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Anything decarbonization-related is on the chopping block.

The Biden administration has shoveled money from the Inflation Reduction Act out the door as fast as possible this year, touting the many benefits all that cash has brought to Republican congressional districts. Many — in Washington, at think tanks and non-profits, among developers — have found in this a reason to be calm about the law’s fate. But this is incorrect. The IRA’s future as a climate law is in a far more precarious place than the Beltway conventional wisdom has so far suggested.
Shortly after the changing of the guard in Congress and the White House, policymakers will begin discussing whether to extend the Trump-era tax cuts, which expire at the end of 2025. If they opt to do so, they’ll try to find a way to pay for it — and if Republicans win big in the November elections, as recent polling and Democratic fretting suggests could happen, the IRA will be an easy target.
Yes, the law has created a ton of jobs in states and congressional districts controlled by Republicans. Sure, some in the GOP have moderated on climate and stopped denying the science behind the warming of our planet. Absolutely, the IRA is the kind of all-carrot and no-stick approach to energy that Republicans tend to like, and there would be legal and political challenges to accomplishing anything of consequence in today’s polarized and chaotic Congress.
But while some lawmakers may be evolving on climate, the broader GOP under Trump’s control has grown far more willing to spurn its pro-business past and give industries heartburn in pursuit of other ideological or cultural objectives.
“The Republican Party’s traditional views on climate and business are both changing and result in competing pressures,” Alex Flint, a longtime Senate Republican energy staffer, told me. Flint now runs the pro-business climate group Alliance for Market Solutions. “There is less climate denialism. And less support for business. So on the one hand, more Republicans are comfortable supporting climate policies like those in the IRA, but are less responsive to the businesses that want to defend those programs.”
What that means is that, in the event of a big GOP victory, anything impossible to fully repeal may be fiddled with, whether through legislative or administrative means. On top of all the energy and climate regulations that would be targeted in that event, the nation’s transition away from fossil fuels could lose significant federal policy tailwinds.
On the legislative side, there is already broad GOP support for: repealing the consumer electric vehicle and charging station benefits, nixing the methane fee, killing the national “green bank” program, and eliminating any money labeled “environmental justice.” Broader programs with immense importance to decarbonization such as the “clean electricity” investment and production tax credits could be diminished or gutted at the urging of the party’s rightward flank. (See: this GOP committee chair’s IRA repeal bill, which targeted the investment and production tax credits, specifically.)
Anything that cannot be repealed — as the Heritage Foundation’s Project 2025 instructs — Republicans will attempt to modify. Mike Faulkender, a former Trump official at the Treasury Department who is now chief economist for the America First Policy Institute, explained to me for an Axios story last October that if Trump wins, “We are going to review every rule, every notice, everything the administration has done in its implementation of that statute.” Demonstrating his seriousness, Faulkender also pointed to the IRA’s credit for carbon removal. “The dollar values on this are extraordinary … I would go through that statute and see how we, through the rulemaking process, can narrow it as much as possible.”
It is possible to take these threats with a grain of salt. Kimberly Clausing, a former Biden official for the Treasury Department, told me that while she can imagine “one or two elements” of the law being revisited if they’re political priorities, it would require “too many lawyer man-hours” to “justify that kind of wholescale implementation pivot.”
Industries would also lobby heavily to avoid their credits going away. Going after the tech-neutral ITC and PTC, for example, could spark an immense backlash among a swath of energy sectors Republicans do support, including nuclear energy. Same for incentives to advanced manufacturing. Not to mention there are substantial logistical realities to repealing the IRA or changing its programs, as with Obamacare in the past. Such an effort would require organizing GOP lawmakers at a time when infighting has undermined even seeming slam dunks like a ban on gas stove bans.
But seasoned political veterans and D.C. industry pros I spoke with for this story noted that Republicans may be more receptive to tweaking programs in a selective fashion, going after industries like solar and offshore wind that some have long-standing grievances with. For example, it may be too difficult to repeal the “tech-neutral” electricity credits in their entirety, but legislators could try to limit their reach for these less-favored sectors — as some have proposed doing for solar projects on farmland — in the name of saving the government money or helping other favored interests.
Energy lobbying veteran Frank Maisano put it to me this way: “Businesses will support many things that they have their tentacles into and Republicans will support many things that are going on in their districts that constituents like. The reality is, if you’re going to try to repeal it, you’re going to have to do it through Congress and a lot of the action in the energy transition is in Republican districts. It becomes a constituent issue.”
Or, in plain English: If it’s a successful project in a GOP constituent district and their specific voters like it, that will be what has the most sway.
That won’t stop Republicans from claiming that the renewable sector as a whole is flagging. In an interview with E&E News’ Kelsey Brugger, House Majority Leader Steve Scalise responded to the question of whether the jobs created by the IRA would put Republicans in a tough spot on repeal by — dubiously — downplaying the figures. “Overall, there haven’t been many projects built,” Scalise said. “We’re scrutinizing all of it.”
There’s a reason for this: It creates an opening to point to real market struggles (though possibly in a selective fashion) as a predicate for squeezing benefits to renewables. It’s easy to imagine a world where the impacts of tariffs on domestic solar or hurdles facing offshore wind are used as rationale for paring back credits and other federal supports. You might not be hearing much about this right now as the GOP is quietly letting Democrats knife themselves, but it’ll be worth watching the Republican National Convention next week to see if anyone spills the tea on plans for the IRA next year.
“Which of [these] forces prevail on any specific IRA program and on the totality of the IRA package is impossible to predict,” said Flint, “because members – Republicans who acknowledge the need to address climate – may be aligned with companies that receive those subsidies. But on the other hand, populists not closely aligned with business interests may be willing to criticize those programs without regard to their climate benefits. So what happens to climate policies and all of the IRA is a test case for the future of the Republican Party.”
Developers are starting to ask questions about the durability of IRA programs, Abigail Ross Hopper, president of the Solar Energy Industries Association, told me. Hopper’s optimistic that the marketplace will continue to favor solar. But she is clear-eyed about the risks ahead for certain aspects of the IRA – naming bonuses and the transferability of credits — that may not survive in their current form.
“People ask me all the time about, ‘How do I make educated opinions, not prognostications?’” she said. “There is this kind of built in uncertainty because of the partisanship that clean energy has unfortunately [had] imposed upon us … I am in agreement that the pace of decarb is going to be impacted by these elections and policy decisions. [But] I am not persuaded that we’re going to stop these efforts.”
To Hopper and others, at most risk is any unspent money or unused spending authority left over at agencies at the conclusion of Biden’s first term. Those supports face “probably the highest risk of clawback or not being spent,” she said.
Some agencies are still moving at a brisk pace that has reassured those in industry and advocacy spaces. The Treasury Department has signaled it may complete implementation of several key IRA credits — including the “clean electricity” investment and production tax credits — before Jan. 20, 2025. And the Environmental Protection Agency’s been quite successful at doling out dollars that would otherwise be targeted in a future GOP-controlled Congress, such as those the IRA provided for the Solar For All program and the green bank initiative. These dollars will live on independent of who remains president because once they’re given to states or nonprofits, those parties get to decide how to spend them.
But there are still billions that may wind up in Trump’s control should he win in November. One example is the Department of Energy’s home electrification rebates, which received $8.8 billion. Despite almost all states applying for at least some of the funding, per DOE’s own tracker, only five have been accepted, and only one – New York – had made those rebates available as of this week.
“I’m under the assumption that if it’s not going out in January 2025, then it’s not going out the door,” Harrison Godfrey, who works for energy policy shop Advanced Energy United, told me. “If the dollars get out the door, then the story of ‘25 is that regardless of who’s president, the states are in the driver’s seat.”
There are aspects of the IRA that could survive even a Republican trifecta. The law’s support for low-carbon fuels enjoys apparent bipartisan backing because of the lifeline it can offer corn-based ethanol as the federal renewable fuel standard wanes in relevance. And despite grousing about Biden’s implementation of the hydrogen tax credit, it’s easier to imagine industry lobbying for a rule change under Trump than it is a full-scale repeal of a credit that could be a boon to the oil and gas sector.
Meanwhile, the administration and other industry groups continue to sound an optimistic note.
“The Inflation Reduction Act credits have spurred a clean energy boom in communities across the country and markets have responded overwhelmingly,” Treasury spokesperson Michael Martinez told me in a statement. Jason Ryan, a spokesperson for American Clean Power, said that “with the new tax credits in place,” more than $488 billion investments have been announced, including new or expanded utility-scale manufacturing plants, and that “with over a third of those manufacturing facilities already up and running or under constructions, these numbers translate to real-world positive impacts.”
But even if some of the IRA remains, without regulations to drive demand for decarbonization solutions, its climate benefits would be substantially undermined. One must look only at research from Clausing and others, who found even a partial IRA repeal combined with weakened EPA regulations could significantly harm odds of meeting the current administration’s goal of slashing emissions in half by 2030.
In other words, deep breaths! It’s only four months until the election and six months until the tax conversation begins.
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Noon Energy just complete a successful demonstration of its reversible solid-oxide fuel cell.
Whatever you think of as the most important topic in energy right now — whether it’s electricity affordability, grid resilience, or deep decarbonization — long-duration energy storage will be essential to achieving it. While standard lithium-ion batteries are great for smoothing out the ups and downs of wind and solar generation over shorter periods, we’ll systems that can store energy for days or even weeks to bridge prolonged shifts and fluctuations in weather patterns.
That’s why Form Energy made such a big splash. In 2021, the startup announced its plans to commercialize a 100-plus-hour iron-air battery that charges and discharges by converting iron into rust and back again The company’s CEO, Mateo Jaramillo, told The Wall Street Journal at the time that this was the “kind of battery you need to fully retire thermal assets like coal and natural gas power plants.” Form went on to raise a $240 million Series D that same year, and is now deploying its very first commercial batteries in Minnesota.
But it’s not the only player in the rarified space of ultra-long-duration energy storage. While so far competitor Noon Energy has gotten less attention and less funding, it was also raising money four years ago — a more humble $3 million seed round, followed by a $28 million Series A in early 2023. Like Form, it’s targeting a price of $20 per kilowatt-hour for its electricity, often considered the threshold at which this type of storage becomes economically viable and materially valuable for the grid.
Last week, Noon announced that it had completed a successful demonstration of its 100-plus-hour carbon-oxygen battery, partially funded with a grant from the California Energy Commission, which charges by breaking down CO2 and discharges by recombining it using a technology known as a reversible solid-oxide fuel cell. The system has three main components: a power block that contains the fuel cell stack, a charge tank, and a discharge tank. During charging, clean electricity flows through the power block, converting carbon dioxide from the discharge tank into solid carbon that gets stored in the charge tank. During discharge, the system recombines stored carbon with oxygen from the air to generate electricity and reform carbon dioxide.
Importantly, Noon’s system is designed to scale up cost-effectively. That’s baked into its architecture, which separates the energy storage tanks from the power generating unit. That makes it simple to increase the total amount of electricity stored independent of the power output, i.e. the rate at which that energy is delivered.
Most other batteries, including lithium-ion and Form’s iron-air system, store energy inside the battery cells themselves. Those same cells also deliver power; thus, increasing the energy capacity of the system requires adding more battery cells, which increases power whether it’s needed or not. Because lithium-ion cells are costly, this makes scaling these systems for multi-day energy storage completely uneconomical.
In concept, Noon’s ability to independently scale energy capacity is “similar to pumped hydro storage or a flow battery,” Chris Graves, the startup’s CEO, told me. “But in our case, many times higher energy density than those — 50 times higher than a flow battery, even more so than pumped hydro.” It’s also significantly more energy dense than Form’s battery, he said, likely making it cheaper to ship and install (although the dirt cheap cost of Form’s materials could offset this advantage.)
Noon’s system would be the first grid-scale deployment of reversible solid-oxide fuel cells specifically for long-duration energy storage. While the technology is well understood, historically reversible fuel cells have struggled to operate consistently and reliably, suffering from low round trip efficiency — meaning that much of the energy used to charge the battery is lost before it’s used — and high overall costs. Graves conceded Noon has implemented a “really unique twist” on this tech that’s allowed it to overcome these barriers and move toward commercialization, but that was as much as he would reveal.
Last week’s demonstration, however, is a big step toward validating this approach. “They’re one of the first ones to get to this stage,” Alexander Hogeveen Rutter, a manager at the climate tech accelerator Third Derivative, told me. “There’s certainly many other companies that are working on a variance of this,” he said, referring to reversible fuel cell systems overall. But none have done this much to show that the technology can be viable for long-duration storage.
One of Noon’s initial target markets is — surprise, surprise — data centers, where Graves said its system will complement lithium-ion batteries. “Lithium ion is very good for peak hours and fast response times, and our system is complementary in that it handles the bulk of the energy capacity,” Graves explained, saying that Noon could provide up to 98% of a system’s total energy storage needs, with lithium-ion delivering shorter streams of high power.
Graves expects that initial commercial deployments — projected to come online as soon as next year — will be behind-the-meter, meaning data centers or other large loads will draw power directly from Noon’s batteries rather than the grid. That stands in contrast to Form’s approach, which is building projects in tandem with utilities such as Great River Energy in Minnesota and PG&E in California.
Hogeveen Rutter, of Third Derivative, called Noon’s strategy “super logical” given the lengthy grid interconnection queue as well as the recent order from the Federal Energy Regulatory Commission intended to make it easier for data centers to co-locate with power plants. Essentially, he told me, FERC demanded a loosening of the reins. “If you’re a data center or any large load, you can go build whatever you want, and if you just don’t connect to the grid, that’s fine,” Rutter said. “Just don’t bother us, and we won’t bother you.”
Building behind-the-meter also solves a key challenge for ultra-long-duration storage — the fact that in most regions, renewables comprise too small a share of the grid to make long-duration energy storage critical for the system’s resilience. Because fossil fuels still meet the majority of the U.S.’s electricity needs, grids can typically handle a few days without sun or wind. In a world where renewables play a larger role, long-duration storage would be critical to bridging those gaps — we’re just not there yet. But when a battery is paired with an off-grid wind or solar plant, that effectively creates a microgrid with 100% renewables penetration, providing a raison d’être for the long-duration storage system.
“Utility costs are going up often because of transmission and distribution costs — mainly distribution — and there’s a crossover point where it becomes cheaper to just tell the utility to go pound sand and build your power plant,” Richard Swanson, the founder of SunPower and an independent board observer at Noon, told me. Data centers in some geographies might have already reached that juncture. “So I think you’re simply going to see it slowly become cost effective to self generate bigger and bigger sizes in more and more applications and in more and more locations over time.”
As renewables penetration on the grid rises and long-duration storage becomes an increasing necessity, Swanson expects we’ll see more batteries like Noon’s getting grid connected, where they’ll help to increase the grid’s capacity factor without the need to build more poles and wires. “We’re really talking about something that’s going to happen over the next century,” he told me.
Noon’s initial demo has been operational for months, cycling for thousands of hours and achieving discharge durations of over 200 hours. The company is now fundraising for its Series B round, while a larger demo, already built and backed by another California Energy Commission grant, is set to come online soon.
While Graves would not reveal the size of the pilot that’s wrapping up now, this subsequent demo is set to deliver up to 100 kilowatts of power at once while storing 10 megawatt-hours of energy, enough to operate at full power for 100 hours. Noon’s full-scale commercial system is designed to deliver the same 100-hour discharge duration while increasing the power output to 300 kilowatts and the energy storage capacity to 30 megawatts.
This standard commercial-scale unit will be shipping container-sized, making it simple to add capacity by deploying additional modules. Noon says it already has a large customer pipeline, though these agreements have yet to be announced. Those deals should come to light soon though, as Swanson says this technology represents the “missing link” for achieving full decarbonization of the electricity sector.
Or as Hogeveen Rutter put it, “When people talk about, I’m gonna get rid of all my fossil fuels by 2030 or 2035 — like the United Kingdom and California — well this is what you need to do that.”
On aluminum smelting, Korean nuclear, and a geoengineering database
Current conditions: Winter Storm Fern may have caused up to $115 billion in economic losses and triggered the longest stretch of subzero temperatures in New York City’s history • Temperatures across the American South plunged up to 30 degrees Fahrenheit below historical averages • South Africa’s Northern Cape is roasting in temperatures as high as 104 degrees.

President Donald Trump has been on quite a shopping spree since taking an equity stake in MP Materials, the only active rare earths miner in the U.S., in a deal Heatmap’s Matthew Zeitlin noted made former Biden administration officials “jealous.” The latest stake the administration has taken for the American taxpayer is in USA Rare Earth, a would-be miner that has focused its attention establishing a domestic manufacturing base for the rare earth-based magnets China dominates. On Monday, the Department of Commerce announced a deal to inject $1.6 billion into the company in exchange for shares. “USA Rare Earth’s heavy critical minerals project is essential to restoring U.S. critical mineral independence,” Secretary of Commerce Howard Lutnick said in a statement. “This investment ensures our supply chains are resilient and no longer reliant on foreign nations.” In a call with analysts Monday, USA Rare Earth CEO Barbara Humpton called the deal “a watershed moment in our work to secure and grow a resilient and independent rare earth value chain based in this country.”
After two years of searching for a site to build the United States’ first new aluminum smelter in half a century, Century Aluminum has abandoned its original plan and opted instead to go into business with a Dubai-based rival developing a plant in Oklahoma. Emirates Global Aluminum announced plans last year to construct a smelter near Tulsa. Under the new plan, Century Aluminum would take a 40% stake in the venture, with Emirates Global Aluminum holding the other 60%. At peak capacity, the smelter would produce 750,000 tons of aluminum per year, a volume The Wall Street Journal noted would make it the largest smelter in the U.S. Emirates Global Aluminum has not yet announced a long-term contract to power the facility. Century Aluminum’s original plan was to use 100% of its power from renewables or nuclear, Canary Media reported, and received $500 million from the Biden administration to support the project.
The federal Mine Safety and Health Administration has stopped publishing data tied to inspections of sites with repeated violations, E&E News reported. At a hearing before the House Education & the Workforce Subcommittee on Workforce Protections last week, Wayne Palmer, the assistant secretary of labor for mine safety and health, said the data would no longer be made public. “To the best of my knowledge, we do not publish those under the current administration,” Palmer said. He said the decision to not make public results of “targeted inspections” predated his time at the agency. The move comes as the Trump administration is pushing to ramp up mining in the U.S. to compete with China’s near monopoly over key metals such as rare earths, and lithium. As Heatmap’s Katie Brigham wrote in September, “everybody wants to invest in critical minerals.”
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South Korea’s center-left Democratic Party has historically been staunchly anti-nuclear. So when the country’s nuclear regulator licensed a new plant earlier this month — its first under a new Democratic president — I counted it as a win for the industry. Now President Lee Jae-myung’s administration is going all in all on atomic energy. On Monday, NucNet reported that the state-owned Korea Hydro & Nuclear Power plans to open bidding for sites for two new large reactors. The site selection is set to take up to six months. The country then plans to begin construction in the early 2030s and bring the reactors online in 2037 and 2038. Kim Sung-whan, the country’s climate minister, said the Lee administration would stick to the nuclear buildout plan authored in February 2025 under former President Yoon Suk Yeol, a right-wing leader who strongly supported the atomic power industry before being ousted from power after attempting to declare martial law.
Reflective, a nonprofit group that bills itself as “aiming to radically accelerate the pace of sunlight reflection research,” launched its Uncertainty Database on Monday, with the aim of providing scientists, funders, and policymakers with “an initial foundation to create a transparent, prioritized, stage-gated” roadmap of different technologies to spray aerosols in the atmosphere to artificially cool the planet. “SAI research is currently fragmented and underpowered, with no shared view of which uncertainties actually matter for real-world decisions,” Dakota Gruener, the chief executive of Reflective, said in a statement. “We need a shared, strategic view of what we know, what we don’t, and where research can make the biggest difference. The Uncertainty Database helps the field prioritize the uncertainties and research that matter most for informed decisions about SAI.” The database comes as the push to research geoengineering technologies goes mainstream. As Heatmap’s Robinson Meyer reported in October, Stardust Solutions, a U.S. firm run by former Israeli government physicists, has already raised $60 million in private capital to commercialize technology that many climate activists and scientists still see as taboo to even study.
Often we hear of the carbon-absorbing potential of towering forest trees or fast-growing algae. But nary a word on the humble shrub. New research out of China suggests the bush deserves another look. An experiment in planting shrubs along the edges of western China’s Taklamakan Desert over the past four decades has not only kept desertification at bay, it’s made a dent in carbon emissions from the area. “This is not a rainforest,” King-Fai Li, a physicist at the University of California at Riverside, said in a statement. “It’s a shrubland like Southern California’s chaparral. But the fact that it’s drawing down CO2 at all, and doing it consistently, is something positive we can measure and verify from space.” The study provides a rare, long-term case study of desert greening, since this effort has endured for decades whereas one launched in the Sahara Desert by the United Nations crumbled.
With historic lows projected for the next two weeks — and more snow potentially on the way — the big strain may be yet to come.
Winter Storm Fern made the final stand of its 2,300-mile arc across the United States on Monday as it finished dumping 17 inches of “light, fluffy” snow over parts of Maine. In its wake, the storm has left hundreds of thousands without power, killed more than a dozen people, and driven temperatures to historic lows.
The grid largely held up over the weekend, but the bigger challenge may still be to come. That’s because prolonged low temperatures are forecasted across much of the country this week and next, piling strain onto heating and electricity systems already operating at or close to their limits.
What issues there have been were largely due to damage in the transmission and distribution system, i.e. power lines freezing or being brought down by errant branches.
The outages or blackouts that have occurred have been the result of either operational issues with plants, scheduled maintenance, or issues specifically with snow affecting the distribution system. As yet there’s been no need for rolling blackouts to relieve grid congestion and preserve the system as a whole. Speaking about the country’s largest electrical grid, Jon Gordon, a director at Advanced Energy United, told Heatmap: “So far, so good.”
But this is all assuming we just get more cold weather. We could be in for another storm. Since late last week, the forecasting model maintained by the European Centre for Medium-Range Weather Forecasts — one of the two primary computer forecasting models, and generally considered more accurate than its analogue, the American model — has suggested there could be another major winter storm headed toward the Eastern U.S. next weekend. Whether it hits the Eastern Seaboard, clips it, or stays offshore, it’s still early to say with any confidence.
Should that storm hit, here’s what it’ll be barreling into.
Temperatures will likely remain below 0 degrees Fahrenheit across swaths of PJM Interconnection — the country’s largest regional transmission organization, covering the Mid-Atlantic through portions of the Midwest — with parts of Pennsylvania and Ohio not expected to see a day above freezing for the next two weeks.
Put simply, cold temperatures stress the grid. That’s because cold can affect the performance of electricity generators as well as the distribution and production of natural gas, the most commonly used grid fuel. And the longer the grid has to operate under these difficult conditions, the more fragile it gets. And this is all happening while demand for electricity and natural gas is rising.
Forced outages — which happen when power is pulled offline due to some kind of unexpected event or emergency — peaked on Sunday in PJM at just over 17,000 megawatts, while total outages were over 22 gigawatts on Monday, according to Grid Status’s Tim Ennis, who said some of them may have been due to ice “ice accumulation across Virginia.”
The market has also been serving more than its own 13-state territory. Already on Saturday — after the fierce cold had set in across its territory but before snow arrived — PJM noted to the Department of Energy that it had been asked to provide up to 3,000 megawatts to neighboring grids, and that it had already seen outages of around 20,000 megawatts — enough to serve 16 million people.
Kentucky, Virginia, and West Virginia reported the highest number of customers without power in the PJM region as of Monday afternoon, largely due to ice and snow that brought down tree branches on power lines or toppled utility poles.
Meanwhile, snow was still falling across New England on Monday afternoon, where parts of Massachusetts have received up to 20 inches. Another 8 inches could still accumulate on the Atlantic coast due to the ongoing lake effect, a common winter pattern in which cold Canadian air picks up moisture over the warmer Great Lakes, resulting in heavy snow downwind.
Though there were minimal blackouts in New England’s electricity market as of Monday morning, natural gas has fallen to just 30% of the grid’s fuel supply, from more than half at the same time a week earlier, with nearly 40% of its electricity output coming from oil-fired plants, Reuters reports. Solar generation peaked at less than a gigawatt on Sunday due to cloud cover, compared to over 4 gigawatts on Saturday and over 3 gigawatts on Friday. During the summer, ISO-NE’s combined behind-the-meter and utility-scale solar production can get as high as eight gigawatts.
The Department of Energy granted ISO New England, emergency permission to operate generators at maximum capacity, regardless of air quality and environmental standards. (It also granted the same dispensation to PJM and Texas’ grid operator, ERCOT.)
The most widespread outages in the country were concentrated in Tennessee, with some 230,000 customers in Nashville Electric Service’s area without power at one point. The disruptions were largely caused not by grid demands, but rather by nearly 100 broken utility poles and more than 70 distribution circuits taken down by the snow and ice, Utility Dive reported.
Mississippi and Louisiana also had outages, with around 4% of Energy customers offline according to Jefferies data, and around 10% of Entergy customers in Mississippi being affected by blackouts. By contrast, Jefferies data shows, less than 1% of Texas electricity customers were offline.
Typically, cold weather means higher natural gas prices, as the demand for home heating goes up alongside demand for electricity. The 44.2 billion cubic feet of natural gas forecast to be burned today would be the fifth highest January burn of all time in the U.S., according to Matthew Palmer, executive director at S&P Global Energy, in an email. The extended cold weather is expected to push natural gas stockpiles to their lowest since the winter of 2021 to 2022, according to S&P data.
Benchmark natural gas prices have shot up to $6.50 per million British thermal units, up from $5.28 on Friday. Crude oil prices by contrast were down slightly today, while heating oil prices were up around 5%.
High natural prices means that power markets are also expecting higher prices. Day-ahead average wholesale prices in Texas for 9 a.m. were almost $1,500 per megawatt-hour, compared to just $100 in the real-time market. In PJM, average real-time prices were around $270 at 9 a.m. compared to $482 in the day-ahead market.
“The worst is over, but we are expecting bitterly cold temperatures throughout the week. Please continue to avoid unnecessary travel and be vigilant about ice.” New Jersey Governor Mikie Sherrill, who had made electricity prices the centerpoint of her election campaign as well as her early days in office, said in a statement.
“While the worst of the snow is over, prolonged cold is still expected,” Jefferies analyst Julien Dumoulin-Smith wrote in a note to clients Monday. That can lead to “resource adequacy events,” i.e. blackouts, “as fuel supplies get strained and plants face operational strains from more significant run-time.”
There’s particular pressure and attention during this cold snap on ERCOT, the Texas grid operator, after 2021’s Winter Storm Uri, which brought ice, snow, and below-0 temperatures to much of the state. Natural gas wellheads froze up as much of the system for pumping and distributing natural gas lost power. Power plants were “unprepared for cold weather,” a report from the Federal Energy Regulatory Commission found, “and thus failed in large numbers.” ERCOT had to order power plants to shut down for several days in order to protect the system as a whole from falling perilously out of frequency, which would have risked a complete blackout. Around 60% of the state’s households rely on electricity for heating, and the long freeze-out left 4 million homes and businesses without power. More than 200 people died.
In the intervening years, Texas has introduced new capacity and reforms meant to prevent a similar tragedy. While ERCOT “does not anticipate any reliability issues on the statewide electric grid,” per a spokesperson, the operator flagged for the DOE that low temperatures in the week ahead could raise demand to an “extreme level” that poses “significant risk of emergency conditions that could jeopardize electric reliability and public safety.” So far, though, it’s been holding up, with peak demand expected Monday morning and outages mostly limited to East Texas due to downed power lines.
The Tennessee Valley Authority, which operates a vertically integrated grid centered in Tennessee and spanning several neighboring states, warned of “extreme cold” in the coming days, but said that its generation fleet — which includes coal, natural gas, and nuclear power plants — was “positioned to meet rising demand.” As of Monday morning, TVA said that 12 of the 153 power companies it serves had “distribution issues” related to the storm.
One Mississippi power company in the TVA system said that it had “suffered catastrophic damage” to its distribution system, specifically a 161 kilovolt transmission line operated by the TVA. The cold weather has dealt a double blow to the system, with TVA officials reporting ice on transmission and distribution lines as well as icy conditions making it difficult to service lines in need of repair.
Currently, TVA is forecasting that demand will peak Tuesday at just over 33,000 megawatts, according to EIA data. The system’s all-time winter peak is 35,430 megawatts.
PJM also expects several more days of tight conditions on the grid thanks to forecasted cold weather. The grid operator issued a “maximum generation emergency/load management alert” on Monday morning through at least the end of the day Tuesday, indicating that it needed to maintain high levels of generation throughout the system. It also asked generators for specifics on when any scheduled maintenance would be over in order to more carefully schedule operations to maintain reliability.
Over the weekend, PJM told the Energy Department that peak demand could exceed 130,000 megawatts “for seven straight days, a winter streak that PJM has never experienced.” The grid operator expects project peak demand over 147,000 megawatts on Tuesday, exceeding the previous record of 143,700 megawatts set last January. Demand peaked at 135,000 megawatts on Saturday and 129,000 megawatts on Sunday.