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Is international cooperation or technological development the answer to an apocalyptic threat?

Christopher Nolan’s film Oppenheimer is about the great military contest of the Second World War, but only in the background. It’s really about a clash of visions for a postwar world defined by the physicist J. Robert Oppenheimer’s work at Los Alamos and beyond. The great power unleashed by the bombs at Hiroshima and Nagasaki could be dwarfed by what knowledge of nuclear physics could produce in the coming years, risking a war more horrifying than the one that had just concluded.
Oppenheimer, and many of his fellow atomic scientists, would spend much of the postwar period arguing for international cooperation, scientific openness, and nuclear restriction. But there was another cadre of scientists, exemplified by a former colleague turned rival, Edward Teller, that sought to answer the threat of nuclear annihilation with new technology — including even bigger bombs.
As the urgency of the nuclear question declined with the end of the Cold War, the scientific community took up a new threat to global civilization: climate change. While the conflict mapped out in Oppenheimer was over nuclear weapons, the clash of visions, which ended up burying Oppenheimer and elevating Teller, also maps out to the great debate over global warming: Should we reach international agreements to cooperatively reduce carbon emissions or should we throw our — and specifically America’s — great resources into a headlong rush of technological development? Should we massively overhaul our energy system or make the sun a little less bright?
Oppenheimer’s dream of international cooperation to prevent a nuclear arms race was born even before the Manhattan Project culminated with the Trinity test. Oppenheimer and Danish physicist Niels Bohr “believed that an agreement between the wartime allies based upon the sharing of information, including the existence of the Manhattan Project, could prevent the surfacing of a nuclear-armed world,” writes Marco Borghi in a Wilson Institute working paper.
Oppenheimer even suggested that the Soviets be informed of the Manhattan Project’s efforts and, according to Martin Sherwin and Kai Bird’s American Prometheus, had “assumed that such forthright discussions were taking place at that very moment” at the conference in Potsdam where, Oppenheimer “was later appalled to learn” that Harry Truman had only vaguely mentioned the bomb to Joseph Stalin, scotching the first opportunity for international nuclear cooperation.
Oppenheimer continued to take up the cause of international cooperation, working as the lead advisor for Dean Acheson and David Lilienthal on their 1946 nuclear control proposal, which would never get accepted by the United Nations and, namely, the Soviet Union after it was amended by Truman’s appointed U.N. representative Bernard Baruch to be more favorable to the United States.
In view of the next 50 years of nuclear history — further proliferation, the development of thermonuclear weapons that could be mounted on missiles that were likely impossible to shoot down — the proposals Oppenheimer developed seem utopian: The U.N. would "bring under its complete control world supplies of uranium and thorium," including all mining, and would control all nuclear reactors. This scheme would also make the construction of new weapons impossible, lest other nations build their own.
By the end of 1946, the Baruch proposal had died along with any prospect of international control of nuclear power, all the while the Soviets were working intensely to disrupt America’s nuclear monopoly — with the help of information ferried out of Los Alamos — by successfully testing a weapon before the end of the decade.
With the failure of international arms control and the beginning of the arms race, Oppenheimer’s vision of a post-Trinity world would come to shambles. For Teller, however, it was a great opportunity.
While Oppenheimer planned to stave off nuclear annihilation through international cooperation, Teller was trying to build a bigger deterrent.
Since the early stages of the Manhattan Project, Teller had been dreaming of a fusion weapon many times more powerful than the first atomic bombs, what was then called the “Super.” When the atomic bomb was completed, he would again push for the creation of a thermonuclear bomb, but the efforts stalled thanks to technical and theoretical issues with Teller’s proposed design.
Nolan captures Teller’s early comprehension of just how powerful nuclear weapons can be. In a scene that’s pulled straight from accounts of the Trinity blast, most of the scientists who view the test are either in bunkers wearing welding goggles or following instructions to lie down, facing away from the blast. Not so for Teller. He lathers sunscreen on his face, straps on a pair of dark goggles, and views the explosion straight on, even pursing his lips as the explosion lights up the desert night brighter than the sun.
And it was that power — the sun’s — that Teller wanted to harness in pursuit of his “Super,” where a bomb’s power would be derived from fusing together hydrogen atoms, creating helium — and a great deal of energy. It would even use a fission bomb to help ignite the process.
Oppenheimer and several scientific luminaries, including Manhattan Project scientists Enrico Fermi and Isidor Rabi, opposed the bomb, issuing in their official report on their positions advising the Atomic Energy Commission in 1949 statements that the hydrogen bomb was infeasible, strategically useless, and potentially a weapon of “genocide.”
But by 1950, thanks in part to Teller and the advocacy of Lewis Strauss, a financier turned government official and the approximate villain of Nolan’s film, Harry Truman would sign off on a hydrogen bomb project, resulting in the 1952 “Ivy Mike” test where a bomb using a design from Teller and mathematician Stan Ulam would vaporize the Pacific Island Elugelab with a blast about 700 times more powerful than the one that destroyed Hiroshima.
The success of the project re-ignited doubts around Oppenheimer’s well-known left-wing political associations in the years before the war and, thanks to scheming by Strauss, he was denied a renewed security clearance.
While several Manhattan Project scientists testified on his behalf, Teller did not, saying, “I thoroughly disagreed with him in numerous issues and his actions frankly appeared to me confused and complicated.”
It was the end of Oppenheimer’s public career. The New Deal Democrat had been eclipsed by Teller, who would become the scientific avatar of the Reagan Republicans.
For the next few decades, Teller would stay close to politicians, the military, and the media, exercising a great deal of influence over arms policy for several decades from the Lawrence Livermore National Laboratory, which he helped found, and his academic perch at the University of California.
He pooh-poohed the dangers of radiation, supported the building of more and bigger bombs that could be delivered by longer and longer range missiles, and opposed prohibitions on testing. When Dwight Eisenhower was considering a negotiated nuclear test ban, Teller faced off against future Nobel laureate and Manhattan Project alumnus Hans Bethe over whether nuclear tests could be hidden from detection by conducting them underground in a massive hole; the eventual 1963 test ban treaty would exempt underground testing.
As the Cold War settled into a nuclear standoff with both the United States and the Soviet Union possessing enough missiles and nuclear weapons to wipe out the other, Teller didn’t look to treaties, limitations, and cooperation to solve the problem of nuclear brinksmanship, but instead to space: He wanted to neutralize the threat of a Soviet first strike using x-ray lasers from space powered by nuclear explosions (he was again opposed by Bethe and the x-ray lasers never came to fruition).
He also notoriously dreamed up Project Plowshare, the civilian nuclear project which would get close to nuking out a new harbor in Northern Alaska and actually did attempt to extract gas in New Mexico and Colorado using nuclear explosions.
Yet, in perhaps the strangest turn of all, Teller also became something of a key figure in the history of climate change research, both in his relatively early awareness of the problem and the conceptual gigantism he brought to proposing to solve it.
While publicly skeptical of climate change later in his life, Teller was starting to think about climate change, decades before James Hansen’s seminal 1988 Congressional testimony.
The researcher and climate litigator Benajmin Franta made the startling archival discovery that Teller had given a speech at an oil industry event in 1959 where he warned “energy resources will run short as we use more and more of the fossil fuels,” and, after explaining the greenhouse effect, he said that “it has been calculated that a temperature rise corresponding to a 10 percent increase in carbon dioxide will be sufficient to melt the icecap and submerge New York … I think that this chemical contamination is more serious than most people tend to believe.”
Teller was also engaged with issues around energy and other “peaceful” uses of nuclear power. In response to concerns about the dangers of nuclear reactors, he in the 1960s began advocating putting them underground, and by the early 1990s proposed running said underground nuclear reactors automatically in order to avoid the human error he blamed for the disasters at Chernobyl and Three Mile Island.
While Teller was always happy to find some collaborators to almost throw off an ingenious-if-extreme solution to a problem, there is a strain of “Tellerism,” both institutionally and conceptually, that persists to this day in climate science and energy policy.
Nuclear science and climate science had long been intertwined, Stanford historian Paul Edwards writes, including that the “earliest global climate models relied on numerical methods very similar to those developed by nuclear weapons designers for solving the fluid dynamics equations needed to analyze shock waves produced in nuclear explosions.”
Where Teller comes in is in the role that Lawrence Livermore played in both its energy research and climate modeling. “With the Cold War over and research on nuclear weapons in decline, the national laboratories faced a quandary: What would justify their continued existence?” Edwards writes. The answer in many cases would be climate change, due to these labs’ ample collection of computing power, “expertise in numerical modeling of fluid dynamics, and their skills in managing very large data sets.”
One of those labs was Livermore, the institution founded by Teller, a leading center of climate and energy modeling and research since the late 1980s. “[Teller] was very enthusiastic about weather control,” early climate modeler Cecil “Chuck” Leith told Edwards in an oral history.
The Department of Energy writ large, which inherited much of the responsibilities of the Atomic Energy Commission, is now one of the lead agencies on climate change policy and energy research.
Which brings us to fusion.
It was Teller’s Lawrence Livermore National Laboratory that earlier this year successfully got more power out of a controlled fusion reaction than it put in — and it was Energy Secretary Jennifer Granholm who announced it, calling it the “holy grail” of clean energy development.
Teller’s journey with fusion is familiar to its history: early cautious optimism followed by a realization that it would likely not be achieved soon. As early as 1958, he said in a speech that he had been discussing “controlled fusion” at Los Alamos and that “thermonuclear energy generation is possible,” although he admitted that “the problem is not quite easy” and by 1987 had given up on seeing it realized during his lifetime.
Still, what controlled fusion we do have at Livermore’s National Ignition Facility owes something to Teller and the technology he pioneered in the hydrogen bomb, according to physicist NJ Fisch.
While fusion is one infamous technological fix for the problem of clean and cheap energy production, Teller and the Livermore cadres were also a major influence on the development of solar geoengineering, the idea that global warming could be averted not by reducing the emissions of greenhouse gas into the atmosphere, but by making the sun less intense.
In a mildly trolling column for the Wall Street Journal in January 1998, Teller professed agnosticism on climate change (despite giving that speech to oil executives three decades prior) but proposed an alternative policy that would be “far less burdensome than even a system of market-allocated emissions permits”: solar geoengineering with “fine particles.”
The op-ed placed in the conservative pages of the Wall Street Journal was almost certainly an effort to oppose the recently signed Kyoto Protocol, but the ideas have persisted among thinkers and scientists whose engagement with environmental issues went far beyond their own opinion about Al Gore and by extension the environmental movement as a whole (Teller’s feelings about both were negative).
But his proposal would be familiar to the climate debates of today: particle emissions that would scatter sunlight and thus lower atmospheric temperatures. If climate change had to be addressed, Teller argued, “let us play to our uniquely American strengths in innovation and technology to offset any global warming by the least costly means possible.”
A paper he wrote with two colleagues that was an early call for spraying sulfates in the stratosphere also proposed “deploying electrically-conducting sheeting, either in the stratosphere or in low Earth orbit.” These were “literally diaphanous shattering screens,” that could scatter enough sunlight in order to reduce global warming — one calculation Teller made concludes that 46 million square miles, or about 1 percent of the surface area of the Earth, of these screens would be necessary.
The climate scientist and Livermore alumnus Ken Caldeira has attributed his own initial interest in solar geoengineering to Lowell Wood, a Livermore researcher and Teller protégé. While often seen as a centrist or even a right wing idea in order to avoid the more restrictionist policies on carbon emissions, solar geoengineering has sparked some interest on the left, including in socialist science fiction author Kim Stanley Robinson’s The Ministry for the Future, which envisions India unilaterally pumping sulfates into the atmosphere in response to a devastating heat wave.
The White House even quietly released a congressionally-mandated report on solar geoengineering earlier this spring, outlining avenues for further research.
While the more than 30 years since the creation of the Intergovernmental Panel on Climate Change and the beginnings of Kyoto Protocol have emphasized international cooperation on both science and policymaking through agreed upon goals in emissions reductions, the technological temptation is always present.
And here we can perhaps see that the split between the moralized scientists and their pleas for addressing the problems of the arms race through scientific openness and international cooperation and those of the hawkish technicians, who wanted to press the United States’ technical advantage in order to win the nuclear standoff and ultimately the Cold War through deterrence.
With the IPCC and the United Nations Climate Conference, through which emerged the Kyoto Protocol and the Paris Agreement, we see a version of what the postwar scientists wanted applied to the problem of climate change. Nations come together and agree on targets for controlling something that may benefit any one of them but risks global calamity. The process is informed by scientists working with substantial resources across national borders who play a major role in formulating and verifying the policy mechanisms used to achieve these goals.
But for almost as long as climate change has been an issue of international concern, the Tellerian path has been tempting. While Teller’s dreams of massive sun-scattering sheets, nuclear earth engineering, and automated underground reactors are unlikely to be realized soon, if at all, you can be sure there are scientists and engineers looking straight into the light. And they may one day drag us into it, whether we want to or not.
Editor’s note: An earlier version of this article misstated the name of a climate modeler. It’s been corrected. We regret the error.
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Mikie Sherrill used her inaugural address to sign two executive orders on energy.
Mikie Sherill, a former Navy helicopter pilot, was best known during her tenure in the House of Representatives as a prominent Democratic voice on national security issues. But by the time she ran for governor of New Jersey, utility bills were spiking up to 20% in the state, putting energy at the top of her campaign agenda. Sherrill’s oft-repeated promise to freeze electricity rates took what could have been a vulnerability and turned it into an electoral advantage.
“I hope, New Jersey, you'll remember me when you open up your electric bill and it hasn't gone up by 20%,” Sherrill said Tuesday in her inauguration address.
Before she even finished her speech, Sherrill signed a series of executive orders aimed at constraining utility costs and expanding energy production in the state. One was her promised emergency declaration giving utility regulators the authority to freeze rate hikes. Another was aimed at fostering new generation, ordering the New Jersey Board of Public Utilities “to open solicitations for new solar and storage power generation, to modernize gas and nuclear generation so we can lower utility costs over the long term.”
Now all that’s left is the follow-through. But with strict deadlines to claim tax credits for renewable energy development looming, that will be trickier than it sounds.
The One Big Beautiful Bill Act from last summer put strict deadlines on when wind and solar projects must start construction (July 2026), or else be placed in service (the end of 2027) in order to qualify for the remaining federal clean energy tax credits.
Sherrill’s belt-and-suspenders approach of freezing rates and boosting supply was one she previewed during the campaign, during which she made a point of talking not just about solar and battery storage, but also about nuclear power.
The utility rate freeze has a few moving parts, including direct payments to offset bill hikes that are due to hit this summer and giving New Jersey regulators the authority “to pause or modify utility actions that could further increase bills.” The order also instructs regulators to “review utility business models to ensure alignment with delivering cost reductions to ratepayers,” which could mean utilities wind up extracting less return from ratepayers on capital investments in the grid.
The second executive order declares a second state of emergency and “expands multiple, expedited state programs to develop massive amounts of new power generation in New Jersey,” the governor’s office said. It also instructs the state to “identify permit reforms” to more quickly bring new projects online, requests that regulators instruct utilities to more accurately report energy usage from potential data center projects, and sets up a “Nuclear Power Task Force to position the state to lead on building new nuclear power generation.”
This combination of direct intervention to contain costs with new investments in supply, tough language aimed at utilities and PJM, the electricity market New Jersey is in, along with some potential deregulation to help bring new generation online more quickly, is essentially throwing every broadly left-of-center idea around energy at the wall and seeing what sticks.
Not surprisingly, the orders won immediate plaudits from green groups, with Justin Balik, the vice president of action for Evergreen States, saying in a statement, “It is refreshing to see a governor not only correctly diagnose what’s wrong with our energy system, but also demonstrate the clear political will to fix it.”
On Greenland jockeying, Brazilian rare earth, and atomic British sea power
Current conditions: A geomagnetic storm triggered by what’s known as a coronal mass ejection in space could hit severe levels and disrupt critical infrastructure from southern Alabama to northern California • After weekend storms blanketed the Northeast in snow, Arctic air is pushing more snow into the region by midweek • Extreme heat in South America is fueling wildfires that have already killed 19 people in Chile.
Over the weekend, President Donald Trump once again ratcheted up pressure on Denmark and the European Union to consider his bid to seize Greenland. In a post on Truth Social, the president announced punitive 10% tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting on February 1, with plans to raise the levies to 25% by June. “We have subsidized Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration,” he wrote. “Now, after Centuries, it is time for Denmark to give back — World Peace is at stake!” In response, the EU has threatened to deploy its economic “big bazooka.” Known formally as the anti-coercion instrument, the policy came into force in 2023 to counter China’s attacks on Lithuania, and involves the imposition of sweeping trade sanctions, ousting the aggressor nation’s companies from the world’s second-largest market, and ending intellectual property protections. Economists told the Financial Times that a trade war over Greenland would risk sparking the worst financial crisis since the Great Recession.

Electricity generation is set to grow 1.1% this year and 2.6% in 2027, according to the latest short-term energy outlook report from the federal Energy Information Administration. Despite the Trump administration’s attacks on the industry, solar power will provide the bulk of that growth. The U.S. is set to add 70 gigawatts of new utility-scale solar in 2026 and 2027, representing a 49% increase in operating solar capacity compared to the end of 2025. While natural gas, coal, and nuclear combined accounted for 75% of all generation last year, the trio’s share of power output in 2027 is on track to slip to 72%. Solar power and wind energy, meanwhile, are set to rise from about 18% in 2025 to 21% in 2027.
Still, the solar industry is struggling to fend off the Trump administration’s efforts to curb deployments of what its top energy officials call unreliable forms of renewable power. As Heatmap’s Jael Holzman wrote last month, the leading solar trade association is pleading with Congress for help fending off a “near complete moratorium on permitting.”
Everybody wants to invest in critical minerals — including the Western Hemisphere’s second center of power. Brazil is angling for a trade deal with the U.S. to mine what the Financial Times called its “abundant but largely untapped rare earth deposits.” With tensions thawing between Trump and the government of leftwinger Luiz Inácio Lula da Silva, officials in the Brazilian administration see a chance to broker an agreement on the metals Washington needs for modern energy and defense technologies. “There’s nothing but opportunity here,” one official told the newspaper. “Brazil’s government is open to a deal on critical minerals.”
Northwest of Brazil, in Bolivia, the new center-right government is stepping up efforts to court foreign investors to develop its lithium resources. The country’s famous salt flats comprise the world’s largest known reserve of the key battery metal. But the leftist administration that ruled the Andean nation for much of the past two decades made little progress toward exploiting the resource under state-owned companies. The new pro-Washington government that took power after the October election has vowed to bring in the private sector. In what Energy Minister Mauricio Medinaceli last week called the government’s “first message to investors,” the administration vowed to honor all existing deals with Chinese and Russian companies, according to Mining.com.
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Last month, I told you about how swapping bunker fuel-burning engines for nuclear propulsion units in container ships could shave $68 million off annual shipping costs. That’s got real appeal to the British. Five industrial giants in the United Kingdom — Rolls-Royce, Babcock International Group, Global Nuclear Security Partners, Stephenson Harwood, and NorthStandard — have formed a new group called the Maritime Nuclear Consortium to boost British efforts to commercialize nuclear-powered cargo ships. “Without coordinated U.K. action, the chance to define the rules, create high-skilled jobs and anchor a global supply chain could be lost to faster competitors,” Lloyd's Register, a professional services company in London that provides maritime certifications, said in a statement to World Nuclear News. “Acting now would give the U.K. first-mover advantage, and ensure those standards, jobs and supply chains are built here.”
On the more standard atomic power front, the U.S. has officially inked its nuclear partnership deal with Slovakia, which I wrote about last week.
Sunrun has come out against the nascent effort to harvest the minerals needed for panels and batteries from metal-rich nodules in the pristine depths of the ocean. Last week, America’s largest residential solar and storage company signed onto a petition calling for a moratorium on deep-sea mining. The San Francisco-based giant joins Google, Apple, Samsung, BMW, Volvo, Salesforce, and nearly 70 other corporations in calling for a halt to the ongoing push at a little-known United Nations maritime regulator to establish permitting rules for mining in international waters. As Heatmap’s Jeva Lange has written, there are real questions about whether the potential damage to one of the few ecosystems on Earth left untouched by human development is really worth it. Trump has vowed to go it alone on deep-sea mining if global regulators can’t come to agreement, as I wrote last year. But it’s unclear how quickly the biggest developer in the space, The Metals Company, could get the industry started. As You Sow, the advocacy group promoting the moratorium, said Sunrun’s signature “brings an important voice from the clean energy sector.”
The home electrification company Jetson, which makes smart thermostats and heat pumps, has raised $50 million in a Series A round. Founded less than two years ago, the company pulled in first-time funding from venture firms including Eclipse, 8VC, and Activate Capital, and saw at least two existing investors put in more money. “Heat pumps have worked for decades, but their cost and complexity have put them out of reach of most homeowners,” Stephen Lake, Jetson’s co-founder and chief executive, said in a statement. “We’re removing the friction by making the process digital, fast, and affordable while fully managing the purchase from start to finish. This funding will help us quickly bring this experience to more homeowners across the U.S. and Canada.”
The cost crisis in PJM Interconnection has transcended partisan politics.
If “war is too important to be left to the generals,” as the French statesman Georges Clemenceau said, then electricity policy may be too important to be left up to the regional transmission organizations.
Years of discontent with PJM Interconnection, the 13-state regional transmission organization that serves around 67 million people, has culminated in an unprecedented commandeering of the system’s processes and procedures by the White House, in alliance with governors within the grid’s service area.
An unlikely coalition including Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum, and the governors of Indiana, Ohio, Virginia, West Virginia, and Tennessee (Republicans), plus the governors of Maryland, Kentucky, Pennsylvania, Delaware, Illinois, Michigan, New Jersey, and North Carolina (Democrats) — i.e. all 13 states of PJM — signed a “Statement of Principles” Friday demanding extensive actions and reforms to bring new generation onto the grid while protecting consumers.
The plan envisions procuring $15 billion of new generation in the region with “revenue certainty” coming from data centers, “whether they show up and use the power or not,” according to a Department of Energy fact sheet. This would occur through what’s known as a “reliability backstop auction,” The DOE described this as a “an emergency procurement auction,” outside of the regular capacity auction where generation gets paid to be available on the grid when needed. The backstop auction would be for new generation to be built and to serve the PJM grid with payments spreading out over 15 years.
“We’re in totally uncharted waters here,” Jon Gordon, director of the clean energy trade group Advanced Energy United, told me, referring to the degree of direction elected officials are attempting to apply to PJM’s processes.
“‘Unprecedented,’ I feel, is a word that has lost all meaning. But I do think this is unprecedented,” Abraham Silverman, a Johns Hopkins University scholar who previously served as the New Jersey Board of Public Utilities’ general counsel, told me.
“In some ways, the biggest deal here is that they got 13 governors and the Trump administration to agree to something,” Silverman said. “I just don't think there's that many things that [Ohio] Governor [Mike] DeWine and or [Indiana] Governor [Mike] Braun agree with [Maryland] Governor [Wes] Moore.”
This document is “the death of the idea that PJM could govern itself,” Silverman told me. “PJM governors have had a real hands off approach to PJM since we transitioned into these market structures that we have now. And I think there was a real sense that the technocrats are in charge now, the governors can kind of step back and leave the PJM wrangling to the public service commissions.”
Those days are over.
The plan from the states and the White House would also seek to maintain price caps in capacity auctions, which Pennsylvania Governor Josh Shapiro had previously obtained through a settlement. The statement envisions a reliability auction for generators to be held by September of this year, and requested that PJM make the necessary filings “expeditiously.”
Shapiro’s office said in a statement that the caps being maintained was a condition of his participation in the agreement, and that the cost limit had already saved consumers over $18 billion.
The Statement of Principles is clear that the costs of new generation procured in the auction should be allocated to data centers that have not “self-procured new capacity or agreed to be curtailable,” a reference to the increasingly popular idea that data centers can avoid increasing the peak demand on the system by reducing their power usage when the grid is stressed.
The dealmaking seems to have sidestepped PJM entirely, with a PJM spokesperson noting to Bloomberg Thursday evening that its representatives “ were not invited to the event they are apparently having” at the White House. PJM also told Politico that it wasn’t involved in the process.
“PJM is reviewing the principles set forth by the White House and governors,” the grid operator said in a statement to Heatmap.
PJM also said that it would be releasing its own long-gestating proposal to reform rules for large load interconnection, on which it failed to achieve consensus among its membership in November, on Friday.
“The Board has been deliberating on this issue since the end of that stakeholder process. We will work with our stakeholders to assess how the White House directive aligns with the Board’s decision,” the statement said.
The type of “backstop procurement” envisioned by the Statement of Principles sits outside of PJM’s capacity auctions, Jefferies analysts wrote in a note to clients, and “has been increasingly inevitable for months,” the note said.
While the top-down steering is precedent-breaking, any procurement within PJM will have to follow the grid’s existing protocols, which means submitting a plan and seeking signoff from the Federal Energy Regulatory Commission, Gordon told me. “Everything PJM does is guided by their tariffs and their manuals,” he said. “They follow those very closely.”
The governors of the PJM states have been increasingly vocal about how PJM operates, however, presaging today’s announcement. “Nobody really cared about PJM — or even knew what they PJM was or what they did — until electric prices reached a point where they became a political lightning rod,” Gordon said.
The Statement is also consistent with a flurry of announcements and policies issued by state governments, utility regulators, technology companies, and the White House this year coalescing around the principle that data centers should pay for their power such that they do not increase costs for existing users of the electricity system.
Grid Strategies President Rob Gramlich issued a statement saying that “the principle of new large loads paying their fair share is gaining consensus across states, industry groups, and political parties. The rules that have been in place for years did not ensure that.”
This $15 billion could bring on around 5.5 gigawatts of new capacity, according to calculations done by Jefferies. That figure would come close to the 6.6 gigawatts PJM fell short of its target reserve margin after its last capacity auction, conducted in December.
That auction hit the negotiated price caps and occasioned fierce criticism for how PJM manages its capacity markets. Several commissioners of the Federal Energy Regulatory Commission have criticized PJM for its high capacity prices, low reserve margin, and struggles bringing on new generation. PJM’s Independent Market Monitor has estimated that planned and existing data center construction has added over $23 billion in costs to the system.
Several trade and advocacy groups pointed out, however, that a new auction does not fix PJM’s interconnection issues, which have become a major barrier to getting new resources, especially batteries, onto the grid in the PJM region. “The line for energy projects to connect to the power grid in the Mid-Atlantic has basically had a ‘closed for maintenance’ sign up for nearly four years now, and this proposal does nothing to fix that — or any of the other market and planning reforms that are long overdue,” AEU said in a statement.
The Statement of Principles includes some language on interconnection, asking PJM to “commit to rapidly deploying broader interconnection improvements” and to “achieving meaningful reductions in interconnection timelines,” but this language largely echoes what FERC has been saying since at least its Order No. 2023, which took effect over two years ago.
Climate advocacy group Evergreen Action issued a statement signed by Deputy Director of State Action Julia Kortrey, saying that “without fixing PJM’s broken interconnection process and allowing ready-to-build clean energy resources onto the grid, this deal could amount to little more than a band aid over a mortal wound.”
The administration’s language was predictably hostile to renewables and supportive of fossil fuels, blasting PJM for “misguided policies favored intermittent energy resources” and its “reliance on variable generation resources.” PJM has in fact acted to keep coal plants in its territory running, and has for years warned that “retirements are at risk of outpacing the construction of new resources,” as a PJM whitepaper put it in 2023.
There was a predictable partisan divide at the White House event around generation, with Interior Secretary Burgum blaming a renewables “fairy tale” for PJM’s travails. In a DOE statement, Burgum said “For too long, the Green New Scam has left Mid-Atlantic families in the dark with skyrocketing bills.”
Shapiro shot back that “anyone who stands up here and says we need one and not the other doesn’t have a comprehensive, smart energy dominance strategy — to use your word — that is going to ultimately create jobs, create more freedom and create more opportunity.”
While the partisan culture war over generation may never end, today’s announcement was more notable for the agreement it cemented.
“There is an emerging consensus that the political realities of operating a data center in this day and age means that you have to do it in a way that isn't perceived as big tech outsourcing its electric bill to grandma,” Silverman said.
Editor’s note: This article originally misidentified the political affiliation of the governor of Kentucky. It’s been corrected. We regret the error.