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Ask any climate wonk what’s holding back clean energy in the U.S. and you’re likely to get the same answer — not enough power lines. But what if the problem isn’t the number of power lines, but rather the outdated metal wires they’re made of?
Restringing transmission lines with more advanced wires, a process known as “reconductoring,” has the potential to double the amount of electricity our existing transmission system can handle, for less than half the price of building new lines. That’s the main finding of a recently published working paper from researchers at the University of California, Berkeley, and Gridlab, an energy consulting firm.
There are a few reasons that something as boring and seemingly ubiquitous as power lines are so crucial to the energy transition. Electrifying our cars and homes will increase demand for electricity, and much of the system is already too congested to integrate new wind and solar power plants. Plus, there just aren’t enough lines that run from the sunniest, windiest places to the places where most people actually live.
To realize the emission reduction potential of the clean energy subsidies in the Inflation Reduction Act, we have to more than double the rate of transmission expansion, according to research from Princeton University’s Repeat Project. Clean energy projects already face major delays and are often hit with exorbitant bills to connect to the grid. A study from Lawrence Berkeley National Laboratory called “Queued Up” found that at the end of 2022, there were more than 10,000 power plant and energy storage projects waiting for permission to connect to the grid — enough to double electricity production in the country. Some 95% of them were zero-carbon resources.
The main problem is permitting. Establishing rights-of-way for new power lines requires extensive environmental review and invites vicious local opposition. People don’t want to look at more wires strung across the landscape. They worry the eyesore will decrease their property value, or that the construction will hurt local ecosystems. New power lines often take upwards of 10 years to plan, permit, and build.
But it’s possible to avoid this time-consuming process, at least in many cases, by simply reconductoring lines along existing rights-of-way. Most of our existing power lines have a steel core surrounded by strands of aluminum. Advanced conductors replace the steel with a lighter but stronger core made of a composite material, such as carbon fiber. This subtle shift in materials and design enables the line to operate at higher temperatures, with less sag, significantly increasing the amount of power it can carry.
Advanced conductors cost two to four times more than conventional power lines — but upgrading an existing line to use advanced conductors can be less than half what a new power line would cost because it eliminates much of the construction spending and fees from permitting for new rights-of-way, the Berkeley study found.
“The most compelling, exciting thing is that it only requires a maintenance permit,” Duncan Callaway, an associate professor of energy and resources at Berkeley and one of the authors said while presenting the research over Zoom last week.
The paper highlights a 2016 project in southeastern Texas. Due to rapid population growth in the area, the local utility, American Electric Power, was seeing higher demand for electricity at peak times than it was prepared for, leading to blackouts. It needed to come up with a solution, fast, and decided that reconductoring 240 miles of its transmission lines would take less time than permitting new ones. The project ended up finishing ahead of schedule and under budget, at a cost of $900,000 per mile. By comparison, the 3,600 miles of new lines built under Texas’ Competitive Renewable Energy Zone program, which were built to connect wind-rich areas to population centers, cost more than double, at an average of $1.9 million per mile.
Callaway and his co-authors also plugged their findings into a power system expansion model — basically a computer program that maps out the most cost-effective mix of technologies to meet regional electric power demand. They fed the model a scenario where the only option for transmission was to build new lines at their slow, historical rate, as well as a scenario where there was also an option to reconductor along existing rights-of-way. The second scenario resulted in nearly four times as much transmission capacity by 2035, enabling the country to achieve a more than 90% clean electric grid by that date.
There are cases where new power lines are needed — for example, to establish a new route to access a high-quality renewable resource, Emilia Chojkiewicz, another author of the study, told me in an email. But she said it nearly always makes sense to consider reconductoring given the potential to double capacity and do so much more quickly. “Unfortunately,” she added, “current transmission planning practices do not tend to incentivize or even consider reconductoring.”
This all seems so ridiculously easy that it begs the question: Why aren’t utilities already rushing to do it? During the webinar last week, Chojkiewicz and her co-authors said part of the problem is just a lack of awareness and comfort with the technology. But the bigger issue is that utilities are not incentivized to look for cheaper, more efficient solutions like reconductoring because they profit off capital spending.
To change this, they suggested that the Federal Energy Regulatory Commission, which oversees interstate transmission, and state public service commissions, which regulate utilities at the state level, mandate the consideration of reconductoring in transmission and resource planning processes, and to properly value the benefits that advanced conductors provide. The Department of Energy could also consider instituting a national conductor efficiency standard, so that all new wires installed, whether along existing rights-of-way or new routes, achieve a minimum level of performance.
Reconductoring isn’t the only no-brainer alternative to building new power lines. Another study from the clean energy think tank RMI published last week illustrates the opportunity with even cheaper tweaks called “grid enhancing technologies.” One option is to install sensors that collect data on wind speed, temperature, and other factors that affect power lines in real time, called dynamic line ratings. These sensors allow utilities to safely increase the amount of power transmitted when weather conditions permit it. There are also power flow controls that can redirect power away from congested lines so that it can be transmitted elsewhere rather than wasted.
RMI found that in the PJM interconnection — a section of the grid in the eastern U.S. that is so congested the grid operator has frozen new applications to connect to it — these grid enhancing technologies could open up more than 6 gigawatts of new capacity to wind, solar, and storage projects in just three years. For reference, in 2022, nearly 300 gigawatts-worth of energy projects were waiting for permission to connect in PJM at the end 2022.
The cost savings are not just theoretical. In 2018, the PJM grid operator determined that a wind farm expansion in Illinois was going to require $100 million of grid upgrades — including building new lines and reconductoring existing ones — over a timeline of about three years before it would be able to connect. The developer countered that the needed upgrades could be achieved through power flow controls, which could be installed for a cost of just $12 million in less than half the time. PJM approved the idea, and the project is currently underway.
Congress is still debating how to reform permitting processes. But while that’s still a necessary step, it’s becoming increasingly clear that there’s a host of other outside-the-box solutions that can be deployed more quickly, in the near term. The IRA may have convinced the environmental movement that building new stuff was worth it, but there are still a lot of cases where the smarter choice is to renovate.
Editor’s note: This story has been updated to correct the cost of adding power flow controls to the PJM interconnection.
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Investment in zero-carbon energy and transportation surged this spring, driven by consumer EV and battery buying.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
Ready to be surprised? Clean energy and transportation investment surged in the second quarter of this year, rising to more than $75 billion in total, according to new data released earlier this week.
In fact, this spring was the second biggest quarter for U.S. clean investment in nominal terms since at least 2018, when data started to be kept. More than 5% of overall investment in the United States went into a clean energy or transportation industry.
That’s according to the Clean Investment Monitor, a joint project of the MIT Center for Energy and Environmental Policy Research and the Rhodium Group, a private research firm. The monitor tracks nationwide investment across a number of sectors that make up the new electricity economy, including critical mineral refining, battery manufacturing, solar and wind installation, and electric vehicle and heat pump purchases by consumers (among other variables).
Outside of a promising headline number, the story is a mixed one. Investment in America’s clean manufacturing sector started growing again last quarter after falling for 18 months; it remains about 24% below where it was a year earlier, according to the project. The new growth came overwhelmingly from investment in the EV supply chain — defined as “critical minerals, batteries, vehicle assembly, and charging equipment” — driving a staggering 88% of all clean manufacturing investment. That subsector alone made up more than 9% of all U.S. clean investment.
The more interesting story — and what leaps out from the chart — is that retail activity drove the spring resurgence. High gasoline prices helped here, pushing consumers to buy all-electric and plug-in hybrid vehicles in larger numbers. (Rivian, Tesla, and other automakers started to see an EV rebound last quarter, too, after Republicans ended EV incentives in 2025.) But the real boom came in residential batteries, which surged to an all-time high of $11 billion in quarterly sales. Consumer activity hasn’t made up such a large share of national clean investment since 2023.
This trend wasn’t just happening in the United States. We’ve talked a lot at Heatmap about whether the Strait of Hormuz crisis will drive a clean energy boom. But it's now clear the oil price shock really did encourage global EV adoption. Some 50 countries set new EV sales records in 2026’s second quarter, according to Kelley Blue Book. India, Brazil, and Australia all set record highs. That's a lot of demand destruction.
As costs rise, more proceeds from the Regional Greenhouse Gas Initiative are going to direct bill relief.
A carbon price can be a tough sell when electricity costs are rising.
That’s what governors up and down the eastern seaboard are facing as they decide what to do with revenues from the Regional Greenhouse Gas Initiative, an 11-state cap-and-trade program for the electricity sector that operates from Virginia to Maine.
In Virginia and New Jersey, two states where Democratic governors won last year amidst a maelstrom of concern about rising electricity prices, the program has been at least partially reoriented around putting dollars back into the pockets of ratepayers.
Virginia only recently rejoined the group this year after having left under the leadership of Republican Glenn Youngkin in 2023. When Virginia was last a member of RGGI, the proceeds from the auctions for emissions allowances largely went to an energy efficiency program for low-income households and a flood resilience fund. Today, having rejoined RGGI, some 45% of the revenue will be earmarked for rate relief, thanks to a budget amendment passed in June.
In New Jersey, meanwhile, Governor Mikie Sherrill has used money raised through to help fulfill the rate freeze pledge on which she centered her campaign for Drumthwacket by directly reducing bills.
Conservatives in RGGI states have for years tried to make a stink about the up-front costs it imposed on ratepayers. Now as electricity costs balloon, Democratic governors and state legislatures are looking to RGGI to help balance their emissions goals and efforts to keep electricity bills under control.
In New Hampshire, for instance, the most conservative state to be a consistent RGGI member, nearly all the state’s proceeds from the program now go to rate relief, compared to about three-quarters historically. In its latest report on how RGGI funds get used, the organization reported that in 2024, the last year for which comprehensive data is available, some 23% of RGGI proceeds went to direct bill assistance, compared to 16% over the 17-year lifetime of the system.
“The affordability narrative is the leading political narrative of 2026. And the albatross around the neck of carbon pricing has been that it’s going to raise energy prices,” Dallas Burtraw, a senior fellow at Resources for the Future, told me.
Seen holistically, Burtraw told me, “carbon pricing is built for affordability.” That’s because, one, economists generally consider carbon pricing the cheapest and most efficient way to hit a given emissions reduction goal (assuming, that is, that you want to reduce emissions in the first place), and secondly because the proceeds from the carbon price can be invested and distributed in ways that mitigate price hikes.
“Carbon pricing raises tremendous proceeds, and the question comes down to the distributional impacts of carbon pricing. It always comes down to how you use those carbon proceeds,” Burtraw told me.
The current pressure for rate relief comes as RGGI prices have risen as the same time electricity prices up and down the East Coast are at or near all-time highs. The clearing price in the latest quarterly auction for carbon dioxide allowances was $35 per ton, the highest price in the history of the program, bringing in some $642 billion to be distributed among the states. By contrast, the third quarter auction in 2025 had a clearing price of $19.63 and raised some $300 million.
At the same time, electricity bills have risen across the RGGI system, including an 18.5% rise in New Jersey by 12.5% rise in New Hampshire just over the past year, according to Heatmap and MIT’s Electricity Price Hub.
Because every state in the RGGI system besides Virginia operates in a restructured wholesale electricity market, it’s hard to say exactly how much RGGI prices affect ratepayer bills. In Virginia, Dominion, the dominant utility, has requested permission for a rider on bills of $10 to $13 per month, compared to monthly added costs under $3 when Youngkin began the process of withdrawing Virginia from the system in 2022.
In a New Jersey regulatory filing, meanwhile, the state’s Board of Public Utilities recommended using RGGI proceeds to fund $150 million of rate relief for moderate- and low-income households that Sherrill announced in June, citing an update to the state’s three-year strategic plan for RGGI that directly the NJBPU “to provide direct bill credits on residential energy bills for NJ’s most vulnerable residents.” There is precedent for this in the Garden State: In 2025 Governor Phil Murphy helped deliver rate relief by shifting some RGGI money around.
The trend toward using RGGI funds for rate relief has caused disquiet among environmental groups that support carbon pricing and want to see the dollars largely go to energy efficiency programs, not ratepayers.
In 2025, a coalition of Virginia environmental groups that supported rejoining RGGI called for revenue to go to the “low-income energy efficiency fund and the Community Flood Preparedness Fund.” The Flood Preparedness Fund issues grants to local governments for flood mitigation and resiliency projects, while the energy efficiency programs fund things like home weatherization.
“The case we’ve made to our environmental advocates in Virginia is that we have taken 45% towards RGGI credits, but we’ve left 55% of the revenue. That leaves each of the programs with record levels of funding,” Josephus Allmond, Virginia’s chief energy officer, told me, referring to the flood and energy efficiency programs that have historically been funded by RGGI.
“We were able to take what could have been a pretty negative impact to residential customer bills and turn it into something we can basically hold customers harmless.”
While the Natural Resources Defense Council has said it supports temporary rate relief to low-income ratepayers, it also has also mounted a defense of using RGGI revenues “to fund energy and environmental programs.”
“Several states are using larger amounts of program proceeds to provide households with bill credits or rebates that immediately lower monthly electricity bills, which means less investment in programs that provide long-term benefits,” Jo Gardias and Dawone Robinson wrote for the NRDC.
To me, Gardias framed the debate between energy efficiency programs and bill credits as between up-front and long-term benefits.
“Energy efficiency programs not only save the households that are getting the upgrade money, but every other customer through avoided transmission and distribution and generation costs,” Gardias told me. “On the far end there’s energy efficiency where you’re getting lifetime savings, on the shorter or more immediate end there’s the bill credit on energy savings.”
RGGI itself has estimated that every $1 of investments funded by the auction results in a lifetime bill savings of just over $4. In 2024 alone, RGGI claims that investments “are associated with approximately $363.9 million in annual energy bill savings and $2.6 billion in lifetime bill savings.”
“The question of how you spend proceeds is a large question of tradeoffs,” Gardias said. “What we’re seeing now is that because we have price spikes that are happening from data centers and other factors, there’s more interest in spending money on bill credits that provide immediate relief.”
Of course, this is the dilemma with all climate policy. The costs are immediate and upfront, while the benefits accrue over time and are more difficult to attribute to any one program or investment.
“There’s a lot of priorities for ways that you should use carbon proceeds to address the challenges of climate change,” Burtraw said. “But in 2026, given the affordability narrative and the populist sentiment in politics today, it makes sense to use carbon proceeds to reduce electricity prices.”
While an economist could draw up a cost benefit analysis that shows any number of uses of the proceeds could be more efficient for the economy or the environment — using the money to reduce taxes on investment, say, or using the money to fund energy efficiency programs — any of those would assume certain baseline of support for carbon pricing in the first place.
“For 25 years we’ve argued about this with the expectation that carbon pricing was inevitable because it was so much more efficient than any other type of approach. But we’ve seen after 25 years that carbon pricing is not inevitable,” Burtraw said. “We have to face the realities of what it takes to make it possible to do carbon pricing.”
Misan Lychee is made with “some” carbon dioxide captured “directly from the air,” along with 14.6 grams of added sugar.
I believe life should be a little bit silly, which is why I’m a sucker for a gimmick. A hotel just for napping? Sign me up. A “convenience store” full of items made of felt? I now own a bag of inedible Fritos. Hot sauce packaged to look like dynamite? Cute, add to cart.
And when I found out that you can buy soda carbonated with CO2 obtained via direct air capture, I said, Take my sixteen American dollars and put it on ice.
Misan Lychee (which yes, only comes in lychee flavor “at the moment”) represents the distant hopes and dreams of DAC. Currently, there isn’t demand for carbon dioxide at direct air capture prices; it’s much, much cheaper just to buy the concentrated byproduct of, say, natural gas- and coal-fired ammonia plants to carbonate your soda than to go through the trouble of sucking the 0.04% of the air that is CO2 out of the atmosphere for a few bubbles. That’s why the carbon removal industry is propped up by offtake agreements and credits, at least until Brutalism comes back in a big way and dramatically increases the demand for concrete manufactured with stored CO2.
Still, that hasn’t stopped companies from trying. You can buy carbon-sequestered beer, DAC vodka, CO2-captured perfume, and recycled-emission yoga pants. But unlike other consumer products that are, in many cases, made from waste gas captured during industrial processes rather than from true atmospheric CO2, Misan claims on the can to be made from “some” carbon dioxide pulled “directly from the air using a technology called direct air capture.” The bottle sports the logo of Bay Area-based AirMyne, a DAC start-up, which, on further investigation, turns out to own Misan.
My order arrived rattling around in a cardboard box, with three of the cans having popped loose from the six-pack in transit. As someone with no impulse control (which, upon reflection, might be related to my love of gimmicks), I immediately opened a can. Over my laptop. We both got drenched by the resulting geyser. CO2’s presence: confirmed.
What happened next was, admittedly, also user error. I took a sip and immediately went, “Yuck, what?” That’s because after a summer of drinking my way through every Waterloo flavor, I was expecting Misan Lychee to be a seltzer, too. Despite its website describing it as a “climate-forward sparkling water,” it is not, and you can taste all 14.6 grams of its added sugar. It has a moderately cloying, perfumy flavor that my dad described as “strawberry, but disturbing?” when I asked him to do a blind taste test. I think it’s perhaps closer in taste to pear, and I remain optimistic that someone who has more free time than me could come up with a recipe to turn it into a “sustainable” spritz.
Actually, to that point — is it sustainable? It notably doesn’t claim to be, and it has its skeptics. Richard Waite of the World Resources Institute pointed out on Bluesky that carbon dioxide is only “sequestered” until it leaves our metabolic system the usual way, via exhalation or burps. Still, his questions about the energy source of AirMyne’s direct air capture — and thus the carbon-emitting or -removing properties of the soda — generated lots of good puns in the replies. “Run out of polar before we run out of Polar” comes to us courtesy of Costa Samaras.
The second Misan Lychee I cracked also soaked me, although I was prepared this time and at least opened it out of range of electronics. I also paid more attention to the can, which has an unusual but not unpleasant matte feel. The list of ingredients on the back seems surprisingly long for the supposed golden age of “gut sodas” that advertise such things as the inclusion of “plant fibers.” Rather than prebiotics, Misan contains “xanthan gum” and an ominous concoction identified as “cloudy agent.”
If Misan isn’t healthier for me or the planet, then what is it for, exactly? I returned to the six lines of all-caps text printed on the front of the can:
Some of the CO2 in this can was pulled directly from the air using a technology called direct air capture (DAC). If scaled, DAC could do more than just carbonate your water. It could remove millions of tons of CO2 from the atmosphere, fighting climate change.
Gimmicks are, ultimately, ways to sell you something. Water gets packaged to look more “manly;” you might buy a Coca-Cola instead of a Pepsi if it has your name on it. But Misan isn’t ultimately selling itself with the promise of bubbles brought to you by DAC. It’s the other way around: Misan is the marketing vehicle for AirMyne. They want you to drink the DAC Kool-Aid.
Will I buy Misan Lychee again? Not likely: I have De La Calle! Mango Chili Mexican sodas to drink, made from the fermented rind of pineapples — BYOCO2, if you will.
Then again, never say never. If I learn about the existence of Misan Chikoo or Misan Pistachio-Rosewater during a weak moment, I’ll probably be down another $16. But I’ll open it over the sink this time.