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I got DER-pilled at DERVOS 2023.

The hottest ticket in Brooklyn last week wasn’t for an indie rock show or a buzzy new restaurant. It was for the most niche, nerdiest clean energy conference of the year — the sold-out DERVOS 2023.
The conference name — a satirical play on Davos, a stuffy, World Economic Forum event attended by governmental and business elites — tells you much of what you need to know about this irreverent subculture of the climate movement. A teaser video for DERVOS described it as a “rad clean energy summit … where youths get DER-pilled and the hot takes haven’t been approved by PR.”
To translate, DERVOS is for people who are stoked about a category of technologies known as “distributed energy resources,” or DERs. They encompass pretty much any device that can generate or store energy, or use energy flexibly, at the scale of a single building, like rooftop solar panels, batteries, and smart thermostats. This kind of tech has historically been written off as less important than big projects like wind farms — “nice-to-haves” but incapable of cutting emissions at climate-relevant scales. But once you get DER-pilled, another vision for the future emerges.
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Imagine a solar panel on every roof, a battery in every basement, and a smart thermostat in every home. Now imagine these devices being aggregated and synchronized across neighborhoods, cities, or entire regions. If 5,000 batteries discharge at the same time, you’ve got the equivalent of a new power plant. If 5,000 smart thermostats turn the temperature up by a few degrees on a hot summer day, you can prevent a natural gas “peaker” plant from firing up. In that sense, DERs offer a potentially faster option for growing the electric grid than large-scale projects, and could provide significant savings — around $10 billion in avoided infrastructure costs by 2030, according to a recent Department of Energy report.
But that’s not all. To the DER-pilled, this future will also be a “better world, a higher performing world,” as James McGinniss, one of the organizers of DERVOS, put it. It’s a world where your heating and cooling and EV charging are orchestrated seamlessly to utilize the cleanest power at the lowest cost; where solar panels and batteries aren’t called upon to keep your lights on when the power goes out, because they are preventing system-wide blackouts from occurring in the first place.
“How many industries can you work on that are going to completely change the way one of our foundational systems works and flip it entirely on its head?” Nathaniel Teichman, a DER-pilled former financial analyst, told me at the conference. “I don’t think there’s anywhere else with such importance or at such an inflection point.”
To kick things off at DERVOS, McGinniss painted a picture of an industry on the verge of an explosion. “It feels like if DERs were the internet, it’s 1995,” he told the roughly 250-person crowd. “We’re very, very early in this. And I think there’s massive, massive growth coming to this space.”
The event was held at Newlab, a startup incubator located in a renovated shipbuilding warehouse in the Brooklyn Navy Yard. Unlike other energy summits, it’s not put on by a trade association or a professional organization. It’s organized by a loose collective called the DER Task Force, a bunch of enthusiasts who met on Twitter.
The story is a roadmap for movement-building in the modern age. It started in March 2019, when McGinniss posted a tweet asking if anyone in New York wanted to start a monthly happy hour to talk shop about distributed energy. “Like 30 people responded. And I had like 100 Twitter followers,” he told me.
The tweet led to a group message called “DG Beers” (for distributed generation) and eventually to a series of real life hangs. They got drinks. They went to see The Current War, a movie about the 19th century battle over which electrical current system would prevail. They had people give powerpoint presentations. When COVID-19 hit, they moved the monthly meetup to Zoom and started a podcast. The group blew up. “Suddenly we had people from like, South Africa and like, rural Alaska joining us,” said Duncan Campbell, another one of the original members.
Regulars at the meetups told me it was unlike other networking spaces. “What stands out the most is the atmosphere of strong opinions, weakly held,” said Kyle Baranko. “I think there’s a lot of people who are intellectuals, who like getting into the big picture and the small details. But they never take themselves too seriously.”
That’s also a fitting description of DERVOS, which covered broad, heady topics like the concept of “energy abundance” with a combination of deep expertise and lighthearted, often crude informality. “We need to double or triple the grid. That is crazy,” said Pier LaFarge, the CEO of a company called Sparkfund, during the first panel, which contemplated the potential for centralized grid planning. “That is like the technical challenge of the space race and the economic scale of the highway system. That is non-trivial, societal shit.”
During the next session, Andy Frank, founder of the home retrofit company Sealed, was talking about how DERs can help avoid the need to build transmission lines and power plants. “We need a — and this is a very technical term — a fuck-ton of DERs to try to avoid an even more fuck-ton of costs,” he said.
“Is it a metric fuckton?” Jesse Jenkins, an energy systems engineer from Princeton University and Heatmap contributor on the panel, shot back. The audience burst out laughing.
The conference skewed very white and male. Nicole Green, another founding member, speculated that it might be because that’s still the demographic at a lot of university engineering programs. Integrating DERs into the grid and into power markets is technologically complicated, and the community is largely made up of engineers.
When I asked other attendees to describe the vibe, one said it was “tech bro-ey, but better — not as toxic.” Another said “young and exciting.”
“It feels a little bit like the energy industry underground, in a way,” Baranko told me.
“There’s a rebellious, counter-establishment ethos within the DER community,” said Teichman, “both by the nature of what it is and the people it attracts.”
Part of that comes from the fact that these technologies challenge the monopoly utility model — the way that electricity has been generated and distributed and commoditized for decades through big, corporate power plants. The DER community also likes to push back on the narrative that tackling climate change requires sacrifice. “That’s also where the irreverence bleeds in,” said McGinniss. “It’s just like, this is an awesome, exciting future. That’s what we want people to feel.”
To illustrate the point, McGinniss and his friends organized a DERVOS afterparty with the first-ever “vehicle to rave” demonstration. Working with another group of DER-enthusiasts called the SOLARPUNKS, who specialize in sustainable event production, they used a Ford F-150 Lightning to power the sound system at an old fire station-turned-event space in lower Manhattan.
But this better, higher performing world is still mostly out of reach. “We’re mired in a lot of decades-old thinking at this point about DERs and how they can be a part of all of this,” Campbell told the audience at the start of the conference.
The obstacles preventing DERs from realizing their full potential was a major theme of the day. Frank talked about how DERs aren’t properly valued in energy markets. Leah Stokes, a political scientist from the University of California, lamented that utilities haven’t taken DERs seriously or integrated them into their resource planning. Jenkins suggested we regulate utilities differently so that they have more incentive to utilize DERs. Jen Downing, a senior advisor at the Department of Energy, said regulators need data showing that DERs are reliable.
Part of the problem is that there’s no DER industry association, no one advocating for funding or policy changes to support these solutions at the state or national level. During last year’s conference, Jigar Shah, a Department of Energy official and a sort of Godfather figure in the DER scene, pushed the community to be more ambitious. “You guys are left out of the narrative, and it’s just fun, it’s sort of like, 'oh that’s so cool, I’m glad that they’re doing that,’” he said, calling in to deliver the keynote speech from the car during his family vacation.
The DER Task Force took up Shah’s call to arms and decided to use its revenue from events and the podcast to hire Allison Bates Wannop, an energy lawyer, to work on policy full time. At this year’s DERVOS, Wannop announced the group’s initial plans, which include turning New York State into a DER “nirvana,” and a campaign to “occupy NARUC,” the association for utility regulators that holds triannual conferences, which are heavily attended by the natural gas industry.
Colleen Metelitsa, one of the founders of the Task Force, told me the current landscape for DERs was like the internet before the iPhone came out. There was a lot you could do with the existing technology, but the iPhone “proliferated so many things we do on the internet that we didn’t even think about.”
What else, besides raves powered by pick-up trucks, does the future hold?
Editor’s note: A previous version of this article misattributed a quote. It has since been corrected. We regret the error.
Read more about batteries and solar:
Why Batteries Might — Might! — Solve America’s Power-Line Shortage
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Risk-averse but deep-pocked institutional investors join the party.
When the Fusion Industry Association surveyed the sector earlier this month, it found that the industry’s 56 active companies had collectively raised more than $14.2 billion over the past five years. But an ever-larger share of that money is ending up in the hands of one startup: Commonwealth Fusion Systems.
With its latest $1 billion funding round, announced today, the MIT spinout now accounts for nearly 30% of all capital in the industry. The new financing, led by a wave of institutional investors entering the sector for the first time, will support construction of the company’s first commercial power plant in Chesterfield County, Virginia, which CEO Bob Mumgaard says is on track to come online in the early 2030s.
In a media briefing, Mumgaard noted that this latest raise marks “the largest single funding round among fusion energy companies since our last large round of $1.8 billion in 2021.” It brings the total capital raised by CFS to an even $4 billion as the company races to complete construction of SPARC, its demo reactor. If all goes according to plan, it should begin operating sometime next year, proving out the physics and engineering approach underpinning ARC, the planned commercial plant.
The new financing deviates from the typical venture capital round, as it brings in a broad but unnamed mix of “large pension funds, sovereign wealth funds, infrastructure funds doing project finance, and industrial corporates.” These risk-averse investors would typically steer clear of expensive, first-of-a-kind facilities, demonstrating the degree to which CFS has succeeded in building confidence in an industry long critiqued for overpromising and underdelivering.
The company credits the trust it built to its extensive peer-reviewed research as well as its decision to build a tokamak — widely regarded as the most mature fusion reactor design. “I don’t think there’s any other company that’s been as transparent and open with their physics and how it actually works,” Katie Rae, CEO and managing partner at Engine Ventures, told me. Rae has participated in every one of CFS’s funding rounds, and while she says her firm has evaluated virtually every startup in the sector, the company remains its only fusion investment.
But even flush with institutional capital, Mumgaard is clear that the company will need billions more to fully finance ARC and the numerous reactors to follow. It’s unclear where exactly that money will come from, though he’s pushing for government involvement. Alongside the Fusion Industry Association, Mumgaard is advocating for a one-time, roughly $10 billion federal infusion of cash into the broader industry to expand public-private partnerships, build shared research infrastructure, and help finance first-of-a-kind plants in an effort to keep pace with China’s rapidly growing fusion program.
According to reporting from Politico, a Department of Energy official told CFS and other fusion companies that such a level of federal funding is “unrealistic in this environment.” But though insiders argue it’s what the industry needs to scale, Rae says CFS doesn’t depend on it. “I think it is the right kind of investment to make, but we didn’t count on it from an investor perspective,” she told me.
One obvious alternative is the public markets. The IPO window for climate tech has reopened, with geothermal giant Fervo and nuclear fission startup X-energy both completing successful public offerings in recent months. SPACs have also made a comeback, as numerous nuclear companies are opting for this faster, though riskier, path to the public markets. But CFS’s newly appointed CFO, Lorence Kim, said during the briefing that this latest round proves “that the private markets have a lot of capital to deploy toward our mission.” Whether an IPO is in the company’s near future remains an open question, though he cautioned against interpreting his hiring as any indication of “IPO prep in a specific way.”
For what it’s worth though, Kim has taken another high-profile, pre-revenue startup public before: Moderna. As CFO from 2014 to 2020, he helped the company scale its mRNA platform and lead its blockbuster $600 million IPO in late 2018 — the largest ever in the biotech industry at the time. Notably, this all happened before Moderna had an approved product or the Covid pandemic made its signature vaccine a household name, similar to where Commonwealth finds itself today.
“Moderna was in this moment in time where the science worked, and the strategy was focused on execution and scale and deploying capital in a way that could enable real impact on the world,” Kim explained. CFS is now at the same juncture, he said. “And so in the same way that Moderna industrialized mRNA and made it inevitable and made it ubiquitous, it was really clear to me that CFS could do the same for fusion.”
Of course, CFS is not alone in its confidence — other fusion companies are equally bullish on their own approach. Take Inertia Enterprises, a Lawrence Livermore National Laboratory spinout, which last week unveiled its own commercial roadmap for a laser-driven fusion reactor. The company emphasized it’s the only one to have definitively demonstrated the viability of its underlying physics in a real-world experiment, rather than through theoretical work or simulations.
Or take Helion, which has raised $1.5 billion and secured a highly ambitious power purchase agreement with Microsoft to supply electricity to the tech giant by 2028. Or Pacific Fusion, which netted a staggering $900 million Series A to be doled out in milestone-based tranches. There are dozens of others — many with hundreds of millions in funding — pursuing a range of approaches that some of the field’s brightest minds consider technically feasible.
But when I mused to Rae about how exciting it is that institutional investors now appear willing to back an industry once viewed as bordering on science fiction, she was quick to correct me.
“They’re willing to bet on Commonwealth Fusion — that’s what you mean.”
At least one hyperscaler’s big bets seem to be paying off.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
Good evening. Let’s start with the news. Meta and Microsoft released their most recent quarterly earnings this evening, and Wall Street was watching to figure out if their enormous AI spending plans are paying off. We were watching because those proposals are shaping one of the most important energy stories today: the data center boom and the sharp return of electricity demand.
The returns were … mixed. Meta missed analysts’ estimates, and its profit fell 14% from the same quarter a year earlier. It increased the lower bound of how much it plans to spend on capital expenditures such as data centers this year, from $125 billion to $130 billion, but left the upper bound of $145 billion unchanged.
Microsoft, meanwhile, said its AI investments are starting to pay off. Revenue at its cloud business, which uses its data center space, increased by 43%, more than analysts expected. It spent $41 billion on capital expenses in the three months ending in June.
Meta’s stock was down 7% in after-hours trading, while Microsoft is up 8%. When Heatmap surveyed climate insiders last year, they ranked Microsoft as among the most decarbonization-friendly hyperscaler and Meta as among the worst.
Permitting odds up — thanks to Shift Key?
I do not regularly follow such things, but this afternoon I was told that the Kalshi market for “Will permitting reform become law this year?” surged to 77% today after trading for days around 50%:
I have no idea why it budged today, but perhaps what moved the market was our new episode of the Shift Key podcast (Apple, Spotify). On today’s show, I spoke with Daniel Palken, a former Capitol Hill policy staffer now at Arnold Ventures, about the current state of permitting reform negotiations in Congress. While we don’t know the exact shape of a deal yet, permitting reform is likely to be the biggest new policy for clean energy that we could get by the end of the year.
Daniel is a fantastic guide to the negotiations, and if you’re curious about the policy at all, I recommend that you listen. Here are few of my takeaways from the conversation:
1. A permitting reform deal will probably have six buckets.
They are (1) changes to the National Environmental Policy Act and the judicial review process that environmental studies face after completion; (2) reforms to the transmission process; (3) changes to the Clean Water Act; (4) a deal to make it harder for presidents to yank permits from approved projects; (5) changes to the National Historic Preservation Act, and (6) “everything else,” a grab bag of smaller fixes including to geothermal energy.
2. Wonky committee politics are shaping the deal.
The National Historic Preservation Act, for instance, is an archeological law that hasn’t been in the mix for previous reform proposals. It’s up for discussion now because Senator Mike Lee of Utah chairs the Senate Energy and Natural Resources Committee — and the NHPA is the major environmental bill under his jurisdiction. Likewise, observers think that a permitting deal has a much better shot of passing during this Congress (as compared to next year) because of an expected series of changes to committee chairs.
3. It’s way, way better to hook data centers to the power grid than run them off behind-the-meter power plants — even if they run off 100% natural gas.
Any permitting reform proposal will seek to expand the transmission system. That could have big benefits for the emissions intensity of data centers. Why? I’ll let Daniel explain:
If you look at the data centers that are hooking up off grid — when they’re not using repurposed jet engines, they’re using 20% thermally efficient gas plants. Whereas if you’re hooked up to the grid, there’s really two types of gas plants that live on the grid. There’s like 60% efficient combined-cycle gas turbines, which are most of the gas power that’s generated, and then there’s peaker [plants], which have low efficiency, but are run at capacity factors of like 5% — so from an emissions perspective, they don’t matter all that much.
So even if solar and wind didn’t exist at all, and nuclear didn’t exist, and hydro didn’t exist, it would still be a much, much cleaner option [to connect data centers to the power grid]. Like we’re talking factors of three in efficiency to connect your data center to the grid if it was purely powered by gas, which is, I think, an important point to understand.
I thought that was an interesting point, and while I’d seen some of those ideas in isolation, I’d never seen them laid out in one place. (And even if grid-scale gas plants are much more efficient than behind-the-meter plants, it’s still even better to power data centers with solar, batteries, and other clean firm power plants — which is also easier when they’re hooked up to the grid.)
I’ll stop glossing the episode and just link to it one more time. Thanks for reading.
On nuclear waste, a Nevada solar farm, and lithium-harvesting nanorobots
Current conditions: France just ordered 4,000 more people to evacuate the wildfires that have now displaced a third of a million people across southwestern Europe • The heat dome in the southwestern United States is driving temperatures in Phoenix up to 113 degrees Fahrenheit by the end of the week • Temperatures in Tuscany are topping 100 degrees this week as Europe’s latest heat wave takes hold.
Just yesterday, I told you that China’s dominance over the manufacturing of the inverters needed to patch solar panels and batteries onto the grid and into data centers had peaked two years ago as Europe’s factories began booming. Hours after the newsletter landed in your inbox, the Trump administration unveiled plans to ban imports of Chinese power inverters in a bid to protect the U.S. buildout of artificial intelligence from sabotage and competition. On Tuesday, the Federal Communications Commission told CNBC its new restrictions aimed to safeguard the AI supply chain “from Chinese threats of disruption, data threat, and cyber attacks.” The measures also bar imports of Chinese-made humanoid and quadruped robots. As you may recall, Reuters broke news in May 2025 that the U.S. government had discovered rogue communications devices in the Chinese-made inverters. The story came out just a month after a frequency problem that stemmed from Spain’s struggle to sufficiently patch all of its solar generation on the grid triggered a blackout across Iberia, highlighting the sort of scenario a compromised “killswitch” device could set off in a bid to attack energy systems.
The ban is good news for America’s beleaguered solar manufacturing industry, which the Trump administration has championed with tariffs but hobbled by axing key federal tax credits that included bonuses for projects using domestically produced panels. T1 Energy, shares of which nosedived this week after the latest quarterly earnings showed losses far outpacing revenue, just spent another $135 million on patents from a rival in Singapore in a bid to vertically integrate production of a more efficient type of photovoltaic technology. Tesla, meanwhile, is promising to “multiply” American solar production by “an order of magnitude.” Yet Elon Musk’s behemoth is cutting long-term deals to buy other people’s solar power. The company just inked an agreement with a KKR-backed solar and battery project in Arizona to buy 90% of its output.

Reasonable people debate just how much electricity is needed to satisfy the demands of the data center boom — and the bears are likely to get a boost amid this week’s selloff of AI stocks. But the latest projections from the Rhodium Group forecast U.S. electricity demand growth to accelerate over the next 15 years, “growing faster than it has since the turn of the century.” Data centers will account for between 62% and 77% of the growth in 2030, and between 59% and 66% in 2040, ultimately reaching 17% of total electricity demand that year. Electric vehicles will make up the second-largest source of new demand growth in the low- and mid-emissions scenarios the consultancy outlined through 2040. In the high-emissions scenario, heavy industry will account for a quarter of the demand growth between 2025 and 2040. Overall, the findings show divergent pathways in the 2030s. By 2040, the U.S. will either reduce its greenhouse gas emissions by 41% below 2005 levels — or just 27%. Across all three scenarios, the “historic influx of renewables” coming online between now and 2030 keeps emissions declining. After 2030, however, the grid’s trajectory either continues to deploy nearly 53 gigawatts of renewables per year through 2040 in a low-emissions scenario or drops to 3 gigawatts per year in a high-emissions scenario where cheap natural gas dominates.
For months now, the Greenhouse Gas Protocol, the nonprofit behind a voluntary but widely used corporate standard for carbon accounting rules, has been revising its approach. Last year, my colleague Emily Pontecorvo explained the stakes of the revision process as an “obscure philosophical battle that could reshape the clean energy economy. In April, she broke news from whistleblowers that the changes underway were drumming up controversy. This morning she’s out with a new story on Greenhouse Gas Protocol’s plans to marry its standard to those by the International Organization for Standardization. The short of it is this: the changes are getting a lot of pushback, and credibility of the forthcoming new standard remains an open question.
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For decades, the U.S. plan to deal with nuclear waste has focused on building a highly controversial repository in the Nevada desert. But that effort, as I explained yesterday, was put on indefinite hiatus in 2010 when the Obama administration canceled funding on behalf of then-Senate Majority Leader Harry Reid, a Nevada Democrat. In the meantime, states such as Texas and New Mexico have demonstrated that both Republican and Democratic governments are still willing to fight efforts to build intermediate-term storage facilities for nuclear waste in their states. On Tuesday, five states officially stepped up and made bids to host what the Department of Energy is calling its Nuclear Lifecycle Innovation Campuses, which will house startups that recycle spent nuclear waste into fresh fuel and medical isotopes. The Energy Department named Utah, Tennessee, Oklahoma, Louisiana, and Idaho as finalists for the facilities. “I’m pleased to announce that after reviewing 28 applications from 26 states, the Energy Department has selected five initial contenders to further explore building Nuclear Lifecycle Innovation Campuses,” Secretary of Energy Chris Wright said in a statement. “These campuses will be massive generators of economic growth, create thousands of high-paying jobs, and be crucial to unleashing America’s nuclear renaissance.”
Just last week, the Energy Department opened the door to nuclear projects sited on floating offshore platforms. It’s a novel idea for the U.S., but Russia launched its Akademik Lomonosov, a floating nuclear station, in 2019 in what is widely recognized as the world’s first real small modular reactor and only operating non-land nuclear plant. A new peer-reviewed study the World Nuclear Association conducted on the Rosatom-owned plant ranked it “on par with Russia’s top units,” World Nuclear News reported.
Trump’s permitting freeze for renewables projects started to thaw for solar in particular earlier this year as the administration faced mounting pressure to stop thwarting the fastest-growing source of power in a country increasingly starved for new and swiftly available sources of electricity. The easing, as my colleague Jael Holzman wrote, was also part of a legal strategy. Regardless of the reasoning, the thaw is continuing — and not just because of the literal heat dome pushing temperatures in the Southwest into the triple digits. On Tuesday, the Department of the Interior’s Bureau of Land Management announced plans to advance a solar project in the Nevada desert. The Mosey solar farm, which would produce enough power at maximum output for 200,000 homes, is now under evaluation at the agency’s Nevada office, the agency notified the Federal Register. The regulator plans to conduct an environmental analysis and a resource management plan tweak needed for a project in a utility corridor. E&E News credited the administration’s shift on this particular project to lobbying by the state’s Republican governor, Joe Lombardo.
The project is part of developer Clearway’s larger efforts in Nevada. Separately, the company has volunteered to scrap one of its other solar projects in favor of building a gas plant, Jael reported this week.
Yesterday, I told you the board of PJM Interconnection had scheduled an emergency auction to drum up 7 gigawatts of additional capacity to supply the electricity demand from data centers starting in 2028. It’s just one incremental way the nation’s largest grid system is “lurching toward reforms,” as my colleague Matthew Zeitlin wrote. It’s also inching toward more actual power infrastructure. On Wednesday, the developer Eolian Energy started construction on Flint Grid, a 1 gigawatt-hour storage project outside Columbus, Ohio. Located near a hub of data center and industrial power users, the Flint Grid project is “the first large-scale battery energy storage system to qualify for the PJM capacity market.” If it comes online in spring 2027 as promised on the project’s new website, it will represent more than half the new battery storage capacity in PJM’s line up for 2027 to 2028. The project is also the first grid-scale battery project permitted by the Ohio Power Siting Board and the largest in the PJM territory to date.
“There’s growing consternation about how the US can rapidly scale infrastructure to support America’s growing electricity demand, but not nearly enough conversation about how to use existing technology to unlock the wasted capacity that already exists on the grid,” Eolian founder and CEO Aaron Zubaty said in a statement. “This project requires hundreds of millions of dollars to construct, and we committed the necessary capital and resources years before today’s demand forecasts became headline news. As policymakers consider changes to competitive electricity markets, it’s critical that they avoid undermining the long-term investments already.”
Lithium production typically involves either mining hard rocks or extracting salts through brines. Both are water intensive processes with considerable environmental tolls. Scientists at Texas A&M University are now developing a new approach involving the deployment of tiny, fish-like swimming nanorobots that capture lithium ions from seawater. Backed by a $1 million Energy Department grant, it’s among more than a dozen projects the agency is supporting in a bid to bolster domestic critical mineral supplies. “Unlike traditional mining that digs up land or pumps brine from underground and requires massive amounts of energy, these autonomous micro/nanorobots move freely through seawater to harvest lithium with virtually zero infrastructure footprint,” Jingjing Qiu, one of the mechanical engineers leading the research, said in a statement.