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Why the grid of the future might hinge on these 10 projects.

The energy transition happens one project at a time. Cutting carbon emissions is not simply a matter of shutting down coal plants or switching to electric cars. It calls for a vast number of individual construction projects to coalesce into a whole new energy system, one that can generate, transmit, and distribute new forms of clean power. Even with the right architecture of regulations and subsidies in place, each project must still conquer a series of obstacles that can require years of planning, fundraising, and cajoling, followed by exhaustive review before they can begin building, let alone operating.
These 10 projects represent the spectrum of solutions that could enable a transition to a carbon-free energy system. The list includes vastly scaled up versions of mature technologies like wind and solar power alongside the traditional energy infrastructure necessary to move that power around. Many of the most experimental or first-of-a-kind projects on this list are competing to play the role of “clean firm” power on the grid of the future. Form’s batteries, Fervo’s geothermal plants, NET Power’s natural gas with carbon capture, and TerraPower’s molten salt nuclear reactor could each — in theory — dispatch power when it’s needed and run for as long as necessary, unconstrained by the weather. Others, like Project Cypress, are geared at solving more distant problems, like cleaning up the legacy carbon in the atmosphere.
But they do not all have a clear path to success. Each one has already faced challenges, and many of them are likely to face a great number more. We call these the make-or-break energy projects because it's still unclear what the clean energy system of the future is going to look like, but the projects from this list are likely to play a big part in it — if, that is, they get there.

Type of project: Solar farm
Developer: Intersect Power
Location: Desert Center, Riverside County, California.
Size: 400 megawatts of generation and 650 megawatts of storage
Operation date: Possibly 2025
Cost: $990 million
Why it matters: Facing opposition from local retirees angered by the large number of projects popping up in the area, as well as from conservation-focused groups — such as Basin and Range Watch, which opposes many utility-scale energy projects in desert areas — Easley will be a test of whether California’s reforms to limit the timeframe of appeals to the state’s environmental reviews can actually work in getting a project approved and online faster.
The early signs are promising. A nearby solar project by the same developer, Intersect Power, recently went into operation after getting approved by the Bureau of Land Management in January 2022. Easley could be operational “as early as late 2025,” according to a Plan of Development prepared for Intersect Power.
Easley is also an example of what’s increasingly becoming standard in California, at both the residential and utility-scale level: pairing solar with storage. The California grid increasingly relies on batteries to keep the lights on as solar ramps up and down in the mornings and, especially, the evenings. The state has procured a massive amount of storage and has adjusted how utilities pay for rooftop solar in a way that encourages pairing battery systems with rooftop solar panels. This both stabilizes the grid and helps further decarbonize it, as batteries that are physically close to intermittent renewables are more likely to abate carbon emissions.

Type: Energy storage
Developer: Form Energy and Great River Energy
Location: Cambridge, Minnesota
Size: 150 megawatt hours
Operation date: End of 2025
Cost: Unknown; Goal of less than 1/10th cost of utility-scale lithium-ion batteries per megawatt hour
Why it matters: Form Energy first made waves in 2020 when it announced a contract with Great River Energy, a Minnesota electric utility, to build a battery that could store 100 hours’ worth of electricity, which was simply unheard of. Other energy storage companies were just trying to break the 4-hour limitation of lithium-ion, aiming for 8 hours or, at most, 12. Days-long energy storage would be a game changer for maintaining reliability during extreme weather events, storing renewable energy for stretches of cloudy days or windless nights or kicking in when demand peaks. At first, Form’s project was shrouded in mystery. How, exactly, would it do this? But a year later, the company revealed the secret chemistry behind its breakthrough: iron and oxygen. The batteries are filled with iron pellets that, when exposed to oxygen, rust, releasing electrons to the grid. They “charge” by running in reverse, using the electrical current from the grid to convert the rust back to iron.
Since then, the hype has continued to build. Form has raised nearly $1 billion from venture capital and been awarded tens of millions more ingovernment grants. It has signed contracts with six utilities to deploy projects in California, New York, Virginia, Georgia, and Colorado, in addition to Minnesota. All this, despite not having completed a single project yet.
The Great River Energy Project is set to be the first to come online. Originally, the company said it would be operating by the end of 2023; now it’s expected to start construction later this year and begin operating in early 2025, Vice President of Communications Sarah Bray told Heatmap. First, the company has to complete construction of its first factory in Weirton, West Virginia, where it will be producing all of the batteries. Bray said it expects to start high-volume production later this year.

Type: Onshore wind
Developer: Pattern Energy
Location: Lincoln, Torrance, and San Miguel Counties, New Mexico, with transmission into Arizona
Size: 3,500 megawatts
Operation date: 2026
Cost: The project’s developer, Pattern Energy, has secured $11 billion in financing for the wind and associated transmission project. The cost of the project is estimated to be $8 billion.
Why it matters: This would be the biggest wind project in the country and a test case for a variety of energy policy objectives at both the state and federal level. For California, it would be a key step in decarbonizing its grid, as the state right now imports a large amount of its power, not all of which is carbon-free. For the federal government, it meets several goals — using public lands for carbon-free energy development, plus long-distance transmission to spur energy development across the country and link clean power resources in rural areas to major load centers.
It would also mean an ambitious project could overcome long and concerted opposition. The project was first proposed in 2006, and its transmission line cleared environmental review back in 2015, but it has been mired in lawsuit after lawsuit. Most recently, a coalition of conservation groups and Indian tribes sued to halt construction on the power line portion of the project in Arizona’s San Pedro Valley, claiming that their cultural rights had not been adequately respected. In April, a judge allowed construction to continue, ruling that those claims were barred by the existing federal approvals, which had taken years to attain.

Type: Offshore wind
Developer: Equinor
Location: South of Long Island, New York
Size: 810 megawatts
Operation date: 2026
Cost: Not available, but an earlier estimate for developing two wind farms was $3 billion. Costs have since risen, but the second farm, Empire Wind 2, is no longer under contract.
Why it matters: The Northeast, and especially New York State, have aggressive aims for decarbonization, with a goal of 70% of the state’s electricity coming from renewables by 2030. The Biden administration also has a specific goal for 30 gigawatts of offshore wind capacity by 2030, and New York has a goal of 9 gigawatts by 2035. These types of high-capacity projects will be essential for the Northeast to decarbonize. The windy coast of the Atlantic Ocean is the most potent large-scale renewable resource in the region, and many of the region’s large load centers, such as New York City and Boston, are on the coast.
Offshore wind, while expensive, can present less permitting hassle and local opposition than onshore wind or utility-scale solar. Empire Wind 1 (along with Sunrise Wind) matters tremendously for New York’s offshore wind program, which has been in development for years but has faced escalating costs and project cancellations. Only one offshore wind project is actually operational in the state, South Fork Wind, which was contracted outside the NYSERDA process and has around 130 megawatts of capacity. If Empire manages to get steel in the water and electrons flowing to the coast, it will be a sign that the Northeast’s — and thus the country’s — decarbonization goals are at least somewhat attainable.

Type: Transmission
Developers: Transmission Developers, which is owned by the Blackstone Group
Size: 339 miles / 1,250 megawatts
Operation date: 2026
Cost: $6 billion
Why it matters: The Champlain Hudson Power Express, often referred to as CHPE (affectionately pronounced “chippy”) will deliver 1,250 megawatts of hydropower from Quebec into the New York City grid, which is currently about 90% powered by fossil fuels. It is “the most powerful project you’ll never see,” according to its developers, as it is the largest transmission line in the country to be installed entirely underground and underwater.
The project is essential to New York’s goal to build a zero-emission electricity system by 2040. The line will supply an always-available source of clean power to supplement intermittent wind and solar generation and maintain a reliable grid. It has already overcome a number of barriers, including nearly a decade of environmental reviews, uncertainty over whether New York would buy its power, and opposition from conservation advocates concerned about the negative impacts of hydroelectric dams on the environment and on Native communities in Canada.
When it begins operating, New Yorkers won’t just get cleaner power — they should also see air quality benefits almost immediately. The new line is expected to cut air pollution equivalent to that released by 15 of the city’s 16 fossil fuel-fired peaker plants.

Developer: Fervo
Type: Geothermal
Location: Beaver County, Utah
Size: 400 megawatts
Operation date: 2026, although the project isn’t expected to be finished until 2028
Cost: Not disclosed, but Fervo raised $244 million and said that the cash “will support Fervo’s continued operations at Cape Station.”
Why it matters: This enhanced geothermal project is not the first one for Fervo. The company’s Nevada site, Project Red, began providing power for Google data centers in Nevada in November 2023. This planned site, however, will be far bigger: Fervo currently has authorization from the Bureau of Land Management for up to 29 exploratory wells, while the Project Red site had just two. Cape Station broke ground in September 2023, and in the first six months of drilling, Fervo said it reduced costs from drilling by 70% compared to its Project Red wells.
As the grid decarbonizes and major power consumers like technology companies insist on having clean power for their operations, there will be massive and growing demand for so-called “clean firm” power, carbon-free power that is available all the time. Conventional wind and solar is intermittent, and existing battery technology only allows for limited output over time. Fervo’s “enhanced geothermal” technology uses techniques borrowed from the oil and gas industry to be able to produce geothermal power essentially anywhere where there are hot enough rocks underneath the surface of the Earth, as opposed to conventional geothermal, which depends on locating hot enough fluid or stream.
If Fervo can demonstrate that it can produce power at scale at costs comparable to existing conventional geothermal projects, it can expect a massive market for it and demand for more projects.

Type: Nuclear
Developer: TerraPower
Location: Kemmerrer, Wyoming
Size: 345 megawatts
Operation date: Not available, but the company said in 2021 that it plans to be operational “in the next seven years.” Updated to the 2024 application, that would put it on track for a 2030 completion date.
Cost: Not available, but TerraPower has raised around $1 billion and the federal government has pledged around $2 billion to support the project, which TerraPower has said it will “match … dollar for dollar.”
Why it matters: TerraPower is just one of many companies flogging designs for advanced nuclear reactors, which are smaller and promise to be cheaper to build than America’s existing light-water nuclear reactor fleet. The construction permit application the company submitted in March was a first for a commercial advanced reactor. TerraPower matters as much for the Nuclear Regulatory Commission as it does for anyone else, as it’s a test of whether the NRC can meet Congress and the White House’s preference for a more accelerated approval process for advanced nuclear power.
TerraPower’s design, if successful, would be a landmark for the American nuclear industry. The reactor design calls for cooling with liquid sodium instead of the standard water-cooling of American nuclear plants. This technique promises eventual lower construction costs because it requires less pressure than water (meaning less need for expensive safety systems) and can also store heat, turning the reactor into both a generator and an energy storage system.
While there are a number of existing advanced nuclear designs, several of which involve liquid sodium, Natrium could potentially play well with a renewable-heavy grid by providing steady, unchanging output like a current nuclear reactor as well as discharging stored energy in response to renewables falling off the grid.

Type: Hydrogen
Developer: Hy Stor Energy
Location: Project components located throughout Mississippi, with some in Eastern Louisiana
Size: Goal of 340,000 metric tons per year (phase one)
Operation date: 2027
Cost: Initially reported as $3 billion; recently reported as more than $10 billion. (In response to an inquiry from Heatmap, the company replied that it “will be in the multiple billions of dollars.”
Why it matters: Truly carbon-free hydrogen could unlock big emissions reductions across the economy, from fertilizer production, to steelmaking, to marine shipping. But few companies are going to the lengths that Hy Stor is gto ensure its product is really clean. The company is building the first off-grid hydrogen production facility powered entirely by wind and solar. That means Hy Stor will have no problem claiming the new hydrogen production tax credit, which requires companies to match their operations with clean energy sources by the hour — a provision that’s been contested by large portions of the hydrogen industry.
For a company that has never built anything before, the scale of Hy Stor’s Mississippi project is ambitious. The company has acquired about 70,000 acres across Mississippi and Louisiana, along with 10 underground salt domes — mounds of salt buried beneath the Earth’s surface that can be dissolved to form cavernous, skyscraper-sized storage facilities for hydrogen. Those salt domes are the key to Hy Stor’s approach, and what enables the company to rely on intermittent renewables. By storing vast amounts of hydrogen, the company will be able to deliver a steady supply to customers and will also have a backup source of energy for its own operations when wind and solar are less available.
Chief Commercial Officer Claire Behar told Heatmap the company has obtained many of the necessary permits, including for its salt caverns and the plant’s water use. It plans to begin construction at the beginning of 2025, and to have the first phase of the project “in service at scale” by 2027. Hy Stor recently announced a deal to purchase its electrolyzers, devices that split water molecules into hydrogen and oxygen, from a Norwegian company called Nel Hydrogen. It has also signed up a few customers, including a local port and a green steel company.

Type: Carbon removal
Developers: Climeworks, Heirloom, and Battelle
Location: Calcasieu Parish, Louisiana
Size: Goal of capturing 1 million metric tons per year
Operation date: About 2030
Cost: Total project cost unknown; eligible for up to $600 million from the Department of Energy for its Regional Direct Air Capture Hubs Program.
Why it matters: Project Cypress might be the most ambitious project to remove carbon from the atmosphere under development in the world. It is a collaboration by two leading direct air capture companies, Heirloom Carbon Technologies and Climeworks, which were among the first to demonstrate their ability to capture carbon directly from the air and store it at commercial scale. Now, the two will be attempting to scale up exponentially, from capturing a few thousands tons per year to a combined million.
Last August, the Department of Energy selected Project Cypress to be one of four direct air capture hubs it will support with $3.5 billion from the Bipartisan Infrastructure Law. In March, the project was awarded its first infusion of $50 million, but the developers will have to do extensive community engagement to continue receiving funding. Battelle, the project developer, told Heatmap the project has also received an additional $51 million in private investment.
Between financing, permitting challenges, renewable energy sourcing, and community opposition, the project is sure to face a bumpy road ahead. The project and its developers have no ties to the oil and gas industry, but that hasn’t done much to win over the support of environmental justice advocates, who see the project as a dangerous distraction from cutting emissions and pollution in Louisiana. But if Project Cypress is successful, it will show the world what direct air capture looks like at climate-relevant scales.

Type: Carbon capture
Developer: NET Power
Location: Ector County, Texas
Size: 300 megawatts
Operation date: Late 2027 or early 2028
Cost: About $1 billion
Why it matters: Oil and gas CEOs love to say that the problem is not fossil fuels, the problem is emissions. NET Power’s technology — a natural gas power plant with zero emissions, carbon or otherwise — could prove to be the ultimate vindication of that statement. In short, NET Power’s system recycles most of the CO2 it produces and uses it to generate more energy. It also utilizes pure oxygen, unlike typical natural gas plants that take in regular air, which is mostly nitrogen. This means that any remaining CO2 not recycled in the plant is relatively pure and easy to capture.
NET Power opened a 50 megawatt demonstration plant in La Porte, Texas, in 2018, and is developing a 300 megawatt commercial plant in Ector County, Texas, in partnership with Occidental Petroleum, Baker Hughes, and Constellation Energy. On a recent earnings call, CEO Danny Rice said the project was “expected to have a lower levelized cost per kilowatt hour than new nuclear, new geothermal, and new hydro.”
The company generated a lot of excitement among energy experts in the fall of 2021 when it announced that its La Porte project had successfully delivered power to the Texas grid. It also raised a lot of money when it went public last summer. But things have been somewhat rocky since. During a December earnings call, NET Power’s president told investors that its first commercial plant would be delayed by at least a year due to supply chain challenges. According to filings with the Securities and Exchange Commission, the company also applied for funding from the Department of Energy’s Office of Clean Energy Demonstrations last year, but was not selected. It has not yet found any third parties to license its technology or offtakers to buy energy from the Ector County plant, and noted in its recent filings that while the La Porte pilot project delivered electricity to the grid, it did not, in fact, deliver “net” power — meaning that it used more power than it generated.
A spokesperson for the company told Heatmap the La Porte facility was solely intended to “prove the technical viability of the NET Power Cycle” and not intended to produce net power. So everything’s now riding on Project Permian.
Editor’s note: This story has been updated to correct a typographical error in the amount of private investment Project Cypress has received.
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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, Tennessee, and Kentucky (Republicans), plus the governors of Maryland, 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.
“Additionality” is back.
You may remember “additionality” from such debates as, “How should we structure the hydrogen tax credit?”
Well, it’s back, this time around Meta’s massive investment in nuclear power.
On January 9, the hyperscaler announced that it would be continuing to invest in the nuclear business. The announcement went far beyond its deal last year to buy power from a single existing plant in Illinois and embraced a smorgasbord of financial and operational approaches to nukes. Meta will buy the output for 20 years from two nuclear plants in Ohio, it said, including additional power from increased capacity that will be installed at the plants (as well as additional power from a nuclear plant in Pennsylvania), plus work on developing new, so-far commercially unproven designs from nuclear startups Oklo and TerraPower. All told, this could add up to 6.6 gigawatts of clean, firm power.
Sounds good, right?
Well, the question is how exactly to count that power. Over 2 gigawatts of that capacity is already on the grid from the two existing power plants, operated by Vistra. There will also be an “additional 433 megawatts of combined power output increases” from the existing power plants, known as “uprates,” Vistra said, plus another 3 gigawatts at least from the TerraPower and Oklo projects, which are aiming to come online in the 2030s
Princeton professor and Heatmap contributor Jesse Jenkins cried foul in a series of posts on X and LinkedIn responding to the deal, describing it as “DEEPLY PROBLEMATIC.”
“Additionality” means that new demand should be met with new supply from renewable or clean power. Assuming that Meta wants to use that power to serve additional new demand from data centers, Jenkins argued that “the purchase of 2.1 gigawatts of power … from two EXISTING nuclear power plants … will do nothing but increase emissions AND electricity rates” for customers in the area who are “already grappling with huge bill increases, all while establishing a very dangerous precedent for the whole industry.”
Data center demand is already driving up electricity prices — especially in the area where Meta is signing these deals. Customers in the PJM Interconnection electricity grid, which includes Ohio, have paid $47 billion to ensure they have reliable power over the grid operator’s last three capacity auctions. At least $23 billion of that is attributable to data center usage, according to the market’s independent monitor.
“When a huge gigawatt-scale data center connects to the grid,” Jenkins wrote, “it's like connecting a whole new city, akin to plopping down a Pittsburgh or even Chicago. If you add massive new demand WITHOUT paying for enough new supply to meet that growth, power prices spike! It's the simple law of supply & demand.”
And Meta is investing heavily in data centers within the PJM service area, including its Prometheus “supercluster” in New Albany, Ohio. The company called out this facility in its latest announcement, saying that the suite of projects “will deliver power to the grids that support our operations, including our Prometheus supercluster in New Albany, Ohio.”
The Ohio project has been in the news before and is planning on using 400 megawatts of behind-the-meter gas power. The Ohio Power Siting Board approved 200 megawatts of new gas-fired generation in June.
This is the crux of the issue for Jenkins: “Data centers must pay directly for enough NEW electricity capacity and energy to meet their round-the-clock needs,” he wrote. This power should be clean, both to mitigate the emissions impact of new demand and to meet the goals of hyperscalers, including Meta, to run on 100% clean power (although how to account for that is a whole other debate).
While hyperscalers like Meta still have clean power goals, they have been more sotto voce recently as the Trump administration wages war on solar and wind. (Nuclear, on the other hand, is very much administration approved — Secretary of Energy Chris Wright was at Meta’s event announcing the new nuclear deal.)
Microsoft, for example, mentioned the word “clean” just once in its Trump-approved “Building Community-First AI Infrastructure” manifesto, released Tuesday, which largely concerned how it sought to avoid electricity price hikes for retail customers and conserve water.
It’s not entirely clear that Meta views the entirety of these deals — the power purchase agreements, the uprates, financially supporting the development of new plants — as extra headroom to expand data center development right now. For one, Meta at least publicly claims to care about additionality. Meta’s own public-facing materials describing its clean energy commitments say that a “fundamental tenet of our approach to clean and renewable energy is the concept of additionality: partnering with utilities and developers to add new projects to the grid.”
And it’s already made substantial deals for new clean energy in Ohio. Last summer, Meta announced a deal with renewable developer Invenergy to procure some 440 megawatts of solar power in the state by 2027, for a total of 740 megawatts of renewables in Ohio. So Meta and Jenkins may be less far apart than they seem.
There may well be value in these deals from a sustainability and decarbonization standpoint — not to mention a financial standpoint. Some energy experts questioned Jenkins’ contention that Meta was harming the grid by contracting with existing nuclear plants.
“Based on what I know about these arrangements, they don’t see harm to the market,” Jeff Dennis, a former Department of Energy official who’s now executive director of the Electricity Customer Alliance, an energy buyers’ group that includes Meta, told me.
In power purchase agreements, he said, “the parties are contracting for price and revenue certainty, but then the generator continues to offer its supply into the energy and capacity markets. So the contracting party isn’t siphoning off the output for itself and creating or exacerbating a scarcity situation.”
The Meta deal stands in contrast to the proposed (and later scotched) deal between Amazon and Talen Energy, which would have co-located a data center at the existing Susquehanna nuclear plant and sucked capacity out of PJM.
Dennis said he didn’t think Meta’s new deals would have “any negative impact on prices in PJM” because the plants would be staying in the market and on the grid.
Jenkins praised the parts of the Meta announcement that were both clean and additional — that is, the deals with TerraPower and Oklo, plus the uprates from existing nuclear plants.
“That is a huge purchase of NEW clean supply, and is EXACTLY what hyperscalars [sic] and other large new electricity users should be doing,” Jenkins wrote. “Pay to bring new clean energy online to match their growing demand. That avoids raising rates for other electricity users and ensures new demand is met by new clean supply. Bravo!”
But Dennis argued that you can’t neatly separate out the power purchase agreement for the existing output of the plants and the uprates. It is “reasonable to assume that without an agreement that shores up revenues for their existing output and for maintenance and operation of that existing infrastructure, you simply wouldn't get those upgrades and 500 megawatts of upgrades,” he told me.
There’s also an argument that there’s real value — to the grid, to Meta, to the climate — to giving these plants 20 years of financial certainty. While investment is flooding into expanding and even reviving existing nuclear plants, they don’t always fare well in wholesale power markets like PJM, and saw a rash of plant retirements in the 2010s due to persistently low capacity and energy prices. While the market conditions are now quite different, who knows what the next 20 years might bring.
“From a pure first order principle, I agree with the additionality criticism,” Ethan Paterno, a partner at PA Consulting, an innovation advisory firm, told me. “But from a second or third derivative in the Six Degrees of Kevin Bacon, you can make the argument that the hyperscalers are keeping around nukes that perhaps might otherwise be retired due to economic pressure.”.
Ashley Settle, a Meta spokesperson, told me that the deals “enable the extension of the operational lifespan and increase of the energy production at three facilities.” Settle did not respond, however, when asked how Facebook would factor the deals into its own emissions accounting.
“The only way I see this deal as acceptable,” Jenkins wrote, “is if @Meta signed a PPA with the existing reactors only as a financial hedge & to help unlock the incremental capacity & clean energy from uprates at those plants, and they are NOT counting the capacity or energy attributes from the existing capacity to cover new data center demand.”
There’s some hint that Meta may preserve the additionality concept of matching only new supply with demand, as the announcement refers to “new additional uprate capacity,” and says that “consumers will benefit from a larger supply of reliable, always-ready power through Meta-supported uprates to the Vistra facilities.” The text also refers to “additional 20-year nuclear energy agreements,” however, which would likely not meet strict definitions of additionality as it refers to extending the lifetime and maintaining the output of already existing plants.
A third judge rejected a stop work order, allowing the Coastal Virginia offshore wind project to proceed.
Offshore wind developers are now three for three in legal battles against Trump’s stop work orders now that Dominion Energy has defeated the administration in federal court.
District Judge Jamar Walker issued a preliminary injunction Friday blocking the stop work order on Dominion’s Coastal Virginia offshore wind project after the energy company argued it was issued arbitrarily and without proper basis. Dominion received amicus briefs supporting its case from unlikely allies, including from representatives of PJM Interconnection and David Belote, a former top Pentagon official who oversaw a military clearinghouse for offshore wind approval. This comes after Trump’s Department of Justice lost similar cases challenging the stop work orders against Orsted’s Revolution Wind off the coast of New England and Equinor’s Empire Wind off New York’s shoreline.
As for what comes next in the offshore wind legal saga, I see three potential flashpoints:
It’s important to remember the stakes of these cases. Orsted and Equinor have both said that even a week or two more of delays on one of these projects could jeopardize their projects and lead to cancellation due to narrow timelines for specialized ships, and Dominion stated in the challenge to its stop work order that halting construction may cost the company billions.