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The July 4 heat wave showed just how far the metropolis has to go to reach its decarbonization goals.

New York City’s decarbonization plan has stalled. The events of this year’s Fourth of July weekend all but prove it.
The temperature in the city reached as high as 100 degrees Fahrenheit on Thursday, July 2, the hottest it’s been here in 14 years. As New Yorkers blasted their air conditioners to stay cool, utilities drew on all of New York’s resources to serve the resulting electricity demand for cooling. These included a fleet of dual-fuel power plants, which can burn both oil and natural gas and encompasses many of its peakers, which turn on to deal with spikes of demand.
Those dual-fuel plants pushed over 10 gigawatts of electricity onto the grid on the evening of July 1— about a third of the total load in the state — and hit similar peaks on the 2nd and 3rd. The peaker fleet owned and operated by the New York Power Authority was operational for over two-thirds of the heat wave, which persisted for four consecutive days, while some ran nonstop from 7 a.m. July 2 to 3 a.m. July 4, according to NYPA.
In response to questions about the use of its peakers during the heat wave, a NYPA spokesperson told me, “During times of peak energy demand, like last week’s heat wave, the state’s independent grid operator called upon NYPA’s Small Natural Gas Power Plants to run well beyond their typical usage to meet high energy needs and prevent localized blackouts.”
While specific generator information is a protected trade secret, they said, “capacity suppliers are critical resources to meet system peak loads like those experienced during the recent heatwave.”
And yet still, over 100,000 people lost power during the heat wave. Real-time electricity prices in the area of the New York grid that includes the city got as high as $1,465 per megawatt-hour on the evening of July 3, according to data collected by Grid Status.
At the same time, the latest addition to New York’s non-carbon electricity generation fleet, a transmission line from Quebec that can transmit up to 1,250 megawatts known as the Champlain Hudson Power Express, was struggling. It experienced an unplanned outage on July 1, the first day of the heat wave, followed by a second outage beginning on July 4 that still had not been resolved as of Friday.
Since 2014, the city has had an aspirational goal of reducing emissions by 80% of its 2005 levels by 2050. CHPE was a major part of that plan, which also included offshore wind and utility-scale solar. There has been progress: Of the 1,000 megawatts of solar the city aims to have installed by 2030, about two thirds have been built. Even so, about 90% of New York City’s electricity came from fossil fuels in 2025, according to the city’s comptroller.
Why the difficulty decarbonizing? Blame a mixture of policy and geography. New York City is dense and has a lot of old buildings with old heating systems. Reducing consumption of fossil fuels requires getting cars off the road (congestion pricing) and retrofitting buildings with electric appliances (Local Law 97).
But that’s the demand side — the supply side is far trickier. Utility-scale non-carbon-emitting power on the orders of hundreds of megawatts or a gigawatt will have to be built elsewhere and piped in via transmission lines. That means offshore wind, solar (ideally with battery storage), and maybe one day nuclear power.
To the extent New York City can build solar and storage locally, it means dealing with a thicket of building regulations and local opposition. Efforts to shut down or replace peaker plants in the city have run into a brick wall at the New York Independent System Operator, which has declared that at least some peakers will have to stay online through the end of the decade to maintain system-wide reliability.
The only other new source of carbon-free power currently under construction is the offshore wind project Empire Wind, due to come online in 2027. NYISO said last year that without CHPE, Empire, and two local transmission projects planned to enter service by 2030, New York City would be “deficient in the summer” through 2030.
Of course developers have scrapped several other offshore wind projects over the years, whether due to problems procuring the right size turbine or the Trump administration buying out their lease. And though New York Governor Kathy Hochul pledged last summer to develop at least a gigawatt of new nuclear capacity in the northern region of the state, that is probably a decade away from fruition.
Meanwhile the Clean Path transmission line, which was meant to connect New York City to several gigawatts of new wind, solar and hydropower, saw its contracts canceled in late 2024 as its projected costs continued to rise. Last year, utility regulators shut down an effort by the state-run New York Power Authority to take it over as a “priority transmission project,” questioning whether it was “needed expeditiously” to meet downstate reliability needs and arguing that the project “will not be needed to serve substantial amounts of generation until well after 2033, and possibly not until 2040.”
While the city has some utility-scale battery storage systems, would-be developers have faced intense local opposition. Fullmark Energy, for instance, scrapped a planned 650-megawatt storage project after protests from political figures, including frequent mayoral candidate Curtis Sliwa. A dispute over another battery storage project in Queens has escalated into accusations of assault leveled by Councilmember Phil Wong, who called for a criminal investigation into what he said was an assault by a contractor for a project against his staffer.
So what’s left for New York City to do?
Any near-term progress will likely come from increasing efficiency and adding marginal generation capacity, as opposed to large-scale new projects and decommissioning of power plants.
“We need to max out our energy efficiency gains from Local Law 97,” former New York City Chief Climate Policy Advisor Daniel Zarrilli told me, referring to a 2019 law mandating steep reductions in emissions from large buildings in the city, which came into effect two years ago. He also called for a further“push on batteries and behind the meter solar, clean energy, and energy efficiency.”
Already across the state, behind-the-meter solar is shaving off peak power demand. On the afternoon of July 2, behind-the-meter solar accounted served about 4.5 gigawatts to users, according to NYISO and Grid Status data.
Going forward, Zarrilli said, the city should use its purchasing and planning power — as it did with CHPE — for projects like resurrecting Clean Path. “We need to be starting now. Maybe it’s not by 2030, but soon after we could be getting the benefit of that.”
“Battery developers started to see interconnection costs that were around 30 or 40 times what is standard,” Patrick Robbins, director of the Utility Customers Association told me. “It just means that new battery projects completely don’t pencil out and so we have a de facto moratorium on new [battery] projects.”
Advocates for solar and storage have blamed Con Edison for the city’s slow progress there, claiming that changes in the interconnection process have made it essentially cost prohibitive for battery storage developers to move forward on new projects.
Some of these fights have landed in front of New York’s Public Service Commission. In a filing, the city cited data from Con Edison showing that “the interconnection costs for some projects … have increased by thousands of percent,” citing one project whose interconnection costs jumped from $640,000 to over $35 million due to changes in how Con Edison attributed grid costs from new projects.
"Battery storage is essential to New York's clean energy future, and Con Edison strongly supports the development of energy storage when projects are deployed at the right locations, at the appropriate scale, and with operating parameters that provide the greatest benefit to customers and the electric grid,” a Con Edison spokesperson told me. “Because grid constraints vary across our system — from neighborhood‑level distribution lines to major transmission corridors — the location of a battery ultimately determines how much benefit it can deliver to the grid and to customers.”
There were 115 megawatts of battery storage operational in New York City at the end of last year, according to Con Edison, and 865 megawatts of projects with interconnection agreements. Peak load in the region is about 10,000 megawatts, meaning that these new projects would meaningfully alter the way the utility serves its customers.
Con Edison has claimed in a regulatory filing that the concentration of projects could lead to “significant impacts from BESS charging on infrastructure upstream of primary feeders,” necessitating the changes to its interconnection process. The city claimed in its filing that the added cost has “understandably chilled ongoing development activity at a time when New York City needs more supply resources capable of serving peak demand.”
When I reached out to the Mayor’s Office of Climate & Environmental Justice about the dispute, I received a statement in return from New York City Chief Climate Officer Louise Yeung: “Expanding battery storage capacity will be critical to New York City’s clean energy future, as extreme climate events continue to strain our grid system,” she said. “The City is working across agencies and communities to ensure battery energy storage projects are deployed safely and can provide reliable power when New Yorkers need it most.”
As for residential solar and storage, it will likely take years for those distributed resources to become a regular part of New York City’s energy landscape. There’s only one fully permitted and approved residential storage system allowed in New York City, which was installed earlier this year by Brooklyn Solar Works. Negotiating approvals with city agencies including the Department of Buildings and the New York City Fire Department took around six years, the company’s vice president of sales, Steve Nelson, told me.
“It’s New York City. We’re expecting there to be some level of bureaucracy and some lift to get that stuff approved,” Nelson said. “But what we also lack is a ready, readily accessible residential battery that meets the criteria that these departments have set.”
All that adds up to both a practical and a political gap for decarbonization, Zarrilli told me.
“Batteries are a great way to connect the climate agenda and the affordability agenda, and it’s in the mayor’s control — it’s the regulatory apparatus at FDNY,” he said. “That’s a big near-term play that I think would make a big difference.”
Earlier this year, New York City Councilmember James Gennaro introduced a bill to amend the fire code to relax some battery storage permitting and safety requirements. But that still leaves the city’s decarbonization advocates with many big fish to fry.
“It’s a challenging future that’s still out in front of us, and how to navigate that is really difficult. But it’d be good if we were actually aligned on what our goals were as a society,” Zarrilli said.
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Protesters interrupted President Trump’s speech on Monday. Polling suggests the public is behind them — and Republicans are divided.
Every few days, I think the data center backlash has reached its apex — surely it can’t become an even bigger issue in American politics. Then it surprises me again.
On Monday evening, the reaction got as close to President Donald Trump as it’s ever come, when six protesters interrupted his speech at a General Motors facility in Michigan to oppose the computing facilities. Although they were drowned out by the pro-Trump crowd, a new Fox News poll suggests their chants of “data centers no, people pay the bill” probably found some agreement in the crowd. Just as our own Heatmap Pro polling identified earlier this summer, that poll revealed U.S. voters would oppose the construction of a new AI data center in their area by a 40 point margin.
Most interesting, I think, is that MAGA voters and Republican men are among the electorate’s most pro-data-center contingent, according to the Fox poll. (Our Heatmap Pro poll has found similar, though we didn’t ask about “MAGA” status per se.) But even those demographics are virtually evenly split along pro- and anti-data center lines. White women with college degrees are unified against the facilities.
We’ll get a better sense of how data centers play in politics over the next two weeks. In the Michigan and Wisconsin primaries, insurgent candidates across the political spectrum have rallied against the facilities. In Wisconsin, the state legislator and Democratic Socialists of America member Francesca Hong has promised to enact a statewide data center moratorium if she is elected governor. A new State Navigate poll, published today, found that not only is she leading the field in the Democratic primary, but also that data centers are among voters’ top concern in the race, ranking alongside health care and affordability.
In fairness, every candidate in Wisconsin’s governor’s race seems to want to slow down data center development in some way. Democrats across the board would end tax incentives for the facilities. Some conservatives would like to slow down more than just computing projects. Tom Tiffany, the Republican frontrunner, has said he wants to give towns and counties more control over stopping data center and clean energy projects. “No taxpayer subsidies for industrial-scale solar, wind, or data centers,” he posted on Facebook earlier this year. “Without our farmland, we lose the heart of Wisconsin.” (Earlier this year, my colleague Jael Holzman wrote about why the data center backlash is splashing over into renewable opposition.)
In Michigan, the epidemiologist and former public health official Abdul El-Sayed, who is trying to win the Democratic Senate primary, hasn’t promised a moratorium but says the computing facilities should follow certain “terms of engagement,” such as protecting locals from rate hikes and by using closed-loop water systems. “There’s literally not a conversation that I have, not a stop that I make, where data centers and AI don’t come up,” he told CNBC last month.
There, too, not all the opposition is coming from Democrats. The longshop GOP governor candidate Perry Johnson has campaigned against certain data center projects.
Suffice it to say I expect to keep being surprised. In fact, I was surprised by the backlash while writing this very newsletter. Earlier this evening, the country legend Willie Nelson urged Texans to “fight against data centers invading our land” and appeared to oppose a particular project in central Texas. What can I say? I expect data centers to always be on my mind — or, well, to be on it for the foreseeable future.
A conversation with a long-time watcher of the PJM on its new proposals
America’s largest electricity market, the 13-state PJM Interconnection, is being forced to rapidly redesign how it works in order to meet its own reliability goals while trying to meet new demand from data centers and electrification.
The market has been in a multiyear rolling crisis as its auctions for capacity — the commitment generators can make to being available in times of high demand — hit a legal cap, resulting in billions of dollars of payouts from customers, leading to higher electricity prices in states like New Jersey.
Much of these payments are due to current and future demand from data centers, some $29.4 billion in the last four capacity auctions, according to the market’s independent monitor.
At the same time, the system isn’t able to procure enough capacity to meet its reliability goals, leading to tongue lashings and even threats of intervention from the Federal Energy Regulatory Commission, whose chair, Laura Swett, now regularly criticizes PJM in her public appearances.
On Monday, the market released a series of proposed reforms and initiatives to bring on new generation and attempt to make up for its reliability gap. This includes a supposedly one-off procurement of new capacity later this year that had been requested by the region’s governors and the White House, a new registry of large loads, and a kind of connect-and-manage system whereby new large loads that don’t have their own capacity will face curtailment during times of high demand.
In a letter to stakeholders, the PJM board said that new large energy users could be increasing demand by up to 70 gigawatts by 2038 (its all time record demand is around 170 gigawatts) while some 15 gigawatts of generation have been retired in the last few years. This combination has “placed increasing pressure on the region’s resource adequacy position” and “requires decisive action,” the board said.
I spoke to Jon Gordon, senior director at the clean energy trade group Advanced Energy United and a longtime PJM watcher about the proposals.
This interview has been condensed and edited for clarity.
Let’s start from the beginning: what was announced on Monday evening?
Just backing up a little bit, PJM has had two critical issue fast-path processes to try to determine how to protect ratepayers from data center related costs. The first one began in the fall and ended in December inconclusively. Then they started another one, which also ended somewhat inclusively. So that put the ball in the PJM board’s hands to review all the data, all the information that had been proposed, provided, and discussed, and come up with a plan of their own. And so they have officially done so. What we saw announced yesterday was PJM’s plan that they need to file at FERC very shortly in order to allow that September procurement.
And this is the backstop procurement that they agreed to with the White House and the governors?
Yes, in concept. The details needed to be ironed out. This is the board’s official proposal and it’s not going to happen until FERC approves it all, and FERC is under a lot of pressure to approve this.
In the letter to stakeholders, they presented three things: the registry, the procurement, and their version of connect and manage. How do these three ideas interact with each other? Why are they all proposed together?
The backstop procurement is the process whereby data centers can enter into contracts for their own power generation, and once they can demonstrate that they have a contract for power, they can then connect to the grid under this new proposal, connect and manage. And the registry is the tool by which to keep track of all this stuff: who are the data centers contracted that are eligible for this process?
Because you need all this detail to know how to curtail them. They’re going to be subject to involuntary curtailment up until the time that they are able to meet all their own needs with their own power generation. Meanwhile, they’re going to be curtailed by the local distribution companies — but the local distribution companies don’t have all the data they need to know which customers can be curtailed. So that’s where the registry comes in. They’re all part of the same overall package.
Let’s talk through the process here. Say, you’re building a new large load, maybe a 150-megawatt or 200-megawatt data center trying to get started in PJM. Under this process, what are the kinds of the things you have to check through to interconnect, and how will it be different than a few years ago?
Let’s talk about what’s going to happen now under these new rules. They’re going to have to enter into a bilateral contract with a supplier to demonstrate they’re making a good faith effort to secure the generation they need to meet all of their needs at some date in the future. Once they demonstrate that to PJM, they will then go to the registry for the connect-and-manage process. Which means that until their generation is 100% up and running, they will be subject to involuntary curtailment.
Before all this, a data center would connect like any other customer to the grid and start drawing power and any costs PJM would incur to connect them to the grid would be socialized across all PJM customers. That’s what’s been happening for many years. Ratepayers are paying for data centers that have come online previously.
How does this interact with PJM’s interconnection reforms? Would this allow data centers to interact more quickly while protecting customers from price increases? This is the dual goal of the White House and FERC.
Where the interconnection process comes into play is for the generator that wants to enter into a bilateral contract with the data center. They’re the ones that have to interconnect their generation.
So that generator hopefully is already in the queue. If not, it’s going to be a long while before they’re actually serving power to anyone. The queue is still super important here in terms of how long that data center is going to be subject to voluntary curtailment. The slower the interconnection queue is, and the slower that overall process of building this new generation is, the longer those data centers are going to be subject to involuntary curtailment. My understanding is that a lot of data centers are not very happy about that.
Is this set of proposals biased in any way towards a particular type of generation?
On its face, it really isn’t. The data centers are free to contract with whatever generation source they like.
We know that many of the hyperscalers committed to meeting their data center needs with carbon-free energy. I’m hopeful they’re going to make an effort to contract to the extent possible with solar and battery resources.
But I am concerned that just the sheer magnitude of the need means we can’t avoid building a lot of new natural gas to meet all that load. We really had to bring all of that wind and solar online.
Even though those sources are going to be faster and lower cost than gas, their intermittent nature and the sheer size of what’s required is going to make that challenging.
What are the next steps here?
Everything we’ve been discussing is completely unprecedented and is happening in a timeframe that’s unimaginable. Three years ago if PJM tried to take on what they’re taking on, it would be a three or four year stakeholder process and it’s taking months.
With all of that said, everything we’ve just discussed, according to PJM, is temporary. It’s meant to be a stopgap to get this market rolling with data centers that are anxious to connect and move forward.
PJM is calling this reliability backstop a one-time procurement.
A lot of folks have said — and I agree with them — there will probably be more than one of these.
The other thing that’s going on is that PJM has begun a process to redesign their entire market structure, what they’re calling a holistic market review. That’s in acknowledgment that the capacity market is broken and is not functioning as intended.
That’s another stakeholder process underway. That’s another heavy lift, which they hope to have in place in 2027. By the time this whole backup procurement process is over, they hope to have a new market in place. That’s an incredibly heavy lift.
Strip away the restaurant and the hype, and Tesla Diner is an 80-plug fast-charging station plunked right in the middle of a former charging desert.
They were projecting Spaceballs onto the wall the first time I pulled into the Tesla Diner. To kill time while my car charged outside, I stepped into the retrofuturist Los Angeles luncheonette and spent six dollars on an oversized chocolate chip cookie. It came in a “Cyberbox,” a cardboard container meant to mimic the shape of the Cybertruck. My wife got a good laugh out of this burger box of Elon’s dreams. Now the carton sits on the kitchen counter, concealing toddler ephemera.
One taste of the Tesla Diner was plenty. But I have returned there, and it wasn’t for the wagyu beef. It’s because a strategically located mega-station is exactly what the world needs more of.
It’d be easy to argue the diner, like the Cybertruck, has been a flop. Musk’s direct involvement with the Trump administration — and the diner’s aesthetic mirroring of his particular id, right down to the movie selections and the Optimus robots handing out popcorn — made the place a target for derision and ongoing protest since its debut a year ago. The restaurant has been a bit of a disaster, too.
Yet Tesla Diner was the most successful Supercharging station in the world in the past year, delivering nearly 1,600 charging sessions per day. And though plenty of people stopped by just to post the notorious joint on social media, its achievement may have less to do with food, Instagram, or politics, and more to do with putting a bunch of plugs where the people are. The times I’ve stopped by, after all, I didn’t need an overpriced carton of fried pickles. I just needed electricity, immediately.
Strip away the restaurant and the hype, and Tesla Diner is an 80-plug fast-charging station plunked right in the middle of Hollywood. This had been a charging desert, a giant hole in the map of red dots around Greater L.A. Besides creating a bizarre new tourist attraction on Santa Monica Boulevard, the diner gave an enormous population of drivers a place to charge a Tesla — or just about any other new EV, now that most brands have moved to the NACS charging standard.
It’s an interesting case study in where, and what, charging stations should be as the nation continues to build out its various networks. Fast-charging stations tend to be built in particular kinds of places. Large outdoor malls and garages are overrepresented on charging maps because they offer plenty of parking spaces to lease and plenty of room to put in electrical infrastructure. Urban areas that don’t have those places, and instead have smaller strip malls and reasonably sized parking lots, are comparatively harder to wire up. That helps to explain the L.A. situation. This is perhaps America’s biggest electric car market, with a plethora of fast-charging stations on the affluent West side and outlying communities. Yet a huge swath of the city (all the way from the 405 to the 5) had practically nothing from Tesla for years, up until Musk decided to buy a parcel of land to build an edgelord’s drive-in.
Now that lots of charging stations exist along major highways to allow for long-distance travel, the next frontier of charging depots is the heart of the city, a place that’s been easy to overlook so far. Most of the drivers who’ve been affluent enough to become EV early adopters could charge at home and didn’t need urban fast-chargers to get around the city. But such charging depots could unlock new segments of American drivers, especially as EV prices begin to come down.
Consider, for example, that a few of the bluest counties in the country accounted for a disproportionate share of EV sales during the early part of the EV era, an unsurprising finding given the charged politics around electric cars. But those areas are not yet saturated. Many more residents would likely be interested in electrifying if they could afford the up-front cost of an EV and felt confident they could charge it — but may not have the option or the budget to install home charging infrastructure. That group needs lots of plugs close to where they live. If there’s a dearth of existing locations in which to install those chargers, then the solution may be to mimic what Musk has done with the diner: build a giant charging depot from scratch and give the people… something to do.
These issues are especially salient as stations scale up. Most urban and suburban depots to date have reached a maximum of around 20 plugs. Colossal depots with dozens of plugs had been limited to those on busy highway routes like L.A. to Las Vegas or San Francisco — at least until the diner popped up.
No, charging stations aren’t gas stations. We’re not headed toward a future with fast-charging plugs on every corner, in part because the ability to charge at home and at work negates the need for everyone to rely on public refueling. But until every house and apartment building has available plugs, we need a few more silly diners to remind people there’s plenty of juice out there.