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Maybe the PHEV really is the starter EV America needs.

When my sister’s long-lived Scion met a sudden, destructive end last month, she was ready to take the leap into electric. She tried one plug-in hybrid she could find in Topeka, Kansas — an old Chevy Volt — before rejecting it in favor of a gently used Nissan Leaf.
Across town, my parents had been car-shopping, too. And while they thought about a plug-in hybrid as a way to dip their toes into electrification, they found only one on the nearby lots — a used car the dealer tried to sell above MSRP because, well, they could. Mom and dad wound up with a traditional hybrid Hyundai crossover instead.
Such struggles are no surprise. The PHEV has become an uncommon sight as most automakers have introduced fully electrified vehicles and, increasingly, left the plug-in hybrid behind. However, as full EVs have run into headwinds, the PHEV might be due for a comeback. Five years after giving up on plug-in hybrids to go all-electric, General Motors now says it will start making them again.
This is good news for a country that, frankly, needs a starter EV.
I admit it: Five years ago, when GM ditched hybrids to go fully electric, I was glad. Yes, the Chevy Volt had shifted lots of people to electrified driving. But the plug-in hybrid is a paragon of “jack of all trades, master of none.”
With electric car components jammed in alongside its traditional hoses and belts, a PHEV is never going to be a great gasoline car. And because it must contain all the parts for petroleum propulsion, a plug-in hybrid can fit only a small battery with a limited range. The new Toyota Prius Prime PHEV can deliver up to 44 miles of electric driving, and that meager figure is a major leap from the around 25 miles of the previous model. The soon-to-be-axed Subaru Crosstrek PHEV delivers only 17 all-electric miles, and costs thousands more than a normal gas version.
From a climate perspective, PHEVs also looked like an easy way out for carmakers who should have been fully electrifying their lineups instead — a way for brands like Toyota to call their cars “electrified” without actually building battery EVs. It was a half-measure, a “stepping stone,” in a world that needs to completely turn over its car fleet.
For drivers, though, the core argument for the PHEV has always been a compelling one. Its battery range is limited, yes, but the electric miles are probably enough to accomplish a commute or local errands. Local electric driving drastically cuts one’s gasoline budget. On longer trips, there’s no need for the range anxiety that comes with a true EV since the gas engine has your back.
Yet PHEVs struggled to catch on fully during their first wave. A decade ago, when precious few mainstream EVs were on sale, plug-in hybrids accounted for about half of electrified U.S. car sales. About five years ago, when mass-market EVs like the Tesla Model 3 and Y arrived — and the Chevy Volt departed the scene — things changed. By 2023, PHEVs made up only 20 percent, meaning Americans bought four times as many pure EVs as plug-in hybrids.
Perhaps the America of five years ago simply was not yet familiar enough with electric driving to understand the benefits a plug-in hybrid could deliver. Buyers who were truly bullish on electric, like me, jumped right past the hybrid and bought a full EV. The fact that plug-in hybrids cost a lot more while delivering a pittance of electric miles didn’t help.
But that was then. In 2024, the legacy car companies sound far less enthusiastic about their plans to electrify completely. While EV demand is not cratering, as some apocalyptic headlines would suggest, it is possible that electric cars are entering a holding pattern, or at least a gap year or two. Drivers willing to buy a pricey new EV have mostly done so. Millions more are biding their time, waiting for better charging infrastructure where they live, a wave of truly affordable EVs, or some other factor to push them toward pure electric.
These people need a starter EV — something to get their feet wet in electrified driving that isn’t a $40,000 new car. Now that a handful of decent electrics have been on the market for several years, a used full EV could fill that role. That’s especially true for families that have a combustion vehicle or hybrid as their other car, and can drive a used Chevy Bolt or Nissan Leaf around town without having to worry so much about its diminishing battery.
Still, most Americans want their car to do everything, including a long road trip if necessary. They should consider the PHEV. In parts of the country without a lot of charging infrastructure, the plug-in hybrid would make an ideal beginner EV, given the security of the gas engine to ease one’s range anxiety.
But with the automakers having gone full electric in the past few years, plug-in hybrids are few and far between. Toyota, which has been dragging its feet about pure EVs, makes plug-in hybrid versions of the RAV4 and the Prius. The Wrangler 4xe plug-in hybrid is Jeep’s signature electrified effort so far. BMW, Kia, Hyundai, and others offer PHEV variants of some of their vehicles (though that’s no guarantee you’ll find the one you want at your local dealership, given their niche status.) PHEV sales lag behind both ordinary hybrids and full electric vehicles.
With General Motors ready to revive its plug-in hybrid line, perhaps the technology is due to catch its second wind just as weary buyers look for a more comfortable way to start driving on electrons. As with full battery EVs, it comes down to price and range. If Chevy can cook up a Volt 2.0 that impresses on both fronts, then the PHEV may finally find its footing in the U.S.
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The attacks on Iran have not redounded to renewables’ benefit. Here are three reasons why.
The fragility of the global fossil fuel complex has been put on full display. The Strait of Hormuz has been effectively closed, causing a shock to oil and natural gas prices, putting fuel supplies from Incheon to Karachi at risk. American drivers are already paying more at the pump, despite the United States’s much-vaunted energy independence. Never has the case for a transition to renewable energy been more urgent, clear, and necessary.
So despite the stock market overall being down, clean energy companies’ shares are soaring, right?
Wrong.
First Solar: down over 1% on the day. Enphase: down over 3%. Sunrun: down almost 8%; Tesla: down around 2.5%.
Why the slump? There are a few big reasons:
Several analysts described the market action today as “risk-off,” where traders sell almost anything to raise cash. Even safe haven assets like U.S. Treasuries sold off earlier today while the U.S. dollar strengthened.
“A lot of things that worked well recently, they’re taking a big beating,” Gautam Jain, a senior research scholar at the Columbia University Center on Global Energy Policy, told me. “It’s mostly risk aversion.”
Several trackers of clean energy stocks, including the S&P Global Clean Energy Transition Index (down 3% today) or the iShares Global Clean Energy ETF (down over 3%) have actually outperformed the broader market so far this year, making them potentially attractive to sell off for cash.
And some clean energy stocks are just volatile and tend to magnify broader market movements. The iShares Global Clean Energy ETF has a beta — a measure of how a stock’s movements compare with the overall market — higher than 1, which means it has tended to move more than the market up or down.
Then there’s the actual news. After President Trump announced Tuesday afternoon that the United States Development Finance Corporation would be insuring maritime trade “for a very reasonable price,” and that “if necessary” the U.S. would escort ships through the Strait of Hormuz, the overall market picked up slightly and oil prices dropped.
It’s often said that what makes renewables so special is that they don’t rely on fuel. The sun or the wind can’t be trapped in a Middle Eastern strait because insurers refuse to cover the boats it arrives on.
But what renewables do need is cash. The overwhelming share of the lifetime expense of a renewable project is upfront capital expenditure, not ongoing operational expenditures like fuel. This makes renewables very sensitive to interest rates because they rely on borrowed money to get built. If snarled supply chains translate to higher inflation, that could send interest rates higher, or at the very least delay expected interest rate cuts from central banks.
Sustained inflation due to high energy prices “likely pushes interest rate cuts out,” Jain told me, which means higher costs for renewables projects.
While in the long run it may make sense to respond to an oil or natural gas supply shock by diversifying your energy supply into renewables, political leaders often opt to try to maintain stability, even if it’s very expensive.
“The moment you start thinking about energy security, renewables jump up as a priority,” Jain said. “Most countries realize how important it is to be independent of the global supply chain. In the long term it works in favor of renewables. The problem is the short term.”
In the short term, governments often try to mitigate spiking fuel prices by subsidizing fossil fuels and locking in supply contracts to reinforce their countries’ energy supplies. Renewables may thereby lose out on investment that might more logically flow their way.
The other issue is that the same fractured supply chain that drives up oil and gas prices also affects renewables, which are still often dependent on imports for components. “Freight costs go up,” Jain said. “That impacts clean energy industry more.”
As for the Strait of Hormuz, Trump said the Navy would start escorting ships “as soon as possible.”
“It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
A federal court shot down President Trump’s attempt to kill New York City’s congestion pricing program on Tuesday, allowing the city’s $9 toll on cars entering downtown Manhattan during peak hours to remain in effect.
Judge Lewis Liman of the U.S. District Court for the Southern District of New York ruled that the Trump administration’s termination of the program was illegal, writing, “It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
So concludes a fight that began almost exactly one year ago, just after Trump returned to the White House. On February 19, 2025, the newly minted Transportation Secretary Sean Duffy sent a letter to Kathy Hochul, the governor of New York, rescinding the federal government’s approval of the congestion pricing fee. President Trump had expressed concerns about the program, Duffy said, leading his department to review its agreement with the state and determine that the program did not adhere to the federal statute under which it was approved.
Duffy argued that the city was not allowed to cordon off part of the city and not provide any toll-free options for drivers to enter it. He also asserted that the program had to be designed solely to relieve congestion — and that New York’s explicit secondary goal of raising money to improve public transit was a violation.
Trump, meanwhile, likened himself to a monarch who had risen to power just in time to rescue New Yorkers from tyranny. That same day, the White House posted an image to social media of Trump standing in front of the New York City skyline donning a gold crown, with the caption, "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
New York had only just launched the tolling program a month earlier after nearly 20 years of deliberation — or, as reporter and Hell Gate cofounder Christopher Robbins put it in his account of those years for Heatmap, “procrastination.” The program was supposed to go into effect months earlier before, at the last minute, Hochul tried to delay the program indefinitely, claiming it was too much of a burden on New Yorkers’ wallets. She ultimately allowed congestion pricing to proceed with the fee reduced from $15 during peak hours to $9, and thereafter became one of its champions. The state immediately challenged Duffy’s termination order in court and defied the agency’s instruction to shut down the program, keeping the toll in place for the entirety of the court case.
In May, Judge Liman issued a preliminary injunction prohibiting the DOT from terminating the agreement, noting that New York was likely to succeed in demonstrating that Duffy had exceeded his authority in rescinding it.
After the first full year the program was operating, the state reported 27 million fewer vehicles entering lower Manhattan and a 7% boost to transit ridership. Bus speeds were also up, traffic noise complaints were down, and the program raised $550 million in net revenue.
The final court order issued Tuesday rejected Duffy’s initial arguments for terminating the program, as well as additional justifications he supplied later in the case.
“We disagree with the court’s ruling,” a spokesperson for the Transportation Department told me, adding that congestion pricing imposes a “massive tax on every New Yorker” and has “made federally funded roads inaccessible to commuters without providing a toll-free alternative.” The Department is “reviewing all legal options — including an appeal — with the Justice Department,” they said.
Current conditions: A cluster of thunderstorms is moving northeast across the middle of the United States, from San Antonio to Cincinnati • Thailand’s disaster agency has put 62 provinces, including Bangkok, on alert for severe summer storms through the end of the week • The American Samoan capital of Pago Pago is in the midst of days of intense thunderstorms.
We are only four days into the bombing campaign the United States and Israel began Saturday in a bid to topple the Islamic Republic’s regime. Oil prices closed Monday nearly 9% higher than where trading started last Friday. Natural gas prices, meanwhile, spiked by 5% in the U.S. and 45% in Europe after Qatar announced a halt to shipments of liquified natural gas through the Strait of Hormuz, which tapers at its narrowest point to just 20 miles between the shores of Iran and the United Arab Emirates. It’s a sign that the war “isn’t just an oil story,” Heatmap’s Matthew Zeitlin wrote yesterday. Like any good tale, it has some irony: “The one U.S. natural gas export project scheduled to start up soon is, of all things, a QatarEnergy-ExxonMobil joint venture.” Heatmap’s Robinson Meyer further explored the LNG angle with Eurasia Group analyst Gregory Brew on the latest episode of Shift Key.
At least for now, the bombing of Iranian nuclear enrichment sites hasn’t led to any detectable increase in radiation levels in countries bordering Iran, the International Atomic Energy Agency said Monday. That includes the Bushehr nuclear power plant, the Tehran research reactor, and other facilities. “So far, no elevation of radiation levels above the usual background levels has been detected in countries bordering Iran,” Director General Rafael Grossi said in a statement.
Financial giants are once again buying a utility in a bet on electricity growth. A consortium led by BlackRock subsidiary Global Infrastructure Partners and Swedish private equity heavyweight EQT announced a deal Monday to buy utility giant AES Corp. The acquisition was valued at more than $33 billion and is expected to close by early next year at the latest. “AES is a leader in competitive generation,” Bayo Ogunlesi, the chief executive officer of BlackRock’s Global Infrastructure Partners, said in a statement. “At a time in which there is a need for significant investments in new capacity in electricity generation, transmission, and distribution, especially in the United States of America, we look forward to utilizing GIP’s experience in energy infrastructure investing, as well as our operational capabilities to help accelerate AES’ commitment to serve the market needs for affordable, safe and reliable power.” The move comes almost exactly a year after the infrastructure divisions at Blackstone, the world’s largest alternative asset manager, bought the Albuquerque-based utility TXNM Energy in an $11.5 billion gamble on surging power demand.
China’s output of solar power surpassed that of wind for the first time last year as cheap panels flooded the market at home and abroad. The country produced nearly 1.2 million gigawatt-hours of electricity from solar power in 2025, up 40% from a year earlier, according to a Bloomberg analysis of National Bureau of Statistics data published Saturday. Wind generation increased just 13% to more than 1.1 gigawatt-hours. The solar boom comes as Beijing bolsters spending on green industry across the board. China went from spending virtually nothing on fusion energy development to investing more in one year than the entire rest of the world combined, as I have previously reported. To some, China is — despite its continued heavy use of coal — a climate hero, as Heatmap’s Katie Brigham has written.
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Canada and India have a longstanding special friendship on nuclear power. Both countries — two of the juggernauts of the 56-country Commonwealth of Nations — operate fleets that rely heavily on pressurized heavy water reactors, a very different design than the light water reactors that make up the vast majority of the fleets in Europe and the United States. Ottawa helped New Delhi build its first nuclear plants. Now the two countries have renewed their atomic ties in what the BBC called a “landmark” deal Monday. As part of the pact, India signed a nine-year agreement with Canada’s largest uranium miner, Cameco, to supply fuel to New Delhi’s growing fleet of seven nuclear plants. The $1.9 billion deal opens a new market for Canada’s expanding production of uranium ore and gives India, which has long worried about its lack of domestic deposits, a stable supply of fuel.
India, meanwhile, is charging ahead with two new reactors at the Kaiga atomic power station in the southwestern state of Karnataka. The units are set to be IPHWR-700, natively designed pressurized heavy water reactors. Last week, the Nuclear Power Corporation of India poured the first concrete on the new pair of reactors, NucNet reported Monday.
The Spanish refiner Moeve has decided to move forward with an investment into building what Hydrogen Insight called “a scaled-back version” of the first phase of its giant 2-gigawatt Andalusian Green Hydrogen Valley project. Even in a less ambitious form, Reuters pegged the total value of the project at $1.2 billion. Meanwhile in the U.S., as I wrote yesterday, is losing major projects right as big production facilities planned before Trump returned to office come online.
Speaking of building, the LEGO Group is investing another $2.8 million into carbon dioxide removal. The Danish toymaker had already pumped money into carbon-removal projects overseen by Climate Impact Partners and ClimeFi. At this point, LEGO has committed $8.5 million to sucking planet-heating carbon out of the atmosphere, where it circulates for centuries. “As the program expands, it is helping to strengthen our understanding of different approaches and inform future decision-making on how carbon removal may complement our wider climate goals,” Annette Stube, LEGO’s chief sustainability officer, told Carbon Herald.