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On California solar, climate tech’s master plan, and Climeworks’ ‘milestone’ deal
Current conditions: Tropical Storm Gabrielle is intensifying as it travels northwestward through the Atlantic, and may strengthen into a hurricane near Bermuda over the weekend • A trio of tropical storms — Mitag, Ragasa, and Neoguri — is barreling toward East Asia, threatening to build into typhoons as they approach China, the Philippines, South Korea, and Japan • A magnitude 7.8 earthquake struck off Russia’s Pacific coast, triggering a tsunami advisory.
All but one member of New York’s Public Service Commission voted Thursday to endorse a plan from the gas utility National Grid that depends on construction of a controversial natural gas pipeline, the Albany Times-Union reported. The state has yet to approve the pipeline plan. In 2019, then-Governor Andrew Cuomo rejected the Northeast Supply Enhancement project, better known as the Williams Pipeline, on the grounds that it threatened too much environmental damage. Soon after, Cuomo shuttered the nuclear power plant that once supplied a significant portion of New York City’s energy, and the offshore wind projects meant to generate much of its carbon-free electricity stalled out. The only major power project to bring clean electricity into the city, the transmission line designed to connect the five boroughs to the hydroelectric system in Quebec, is underway, but at peak capacity will only supply about half of what the Indian Point nuclear station once produced. As a result, the New York City region on the state’s grid system depends on gas and oil for nearly 90% of its electricity.
The decision drew swift blowback from climate groups such as the Natural Resources Defense Council, which called the pipeline a “climate and affordability boondoggle.” The utility’s “own demand forecasts confirm there is no imminent reliability need — capacity is more than sufficient to meet peak demand well into the 2040s, even under unusually cold temperatures,” Chris Casey, the New York utility regulatory director at NRDC, said in a statement. “The Commission’s decision to signal its support for this fracked gas pipeline very likely contradicts state law, is not in the public interest, and will be vigorously challenged.”
Representative Scott Peters, the Democrat who represents part of San Diego, accused the Department of the Interior’s Bureau of Land Management of halting permitting on solar projects in California. At a press conference Thursday to promote a bipartisan proposal he drafted along with the Colorado Republican Representative Gabe Evans to ease federal energy permitting, Peters said he had just been told that the agency would not approve any more panels. “It’s hard to get a deal unless we resolve that,” Peters said, according to a post on X from Politico reporter Joshua Siegel.
The proposal is a framework for a bill, essentially a blueprint of what members of the House Problem Solvers Caucus feel constitute reasonable compromises. For Republicans, the agreement offers fewer bureaucratic roadblocks to all kinds of new infrastructure, including gas pipelines. For Democrats, it charts a path for building more of the transmission lines that are key to adding more renewables to the grid. “It’s a big step to have our caucus, which is a pretty significant number of Republicans and Democrats, sign on to a pretty detailed set of policy principles,” Peters said. But as Heatmap’s Matthew Zeitlin wrote last month, “unless Democrats trust the Trump administration to actually allow renewables projects to go forward, his proposal could be dead on arrival.”
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On Thursday, a new coalition that includes Bill Gates’ Breakthrough Energy, consulting giant McKinsey, and Stanford University’s Doerr School of Sustainability launched the Climate Tech Atlas. The proposal maps out ways to decarbonize different sectors of the economy, and lists priorities for innovation. The idea is not to eliminate potential solutions, Heatmap’s Katie Brigham reported in her scoop about the project, but rather “to enable the next generation of innovators, entrepreneurs, researchers, policymakers, and investors to really focus on where we felt there was the largest opportunity for exploration and for innovation to impact our path to net zero through the lens of technology,” according to Cooper Rinzler, a key collaborator on the initiative and a partner at the venture capital firm Breakthrough Energy Ventures.
Microsoft has announced “the world’s most powerful AI data center” in southeastern Wisconsin. The project, called Fairwater, “is a seamless cluster of hundreds of thousands of NVIDIA GB200s, connected by enough fiber to circle the Earth 4.5 times,” CEO Satya Nadella wrote in a post on X. “It will deliver 10x the performance of the world’s fastest supercomputer today, enabling AI training and inference workloads at a level never before seen.” He said Microsoft would match “all of the energy that is consumed with renewable sources.”
That power generation could prove more popular than the data center itself. Just 44% of American voters would support or strongly support a data center being built near them, while 42% would oppose or strongly oppose it, according to a Heatmap Pro poll Matthew covered last week. That mere 2% of net support compares to net support of 34% for a gas plant, 19% for a wind farm, 34% for a solar project, and 11% for batteries.
The carbon removal startup Climeworks just signed its largest-ever deal. By 2039, the Switzerland-based company, one of the biggest direct air capture developers in the world, agreed to suck 31,000 tons of CO2 from the atmosphere on behalf of Schneider Electric, the French industrial giant. Schneider said it remains committed to slashing the direct emissions from its operations by 90% in the next 25 years, and that this deal addresses “future neutralization needs while pursuing aggressive emissions reductions, and supporting the scale-up of an industry crucial for achieving net zero.” In a statement, Schneider’s sustainability chief Esther Finidori said that “both carbon removal and carbon reduction are fundamental to achieving our climate goals, as well as those of the planet.” For Climeworks, the deal is a “milestone,” said CEO Christoph Gebald.
The speed of climate change may be throwing the insect world out of whack. But a new study has put offshore oil rigs in the North Sea to work identifying the vital role a migratory insect plays. University of Exeter researchers studied 121 marmalade hoverflies that landed on an oil rig in the Britannia oil field. The rig off the coast of Scotland was far from any vegetation or land, so the pollen found on 92% of hoverflies “shows they can transport pollen over great distances, potentially linking plant populations that are hundreds of kilometers apart,” according to a press release. “By analysing the pollen samples and wind patterns, we estimate that many of the hoverflies had flown from places including the Netherlands, northern Germany and Denmark — over 500 kilometers away,” Toby Doyle, Exeter’s Centre for Ecology and Conservation in Cornwall, said in a statement.
Editor’s note: This story has been updated to reflect the company behind the Fairwater project.
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And more on the week’s most important battles around renewable energy.
1. Indianapolis, Indiana – The Sooner state’s top energy official suggested energy developers should sue towns and county regulators over anti-renewable moratoria and restrictive ordinances, according to audio posted online by local politics blog Indy Politics.
2. Laramie County, Wyoming – It’s getting harder to win a permit for a wind project in Wyoming, despite it being home to some of the largest such projects in the country.
3. Ada County, Idaho – Like Wyoming, Idaho is seeing its most populated county locking up land from being available for renewables development.
4. Fairfield County, Ohio – Activists are plotting another appeal to overturn the Ohio Power Siting Board’s decision on a solar farm.
5. Franklin County, Virginia – Constitution Solar is struggling to assuage local residents’ complaints about a proposed project in this county despite doing, well, it appears anything to make them happy.
6. Sumter County, South Carolina – One solar developer is trying for a Hail Mary with South Carolina regulators to circumvent a painful local rejection.
A conversation with Barbara Kates-Garnick, former undersecretary of energy for the state of Massachusetts
This week’s conversation is with Barbara Kates-Garnick, a professor of practice at The Fletcher School at Tufts University, who before academia served as undersecretary of energy for the state of Massachusetts. I reached out to Kates-Garnick after I reported on the circumstances surrounding a major solar project cancellation in the Western Massachusetts town of Shutesbury, which I believe was indicative of the weakening hand developers have in conflicts with activists on the ground. I sought to best understand how folks enmeshed in the state’s decarbonization goals felt about what was happening to local renewables development in light of the de facto repeal of the Inflation Reduction Act’s clean electricity tax credit.
Of course, like anyone in Massachusetts, Kates-Garnick was blunt about the situation: it’s quite bad.
The following conversation was lightly edited for clarity.
So to start, how do you feel about the state’s odds of meeting its climate goals?
My own assumption is that it was going to be tough before all of the federal changes to meet those goals. They were highly ambitious and I really support the ambition, but now it’s going to be really, really difficult to meet the clean energy goals. It’s not that we shouldn't work hard to meet them but we have to understand that in this current state of affairs, the obstacles are going to be much greater. But when you take offshore wind off the table, the challenge becomes even more enormous.
Why is offshore wind necessary to meet the state’s climate targets?
It’s because it is a large resource that would be coming into the grid over a period of time. The significance is in the megawatts, the size and scale. It was particularly important and we’re land constrained in New England. And all of the sudden you’re taking such a large opportunity in generation off the table.
We can do energy efficiency and we can do solar but as you know from the Shutesbury situation, land is at a premium. Location – you can’t site onshore wind here. We tried really hard under former Governor Deval Patrick and that hit a lot of obstacles. So offshore wind is critical to meeting those goals.
Help me understand the conflicts over this land constraint – is Shutesbury an aberration or a bit of a tale of the tape of the problems here?
The Shutesbury situation reflects how we’re not a large geographical area. We’re not Texas. We can put solar on roofs but you need larger solar installations. We’ve encouraged the solar industry as much as possible. But the area is limited. Wind off the coast provided an alternative that was realistic and not a science experiment.
How much of this problem is state permitting? It feels like there is some land in a space like Massachusetts but people don’t want to use it for this.
Any time you try to put energy infrastructure into New England – whether it's a gas pipeline or a solar installation – there’s a lot of local environmental and permitting regulations that can really hold up a project. One of the good things Massachusetts has done is we made energy permitting easier and went through a permitting reform. We have an Energy Facility Siting Council.
There’s still ways local interests can hold up projects. I think that’s just a fact of life in New England.
So that’s why offshore wind is so important to New England.
It becomes more challenging. From a resource perspective, we are at the end of the fossil fuel pipeline. The middle Atlantic has more gas pipelines coming into it than we do in New England. Offshore wind represented a great opportunity for us.
With respect to the state permitting, it is possible to now overcome some local regulations in state permitting in ways that weren’t possible before. We did address permitting reform in Massachusetts. The Energy Facility Siting Council has played a great, important role in having that happen and [towns] can be overruled to a certain extent.
Well, but it sounds like what you’re saying is that the conflicts will still exist because land is at a premium?
Yeah. And local control will always play a role in that.
The Commonwealth signed permitting reform into law in 2024 and in that there were comprehensive reforms to the process for clean energy infrastructure. This has improved siting. But again that doesn’t always ensure a project will be permitted and you can easily find ways to hold them up.
What gives you hope for the future? Where’s the light at the end of the tunnel for you?
I think that by facilitating permitting reform and also participation – local participation – as early as possible in the stages of projects… I think this is where the key lies. You can pass regulations but a lot of it has to do with doing the work ahead of time on your project and satisfying the local community so you don’t have a bigger fight on your hands.
Here come Chip Roy and Lee Zeldin.
National Republican political leaders are beginning to intervene in local battles over battery storage, taking the side of activists against developers. It’s a worrisome trend for an industry that, until recently, was escaping the culture clashes once reserved only for solar and wind energy.
In late July, Texas Congressman Chip Roy sent a letter to energy storage developer Peregrine Energy voicing concerns about a 145 megawatt battery project proposed in rural Gillespie County, an area one hour north of San Antonio that sits in his district. Roy, an influential conservative firebrand running to be state attorney general, asked the company more than a dozen questions about the project, from its fire preparation plans to whether it may have ties to Chinese material suppliers, and stated that his office heard “frustrations and concerns” about the project from “hundreds of constituents – including state and local elected officials.”
“Gillespie County is subject to extreme drought, wildfires, and flash flooding events,” Roy wrote. “Naturally, residents are concerned about the environmental risks a battery storage facility poses to one of [the] most vulnerable areas in Texas, among other things.”
Peregrine told me in an email that the company then sought to assuage the congressman’s concerns, speaking with his staff over the phone. But Roy remained unmoved, now fully backing the local opposition to the project. “My office has met with representatives from Peregrine Energy, and while we appreciate the dialogue, we believe that this project warrants scrutiny,” Roy said in a statement provided by his staff when reached for comment. “We look forward to remaining engaged with Peregrine Energy and continuing to represent the people of Harper who feel strongly that this battery facility poses more harm than good.”
Republican interventions like these may feel out of the ordinary to many in the energy sector. Historically, conservative politicians like Roy often vote against writing new regulations governing the environment and public safety, and Texas has often been a bastion for that kind of policymaking. Not to mention Texas is a major hub for battery storage development, second only to California in total capacity installed onto the grid. The Lone Star state’s strained grid means there is no shortage of demand for excess back-up power.
Unfortunately for battery storage developers, national Republicans are now increasingly open to attacking individual battery storage projects in the same way they’ve sometimes fought solar and wind farms, especially when activists on the ground feel they’ve lost the fight with municipal and state regulators.
Last year, we launched The Fight with a story about the unincorporated town of Acton, California, where a battery project was approved by county officials in an area with high risk of experiencing wildfire. Local opponents of the facility, feeling that county and state courts would not fairly adjudicate their concerns, lobbied their elected representative in Congress – then-Rep. Mike Garcia – to do something, anything in response to the situation. And while Garcia was stymied from halting that individual battery project, he then tried to block the Energy Department from streamlining federal permits for the entire battery storage system sector. (The rulemaking was completed before the start of the Trump 2.0 administration. Garcia lost re-election last year.)
At the time, this was the first full-fledged example I could find of a Republican in Congress really picking up the mantle of the “BESS bomb” panic around large-scale battery facilities potentially posing an unacceptable risk to surrounding host communities. Sure, there’d been scares around lithium-ion batteries in e-bikes, for example. But battery storage in general? The sector has enjoyed bipartisan support at the national level, and definitely still does to some extent given that GOP lawmakers declined to pare back the industry’s Inflation Reduction Act credits in their recently-passed tax megabill.
But now there’s a very clear battery fire “butterfly effect” occurring in which local rage fails to get the attention of government officials focused on energy capacity so activists will just go to whatever ears are most sympathetic to them. This is resulting in percolating Republican ire against battery storage, point blank.
Indeed, Heatmap Pro’s August poll of 3,741 registered voters found that there are now three times as many strong opponents of battery storage facilities among Republicans than strong supporters.
Less than a month after Roy’s letter to Peregrine, EPA Administrator Lee Zeldin personally visited his native Long Island, New York, to voice his support for those campaigning against a Key Capture Energy battery project in Hauppauge, a hamlet within the town of Islip. The EPA has no role in whether the project is built or not. But the endorsement – coupled with a New York Post op-ed declaring “battery sites are too risky for New York” – came right before a 12-month battery moratorium Islip had enacted was set to expire.
This week Islip extended the moratorium, indefinitely stopping the battery project. Next week, the New York City Council’s committee on fire and emergency management will be holding a public hearing to specifically address the local fears about storage projects.
As for Roy and Peregrine Energy, it’s unclear how the Texas Republican could stop the facility on his own. It has the permits necessary to build and Texas doesn’t have the kind of stringent environmental regulation that creates opportunities to stall construction.
But the lawmaker’s existing political clout in Washington and motivation to win the Republican primary nomination in a heated statewide contest make him a dangerous enemy for any company to have, especially energy developers linked in some way to the transition. As Garcia showed a year ago and Zeldin demonstrated over the summer, someone with a national platform and a megaphone could do a lot of damage to a single project, or worse. We’ve yet to truly see what will come from the flapping of this butterfly’s wings.