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On PJM’s inflexible giants, another wind attack, and a Sino-Russia mega deal

Current conditions: In the Pacific, Tropical Storm Kiko has strengthened into a hurricane on its way toward Hawaii • Unusually cool air in the Upper Midwest and Appalachians could drop temperatures to as much as 20 degrees Fahrenheit below average • Nearly one million people are displaced in Pakistan’s most populous state as Punjab suffers the biggest flood in its history.
The Trump administration’s plan to kill a $20 billion clean energy financing program got the green light from a federal appeals court on Tuesday. The Greenhouse Gas Reduction Fund, housed under the Environmental Protection Agency, was designed to provide low-cost loans for solar installations, building efficiency upgrades, and other local efforts to reduce planet-heating emissions. The three-judge panel overturned a lower court’s injunction temporarily requiring the EPA to resume payments, ruling that most of the plaintiffs’ claims were contract disputes and belonged in the Court of Federal Claims. If the case now moves to that court, Heatmap’s Emily Pontecorvo wrote, “the plaintiffs would only be able to sue for damages and any possibility of reinstating the grants would be gone.”
Before leaving office, the Biden-era EPA finalized awards to eight nonprofits that would “create a national financing network for clean energy and climate solutions across the country.” The move was meant to insulate the program from cuts, but it stirred the new administration’s ire. The Trump EPA called the move a scam to give taxpayer-funded slush funds to nonprofits stacked with former Biden administration appointees. The recipients could still appeal the decision, which experts told Emily could still have significant ramifications. Watch this space.
The country’s largest electrical grid, the PJM Interconnection, put out a conceptual proposal in August for a plan to ask large electricity users such as data centers to voluntarily reduce their power consumption when there’s a shortage of electrons on the grid — and potentially require them to do so if too few step up. The plan is largely in line with what the Data Center Coalition, a trade association representing server companies, recently backed in a legal filing in North Carolina, as this newsletter previously reported. Yet big tech companies balked at the proposal, according to comments submitted in response. Microsoft warned that imposing curtailment undermines investor confidence. Amazon said targeting large power users to cut back on demand is discriminatory. Talen Energy, an independent power producer, said the 13-state-spanning PJM has no authority to make such a rule, and that individual state law governs load. The Data Center Coalition itself criticized the rule’s assumption that big power users have on-site back-up generation as overly broad and not reflective of reality.
The idea itself derives from an influential paper released by Duke University researchers in February that found the U.S. could add gigawatts’ worth of additional demand from new data centers without building out an equivalent amount of power plants if those facilities could curtail electricity usage when demand was particularly high. Heatmap’s Matthew Zeitlin described the strategy as “one weird trick for getting more data centers on the grid,” boiling down the approach simply as: “Just turn them off sometimes.”
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The Trump administration said it would reconsider the permit for SouthCoast Wind, a Massachusetts offshore wind farm approved last year by the Biden administration, according to legal filings seen by Reuters on Tuesday. In a motion filed to the U.S. District Court for the District of Columbia on Friday, lawyers at the Department of Justice said the Department of the Interior would review the project’s construction and operations plan.
The move came a week after Trump yanked back approvals for the nearly-complete Revolution Wind project off Rhode Island’s coast. It’s just the latest escalation in what Heatmap’s Jael Holzman called “Trump’s total war on wind.” As I reported yesterday in this newsletter, the Department of Transportation was the most recent agency to join the effort this week, axing $679 million in funding for infrastructure to support offshore wind development. But the Interior Department has led the charge with a witch hunt against policies that favor wind power, the de-designation of millions of acres of federal waters for offshore turbine construction, and a new investigation into bird deaths near windmills. The Department of Commerce tapped in last month by teeing up future tariffs with its own probe into whether imported turbine components pose a national security threat. The assault is prompting pushback. On Monday, the Democratic governors of five Northeastern states called on Trump to “uphold all offshore wind permits already granted.”

In spite of Trump administration pressure aimed at convincing countries around the world to reject Russian oil, the Kremlin netted an energy deal with the world’s second-most populous nation on Tuesday in a sign of what Russian President Vladimir Putin called an “unprecedentedly high level” of good relations between Moscow and Beijing. Under the new agreement, China will buy Russian gas through a new pipeline from Siberia. Once complete, the Power of Siberia 2 pipeline will carry 50 billion cubic meters of gas through Mongolia to northern China every year.
The deal came at the tail end of a summit in China between Putin, Chinese President Xi Jinping, and Indian Prime Minister Narendra Modi. The trio of hardline leaders, who represent the three biggest economies in the world, came together for a photo depicting a friendly three-way handshake widely interpreted as a show of unity and defiance against Washington’s attempts to impose its will through economic sanctions.
The Tennessee Valley Authority is broadening its effort to remake itself as the testing ground for new American small modular reactors. On Tuesday, the federally-owned utility announced plans to buy 6 gigawatts of reactors from NuScale Power, the first and only SMR developer whose design has won approval from the Nuclear Regulatory Commission. Shares of NuScale — which has struggled since the high-profile failure of what was supposed to be the nation’s debut SMR power plant in Utah two years ago — surged nearly 8%.
The TVA had already planned to build the first U.S. units of GE Vernova-Hitachi Nuclear Energy’s 300-megawatt reactors, and last month became the country’s first utility to sign a power purchase agreement with a fourth-generation reactor developer, the Google-backed Kairos Power. The deals come amid what Heatmap’s Katie Brigham called a “nuclear power dealmaking boom.” On Tuesday an industrial standard-setting group that includes Exxon Mobil, Chevron, Shell, Rio Tinto, and IBM launched a new consortium to streamline processes around building advanced nuclear reactors. On Wednesday, Kairos inked a deal with nuclear fuel producer BWXT to work together on producing the rare type of uranium fuel the reactor company needs for its plants.
Wind turbines are notoriously not always recyclable. But they are reusable. Just ask Jos de Krieger, the co-founder of a Dutch company called Blade Made that purchases used turbines and transforms them into sleek, minimalist tiny homes. “Everything in the built environment — everything that you see around you — has an end of life,” Krieger told CNN. “And we need solutions besides waste or landfill, incineration or something without value… Changing that perception is really something that has to happen in the eyes of everyone,” he added, calling for “processes that create stories, instead of waste.”
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In seven years of owning an electric car, I’ve done practically no maintenance. My 2019 Tesla Model 3 has gotten a new set of tires and windshield wipers, but because an EV doesn’t require oil changes or many of the other occasional chores that come with gas cars, that’s about it.
The one thing I have had to fix is the battery, and no, I don’t mean the big one that makes the car go.
Twice in those seven years, I’ve replaced the car’s 12-volt battery. This is the toolbox-sized unit that’s familiar to millions — it’s what the phrase “car battery” used to mean back before electric vehicles. Lots of new or aspiring EV drivers may not even realize their car has a second, smaller battery borrowed from combustion days. But this crucial holdover — the most recycled object on the planet, by the way, at a rate of more than 100 million annually — has already been a source of annoyance for EV engineers and drivers.
The reason behind the weird setup is straightforward. Despite the fact that EVs are effectively giant batteries on wheels, they need a backup source to operate the power windows and doors. If you’re in a car accident that disables the main battery, for instance, you need power to the doors to escape, and also a way to disconnect the high-voltage battery. Thus, the old-fashioned 12-volt battery squirreled away deep inside the car to protect it during collisions.
It’s not just a matter of backup power, either. A large, high-voltage battery would have to step down its electrical output for applications other than pushing a car down the road; it’s simpler to power them with a 12-volt battery and use the big unit to recharge the smaller one. After all, legacy carmakers have decades of experience building this kind of electrical system for gasoline-powered cars. Some EVs also use the 12-volt setup to disconnect the high-voltage power supply when the car is simply parked for a long time.
All this makes solid engineering sense. It also means that a sleek, modern EV is reliant upon the clunky car battery of yesteryear. Some drivers, including those in new Kia EVs, have said they can’t drive their cars even though there’s plenty of juice in the big unit because something went wrong with the 12-volt. As one Reddit commenter wrote: “It seems absurd to design a car that can run out of electrons and not be able to start while it is carrying 70 kWh of energy in a giant battery.” Yet that’s exactly the reality.
There are a few reasons why. As InsideEVs has noted, the rugged old 12-volt keeps getting more and more responsibility. Nowadays, the constant cellular connectivity of modem EVs — as well as features that can be used while the car is parked, such as security systems that tap into the vehicle’s exterior cameras to monitor the surrounding area — can cause a continuous drain on the 12-volt battery. That requires the car’s big battery to “wake up” and recharge the smaller one, which not only bleeds the vehicle’s driving range while it’s sitting still but also causes lots of recharging cycles for the 12-volt, prematurely aging the small battery.
Rivian had notorious problems from this issue for the older R1T and R1S and had to engineer a fix. Hyundais and Kias, meanwhile, have had longstanding issues with their Integrated Charging Control Unit, the system that recharges the 12-volt battery, that have caused a variety of recalls and headaches widely documented in online posts and videos. Chevy and Toyota have endured their own growing pains trying to make a low-voltage electrical system work well inside an EV.
But the car companies are getting smarter. Rather than duplicating what works in gas cars, more of them are building EV-specific systems with this application in mind. For example, the 12-volt in an EV doesn’t need to provide the big single burst needed to start up a gas engine, but it does need to be able to survive being subjected to more recharging cycles. In other words, it’s not that using these batteries in modern EVs is a bad idea — we just need to be smarter about how.
Perhaps EV builders one day will engineer away the old battery. Rivian, for one, has filed a patent for an electrical architecture that would work without a low-voltage battery at all. But those workarounds are a long way out. For now, even the most futuristic-feeling electric cars are stuck with the same kind of battery your dad had to jump-start in the church parking lot that time you left the AC on and the engine wasn’t running. My big, high-voltage battery might keep running forever, even as its capacity continues to diminish. But inevitably, I’ll need another small, dumb battery when this one goes kaput.
GOP lawmakers know climate change is real. But they lack political incentives to do anything about it.
The New York Times recently profiled former Senate Majority Leader Bill Frist and his increasing engagement on climate change. Many of the online comments accused him of hypocrisy. Why, they asked, did he only become concerned about climate change after leaving Congress?
It’s an understandable question.
I have spent the better part of a decade discussing climate change with Republican members of Congress and can see a frequently overlooked part of the answer. During my hundreds of one-on-one conversations with Republican senators and representatives, almost none of them deny that climate change is occurring. Most understand the science well enough, and many acknowledge privately that it presents serious long-term risks.
They don’t lack knowledge. They lack political incentives.
Members of Congress have finite political capital. Every day they must decide which issues deserve their attention. Naturally, they devote their time to the issues that voters, donors, activists, staff, and party leaders tell them matter most.
Politics is a marketplace of incentives. For decades, climate advocates have devoted their efforts to changing Republicans’ minds, but have devoted little effort to changing the incentives for Republicans to act.
The political ecosystem for Democrats could not be more different. Democrats are surrounded by organizations that continually reinforce the importance of climate policy. Environmental groups, philanthropies, labor organizations, advocacy organizations, academics, campaign donors, think tanks, and congressional staff all create an environment in which climate engagement is expected and rewarded.
Republicans experience almost none of that.
When I was quoted in the New York Times article, I described the “eco right” as “a lonely place.” I meant it literally. There are remarkably few conservative organizations whose primary mission is helping Republican elected officials develop serious climate policy. Few donors make climate engagement a condition of support. Few advocacy groups reward constructive leadership. Few congressional staff have access to a deep bench of conservative climate experts. Climate is far more often presented as a political liability than a leadership opportunity.
In that environment, addressing climate change is rarely a priority. This largely explains what puzzles many observers — that Republican leaders often become noticeably more outspoken about addressing climate change after leaving office. The science has not changed. Their incentives have.
Freed from primary elections, fundraising pressures, and the constant competition for legislative attention, they’re able to think about problems whose consequences unfold over decades instead of election cycles.
That observation leads to an uncomfortable conclusion for those of us who want stronger climate policy: Persuading Republicans that climate change is real is not just unnecessary, it’s unproductive. They know it’s real. The more important task is building the institutions that make climate engagement a priority. That means investing in conservative policy organizations, developing Republican congressional staff expertise, supporting Republican governors and state legislators, encouraging business leaders to engage, creating donor networks that reward constructive center-right leadership, and giving Republican members credible partners they can trust.
In other words, we need to make the eco-right a much less lonely place.
Building institutions requires capital, both political and financial. Today, the overwhelming majority of climate-related political spending — whether by advocacy organizations, political action committees, or philanthropically supported campaigns — flows to Democratic candidates and causes. It’s understandable. Democrats have generally been more supportive of climate action, and donors naturally want to reward those who stand with them.
But rewarding allies isn’t the same as expanding the number of them.
If the objective is durable climate policy rather than simply electing more Democrats, then the current allocation of political spending deserves reconsideration. Congress writes laws, and lasting legislation almost always requires bipartisan support. A movement that invests overwhelmingly in one party shouldn’t be surprised when the other party lacks champions, expertise, and political incentives.
Climate philanthropists, advocacy organizations, and political action committees should explicitly seek to create Republican allies by committing a more significant portion of their electoral spending to Republican candidates. This support would send a powerful signal throughout Republican politics that constructive engagement on climate change will be rewarded. More Republican candidates would respond to those incentives, and the universe of viable partners would expand.
For Republicans, the greatest opportunity lies in primary elections. While general elections determine which party governs, primaries determine what kind of Republicans and Democrats will govern. Donors should identify Republican candidates who are willing to engage on a variety of climate-related topics — from adaptation and resilience to market-based policies that reduce emissions to energy innovation — and help them succeed. The objective isn’t ideological purity. It’s to demonstrate that constructive climate leadership is politically viable within today’s Republican Party, and to give those candidates the confidence that they aren’t alone.
Over time, this approach would accomplish something today’s funding model cannot. Rather than simply rewarding an existing coalition, it would create a larger one. It would produce more Republican members who see climate engagement as compatible with conservative principles. Climate change would still be a scientific and economic challenge, but politics would no longer preclude addressing it.
Rather than increasingly evident climate change adding to political division, it could drive both parties to act. America’s biggest policy achievements have generally occurred when a president elevated an issue as a national priority and Congress responded. Tax reform, welfare reform, civil rights, and other major agreements all required presidential leadership before they produced durable bipartisan legislation.
Climate policy has not yet reached that level. While voters increasingly care about it, it does not determine presidential elections or dominate governing agendas.
The closest climate change has come to being a top-tier issue was when President George H.W. Bush signed the United Nations Framework Convention on Climate Change in 1992, but that was before addressing climate change became so partisan. More recently, President Joe Biden included clean energy tax credits in the Inflation Reduction Act. That modest success is noteworthy in part because it rode upon legislation to address inflation, a top-tier voter issue — and because the provisions were largely repealed less than three years later. Until climate change becomes a presidential-level issue — one that candidates in both parties believe they must address — Congress is unlikely to devote sustained attention to it.
That day will come. And when that moment arrives, the quality of the legislation will depend on the work being done now. If we want bipartisan climate policy tomorrow, we need to build bipartisan political capacity today.
The climate movement has spent decades rewarding allies. The next several decades should be spent adding more. Politics follows incentives more than information. If we want Republicans to lead on addressing climate change or at least become those allies, we must stop just trying to persuade them and start investing in the institutions, incentives, and people that make it possible.
Current conditions: Tropical Depression Two is set to strengthen into Tropical Storm Bertha as the system widens over the Gulf Coast from Texas to Tampa Bay, Florida • Temperatures will top 112 degrees Fahrenheit in Khartoum, the capital of war-ravaged Sudan • Canadian wildfire smoke may have largely cleared in the Northeastern United States, but nearly 900 blazes are still burning, and Chicago is still under an air quality warning.

Andy Burnham, the new leader of the British Labour Party and the likely next prime minister of the United Kingdom, has vowed to uphold a contentious ban on exploration licenses for oil and gas drilling in the North Sea. While deputy party leader Lucy Powell told the BBC on Sunday that fossil fuels from the North Sea would remain part of Britain's energy mix, the so-called “king of the north,” who previously led the industrial metropolis of Manchester as its mayor, has instead stuck by the party’s original plan. “If they don’t reverse the ban on new exploration then the industry will be very unhappy indeed,” one industry source told the Financial Times. The decision comes after rumors had swirled that Burnham may support increasing domestic fossil fuel production in a bid to bring down energy prices. In a post on his Truth Social network, Trump wrote: “The People of Aberdeen, in Scotland, are dancing in the streets because the new Prime Minister, Andy Burnham, has stated that he will be opening up, all the way, the invaluable North Sea Oil!”
Scotland is, on the other hand, getting more of Trump’s least favorite energy source. The American president’s antipathy toward offshore turbines, so goes the lore, began with an unsuccessful bid to block a project he considered unsightly off the coast of his golf course there. Last week, Renewables Now reported that offshore wind developer Ocean Winds secured the Scottish government’s approval for a 2-gigawatt offshore wind farm called Caledonia, the name Romans gave the area of Britain that ultimately became Scotland and its frontier with England. Located 25 miles off Moray Firth, the project is poised to begin construction in 2030.
In the U.S., the Trump administration has limited plans for carbon removal facilities. In Canada, as Emily has written, Prime Minister Mark Carney has opened the door to direct air capture companies looking for a new home base. But in the European Union, Brussels is already weaving carbon removal into the bloc's carbon-trading market. The EU’s highest governing body, the European Commission, proposed allowing carbon removal into its EU Emissions Trading System for the first time. “Under the current rules, companies cannot use carbon credits of any kind to comply with the regulations,” Emily wrote last week in a piece previewing the proposal. “But as 2040 grows closer, the EU plans to rely on carbon removal to offset some of the residual emissions from industries that are the most difficult to decarbonize.” For now, the scheme will be limited to direct air capture and bioenergy with carbon capture and sequestration.
Last month, New York Attorney General Letitia James headed a group of Democratic-led states in a lawsuit challenging the Trump administration’s deals to kill offshore wind projects, as my colleague Emily Pontecorvo has written. Now many of those same blue states are seeking to join private developers’ litigation seeking to thaw President Donald Trump’s freeze on approving wind projects. Last week, the states filed a motion to intervene on behalf of wind companies that accuse the administration of unfairly targeting their businesses. The states argue, according to Bloomberg Law, that the halt to federal permitting “pushes up electricity costs” and “hurts their attempts to curb fossil fuel emissions.”
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Claude-maker Anthropic is set to lease computing power for its artificial intelligence data centers from Meta, making what The New York Times described as “a potential step toward a new AI for the social networking company.” Under the deal, Anthropic would pay the Facebook parent company $10 billion over two years, in monthly increments. The agreement is roughly a third the size of the deal that the AI giant signed with Elon Musk’s xAI in May for $45 billion of computing power over three years. That deal has drawn blowback given the vast arrays of gas turbines that power xAI’s biggest data center, Colossus, which is the subject of an air pollution lawsuit filed by the NAACP. As for Meta, insiders Heatmap talked to at the end of last year put it in the bottom of hyperscalers based on its decarbonization efforts. One social scientist told us, “Google is the best, Meta is the worst. Evil corporation.”
Russia’s state-owned nuclear company has at least 18 new nuclear projects underway at home, Rosatom announced. The Kremlin-owned company said the projects are in “various stages of implementation” throughout Russia, and don’t count the more than two dozen under construction overseas in places such as Bangladesh, India, and Turkey. In a speech published in the company’s in-house magazine and shared with World Nuclear News, Rosatom Director General Alexei Likhachev said the firm aims to increase revenues to $51.3 billion by 2028 — a nearly 18% increase from this year. Improving profits, however, means reducing costs by 5% that same year.
Meanwhile, the Kremlin’s nuclear regulator, Rostekhnadzor, has issued licenses for the first two proposed units of the new Kola nuclear station in northwest Russia, near Finland. The plant is expected to begin construction next year, NucNet reported, and ultimately include four VVER-S medium-capacity pressurized water reactors.
Tesla has a fierce new competitor in the European market. The Chinese automaker Xpeng just released its compact L03 crossover. The starting price in the German market, $40,700, undercuts the Tesla Model Y’s $44,480. The vehicle, per InsideEVs, is the first Chinese car to be fully integrated with Google Maps.