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It’s morning in America, and the sun is shining on our photovoltaic panels.

Campaign strategists and political consultants have a lot of folk theories that guide their work, some of which are even true. One common one is that the more optimistic candidate wins, especially in presidential races: Figures such as Ronald Reagan, Bill Clinton, George W. Bush, and Barack Obama who painted a bright vision of the future with a smile on their faces triumphed over their more dour opponents. Some political science research backs it up: One study examined candidates’ rhetoric over four decades of campaigns and found “the candidate who was more a pessimistic ruminator lost 9 of 10 times.”
This presents a problem for those who want candidates to make climate change advocacy a key part of their campaigns (and make promises they’ll have to keep once they take office). If candidates want to be optimistic, they may shy away from talking too much about a topic that can be disturbing, with the potential of global catastrophe always looming.
But we’re seeing the glimmers of something interesting in the current election. Now it’s the forces of the fossil fuel status quo who sound pessimistic, while those advocating more aggressive climate action are the optimistic ones.
This is clearly a conscious choice on the part of the Biden campaign and its allies. Using the Inflation Reduction Act and its climate investments as the evidence, they’re telling a story in which the administration is striding confidently into a better future, creating jobs and cleaning the air at the same time. Pro-Biden political action committees are airing ads (see here, here, or here) featuring sweeping drone shots of wind turbines and solar arrays, and slow-motion scenes from high-tech factories where good strong Americans are doing satisfying work for good pay, all while stirring music plays in the background. It’s morning in America, and the sun is shining on our photovoltaic panels.
The $80 million that the group Climate Power is planning to spend on ads for Biden, to take one example, may not blanket the airwaves from now to November, but it’s still a significant amount devoted to telling a feel-good climate story, even if that story is only a partial one. If that’s what will motivate voters more than encouraging them to marinate in bad news about rising temperatures and CO2 emissions, that’s what we can expect candidates to do.
And the contrast with Biden’s opponent is striking. These days, Donald Trump is less likely to call climate change a hoax invented by the Chinese government (as he used to), and more likely to simply dismiss it as nothing to worry about. But when it comes to anything involving clean energy, his rhetoric turns dark and foreboding. He has a long and weird obsession with the supposed horror of wind turbines, which he believes cause cancer, kill innumerable birds, and are “driving whales crazy.” He recently told a group of oil executives, “I hate wind.” Clearly.
When talk turns to electric cars, Trump is just as grim, painting them as nightmarish misery-mobiles for both those condemned to drive them and the workers who won’t get to build them. “The cars don’t go far, they cost too much, and they’re all made in China,” he says, and “if I don’t get elected, it’s going to be a bloodbath” for the whole auto industry. At the press conference he held after being convicted on 34 felony counts, he got barely a minute into his remarks before going off on EVs: “They want to stop you from having cars with their ridiculous mandates that make it impossible for you to get a car or afford a car; make it very possible for China to build all of our cars.” If ever there was a “pessimistic ruminator,” it’s Trump.
You don’t have to be planning to buy an EV this year to be more attracted to Biden’s optimistic picture of American workers building them than Trump’s nightmarish vision of automotive dystopia. And even if some portion of the population cheers when they hear Trump promising to “Drill, drill, drill,” it’s now the forces of the status quo that sound pessimistic when it comes to energy, denying that the country is capable of innovation and adaptation. We have to just keep doing what we’re doing, they say, because we can’t have anything better.
If there’s a risk of being too optimistic in a campaign, it might be that it saps the urgency from the climate issue and produces a bias toward easy, low-cost policy solutions rather than hard choices. But the Biden administration’s record — which though far from perfect includes both crowd-pleasing spending programs and stricter regulation of emissions that have produced strong opposition — suggests that what matters most is whether a president and the people in their administration care about the climate at all.
As Heatmap’s Jeva Lange has explained, the fact that few voters respond “climate change” when asked to name the country’s most pressing problem doesn’t mean they don’t believe it’s important. And if you convince a voter that cleaner energy is a worthwhile goal to pursue, does it matter if she’s thinking more about job opportunities and lower electric bills than about reducing emissions?
It also wouldn’t be a bad thing if people came to see the issue as a contrast between the future and the past, innovative thinking and hidebound fear of change. Two decades ago, Mark Schmitt coined one of those pithy bits of insight political writers are always searching for when he wrote that in a campaign, “It’s not what you say about the issues, it’s what the issues say about you.” His example was John McCain’s advocacy for campaign finance reform, which wasn’t at the top of the voters’ priority list but communicated that McCain was a principled reformer unafraid of taking on the powerful.
In the same way, advocacy for clean energy can help candidates build an optimistic image even apart from the policy debate over whether and how the country should decarbonize. If all those ads with gleaming solar farms and humming factory floors lead people to associate the climate issue with innovation and hope rather than deprivation and misery (as Trump and others would have it), then more and more candidates may want to make that part of their image, too. And the chances of positive policy change will only increase.
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The companies just launched a major VPP play.
For all the hype surrounding virtual power plants, they’re still a niche player on the U.S. electric grid. A new partnership between three of the biggest residential energy companies in the country — Tesla, Sunrun, and Renew Home — aims to recast VPPs into a leading role.
The companies announced on Wednesday that they have more than 16 gigawatts of dispatchable VPP capacity available today to deliver to utilities and data center developers throughout the country. That’s about the same as 16 nuclear reactors, except instead of generating power round the clock from a central plant, the companies aggregate unused electricity capacity from thousands of individual home solar and battery systems and programmable thermostats, and can make it available for several hours at a time.
Today, the companies bid these resources into electricity markets as a sort of bespoke grid service. A few times per year — often in the summer months when demand spikes — the grid operator in California might ask Sunrun to switch on its VPP to prevent a blackout. That means Sunrun’s rooftop solar and battery customers all either begin exporting excess power to the grid or rely more on their energy storage systems for their own power needs, reducing strain on the grid. Tesla operates similar programs, some in partnership with Sunrun. Renew Home, which spun out of Google Nest, does the same thing but with thermostats and water heaters, nudging temperatures on thousands of devices up or down during peak demand hours.
“A lot of our assets are enrolled in a contract where they can be used up to 20 times per year,” Paul Dickson, the president and chief revenue officer of Sunrun, told me. Now the company, along with its partners, are making the pitch to utilities and hyperscalers to view VPPs as 365-day resources, and more fully integrate them into their grid planning.
It’s a “turnkey” solution, the companies wrote in a press release, “deployable in months, not years,” that requires “no additional hardware, software, interconnection, water, or land usage for offtaking parties.”
VPPs also typically kick back some of the proceeds they earn from the electricity market to the residential customers hosting the solar panels, batteries, and programmable thermostats providing the power, meaning they can meet growing energy demand while helping to lower household energy bills. Sunrun and Renew Home paid out a combined $67 million in customer rewards last year.
About 60% of the 16 gigawatts the companies have available are tied to Renew Home’s enrolled devices, with the remaining 40% coming from Sunrun and Tesla’s solar and battery assets, Dickson told me. The capacity is also spread out geographically. There’s about 1.7 gigawatts available in Texas — the second largest data center market in the country, Dickson pointed out. There’s 300 megawatts available in Virginia, which the companies expect to grow to 500 megawatts by 2030.
“Unlike a traditional power plant that's fixed in size, this number grows every single day as the combined three companies continue to add additional capacity,” Dickson said. Sunrun alone plans to more than double its energy storage capacity by the end of 2028.
If utilities and large industrial customers buy the VPP pitch, the companies will be able to expand even more quickly, he added. If regulators or utilities come back and say, we’ll take your existing capacity today, and if you can add another gigawatt in the next year, here’s what we’ll pay, Sunrun could potentially reduce the upfront cost to customers to host the solar and battery installations, driving faster adoption.
The new partnership follows a similar announcement earlier this month from the VPP company Voltus, which signed a three-year agreement with Google. Voltus will provide up to 100 megawatts per year of capacity for Google in PJM, the country’s largest (and most constrained) electricity market covering much of the Midwest and mid-Atlantic. In that case, however, Voltus is using the deal with Google to finance the VPP, with the capacity set to come online by 2027.
The Tesla/Sunrun/Renew Home group is simply announcing they are open for business — they haven’t signed up any offtakers yet. Dickson told me the companies wanted to “make everybody aware that there is this uncontracted capacity, and make sure that it goes to the place that it can be most impactful.” Wednesday’s announcement is accompanied by a live map that shows where the capacity is. The companies did, however, already bid over a gigawatt of capacity into PJM, the larger energy market that Virginia is a part of, as part of its emergency procurement to meet near-term load growth in the region, and are waiting to hear if they were selected.
Last year, the electrification advocacy group Rewiring America published a paper arguing that hyperscalers could free up grid capacity for at least a third of the load growth expected from data centers if they paid for residential households to get heat pumps. All of that capacity would simply be the result of swapping inefficient appliances for more efficient versions, reducing the overall energy use of the homes. If hyperscalers also financed residential solar and storage upgrades, they could more than meet data center demand, the report posited.
That’s not how these VPP proposals are going to work — residential customers will still have to pay something to Sunrun and Tesla for their solar panels and batteries. But Ari Matusiak, the founder and CEO of Rewiring America, told me he viewed these new VPP partnerships as a step in that direction. Today, energy markets are largely bifurcated between residential market activity and large industrial customers. “Where we are going is toward a world where we think about the household as actual energy infrastructure and not simply an end of the line billpayer,” he said. “Once you start doing that, it changes the economics of how those household upgrades are treated and what the opportunities are.”
Current conditions: The warehouse fire in Boyle Heights is raging for a third day, spewing dark smoke over the Downtown Los Angeles skyline • The death toll from Western Europe’s heatwave has reached into the dozens • An 18-wheeler carrying more than 400 beehives overturned in eastern Texas and filled a small neighborhood with more than 2 million honeybees.
Wally World is soon to be powered by the atom. On Tuesday, Walmart announced a 15-year deal with Constellation, the nation’s largest operator of nuclear plants, for a chunk of the electricity coming from the Dresden Clean Energy Center in Illinois. The agreement included about 176 megawatts of wholesale supply from the two-reactor station southwest of Chicago, including 30 megawatts of expanded generating capacity through “uprates” — upgrades that allow operators to get more power out of an existing unit. Over the past two years, tech giants such as Google, Microsoft, and Meta, have bought shares of the power coming from nuclear power stations as the companies sought steady supplies of clean electricity for their burgeoning data centers. But the Walmart deal stands out as one of the first to involve a major brick-and-mortar retailer. “We’re constantly evaluating new capabilities and energy solutions that help ensure the electricity we rely on is dependable, responsibly produced, and built to support long-term growth,” Shayne Wahlmeier, Walmart’s senior vice president of energy, said in a statement.
The Trump administration just unveiled one of its biggest bets on nuclear power yet. The Department of Energy announced $17.5 billion in low-interest loans for utilities to pay for the equipment needed to order new Westinghouse AP1000 reactors. The program marks arguably the most significant effort yet to reclaim U.S. control over its flagship reactor design. While the two 1,100-megawatt units completed at Southern Company’s Alvin W. Vogtle Generating Station in 2023 and 2024 were the first installed in the U.S., China has been building its own version of the reactors at an industrial scale for years. The program will support up to 10 reactors, including two per venture with as many as five utilities. The power companies, currently in talks with the administration, have not yet been named. But Dan Sumner, the chief executive of Westinghouse Electric, told The Wall Street Journal the deal “really kick-starts fleet-scale nuclear development in the United States.” As my colleague Robinson Meyer wrote last night: “I hesitate to praise the project's climate bonafides at the risk of discouraging the Trump administration, but it is worth noting that if this project were to succeed, it would be one of the largest state-assisted build-outs of zero-carbon electricity in recent American history. But it would still take some time to arrive: These reactors aren’t forecast to come online til 2035.”
Yet another behemoth solar farm has come online. On Tuesday, the developer rPlus Energies said its Green River Energy Center had started operations. The facility in central Utah with 400-megawatts of solar panels and 1,600 megawatt-hours of batteries is now the largest solar-and-storage plant within PacifiCorp’s six-state territory out west, including Oregon, Washington, California, Utah, Wyoming, and Idaho. “Operation Gigawatt is about ensuring Utah has the reliable, homegrown energy needed to power opportunity for generations,” Utah Governor Spencer Cox, a Republican, said in a statement. “Green River Energy Center represents the kind of large-scale energy investment we need to deliver reliable energy, support rural Utah, and help power the next generation of prosperity across our state.”
The opening comes as solar is now generating more U.S. power than coal, as I told you recently.
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The Supreme Court ruled Tuesday that Exxon Mobil has the right to sue a Cuban-owned company to recoup more than $70 million in 1960 dollars from an oil complex seized by the Cuban government after Fidel Castro’s revolution. Havana later transferred the ownership of the refinery, terminals, plants, and service stations to Corporación Cimex, the state-owned conglomerate. The lawsuit could now see the oil major try to recover more than $1 billion in losses. “Today’s decision is a critical moment in a 60 year effort to be compensated for what the Cuban government illegally seized,” Exxon spokesperson Todd Spitler told E&E News in an emailed statement. “It reflects two things: the merits of our argument and the fact that our company will fight a good fight for as long as it takes.”
The Trump administration understands the importance of refining cobalt — that’s why, as I reported last year, the Pentagon’s Defense Logistics Agency is pumping money into a startup that promises a new and cheap way to process the mineral. Canada’s Sherritt International started shutting down its Fort Saskatchewan refinery after the U.S. expanded sanctions on Cuba, halting exports of a feedstock supply needed for the plant in Alberta, Canada. The move, in addition to the Supreme Court ruling, come amid intensifying pressure by Washington on the Cuban regime.
California is once again following a New York trend. Just weeks after Albany sued to stop the Trump administration’s bid to pay TotalEnergies to give up its offshore wind projects, Sacramento is joining the litigation. “At a time when the country needs more reliable and sustainable power supply, the Trump Administration is busy using taxpayer money to strike backroom buyouts that make clean-energy projects disappear,” California Attorney General Rob Bonta said in a statement. “California won’t stand idly by as the Trump Administration illegally strikes deals to kill offshore wind projects and replace them with more windfalls for his fossil fuel friends; we’re putting the Administration on notice that we intend to sue.”
Rob checks in with Commodity Context’s Rory Johnston as the Iran War (hopefully) draws to a close.
When Iran closed the Strait of Hormuz earlier this year, experts projected oil prices would go to $200 a barrel. But then… they didn’t. In fact, while gasoline prices rose in the United States, and Europe and Asia suffered higher costs, the resulting energy crisis wasn’t even as bad as what followed Russia’s 2022 invasion of Ukraine.
Why? China. The country seems to have absorbed the costs of Trump’s war of choice by releasing hundreds of millions of barrels from its strategic stockpile. On this episode of Shift Key, Rob is joined by Rory Johnston, an oil markets researcher and the author of the Commodity Context newsletter. They discuss China’s massive (and quiet) intervention, why it’s “the most important thing we learned” from the Iran War, and what it means for the future of energy and geopolitics. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
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Mentioned:
China Oil Demand Doubts, Rory’s 2023 article about Chinese strategic stockbuilding
Previously on Shift Key: Why the Iran Ceasefire Hasn’t Ended the Energy Crisis, featuring Rory
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Music for Shift Key is by Adam Kromelow.