sent NRC staff is that the time had come to “more fully focus on my family.” But Caputo’s exit comes amid major political upheaval at what was once an oasis of bipartisan consensus.
In May, Trump proposed overhauling the way the NRC has long assessed the health risk from radiation as part of his four executive orders on nuclear power. Last month, in a move that critics decried as an illegal stretch of the White House’s authority over an independent agency, Trump fired Christopher Hanson, the Democratic commissioner who previously held the chair position. Earlier this month, E&E News reported that the Department of Government Efficiency representative detailed to the NRC had told the commission the White House expected it to “rubber stamp” new reactor designs that already gained approval from the departments of Defense or Energy. Emmet Penney at the conservative think tank FAI told me that if Caputo’s departure signals “radical changes” in the future, then the Trump administration’s efforts could backfire and lead to an “own-goal for energy dominance.”
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At least 34 factories or mineral refineries totaling more than $30 billion in investment have been paused, delayed, or canceled since Trump took office. That’s according to a new report from researchers at Wellesley College. “When you look at the projects that are slowing down, it’s all up and down the supply chain,” Jay Turner, an environmental studies professor who leads the database, told Heatmap’s Robinson Meyer.
A chart from the study.The Big Green Machine
The picture isn’t entirely bleak for EVs, at least not yet. Another 68 projects have advanced in the past six months, representing $24 billion in investment and more than 33,000 jobs.
Earlier this year, the lobby group Data Center Coalition and Facebook-owner Meta each asked the Trump administration to loosen permitting for data centers under the Clean Water Act. In an executive order unveiled last week, Wired reports that Trump responded by proposing a set of specific recommendations that mirror what the industry requested.
If implemented, the effects would vary by project, environmental lawyers told Wired. But the move comes amid increased scrutiny of data centers’ thirst for water. Earlier this month, The New York Times reported that a town’s wells ran dry after Meta broke ground on a new data center in Georgia.
In 2023, the startup Uplight tightened its grip on the distributed energy resource management market by acquiring the AI software company AutoGrid from Schneider Electric. Now Uplight is looking to sell itself. The company is pitching itself as “an AI-enhanced, full-stack platform built for the grid’s new demand,” according to a scoop yesterday from Latitude Media’s Maeve Allsup. With electricity demand surging and the aging grid heaving under pressure from extreme weather, technology to harness the solar panels, batteries, and other energy resources traditional utility infrastructure struggles to tap into is becoming crucial to avoiding blackouts.
Beyond Meat is finally getting beyond meat. The company plans to shed the flesh reference in its name this week as it launches its new Beyond Ground product that promises more protein than ground beef. “With this launch,” Fast Company’s Clint Rainey reported, “Beyond Meat is becoming merely Beyond and turning its focus away from only mimicking animal proteins to letting plant-based proteins speak for themselves. The radical move is cultural, agricultural, and financial.”