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The city is caught between its energy past and future.

There’s a reason decarbonization advocates talk so much about power lines. Without them, the fruits of non-carbon-emitting forms of electricity generation, which are often located far away from population centers or are only available when it’s sunny and windy, can’t be fully harvested in the form of electrons flowing to customers when they need them.
The New York state electricity system operator said in a report released Friday that New York City specifically is at risk of a shortfall of 446 megawatts — about enough to power over 350,000 homes — of transmission for nine hours on an especially hot summer day in 2025 when demand for electricity is at its peak.
To those that follow New York state energy planning specifically or, like me, have the sickness that is reading reports from grid operators across the country all the time, the result was not surprising.
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The New York Independent System Operator (New York ISO) chalked up the shortfall to a combination of planned shutdowns of some natural gas plants, called peakers, that switch on when demand is high and can’t be supplied with existing resources, as well as expected growth in electricity demand from both economic growth as well as increased used of electricity for building heat and vehicles.
So far, peakers generating just over 1,000 megawatts have either shut down or reduced their operation, and another almost 600 megawatts of New York City peakers are scheduled to do so in less than two years. This has been a deliberate policy choice by the state. Two plants in the New York City area had their plans for upgrades rejected in 2021; state regulations on nitrous oxide emissions have effectively made several of these types of plants uneconomic to run.
“With the additional peakers unavailable, the bulk power transmission system will not be able to securely and reliably serve the forecasted demand in New York City,” according to New York ISO.
While this may seem like an issue of generation (i.e. producing the power) as opposed to transmission (moving it around), New York ISO projects that this shortfall “is expected to improve” in 2026, when the long awaited and under construction Champlain Hudson Power Express (CHPE), a transmission line that would bring hydropower from Quebec to downstate New York, is scheduled to come into operation.
New York City is caught between its energy past and energy future, and like many areas that are aggressively promoting renewables and retiring existing fossil fuel generation, there is a worry that reliability may suffer in the interim.
The plan is to build out a combination of renewable energy and storage to meet downstate’s needs. This includes massive installations of wind power which will hopefully both directly provide electricity as well as charge batteries which can be used to dispatch power when generation is otherwise falling short. The shortfall between New York's decarbonization goals and its ability to produce carbon-free electricity was exacerbated by the shutdown of Indian Point nuclear power plant in the Hudson River between 2019 and 2021, which corresponded to an immediate uptick in fossil fuel emissions.
Regulators and grid operators across the country have echoed New York ISO regularly, voicing concern about reliability as the renewable buildout runs into barriers of inadequate transmission and delays, while fossil fuel plant shutdowns happen quickly.
But this doesn’t mean that every state or region trying to decarbonize its electricity grid is doomed to blackouts. California is facing a massive heat wave and, at least so far, its grid operator is not expecting any major issues, partially thanks to plentiful hydropower and its massive buildout of energy storage. (It also will likely keep some gas-fired power plants in operation past their original decommissioning date).
And in New England, the grid operator concluded that an expensive terminal for importing liquefied natural gas could probably close in 2025 without imperiling the electricity system (although this depended on there being ample supply of oil for power plants to run in the winter when natural gas is used for heat). Overall, New England, which has been fretting about its energy reliability for years, has turned more optimistic, thanks in part to a substantial buildout of rooftop solar, which reduces demand on the gird.
But the report does raise the question of just how fast the grid can get away from gas in any region in the midst of the energy transition. For example, there are still plans for a new peaker plant in Peabody, Massachusetts, despite a state law with the goal of cutting carbon emissions in half by 2030 and reaching net zero in 2050.
The 2019 rules which are responsible for the peaker shutdowns envision up to four years of extensions “if the generator is designated by the NYISO or by the local transmission owner as needed to resolve a reliability need until a permanent solution is in place.” Whether transmission, wind power, and storage can be built by then is the challenge New York faces.
Read more about power lines:
The Canadian Wildfires Ominously Messed Up a Clean Energy Power Line
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At this point, I think it’s clear that AI data centers are unpopular.
You probably know it, at least. I was preparing talk about data center opposition on a podcast today and I took the opportunity to dive back into our data, so I certainly know it. At this point, we’ve written about results from our polling that show Americans overwhelmingly oppose local data center construction, that majorities of Americans now support a national data center moratorium, and that the only group of Americans who feels more optimistic than pessimistic about artificial intelligence is … men older than 65 years old.
So I got curious: Given all that, who actually supports AI data centers?
One question from our recent Heatmap Pro poll, conducted by Embold Research, helps give us a sense. This is the profile of someone our data says would support a data center built in their local area:

A few facets stand out. These data center YIMBYs are more likely to be men, and more likely to be 2024 Trump voters, but they’re not locked into one age demographic or voting cohort. A third are Harris supporters, and roughly a third are women. Data center YIMBYs are more likely to be older than 50, but the majority isn’t overwhelming.
Perhaps more surprising: The group has many more people who voted third-party in the 2024 election (8%) than the general population (just under 2%), although that response could also include people who didn’t vote. (Alas, the data can’t quite confirm how many in this group are libertarian.)
What’s perhaps most interesting: This group overwhelmingly believes that artificial intelligence will make their lives better. And in heartening news for climate advocates, they are even more likely to support a given data center project if it is powered by renewables.
I was going to joke that the profile is essentially a newly retired engineering dad — except that, to my surprise, these data center YIMBYs are far less gender imbalanced than the American engineering profession. (They’re also less gender-imbalanced than American Tesla owners.) So I’ll leave it at that.
Five takeaways from the latest Lazard Levelized Cost of Energy report.
It’s all getting more expensive.
That’s the conclusion of the investment bank Lazard’s latest report on the levelized cost of energy, one of the most closely watched and cited energy reports of the year.
Levelized cost of energy measures the dollars per megawatt-hour a power plant needs to earn in revenue to break even over the course of its lifetime in present-value terms.
What makes LCOE so alluring is that it’s a way to compare any type of generator, whether it requires a large upfront investment but has few operating costs, like a utility-scale solar project, or whether its expenses are largely fuel costs incurred in the future, like a combined cycle natural gas plant. This is also why LCOE has its critics, who point out that a solar panel that only runs during certain times of day has a different value to the electricity system than a natural gas plant that can ramp up and down quickly or a nuclear plant that provides steady baseload power.
Anyway, here’s what we can learn from this year’s Lazard report.
Curves that were once gently sloping downward are starting to look like incipient U’s. While longterm LCOE falls are still dramatic and impressive for some technologies — utility solar has fallen from $359 per megawatt-hour in 2009 to $69 in 2026 — the short term rises are worrisome. That $69 per megawatt hour represents a nearly 10% increase from 2025, when utility-scale solar had a LCOE of $58. And it’s not just renewables — the LCOE for a combined cycle natural gas plant rose from $78 per megawatt-hour to $90 in the past year. Gas plant LCOE got as low as $60 in 2021. That’s a 50% price hike in just five years.
Lazard attributed the increase in solar and wind LCOE to “higher capital costs, sustained interest rates, tariff pass-through and supply chain repricing.” These technologies are also the most “sensitive” to subsidies by way of the tax code, with federal tax tax credits taking the low end cost of utility solar to as low as $16 per megawatt hour. To the extent those tax credits are no longer available or weren’t accessible due to strict eligibility rules, that could be a source of future upward pressure on costs.
That being said, renewables “maintain their relative cost advantage despite facing the same cost pressures affecting the rest of the generation stack,” the Lazard analysts concluded.
Natural gas, meanwhile, is seeing prices spiral upward on huge and growing customer demand.
“Continuous upward revisions to demand projections have driven a sharp increase in announced new-build gas generation despite a 15-year high LCOE and historically long development lead times,” according to Lazard.
The report hints at what LCOE is not always able to capture, namely that generators like gas have attributes besides low cost that make them attractive. “New gas combined cycle plants offer the lowest-cost dispatchable power in high-demand and low-cost-gas environments,” the analysts point out.
Anyone building a new combined cycle gas plant, however, will have to deal with the high cost and low availability for turbines, which is “extending development timelines well beyond historical norms.” That provides an opening for renewables that can be deployed quickly and cheaply, like solar and accompanied by battery storage.
In 2019, the low end of LCOE for onshore end was $28 per megawatt-hour, according to Lazard’s figures, and the high end was $54. In 2026, however, the low end costs sits a bit higher at $37 per megawatt-hour, but the high end cost rose to $99. There’s a similar story for utility solar: in 2019, the spread between low and high was a snug $8 per megawatt-hour, while this year it’s ballooned to $58.
The broadening range is “likely reflecting that some project developers have been better able to mitigate broader cost pressures across supply chain and project-level economics than others,” the Lazard analysts wrote.
The Lazard report doesn’t just look at the discounted cost of individual generators over their lifetimes. It also tries to figure how much they cost on certain grids. One way of doing this is to look at what Lazard calls the “cost of firming intermittency” or “levelized firming costs.” This is essentially looking at what it costs to bring solar, solar and storage, and wind and storage onto actual grids considering their ability to perform when the grid is most stressed.
This measure tries to refine LCOE to give a sense of how various forms of energy generation compare to gas plants in real world circumstances, not just as a financial construct. This is not a perfect, real-world comparison — gas capacity needs to be “firmed” as well, as it’s not always entirely available at times of peak need — but at least it gives an idea of how these resources actually function in a real-world grid.
Even with firming costs, “renewables remain broadly cost-competitive,” the report concludes.
Not surprisingly, some of the most dramatic costs are in America’s most troubled electricity market, PJM Interconnection. The unsubsidized cost of firming intermittency for solar and storage is $167 per megawatt-hour, compared to $150 in Texas or $115 in California. That’s also compared to a $129 per megawatt-hour at the high end for conventional combined cycle gas plants in PJM.
PJM is notorious for its inability to bring on new resources quickly and its strict standards for accrediting the contribution of storage and renewables to grid stability.
While the Lazard authors explicitly caution that it doesn’t measure what the“total system costs are for 1 MWh of incremental electricity” and can’t say “the optimal mix of renewables, conventional generation and storage,” it does conclude that “firming costs and dispatchability are increasingly critical for comparing resources on a more complex grid.”
In short, no matter what ends up on the grid, grid planners will have to think carefully about how to make sure it’s reliable and works in concert with what’s already there.
Timber companies think of them as pests, but new research indicates that stands of the slender tree can act as barriers against raging flames.
Colorado’s Aspen Acres Fire is named after a quiet RV campground located high in the San Isabel Mountains, about a five-hour drive due southeast of the state’s better-known Aspen. Both places, however, are named after the iconic deciduous tree known for its golden leaves in the fall. While the start of monsoon season may yet prevent the Aspen Acres Fire — the seventh-largest in Colorado’s history — from joining Utah’s Babylon Fire as the second 100,000-acre “megafire” of the season, the conflagration has been aided in its rampage not by aspens, but rather by dead, downed, and blighted ponderosa pines, spruce, and Douglas firs. The wildfire has now burned over 98,000 acres and nearly 300 homes, and is only 36% contained due to steep terrain that has hampered firefighting efforts, along with extreme drought conditions and beetle infestations that have greatly degraded the forest health of the region.
But what about its aspens? Though the extent of the damage at the campground remains unknown, according to a recent study of Populus tremuloides, Colorado’s iconic golden trees could be one of the keys to more wildfire-resistant forests in the future.
Flavie Pelletier, a recent PhD graduate of McGill University’s Natural Resource Sciences program, told me she first became interested in aspens while working as a tree planter in British Columbia. “The historical assumption on aspen is that stands are very good at stopping fire progression. But the paradox is that if you take an aspen by itself, it’s going to burn at high severity,” Pelletier, who published her findings in Forest Ecology and Management, told me.
By creating near-real-time maps of fires using satellites and comparing them against the Canadian Forest Service’s newly available maps of dominant tree species in the boreal, Pelletier and her colleagues discovered that aspen were almost two and a half times more common at the perimeter of a burned area than inside it. The finding suggests that despite the flammability of a single aspen with its thin bark, stands of aspen act as a kind of barrier when wildfire ran up against them, likely because they lack the flammable resins of conifers and their high foliage helps force running crown fires back toward the ground. Pine and spruce, by contrast, showed a near-zero or even negative effect.
When aspen stands did burn, Pelletier found they did so more slowly: A tree cover of 50% aspen burned at about 224 hectares per day, compared to 717 hectares per day in areas where aspen made up less than 10% of the cover. That’s the equivalent of about 1,000 FIFA-regulation soccer pitches per day in places where aspen are sparser — like Aspen Acres.
Even more surprising, though, was that the pattern held true in the early season, when the trees are still twiggy and have yet to grow their moisture-filled leaves, and despite the severity of fire weather. “Aspen still showed resilience even when the fire weather was very intense, [like in 2023, when] we had all the fires,” Pelletier said.
But she was also the first to admit that seasons are getting more extreme, and that there’s no guarantee the pattern will hold for the next 10 or 20 years.
Pelletier was reluctant to make a policy recommendation based on her research, noting that she’s not a forest manager. But in Alberta and British Columbia, timber companies spray hundreds of thousands of acres of timber with glyphosate, an herbicide, to kill off aspens because the trees outcompete the more commercially valuable conifers. Her findings are “a big argument to stop the spreading of herbicides because you’re increasing the risk of fire in your forest by removing aspen,” Pelletier said.
Despite her hesitation, Pelletier is explicit in her paper about one thing: that aspens “should be encouraged — specifically around key landscape positions, such as population centers” — given that they are a proven means of hardening the wildland-urban interface against wildfires. It might be too late for the idyllically named Aspen Acres, of course; any of the aspens that once drew tourists to the area are likely now ash.
But this not be Colorado’s last fire, either.