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Suppose you’d never heard of the gas-powered car. One day, someone comes along to evangelize a new Honda CR-V as the hottest thing in technology. You might rightfully ask: Are you serious? You want me to put my family inside a box propelled by petroleum explosions? I’m supposed to maintain a machine made of thousands of moving parts ready to fail at any time, and that needs a fossil fuel imported largely from hostile nations?
Hank Green of YouTube fame recently posted such a thought experiment on Threads to point out the power of the status quo. After a century of our burning gasoline to get around, the frankly bizarre nature of internal combustion has become invisible. Instead, it is the ascendant electric car that is met by the doubt and derision that scoffs at anything new and different.
I’m not going to tell you EVs don’t have growing pains. But the big arguments against them aren’t as impressive as they sound.
Some anti-EV complaints are little more than bad-faith attacks drummed up by petroleum partisans and others with an ax to grind against electrification. For example, there is the notion that EVs aren’t actually better for the climate because they produce more emissions than gas cars. Opponents adore this one, since it would negate the rationale for electrifying the car fleet.
Except, it’s wrong. It may be true that building an EV requires slightly more upfront carbon emissions, which are caused by mining the essential materials and making the battery. However, combustion cars more than make up the difference by burning fossil fuels, and spewing a constant stream of climate pollution, for as many years as they run. Meanwhile, an EV gets cleaner and cleaner as the grid that supplies its electricity adds more and more renewables to its makeup. You’d basically have to burn nothing but coal for EVs to be worse over their lifespans.
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What about the annoyance of EV ownership? Some antagonists suggest driving electric is like using cloth diapers: an onerous, soul-sucking inconvenience taken on for the sake of saving the planet. Don’t believe it. EV life has its quirks, sure. On the other hand, I’ve covered the numerous ways that EVs are just plain better than gas cars, which includes the impressive zoom off the starting line, the ability to use your garage as a refueling station, and much more.
Range anxiety, held up as a dealbreaker for some buyers considering an EV, isn’t the problem you think it is. The fear is essentially nil for people who can charge an EV at home: You’ll wake up each morning with 80 or 90 percent of battery capacity, which is more than enough for all your daily driving needs. Finding a public charger is mainly a problem for longer trips, and the growing number of fast-charging stations means there’ll be one. Furthermore, battery ranges are getting longer and charging times are getting shorter. As this trend continues, range anxiety is quickly diminishing, as is the convenience difference between gas and electric.
Some naysayers say it’s impossible for an electric vehicle to meet their needs. I get it. It’d be easy to look at maps of U.S. charging infrastructure and conclude that if you don’t live in one of the big metropolitan areas where plugs are abundant, then EV ownership is impossible or impractical. Well, not necessarily.
Yes, those who reside in truly rural parts of America, and drive many miles far from the interstate highway system, ought to wait on going electric. But you don’t need to live in Los Angeles to live with an EV. Remember, if you can charge at home, then your house supplies the energy for the vast majority of your driving. Fast chargers now line the major highways even in states with low EV ownership to date, so you could drive a long distance as long as it’s not into the hinterlands. Having an EV especially makes sense in a two-car family where the other car is, say, a traditional hybrid. Simply accomplish most of your local driving on cleaner, electric power, and take out the Prius if you’re driving to a far-flung national park.
EVs are too expensive, they say. That one is true. However, while the federal tax credits for electric vehicles were already perplexing and are getting worse, they exist. If you can manage to navigate them, it is still possible to save $7,500 up front on buying an EV, an amount that brings them much closer to their gasoline counterparts. And that’s before the credits and rebates available in many states for buying zero-emissions cars or installing home charging stations. It also doesn’t include the savings from reduced routine maintenance and low fuel costs, both of which make electrics cheaper to operate as the years go by.
In addition, those high sticker prices won’t stay high forever. A lot of the EVs that have hit the market so far are high-end, and their eye-popping MSRP helps carmakers cover the costs of designing new all-electric platforms and building big batteries. As the electric market matures, more entry-level models will emerge, made possible in part by the cost of batteries falling as the industry reaches a bigger scale.
There is a long list of alleged reasons why electrification supposedly cannot work across an entire country or the world. Among them: Battery materials are scarce, and must be mined in problematic areas. The grid supposedly can’t handle the extra demand (it can), and we can’t put enough renewable energy on the grid for EVs to make a maximum climate impact. Charging infrastructure is woefully inadequate.
These all are issues to be sorted, surely. The fundamental problem with this kind of anti-electric rhetoric around them, though, is that it suggests such problems are unsolvable. They’re not. New sources for raw materials are being found, such as the giant lithium deposit discovered this year near the Oregon-Nevada border. The ascendant EV battery recycling industry has the potential to recover most of the precious metals from spent cells. In the longer term, scientists are at work on novel chemistries that could use more abundant and easily obtained materials to make the batteries of tomorrow from something other than lithium, cobalt, and nickel.
The electricity grid does need to be improved, with more high-capacity transmission lines and energy storage solutions to allow for saving solar and wind energy for later. Frankly, though, our decaying infrastructure needs hardening anyway, and the EV revolution may help provide the push to get such projects past political gridlock. In the meantime, there are available smart solutions such as trying to line up energy demand with renewable supply — for example, by charging all our new EVs in midday when the sun is shining.
Maybe the people who say those solutions are too expensive or too difficult simply have no vision. After all, many of them would be out there stumping about the power of American ingenuity — if that ingenuity were in pursuit of a technology that profited them or appealed to their voters. While the EV transition will be hard, what would be even harder is giving up and living with the effects of unmitigated climate change, or trying to realize 11th-hour miracle solutions to save the planet like direct air capture.
The only truly compelling argument against EVs is that they don’t go far enough. They are still cars, after all, and a society that drives electric cars still wastes its land on parking lots and kills thousands of its citizens each year through crashes and collisions with other vehicles, bikes, and pedestrians. Sticking with cars just because they fit into the civilization we’ve built is a missed opportunity to build a walkable, bikeable, better future. There’s no arguing with that one.
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A group of energy researchers have a three-part prescription for Washington, D.C.’s exploding energy costs.
Washington, D.C. has earned an unwelcome distinction: the largest one-year electricity price increase of any state (or equivalent geographic distinction) in the U.S. Prices there are up 87% over the past five years and 26% in the past year alone, according to new data from MIT and Heatmap News’ Electricity Price Hub. The average D.C. household is now paying $55 more for power each month than it did five years ago.
In the face of this crisis, local officials have done little but blame regional markets, emphasizing the parts of recent rate increases they don’t fully control — generation charges — rather than any proactive measures they could take to offer relief to D.C. households. Meanwhile Exelon, the parent company for Pepco, D.C.’s local utility, has used the crisis to lobby state policymakers across the region for something worse — a return to utility-owned generation, which could leave consumers holding the bag for projects that run over budget or that are built for demand that never materializes.
As residents of Washington, D.C. and energy researchers who helped put together the Electricity Price Hub, we are well aware that the District cannot remake the regional electricity market on its own. But it has meaningful tools to protect ratepayers now.
To be sure, the problems D.C. faces are not entirely of its own making. Rising demand and constrained supply across the Mid-Atlantic have created a wholesale market pressure cooker.
Capacity market prices in the Pepco region, which are set through a regional auction scheme designed to ensure the grid can reliably deliver power when demand peaks, increased more than fivefold in 2025. Those costs are passing through to retail bills. As capacity has come under increasing strain, generation charges in Pepco’s standard supply service have gone up 119% — 33% in the past year alone, with yet another rate increase set to kick in on June 1.
That regional dynamic is real. But it does not absolve local officials.
Roughly 30% of Pepco’s average residential bill is made up of charges that fall squarely under D.C. jurisdiction. Distribution charges, the largest of those local components, have risen 57% over five years, and account for 20% of the total rate increase. The D.C. Public Service Commission regulates utilities in the District and must approve Pepco’s rates before they take effect. The commission, in turn, answers to the D.C. Council, the District’s legislature, which confirms its commissioners and oversees its work. These bodies should be examining every dollar of Pepco’s proposed increases. Instead, a D.C. court recently struck down the commission’s most recent rate-hike approval, finding that it had failed to sufficiently scrutinize Pepco’s request.
When a regulator is doing such a poor job that judges have to step in, that is a five-alarm signal. Yet there is a workable action plan for the Council and the PSC to rein in costs and ease the burden on D.C. households.
First, scrutinize distribution charges aggressively — that is squarely within their jurisdiction. As Pennsylvania Governor Josh Shapiro argued in his public letter to utility leaders last month, the PSC should require Pepco to justify every additional dollar of revenue requested in plain language. That means using transparent, replicable data and analysis to show why it’s needed, the alternatives considered, and how the proposed spending will concretely benefit consumers. To support this, the D.C. Council should ensure that the PSC, the Office of the People’s Council, and relevant state agencies are adequately resourced and positioned to engage with and probe Pepco’s arguments in rate proceedings.
Second, force transparency into how Pepco procures power. The public has remarkably little visibility into what makes up generation charges for the utility. For example, how much of the total cost is attributable to capacity prices, energy procurement, administrative costs, and compliance with the District’s Renewable Energy Portfolio standard? And what changes could D.C. consider to the competitive procurement process or RPS eligibility requirements to mitigate costs? Officials can’t manage what they can’t measure.
Third, attack demand by making it easier for customers to generate their own supply. High and unpredictable interconnection fees, process delays, and other administrative hurdles add unnecessary costs and contribute to the above-average cost of solar in D.C.. The D.C. Council and PSC can incentivize distribution-level solar battery deployment by cutting permitting and interconnection costs and improve cost transparency and streamline interconnection reviews to speed up the process of installing solar and storage.
None of these moves alone will reverse five years of rate increases. But together they would put real downward pressure on bills and signal that the city is serious.
What officials should reject — across the region — is Exelon’s push for utility-owned generation. In practice, it could create a generation subsidiary tomorrow. The reason it wants its rate-regulated distribution utility to do so instead is that this would let it earn a guaranteed return on costs it currently just passes through, while shifting the risk of cost overruns, schedule slips, and overbuilt capacity from shareholders to ratepayers. It would also hand the utility an information advantage over independent power producers, suppressing the competition the market relies on to keep prices honest. More profit, less risk, less competition. A great deal — for the utility.
The D.C. Council recently passed emergency legislation pausing utility disconnections for residents with unpaid balances under $1,000. That is a humane stopgap as we head into summer, but it is not a strategy. Neither is anything that has been proposed during the current mayoral race, in which leading candidates have attacked each other’s records instead of offering a plan to lower bills.
D.C. residents do not need more blame-shifting. The choice in front of the council and the PSC is concrete: Scrutinize what is in their jurisdiction, force the transparency they have the authority to require, accelerate the cheapest sources of new supply, and refuse to subsidize a Pepco business model that turns ratepayers into the underwriters of utility risk. That is the test of whether they meet this moment seriously.
On Thea Energy’s $100 million Series B, plus more of the week’s big money moves.
Nuclear is once again a dominant theme this week, with fusion startup Thea Energy landing a $100 million Series B that will help it expand its magnet manufacturing capabilities. While $100 million is nothing to scoff at, it somehow sounds modest alongside some of this year’s other deals, which include a $450 million Series A for Inertia Enterprises and $240 million for Shine Technologies. This week also brought the news that small modular reactor startup Newcleo plans to go public via SPAC later this year, bringing to mind the exuberance of the 2021 SPAC boom, in a deal expected to net a cool $429 million.
Elsewhere, gridtech company Utilidata raised fresh capital after (surprise!) pivoting to the data center market, while a standalone battery storage developer and operator is betting there’s still plenty of money to be made in the increasingly crowded ERCOT market.
Thea Energy officially joined the growing ranks of fusion companies to surpass $100 million in total funding this week, raising a $100 million Series B round led by the U.S. Innovative Technology Fund to scale its magnet manufacturing operations as it targets a demonstration reactor by 2030. Thea is a part of the Department of Energy’s Milestone-Based Fusion Development Program, which seeks to accelerate efforts for commercial fusion power. In January, the DOE certified Thea’s preconceptual pilot plant design, making it the first of the program’s eight awardees — who will split $46 million in federal funding — to see its reactor architecture validated.
Unlike many top-funded fusion startups, which are building donut-shaped tokamak reactors, Thea Energy is betting on a stellarator design. Traditional stellarators resemble a helical tokamak, which require manufacturing and installing dozens of huge, twisted magnets, but Thea’s approach deviates from the norm. Instead, it relies on hundreds of small, planar magnets arranged in the more familiar donut-shaped configuration, which the company’s artificial intelligence software controls individually. That enables Thea to create the same complex magnetic field within a far simpler and more manufacturable shell.
Thea plans to use the new capital to build a second facility in New Jersey to complement its existing lab and to double its headcount as it seeks a site for its demo reactor later this year. The startup is aiming to bring its subsequent commercial pilot online by 2034, on par with the timeline laid out by fusion industry leader Commonwealth Fusion Systems. According to Gaetano Crupi, USIT founder and billionaire investor Thomas Tull “believes the stellarator is the right architecture for commercial fusion, and Thea Energy is the company that makes it commercially viable.” As Crupi put it in a press release, that’s because “Thea Energy’s breakthroughs shift complexity from precision mechanical fabrication to software-defined controls.”
Newcleo is the latest small modular reactor startup seeking a quick pathway to the public markets via a SPAC merger, announcing plans to list on the Nasdaq in the second half of the year after merging with a blank-check firm. The deal values the European fuel and reactor developer at $2.4 million, and is expected to deliver about $429 million in fresh capital. It comes just months after Newcleo raised $88 million in a growth financing round as the company expands into the U.S. market while continuing to fund projects across Europe.
Newcleo stands out in the crowded SMR field through its fuel and cooling strategy. It plans to run its 200-megawatt reactors on recycled fuel made from nuclear waste products like recovered plutonium and depleted uranium, and cool its reactors with liquid lead rather than water. Because liquid lead has such a high boiling point, lead-cooled reactors can operate at atmospheric pressure, reducing the need for the complex, high-pressure systems used in conventional nuclear plants and potentially improving safety along the way.
The company has already raised over $760 million to date, and CEO Stefano Buono told the Wall Street Journal that the pending SPAC could carry it through 2028 or 2029. Even that won’t be enough, however, for Newcleo to reach its target of opening a fuel factory by 2031 and bringing a commercial reactor online the following year. Not to mention that SPACs — a once rare go-to-market strategy — have a checkered history in the SMR industry. After NuScale went public via SPAC in 2022, its flagship project collapsed, taking its stock down with it and underscoring the risks that pre-revenue companies face when their early failures unfold in the public markets. On the other hand, shares of Sam Altman-backed startup Oklo’s have surged since it went public via SPAC in 2024, reaching a market cap over $11 billion, though it also has yet to build a reactor.
Newcleo’s capital push may also be tied to its strategic partnership with Oklo, as it has preliminary plans to invest up to $2 billion to develop advanced nuclear fuel facilities in the U.S. in partnership with the SMR pioneer. Earlier this week, the DOE selected Oklo — and by extension, Newcleo — to enter “advanced negotiations” to receive surplus weapons-grade plutonium for use in reactor fuel.
What’s that I hear? Another climate tech company has pivoted to the data center market? While Utilidata — an artificial intelligence-powered gridtech company — initially set out to give utilities granular insight into household-level electricity usage and grid data, it’s now raised a $40 million extension round to accelerate its shift into the data center market. As I wrote following last year’s initial $60 million tranche of Series C funding, Utilidata initially set out to get its hardware module inside residential smart meters — which it managed to do at pilot scale — to enable faster fault detection and eventually even automate load management at the household level.
Now, Utilidata is taking this same principle and applying it to the booming data center market, where so many climate tech companies are finding their first customers. The company developed its AI platform in collaboration with Nvidia, installing its modules on server racks to help data centers optimize power allocation across its facility. The company says it measures power consumption a million times per second, such that if usage on one rack is low, it can reroute electricity to parts of the data center that need it. Much like electric grids, data centers also overbuild their capacity to ensure they can handle sudden spikes in demand or hardware failures. Utilidata wants to tap into that headroom by managing power flow in real time.
Utilidata’s first commercial data center deployment is set to go live next month in Montreal in partnership with European AI cloud provider NexGen Cloud, with the startup targeting a 50% increase in the data center’s usable processing power. It also plans to use this latest funding to increase headcount by 25% this year as it builds out operations at its new Ann Arbor headquarters, which opened in February.
In some later-stage funding news, battery energy storage developer, owner, and operator Goshe Energy Storage just secured up to $40 million in strategic financing from S2G investments. As I wrote last week, S2G recently raised a $1 billion fund aimed at helping growth-stage companies commercialize, though this latest commitment actually comes from a different arm of the firm — its Special Opportunities team. This division focuses on non-dilutive financing, in this case providing Goshe with a HoldCo loan backed by the company’s portfolio of energy storage projects. Rather than lending to a specific project, a HoldCo loan gives Goshe flexible capital that can be used to fund its broader growth.
Founded in 2022, Goshe specializes in acquiring late-stage battery storage projects and getting them over the finish line by securing capital and managing the construction process into commercial operations. Thus far, all of its announced projects are in Texas’ ERCOT electricity market. Alongside this financing announcement, Goshe said that its first project — a 100-megawatt battery storage plant in Bexar County, Texas — is now fully operational after securing $288 million in project financing. The company also expects to bring its second project, a 180-megawatt storage facility, online in the following few months, with two additional ERCOT projects slated to begin construction later this year.
This funding is the latest sign that infrastructure investors have grown comfortable backing battery energy storage projects, with a record 24.3 gigawatts of new battery storage capacity projected to come online in the U.S. this year alone. The wholesale ERCOT market, however, is no longer the guaranteed moneymaker that it was just a few years ago. Between January 2024 and January 2026, ERCOT more than tripled its battery storage capacity, driving battery revenues down as the market has become increasingly crowded. In this landscape, there may be a growing number of stranded projects for Goshe to acquire, though it’ll also have to be increasingly selective.
The American climate movement is beginning to look a lot like AI doomers versus the techno-optimists. It’s a dynamic that is winning local bans – and very little else for now.
On one side, you’ve got the left-leaning insurgent grassroots movement against data centers. In many cases this push is in the name of climate action and environmental justice, with activists citing the risks of pollution from gas-fired power and the potential for strain on existing electricity supplies. But in many, many other cases, this movement is decidedly not about climate action; instead it’s a movement addressing everything from energy prices and power over large corporations to AI use generally.
Or, perhaps the anti-data center movement’s big tent is best summarized in this quote from comedian and activist Ilana Glazer: “The thing that is genuinely waiting for us on the other side of AI and data centers is the collective.”
On the other end of the spectrum, you have a raft of data center-curious centrists, liberals, and, for lack of a better term, capitalists. This diametrically oppositional political force wants to ensure data centers continue being built as states and the federal government figure out how to make policy surrounding them. Yes, they want regulations, but they’ll have to qualify even supporting the idea of a single full state – any state – pausing data centers.
“I tend to find myself in the middle of all of this AI and data center policy, because I don’t think a heavy-handed approach in either direction is smart or productive,” said Tre Easton, vice president of public affairs for the Searchlight Institute, a policy think tank geared toward pushing Democrats into positions more broadly popular in the general electorate. “If you’re doing moratoria in one state and Meta says, okay, fine, they’ll go to a different state where they’ll run roughshod.” He added: “This buildout is happening. Let’s just make the rules. Put out rules of what this should look like.”
I spent weeks talking to activists fighting data centers to better understand their end goals. Right now what folks want to talk about most is moratoria, until industry-specific regulation is in place governing all things energy, water, noise, and labor.
“Our motto is ban, legislate, regulate,” said Ben Dziobek, founder of Climate Revolution Action Network, which is fighting data center expansion in New Jersey. Dziobek’s organization is one of roughly five dozen in the Garden State that have called on newly-elected Democratic Gov. Mikie Sherill to institute a moratorium on data centers, including state representatives from The Nature Conservancy and ACLU.
When I asked Dziobek what he’d like to see after a moratorium, the answer was clear: he wants to see Big Tech pay for the energy transition. “It would be beneficial if we could get companies who are using more load than entire states to build out the clean energy future. Someone’s gotta pay for this. The largest companies in the world have to come in.”
Undoubtedly this movement is increasingly influential and rooted in a now bipartisan concern about data centers founded in valid concerns about data center impacts and the rise of AI. But at least right now, In New Jersey, and so many other Democrat-controlled states, this movement has won little ground outside the local level and no statewide Democratic leader (e.g. governor) has made a data center moratorium their raison d'être. Neither have I seen the push for a moratorium pick up steam in any state known as a deep blue bastion for climate policy. Its greatest achievements by the numbers are the cancellation rate of projects that have faced local pushback (37%, according to Heatmap Pro), the city-wide moratoria in large left-leaning bastions like Denver, and the sheer existence of a federal data center moratorium bill led by progressive celebrities like Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
In fact, what I am seeing is Democratic statewide leaders rejecting efforts to curtail their development or regulate energy and water usage. In California last year, Gov. Gavin Newsom vetoed a bill requiring data center developers to report their water use. In New York, Gov. Kathy Hochul has so far shrugged off a push for her to back a three-year moratorium on new data centers. In Massachusetts, Gov. Maura Healey supports continuing to foster the state’s data center buildout and the state is preserving its data center sales tax exemption at a time when GOP leaders in other states want to repeal similar subsidies. Colorado legislators abandoned a push to regulate data centers earlier this month, after Washington state did the same.
Perhaps infamously in Maine, the Democrat-led state legislature nearly enacted a two-year moratorium on data center development only to be vetoed by Gov. Janet Mills. Democrats then failed to override the veto.
Some Democratic leaders are taking up the light-touch approach. On Wednesday, Pennsylvania Gov. Josh Shapiro released long-awaited principles for data center developers seeking fast-track permitting processes with state agencies. Under these policies, companies can get permitted more quickly if they abide by a number of energy, water, and labor standards.
On a granular level, even this policy quietly represented a disappointment for climate activists. One of the principles called for data centers to get at least one third of their power from “clean” sources by 2035 – which sounds nice until you realize Shapiro only two years ago was calling for utilities to get at least half of their electricity from carbon-free sources by then. Food & Water Watch, a national group calling for country-wide data center moratoria, blasted a press release going after Shapiro to the media after the principles were released: “[This] is a naive effort to placate widespread data center opposition. It won’t work.”
For climate activists, the best case scenario right now may be blue states taking up bills to regulate the sector as opposed to a blanket moratorium, where the push for a pause functions as leverage. Often these bills are focused on energy costs for consumers, not environmental protection, like in Oregon where last year legislators enacted a measure requiring data center companies to pay for their share of electricity demand. In Vermont this week, the state legislature passed a similar bipartisan data center bill focused on energy affordability, with some restrictions on fossil fuel generation. (Republican Gov. Phil Scott is expected to sign it.)
Indeed, the climate movement’s smartest play could be to push legislation requiring facilities not only pay for their power but ensure it is zero-carbon emissions. So far, Democrat-led bills that would accomplish this goal gained steam this year in other states but struggled to become law before the end of the legislative session too (Washington, for example).
In Illinois, the bill is known as the POWER Act, but despite lots of Democratic support behind it, it’s languishing in committee limbo ahead of the end of legislative session this week. One can imagine Illinois Gov. J.B. Pritzker getting a bill like the POWER Act into law and then running for president as The Guy Who Made Data Centers Cleaner. Heaven knows that’s why folks like Hannah Flath, climate communications manager for the Illinois Environmental Council, are so bullish on the bill. “I think it’ll eventually become law. Just not this session.”
I asked Flath why her organization was so focused on this bill as opposed to a data center moratorium. “We just don’t think it is politically feasible. Especially given how attractive these things are to our governor and some state lawmakers,” she said. “Currently, I view climate work as harm reduction work. This is perhaps a cynical view to have but that’s unfortunately where we’re at. How can we ensure changes happening in the world bring more benefits than they do harms?”
But Flath said that as a push for moratoria grows, it provides pressure on state policymakers to act: “What we’re offering state legislators now is a middle ground solution.”
I suppose for now, we’ll have to see if this side can come together on any solution – let alone a middle ground.