You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Can solar plus storage fix one of the thorniest problems of the energy transition?

To talk about renewable energy these days is to talk about power lines. “No transition without transmission” has become something of a mantra among a legion of energy wonks. And following the passage of the Inflation Reduction Act, which contains a massive pot of subsidies for non-carbon-emitting power but little in the way of delivering it, legislative and regulatory attention has turned to getting that power from where it’s sunny and windy to where it’s needed.
Hardly a day goes by in which some industry group or environmental nonprofit isn’t assaulting the inboxes of climate journalists like myself with another study or white paper stressing the need for more transmission. But I’ve also recently noticed a newer group of advocates popping up: the battery stans.
Now, virtually everyone in the renewable energy space loves talking about the massive growth and potential of batteries to store power generated by renewables for when it’s needed most. Here the Inflation Reduction Act’s honeypot of subsidies and the long economic trends are working together. The price of batteries really is falling dramatically, and their deployment has been ramped up.
For most people, batteries are a complement to transmission upgrades. But to a much smaller group, the falling prices of solar and batteries may obviate the need for transmission expansion entirely.
Let’s start with the more mild case. As Duncan Campbell, Vice President at Scale Microgrids told me, “If you go deep on power grid expansion modeling studies, they all assume an enormous build-out of transmission well beyond what we’ve done in the past and I think demonstrated to be well beyond the current institutional capacity.” In other words, you can pencil in as much transmission build-out as you want, but the chances we’ll actually do it seem at least short of certain. “It’s quite reasonable to suggest when doing something super ambitious that it’s a good idea to have a diversified approach,” he said.
That diversified approach, for Campbell, includes storage and generation both on the transmission part of the grid — like utility-scale storage paired with solar arrays — and on the distribution side of the grid, like rooftop solar and garage batteries. The latter two examples can also work together as a “virtual power plant” to modulate consumption based on when power is most expensive or cheap and even sometimes send power back to the grid at times of stress.
“At the end of the day it seems undeniably prudent to think about what solutions are going to complement large-scale transmission build-out if we want to meet these goals. Otherwise it’s a concentrated approach that carries a lot of risks,” Campbell told me. “Technologically, VPPs and DER [distributed energy resources] can help. Especially in those worst situations.”
This balanced approach would not actually face much opposition from advocates for a substantial transmission build-out, even if sometimes this “debate” — especially on Twitter, I’m sorry, especially on X — can get polarized and contentious.
“They’re complementary, not competitive,” Ric O’Connell, the executive director of GridLab, told me. “Transmission moves energy around in space, storage moves around in time. You need both.”
O’Connell pointed out that storage in some cases could be thought of a transmission asset, something analogous to the wires and poles that move electricity, where power could be moved on very short time frames to help out with extremely high levels of demand, a lack of generation, or transmission congestion. We’ve seen this already in Texas, where storage has helped take the bite out of extremely high demand recently, and in California, where it has helped alleviate the rapid disappearance of solar power every evening.
“The shorter duration storage stuff is working to address congestion and streamline transmission operations. In that sense you can put it in the same category as a grid enhancing technology,” O’Connell said.
While nearly everyone I talked to was eager to say that storage and transmission could complement each other, even if some leaned on transmission more and others were more bullish on storage and distributed energy, there was one person who actually did represent a clear and polarizing view: Casey Handmer.
Handmer is a Cal Tech trained physicist who used to write software for the Jet Propulsion Laboratory and founded Terraform Industries, an early stage start up that’s looking to develop the “Terraformer,” a solar-powered factory that would create synthetic natural gas. Immodestly, he “aims to displace the majority of fossil hydrocarbon production by 2035.”
More modestly, he describes himself as “effectively a puffed up blogger who runs a pre-revenue (i.e. default dead) startup in an area peripheral (at best) to grid issues,” but is nonetheless, again, immodestly “pretty confident that my analysis is correct,” he told me in an email.
“My views on this matter are unconventional, even controversial. Arguably this is my spiciest hot take on the future of energy,” he wrote on his blog.
He thinks that the falling price of solar and batteries will make large-scale transmission investments unnecessary.
The price declines in battery and solar will continue, allowing people and businesses to throw up solar wherever, pair it with batteries, to the point where solar is “5-15x” overbuilt. That would mean that solar wouldn’t need to be backed up by any kind of “clean firm” power, i.e. a source that can produce carbon-free electricity at any time, like nuclear power, pumped-hydro, green hydrogen, or natural gas with carbon capture and storage.
While extreme, his views are not so, so, so far off from other renewables maximalists, who view solar and battery price declines as essentially inexorable. If they’re right, resource adequacy issues (i.e. that it’s much more sunny in some places than others) could be overcome by just building more cheap solar and installing more batteries.
“Adding 12 hours of storage to the entire U.S. grid would not happen overnight, but on current trends would cost around $500 billion and pay for itself within a few years. This is a shorter timescale than the required manufacturing ramp, meaning it could be entirely privately funded. By contrast, upgrading the U.S. transmission grid could cost $7 trillion over 20 years,” Handmer wrote in July.
As for the case that transmission is needed to get solar power from where it’s sunnier (like southern Europe or the American Southwest) to where it isn’t (Northern Europe, the rest of America), Handmer argues this isn’t really a problem.
“Solar resource quality doesn't matter that much. Solar resource is much more evenly distributed than, say, oil,” he told me. “Almost all humans live close to where their grandparents were able to grow food to live, and crops only grow in places that are roughly equally sunny.” He also argued that “solar is about 1000x more productive in terms of energy produced per unit land used than agriculture,” so building it will be economically compelling in huge swathes of the world.
As he acknowledges, his view is pretty lonely. He seems to yada-yada away what developments in battery technology would be needed to make this all work (although presumably ever-cheapening solar could just charge more lithium-ion batteries). One estimate suggests that to have “the greatest impact on electricity cost and firm generation,” battery storage would have to extend out to 100 hours — about 25X more than they do now.
This is where I say what you’re already thinking. This combination of technofuturism, contrarianism, work experience in the space industry and comfort with back-of-the-envelope math to make strong assertions makes Handmer sound like — and I mean this in the most value-neutral, descriptive way possible — another proponent of the rooftop solar, home battery, electric car future: Elon Musk. (Handmer used to work at the Musk-inspired Hyperloop One).
When I asked him why he’s an admitted outlier on this, he chalked it up to “anchoring bias in the climate space ... before solar and batteries got cheap, analyses showed that increasing the size of the grid was the best way to counter wind intermittency. But when the assumptions and data change, the results change too. The future of electricity is local. As a physicist, I was trained to take unusual observations to their utmost conclusion.”
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Just as demand for batteries is intensifying.
The energy impacts of the continued crisis in the Persian Gulf are obvious. Countries that rely on the natural gas and oil from the region are dealing with higher prices, and in some cases are trying to tamp down their demand for fuel and electricity to keep prices under control, not to mention maintain basic energy availability.
But it’s not just gas-fired power plants and internal combustion engines that are feeling the pinch.
The consequences of the effective closure of the Strait of Hormuz go well beyond the set of energy commodities typically associated with the Persian Gulf, including a vast array of minerals and petrochemicals, including many necessary to produce clean energy. We’ve already covered aluminum, a key component of solar panels, cars, and batteries, which requires so much energy for processing that almost 10% of it is produced in the Middle East, where fuel is abundant.
Now another chemical essential to the battery supply chain is seeing price hikes and supply reductions: sulfuric acid.
Sulfuric acid is used in refining and processing several metals and minerals key to the energy transition, including copper, cobalt, nickel, and lithium. Copper is used throughout EVs and other clean technologies, while nickel and cobalt are used in cathodes in lithium-ion batteries — which, of course, also contain lithium. Shortages or higher prices of sulfuric acid could lead to shortages or higher prices for batteries and electric vehicles, just as consumers flock to them to help mitigate the impacts of rising fossil fuel costs.
Sulfur is a byproduct of oil and natural gas refining, hence about half of seaborne sulfur comes from the Middle East, according to Argus Media, but only a handful of sulfur-bearing vessels have transited the Strait of Hormuz since the war began. In response to the disruption, China, the world’s top exporter of sulfuric acid, began restricting shipments abroad, according to S&P.
Sulfuric acid “is an irreplaceable input in the manufacture of renewable energy materials, such as silicon wafers in solar panels; the nickel, cobalt, and rare earths in wind turbine magnets and electric vehicle (EV) motors; and the copper wiring in every grid connection and transformer,” wrote Atlantic Council fellow Alvin Camba in an analysis for the think tank.
“Most elemental sulfur comes from the Middle East,” Camba told me, “and it goes to places like Indonesia,” where metals are processed to “produce the batteries for a lot of vehicles for companies like Tesla, BYD, and Honda.”
Shortages of sulfuric acid will likely hit Indonesia especially hard. The country produces about 60% of the world’s nickel, but has only about a month’s inventory of sulfur, according to a team of Morgan Stanley analysts. “We believe the energy shock is reverberating and will sustain beyond the reopening of the Strait of Hormuz,” the analysts wrote of China’s export restrictions. “It will keep fuel markets tighter, lift the cost curve for Indonesian nickel, and raise refining margins in Asia. Higher energy prices will show up in food, tech and battery supply chains.”
Already, according to Morgan Stanley, “several” Indonesian nickel producers have reduced their output by at least 10% from last month. In the Democratic Republic of Congo, copper and cobalt miners are reducing their use of chemicals in their operations and considering cutting output.
Battery manufacturers are already seeing higher costs for their materials. The Chinese battery giant (and Tesla supplier) CATL saw its profit margins decline quarter-over-quarter revenue growth due to “cost pressure,” Morningstar analyst Vincent Sun wrote last week in a note to clients — and that’s despite greater sales volumes as consumers attempt to escape fossil fuel-dependency. As sulfuric acid rises in price, the battery companies will also be competing with agribusiness, who use sulfuric acid to produce phosphate fertilizers, Camba told me.
Even Ivanhoe Mines chief executive and metal and mining mega-bull Robert Friedland said in a statement last week, “If the closure of the Straits of Hormuz continues … second-derivative effect will be on global copper production due to the shortage of the world’s most important industrial chemical, sulfuric acid.” Friedland described the market for sulfur and sulfuric acid as “extremely tight.”
That also spells bad news for lithium, the namesake mineral used in EV batteries. Around half of global lithium production comes from spodumene, a hard rock mined largely in Western Australia. Refining that rock requires a “shitload’ of sulfuric acid, Nathaniel Horadam, the founder and president of Full Tilt Strategies, told me, through an energy intensive process known as “acid baking.”
Australian mines were already suffering from high diesel prices and shortages due to the conflict in Iran, according to Argus Media. The high price of sulfuric acid could put a squeeze on margins for lithium refining, which largely occurs in China.
“If their production costs go up, that’s going to be factoring into their market pricing,” Horadam said. “I would expect all those prices to go up in the short to medium term until this stuff kind of settles.”
The other major threat to battery makers specifically, Horadam said, was shortages of petrochemicals like ethylene, which is used in the production of plastics, and polyethylene, a polymer often used in plastic bags.
Ethylene is often made from ethane, a natural gas liquid, or naphtha, a refined petroleum product and production in the Persian Gulf has been severely disrupted by the Hormuz crisis. As of March, Asian petrochemical producers had already reduced their output in anticipation of shortages.
Polyethylene is also a crucial component in lithium-ion batteries, where it’s often used in the “separator,” which physically divides the cathode from the anode. Even the Trump administration has thrown its support behind polyethylene in battery manufacturing A $1.3 billion loan from the Department of Energy’s in-house bank to finance a separator manufacturing facility in Indiana survived the Trump administration’s gutting of that office, with $77 million getting disbursed last September. (Notably, the Trump-era announcement dropped a reference to electric vehicles and instead enumerated separators’ uses in “data centers, energy storage, and consumer electronics.”)
Over 40% of lithium-ion separators are produced in China with the “bulk” of them produced in Asia, according to the DOE, which makes support for domestic production paramount to maintaining international competitiveness and domestic supply chains.
“We’re relying on the Chinese and Japanese to produce all our separators and electrolytes and such,” Horadam said. “This sulfuric stuff is getting all the attention because it’s pretty obvious in terms of visible, salient minerals that are directly impacted, but I wouldn’t sleep on separators and binding agents.”
The opinion covered a host of actions the administration has taken to slow or halt renewables development.
A federal court seems to have struck down a swath of Trump administration moves to paralyze solar and wind permits.
U.S. District Judge Denise Casper on Tuesday enjoined a raft of actions by the Trump administration that delayed federal renewable energy permits, granting a request submitted by regional trade groups. The plaintiffs argued that tactics employed by various executive branch agencies to stall permits violated the Administrative Procedures Act. Casper — an Obama appointee — agreed in a 73-page opinion, asserting that the APA challenge was likely to succeed on the merits.
The ruling is a potentially fatal blow to five key methods the Trump administration has used to stymie federal renewable energy permitting. It appears to strike down the Interior Department memo requiring sign-off from Interior Secretary Doug Burgum on all major approvals, as well as instructions that the Interior and the Army Corps of Engineers prioritize “energy dense” projects in ways likely to benefit fossil fuels. Also struck down: a ban on access to a Fish and Wildlife Service species database and an Interior legal opinion targeting offshore wind leases.
Casper found a litany of reasons the five actions may have violated the Administrative Procedures Act. For example, the memo mandating political reviews was “a significant departure from [Interior] precedent,” and therefore “required a ‘more detailed justification’ than that needed for merely implementing a new policy.” The “energy density” permitting rubric, meanwhile, “conflicts” with federal laws governing federal energy leases so it likely violated the APA, the judge wrote.
What’s next is anyone’s guess. Some cynical readers may wonder whether the Supreme Court will just lift the preliminary injunction at the administration’s request. It’s worth noting Casper had the High Court’s penchant for neutralizing preliminary injunctions in mind, writing in her opinion, “The Court concludes that the scope of this requested injunctive relief is appropriate and consistent with the Supreme Court’s limitations on nationwide injunctions.”
On China’s H2 breakthrough, vehicle-to-grid charging, and USA Rare Earth goes to Brazil
Current conditions: In the Atlantic, Tropical Storm Fernand is heading northward toward Bermuda • In the Pacific, Tropic Storm Juliette is active about 520 miles southwest of Baja California, with winds of up to 65 miles per hour • Temperatures are surging past 100 degrees Fahrenheit in South Korea.
Nearly two weeks ago, Vineyard Wind sued one of its suppliers, GE Vernova, to keep the industrial giant from exiting the offshore wind project off the coast of Nantucket in Massachusetts. Now a U.S. court has ordered GE Vernova to finish the job, saying it would be “fanciful” to imagine a new contractor could complete the installation. GE Vernova had argued that Vineyard Wind — a 50/50 joint venture between the European power giant Avangrid and Copenhagen Infrastructure Partners — owed it $300 million for work already performed. But Vineyard Wind countered that the manufacturer remains on the hook for about $545 million to make up for a catastrophic turbine blade collapse in 2024, according to WBUR. “The project is at a critical phase and the loss of [Vineyard Wind]’s principal contractor would set the project back immeasurably,” the Suffolk County Superior Court Judge Peter Krupp wrote in his decision, repeatedly using the name of GE Vernova’s renewables subsidiary. “To pretend that [Vineyard Wind] could go out and hire one or more contractors to finish the installation and troubleshoot and modify [GE Renewables’] proprietary design without [GE Renewables’] specialized knowledge is fanciful.”
Charlotte DeWald fears the world is sleepwalking into tipping points beyond which the Earth’s natural carbon cycles will render climate change uncontrollable. By the time we realize what it means for global weather and agricultural systems that there’s no sea ice in the Arctic sometime in the 2030s, for example, it may be too late to try anything drastic to buy us more time. Much of the discourse around what to do concerns a specific kind of geoengineering called stratospheric aerosol injections, essentially spraying reflective particles into the sky to block the sun’s heat from permeating the increasingly thick layer of greenhouse gases that prevent that energy from naturally radiating back into space. That’s something DeWald, a former Pacific Northwest National Laboratory researcher and climate scientist by training who specialized in modeling aerosol-cloud interactions, knows all about. But her approach is different, using a technology known as mixed-phase cloud thinning, a process similar to cloud seeding. “The idea is that you could dissipate clouds over the Arctic to release heat from the surface to, for example, increase sea ice extent or thickness or integrity,” she told me. “There’s some early modeling that suggests that it could yield significant cooling over the Arctic Ocean.”
With all that context, you can now appreciate the exclusive bit of news I have for you this morning: DeWald is launching a new nonprofit called the Arctic Stabilization Initiative to “evaluate whether targeted interventions can slow dangerous” warming near the Earth’s northern pole. So far, ASI has raised $6.5 million in philanthropic funding toward a five-year budget goal of $55 million to study whether MCT, as mixed-phase cloud thinning is known, could help save the Arctic. The nonprofit has an advisory board stacked with veteran Arctic scientists and put together a “stage-gated” research plan with offramps in case early modeling suggests MCT won’t work or could cause undue environmental damage. The project also has an eye toward engaging with Indigenous peoples and “will ground all future work in respect for Indigenous sovereignty, before any field-based research activity is pursued.” The statement harkens to Harvard University’s SCoPEx trial, a would-be outdoor experiment in spraying reflective aerosols into the atmosphere over Sweden that ran aground after researchers initially failed to consult local stakeholders and a body representing the Indigenous Saami people in the northern reaches of Nordic nations came out against the testing. (By repeatedly invoking ASI’s nonprofit status, DeWald also seemed to draw a contrast with for-profit stratospheric aerosol injection startup Stardust Solutions, which last year Heatmap’s Robinson Meyer reported had raised $60 million.) “We are continuing to move toward critical planetary thresholds without a bible plan for things like tipping points,” DeWald said. “That was the inflection point for me.”

China just took yet another step closer to energy independence, despite its relatively tiny domestic reserves of oil and gas, kicking off the world’s largest project to blend hydrogen into the natural gas system. As part of the experiment, roughly 100,000 households in the center of the Weifang, a prefecture-level city in eastern Shandong province between Beijing and Shanghai, will receive a blend of up to 10% hydrogen through existing gas pipes. The pilot’s size alone “smashes” the world record, according to Hydrogen Insight. Whether that’s meaningful from a climate perspective depends on how you look at things. A fraction of 1% of China’s hydrogen fuel comes from electrolyzer plants powered by clean renewables or nuclear electricity. But the People’s Republic still produces more green hydrogen than any other nation. Last year, the central government made cleaning up heavy industry with green hydrogen a higher priority — a goal that’s been supercharged by the war in Iran. Therein lies the real biggest motivator now. While China relies on imports for natural gas, swapping out more of that fuel for domestically generated hydrogen allows Beijing to claim the moral high ground on emissions and air pollution — all while becoming more energy independent.
Meanwhile, China’s container ships are the latest sector to experiment with going electric and forgoing the need for costly, dirty bunker fuel. A 10,000-ton fully electric cargo vessel capable of carrying 742 shipping containers just started up operations in China this week, according to a video posted on X by China’s Xinhua News service.
Sign up to receive Heatmap AM in your inbox every morning:
The ability of electric vehicles to serve as distributed energy resources, charging in times of low demand and discharging back onto the grid when demand peaks, has long been a dream of EV enthusiasts and DER advocates alike. California’s PG&E utility launched a small bi-directional charging program in 2023, allowing owners of Ford F-150 Lightnings to use their trucks as home backup power, and eventually feed energy back onto the grid. The utility added a host of General Motors EVs to the program back in 2025. On Monday, it announced its latest vehicle participant: Tesla’s Cybertruck. The Tesla vehicle will be the first in the program to run on alternating current, which simplifies the equipment necessary and lowers costs for consumers, according to PG&E’s announcement.
In January, I told you about the then-latest company to benefit from President Donald Trump’s dabbling in what you might call state capitalism with American characteristics: USA Rare Earth. The vertically integrated company, which aims to mine rare earths in Texas, took big leaps forward in the past year toward building factories to turn those metals into the magnets needed for modern technologies. For now, however, the company needs ore. On Monday, USA Rare Earth announced plans to buy Brazilian rare earth miner Serra Verde in a deal valued at $2.8 billion in cash and shares. The transaction is expected to be complete by the end of the third quarter of this year. The company pitched the move as a direct challenge to China, which dominates both the processing of rare earths mined at home and abroad. “The world has become too dependent on a single source and it’s high time to break that dependency,” USA Rare Earth CEO Barbara Humpton told CNBC’s “Squawk Box” on Monday.
As if we needed more evidence that the data center backlash is “swallowing American politics,” here’s Heatmap’s Jael Holzman with yet another data point: According to tracking from the Heatmap Pro database, fights against data centers now outnumber fights against wind farms in the U.S. That includes both onshore and offshore wind developments. “Taken together,” Jael wrote, “these numbers describe the tremendous power involved in the data center wars.”