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The whales will be fine.

Donald Trump loves eagles and whales and therefore he wants to protect them — from clean energy development.
Trump may, however, be relieved to hear that many of his concerns about wind and solar energy are unfounded. Here’s what he gets right and wrong.
Pointing out the window to the Atlantic Ocean at one point, one attendee said, the former president claimed that offshore wind turbines break down when they are exposed to saltwater … [April 17, 2024]
Fact check: Let’s just get this out of the way: offshore wind turbines are designed to withstand saltwater exposure. People have been building things in saltwater for a long, long time. From the oldest known ships constructed 6,000 years ago out of papyrus reeds to Norway’s Troll A platform — a reinforced concrete offshore natural gas platform and the tallest structure ever moved by humankind — we’ve learned a few things about resisting salt corrosion.
This scene occurred during a fundraising dinner with oil and gas executives at Trump’s Mar-a-Lago resort reported on by The Washington Post, which also pointed out this obvious fact. That said, to the former president’s credit, “the ocean is indeed a difficult environment” for construction and engineering, Eric Hines, a civil and environmental engineering professor and the director of the offshore wind energy graduate program at Tufts University, told me. But the lifespan of offshore structures can range from a few years to more than a century.
According to Hines, most offshore wind farms today are built to have “approximately 25-year service lives,” but the design is always evolving. His department, for example, is working on developing advanced underwater foundations that are built to last more than a century and double as artificial reefs.
“I like the concept of solar, but it’s not powerful like what we need to fire up our factories.” [Dec. 16, 2023]
Fact check: “That question is actually a little bit tricky,” Baker, the assistant professor of engineering at the University of Colorado, told me, when I asked him whether solar alone could power a factory — but it’s also not really what we should be asking. “One thing I’ve noticed people do a lot is they’ll just compare efficiency of power generation,” Baker explained. But “it’s not just about the efficiency — it’s about other things, too, like solar’s ability to be distributed. You can’t put a nuclear fission power plant in your house — you know, not yet — but you can put solar panels, so that’s a huge benefit. It offers some resiliency that other sources just can’t offer.”
It’s true that solar power is less efficient than other sources of energy, including wind, and that it requires a lot of surface area, which could be an undue burden for a manufacturer. But at the same time, “I don’t know if anybody is proposing to power an entire factory based off of solar,” Baker said.“Their windmills are causing whales to die in numbers never seen before. Nobody does anything about that. They’re washing up on shore. I saw it this weekend: Three of them came up! You wouldn’t see it once a year; now they’re coming up on a weekly basis. The windmills are driving them crazy. They’re driving the whales, I think, a little batty.” [Sept. 25, 2023]
Fact check: If you ever want to feel ridiculous, try asking a scientist at the National Oceanic and Atmospheric Administration if windmills are making whales “a little batty.”
NOAA actively studies how “sound, vessel, and other human activities” impact marine life, Lauren Gaches, the director of NOAA Fisheries Public Affairs, told me over email. “At this point, there is no scientific evidence that noise resulting from offshore wind site characterization surveys could potentially cause mortality of whales,” she said.
An ongoing “unusual mortality event” for humpback whales has resulted in 200 whale deaths between 2016 and June 2023 along the Atlantic coast from Maine to Florida — that much is true. But “there are no known links between recent large whale mortalities and ongoing offshore wind surveys,” Gaches told me. NOAA’s fact page on whales and offshore wind explains that of “roughly 90 whales examined, about 40% had evidence of human interaction, either ship strike or entanglement.”
There has been some chatter about underwater surveying work disrupting whales, which may be true in the case of oil and gas surveys, which use seismic air guns to penetrate deep into the ocean floor. The surveying equipment used for offshore wind is, by contrast, used in 15-second bursts and limited to a specific area, “so the likelihood of an animal encountering and coming right into that sound beam is quite low,” Erica Staaterman, the deputy director for the Bureau of Ocean Energy Management’s Center for Marine Acoustics, said on a NOAA-hosted call with the press early last year.
As Ben Laws, the deputy chief of NOAA’s Permits and Conservation Division in the Office of Protected Resources, said on the same call, “There is no information that would support any suggestion that any of the equipment that’s being used in support of wind development for these site characterization surveys could directly lead to the death of a whale.”
“If you go out hunting and you happen to shoot a bald eagle, they put you in jail, like, for five years, right? They kill thousands of them with these windmills; nothing happens.” [Jan. 28, 2023]
“If you want to see a bird cemetery, go under a windmill sometime. You’ll see birds like you never saw. If you love birds, you’ll start to weep.” [Dec. 16, 2023]
Fact check: Trump has had a vendetta against wind turbines since long before he ever ran for president. “Wind farms are killing many thousands of birds,” reads one illustrative tweet from 2012. “They make hunters look like nice people!”
Lewis Grove is the director of wind and energy policy at the American Bird Conservancy, and he told me that while it’s “not necessarily as simple as Mr. Trump painted it out to be, wind turbines absolutely kill birds.”
But the context here is extremely important. Jason Ryan, a spokesperson for the American Clean Power Association, a leading renewable energy trade group, pointed me to research from the U.S. Fish & Wildlife Service that shows wind farms “represent just 0.03% of all human-related bird deaths in the U.S.” Grove likewise told me that, for the most part, bird deaths due to wind turbines do “not have population-level impacts.”
There are exceptions, such as an infamous wind farm in California’s Altamont Pass built in 1981 that “just happened to be in a place that was really heavily used by golden eagles,” Grove told me. Because golden eagle populations were already very low, having 100 or so killed a year by turbines was “unsustainable.” Even in a case like this, though, it behooves one to look at the whole picture: “They found it was a few individual turbines that were causing the damage,” Grove said. These days, around 60 golden eagles a year are killed in Alameda County, the Alameda Post reports, and the operating company must pay steep penalties for eagle deaths.
What’s more, “climate change is one of the greatest threats birds face, with two-thirds of North American species at risk of extinction due to our warming planet,” Jon Belak, senior manager of science and data analysis at The National Audubon Society, told me in a statement. “We need to build more wind and solar facilities to help slow the rise in global temperatures and protect birds and their habitats from a changing climate.”
Wind farms may not have population-level impacts on birds, but fracking does — “the onset of shale oil and gas production reduces subsequent bird population counts by 15%,” even after accounting for factors like weather and other land-use changes, according to one just-published, peer-reviewed study.
“Remember the windmills? ‘Darling, darling, I want to watch the president, I love him so much. I want to watch him on television tonight.’ ‘I’m sorry, but the wind isn’t blowing, you’ll have to wait ‘til another time.’ Windmills.” [March 26, 2022]
Fact check: “I mean, it’s possible with any mix of generation that if supply and demand aren’t equal, your TV will go out. That’s just physics,” Kyri Baker, an assistant professor of engineering at the University of Colorado, told me when I asked her if Trump’s scenario had any merit. In other words, a power outage could happen whether your electricity is coming from coal or natural gas or anything else. The difference, she said, is that “wind is by nature variable, intermittent. But it’s also not reliant on fuel like natural gas or coal plants or even nuclear plants are.”
What happens on days when there is no wind? “Grids are extremely regulated,” Baker explained to me. “There’s so many layers of redundancy that aim specifically to not have [an outage] happen.” A grid is made up of diverse electricity sources (for my visual learners, Canary imagines what a net-zero grid could look like here), as well as measures like offline backup generators, which can kick in if need be, so service isn’t disrupted.
Battery storage is another huge part of this equation. While they’re still fairly cutting-edge as climate technology goes, high-capacity batteries that can manage grid-scale energy needs are getting better and more plentiful.
“Stop with all of the windmills all over the place that are ruining the atmosphere.” [Jan. 20, 2022]
Fact check: Wind turbines do not damage the literal atmosphere.
But maybe Trump meant atmosphere as in “sense of place”? Most Americans don’t seem to think windmills are “ruining” anything. In a recent Heatmap poll, nearly eight in 10 Americans said they want the government to make it easier to build new wind farms. The Washington Post similarly found last year that about 70% of Americans said they wouldn’t mind living near a wind farm.
As my colleague Robinson Meyer has written, “American laws today give even a small, well-resourced minority plenty of tools to block a project” like a wind farm, and “what’s more, once that small group starts campaigning against a project, the public’s broad but shallow support for, say, a general technology can crater. That’s what happened recently in New Jersey, where a once broadly pro-wind public has turned against four proposed offshore wind farms.”
“It’s a very expensive form — probably the most expensive form of energy.” [Jan. 20, 2022]
Fact check: Wind in general is not the most expensive form of energy, but offshore wind is very expensive — for now.
Of the energy sources we’re currently used to, nuclear is usually cited as having the highest levelized cost of electricity — that is, it has the highest average cost per unit of electricity generated after construction, maintenance, and operation have been taken into account. Peaker plants — gas-powered plants that run just during times of peak demand — usually come in second.
Offshore wind is costly, with the levelized cost of electricity from a subsidized U.S. offshore wind project increasing “to $114.20 per megawatt-hour in 2023, up almost 50% from 2021 levels in nominal terms,” BloombergNEF reports. Many of the factors making offshore wind so expensive — including permitting delays, high interest rates, and supply chain issues — will abate with time. Meanwhile, onshore wind is one of the cheapest forms of electricity available and has boasted a “lower LCOE than gas plants since 2015,” Sustainable Energy in America reports.
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Democrats in Congress are determined to restore them. That isn’t necessarily what the industry wants.
As many Americans celebrate the country’s 250th birthday this weekend, the clean energy industry will be mourning a death. Independence Day marks the expiration of federal tax credits for wind farms and solar arrays, subsidies that have been in effect in some form or another since 1978.
They may not be dead forever. Leading Democrats in Congress are preparing to reinstate the tax credits the next chance they get — whether or not the clean energy industry is asking for it.
“Republicans letting these clean energy credits expire is bad for families, bad for workers, and a gift to China,” Senate Minority Leader Chuck Schumer told me in an email. “Democrats will fight to bring these incentives back and keep pushing every policy that lowers energy costs, strengthens American manufacturing, and protects America’s clean energy future.”
While the tax credits were not initially created to tackle climate change, they became the backbone of American climate policy as fossil fuel companies mired federal attempts to regulate carbon pollution in court challenges.
The original credits, passed as part of the 1978 Energy Tax Act, were intended to reduce the country’s reliance on oil and natural gas during the oil crisis. They included a 30% tax credit for homeowners and a 10% tax credit for businesses on the cost of wind or solar, among other “alternative energy” technologies. Congress passed extensions of the credits numerous times in the decades that followed, making tweaks along the way: Lawmakers took away the credit for wind farms in the mid-1980s; then, in 1992, they created a new production tax credit for wind based on the amount of energy a given project generated.
Throughout the history of the tax credits, there was often a will-they-won’t-they precarity to their reauthorization. And yet in the end Congress always extended the credits on bipartisan votes. It wasn’t until the 2022 Inflation Reduction Act, which wrapped up tax credit reauthorization in a larger, highly partisan package, that even Republicans who supported the credits withdrew their votes in protest.
The IRA dramatically extended and expanded the subsidies, opening up both the investment and production tax credits to any carbon-free electricity source — not just wind and solar — and authorized them for as many years as it would take to cut emissions from the electric grid by 75%. It also offered developers increased tax relief, covering up to 70% of their costs if they used equipment from U.S. factories and built in designated low-income “energy communities.”
This combination of tweaks — the seemingly infinite timeline, the generous boost for domestic content — contributed to a boom in investment in new wind and solar projects in the U.S. and onshore manufacturing of the equipment to build them. But unbounded optimism gave way to uncertainty when Trump took office in early 2025 and pushed through the One Big Beautiful Bill Act, which cut short subsidies for wind and solar. Projects that begin construction on or after July 4 of this year are no longer eligible for the tax credits, though other carbon-free energy sources such as new nuclear reactors, geothermal plants, and energy storage systems remain eligible until 2033.
The effects of the tax credit cliff for wind and solar will not be noticeable right away. Developers have stockpiled solar modules and turbine parts and ordered custom transformers, strategies that will enable them to claim they have “begun construction” on projects before July 4, even if they haven’t broken ground yet. Wood Mackenzie analysts estimate that companies have safe harbored between 216 gigawatts and 240 gigawatts of solar capacity, and nearly 30 gigawatts of onshore and offshore wind capacity. It will take four to five years for the industry to work through this pipeline. Any slowdown during that time is more likely to be a result of Trump’s gauntlet of permitting challenges for renewables or community opposition than it is to come back to the lack of tax credits.
Post-2030, however, the picture is murkier. No one I spoke to for this story expects clean energy development to come to a halt. Solar is the fastest growing energy source in the United States, and with demand for electricity surging, that’s unlikely to change. Without the tax credits, however, solar projects may become more difficult to finance, and the energy they generate will cost more. According to market research by LevelTen Energy, a company that connects corporate clean energy buyers and sellers, developers expect average prices for power purchase agreements, or PPAs, to rise by 40% to 120%.
That’s a wide range, and these numbers are still hypothetical, as developers aren’t yet selling power from non-tax credit-eligible projects, Connor Valaik, a senior manager for energy marketplace transactions at LevelTen, told me. When I asked him whether corporate buyers will still be interested at those rates, he noted that PPA prices have already increased year over year due to tariffs and inflation, “and we still see really strong demand for PPAs.” What matters most is the price of a solar or wind PPA relative to the market price of power. If electricity demand continues to explode in the 2030s, as it is expected to, “that will push energy market prices up, which could buoy that value to buyers.”
When I started asking whether the clean energy industry itself would fight to bring the tax credits back, the responses I got were mixed. The developers I reached out to declined to comment. The American Clean Power Association sent an ambiguous quote from JC Sandberg, its chief policy officer, stating that it was “focused on delivering durable policies to support American-made clean energy.” The Solar Energy Industries Association repeated an earlier quote from its president and CEO, Tim Pawlenty, stating that “SEIA will of course consider any policy, including tax credits, that accelerates solar and storage growth.”
One staffer in the House told me there’s a split between bigger developers that don’t need the tax credits for their projects to be viable and smaller companies that do, which is making it difficult for the trade associations to take a position. Another staffer told me that while they’ve heard some in the industry argue that it would be better not to put a target on their backs by reinstating the credits, that is not the majority view.
Maya Gibbs, a senior policy advisor for clean energy deployment at the center-left D.C. think tank Third Way, said the industry has bigger fish to fry right now. “There’s better bang for our buck, so to speak, in reducing the structural and non-cost barriers that are getting in the way of projects,” she told me. That includes speeding up permitting and building more transmission. Even if Democrats win a trifecta in 2028, she said, she’d caution against trying to reinstate the credits on another party-line vote.
The biggest lesson from the IRA was that “for legislation to be durable, it needs to be bipartisan,” she said, “and I don’t anticipate enough Republican support for wind and solar tax credits to get that across the finish line.”
There is one corner of the clean energy industry that’s been vocal about its concerns: solar manufacturers. The tax credits — and specifically the bonus they offered for using domestic content — generated demand for U.S.-produced technology to an extent that reshaped the American solar manufacturing landscape. The United States now has enough solar manufacturing capacity to meet domestic demand two times over, much of which was built in the past four years.
The caveat to that statistic: Those new factories mostly assemble the final solar modules. The parts still come from elsewhere, primarily China. Manufacturers have only just started to onshore the rest of the solar supply chain, with just a small handful of factories currently operating or in development to produce cells, ingots, wafers, polysilicon, and other subcomponents. Manufacturers like Qcells, which is building some of that upstream capacity at its factories in Georgia, argue that it’s crucial to national security to diversify the supply chain away from China.
“We see domestic content as probably the most critical tool to supporting the factories that we’re investing in,” Marta Stoepker, the head of corporate communications for Qcells, told me. “Not having direct access at home to that technology opens a myriad of vulnerabilities from an energy standpoint. Until we can actually catch up, we need policies that are really, really proactive and aggressive to onshore.”
Tax credits aren’t the only option. Protective trade policies like tariffs on imported modules and anti-dumping duties have also helped. And Stoepker and Martin Pochtaruk, the CEO of solar manufacturer Heliene, both suggested that permitting reform could be another potential vehicle to support domestic manufacturing, for example by offering faster approvals to projects that use U.S.-made equipment.
The problem with that idea, Gibbs told me, is that it means adding additional administrative complexity to a policy that’s supposed to remove red tape.
Everyone I spoke to agreed that in the near term, the most important thing Congress could do to help clean energy is break down some of the non-cost barriers to development through permitting reform. Some, like Gibbs, were optimistic that a package could come together by the end of the year. She argued that both parties have learned they can’t afford to wait for the perfect deal. “Every single year of inaction on permitting reform means that less new energy gets built, and that’s higher cost for consumers,” she said.
Representative Jared Huffman, the ranking member on the House Natural Resources Committee, was less sure. He told me that as long as the Trump administration continues to shut down clean energy projects, “I don’t think Democrats can engage in a serious way with Republicans on permitting reform.”
When I reached out to Democrats in Congress, I asked them whether they still saw a need for solar and wind incentives, whether tax credits were still their favored mechanism, or if there were other ideas being tossed around. The response was nearly unanimous — they told me they were determined to restore the tax credits. “Bottom line, the tax credits worked and the U.S. saw a clean energy boom like never before,” Senator Ron Wyden of Oregon, who serves as the ranking member of the Senate Finance Committee, told me in an email. “So we need to put that framework back in place.” The only departure from that narrative came from a Hill staffer who told me there was a general lack of imagination in the Democratic caucus about where energy policy and climate policy should go next, hence the focus on the tax credits.
While nobody thinks restoration will be possible under Trump, some in Congress are already preparing for the next opening. Two Democrats in the House, Sean Casten from Illinois and Mike Levin from California, introduced the Energy Bills Relief Act in March, which would reinstate the credits, among other policies to support energy affordability. In an interview, Representative Levin told me he thinks it’s become “one of the consensus House Democratic blueprints for energy affordability.” The tax credits are “a tried and true way to incentivize people to build clean energy, for consumers to invest in clean energy,” he said.
For Huffman, who supports Levin and Casten’s bill, the tax credits aren’t necessarily about helping wind and solar compete. The point is to get off of fossil fuels faster. “If you believe the science that we are in a race against time to avoid tipping points that could make this planet unlivable,” he told me, “then I think you lean towards a more aggressive policy of speeding up this transition, and that’s where I fall.”
On Puerto Rico’s grid, West Virginia’s rare earths hub, and China’s trucking fight
Current conditions: Flooding from heavy rains in Ivory Coast and Ghana has killed at least 71 people so far • Barreling northwest of the Philippines, Tropical Depression Henry could strengthen into a storm by this evening • Philadelphia is roasting in 100 degrees Fahrenheit and bracing for thunderstorms as France and Paraguay prepare for Saturday’s World Cup knockout game.
On Wednesday afternoon, the Nuclear Regulatory Commission pitched two sweeping overhauls of the nation’s rules for building atomic power stations. The first proposal calls for replacing a radiation protection standard called As Low as Reasonably Achievable, or ALARA, with hard dose limits. “This rulemaking is raising the bar on clarity in our regulations. It is not lowering the bar on our safety standards,” Ho Nieh, the NRC chairman, told a small group of reporters on a call. “Dose limits for members of the public? They are not changing. We’re just really putting in clarifications on how to address doses below regulatory limits.” The second proposal expands the menu of options available to developers pursuing licensing through one of the NRC’s existing pathways, allowing some novel approaches to weighing the risk of certain technologies to factor into older processes.
The announcement came the same day the Department of Energy reached a milestone in its reactor pilot program. Launched last year, the program set a goal of three of its 10 participating companies building test reactors and splitting atoms for the first time by July 4. On Wednesday, the startup Deployable Energy, which is seeking to commercialize a 1-megawatt reactor, said it had reached criticality on its Unity test reactor at the Idaho National Laboratory, becoming the third developer after fellow microreactor companies Aalo Atomic and Valar Atomics to sustain a chain reaction within its reactor. “Yesterday, we accomplished a significant milestone on a timeline many thought was unachievable,” Secretary of Energy Chris Wright said in a statement. “Advanced nuclear technologies like Unity will help power the next generation of American industry, strengthen our energy security, and ensure the United States remains the world’s nuclear innovation leader.”
PJM Interconnection’s struggle to muster up enough electricity generation to meet surging demand from data centers and air conditioners is well known at this point. But the difficulty the nation’s largest power grid system has just predicting how much electricity it will need raises real concerns over whether PJM can keep the lights on. Between 4 p.m. and 5 p.m. ET today, demand for electricity in PJM Interconnection could top out at 166 gigawatts, according to the energy consultancy ICF. That’s roughly 10 gigawatts higher than PJM’s projected summertime peak of 156 gigawatts for all of this year. “Because PJM’s planning methodology relies on a rolling 30-year historical weather average, it operates under the assumption that the future will resemble the past,” ICF wrote in a memo. “This modeling creates systemic risk, underestimating the frequency and severity of future extreme weather events.” As Heatmap’s Matthew Zeitlin wrote last month, PJM territories such as New Jersey have seen average bills soar from about $91 to $140 over the past five years, while prices are up some 52%, per data from the Heatmap-MIT Electricity Price Hub.
In New York City, meanwhile, Mayor Zohran Mamdani has urged residents in the five boroughs to keep air conditioners set to 78 degrees to conserve electricity and avoid brownouts. “A stable grid means the AC stays on, and lives are saved,” he wrote in a post on X. “Let’s ease demand — and get through the heat — together.” New York’s statewide grid operator has warned for months that the zone that includes New York City and its surrounding suburbs is at risk of outages due to a gap between supply and demand that virtually matches the output of the Indian Point nuclear plant that shut down in 2021.

Of the $14.3 billion the federal government earmarked for the reconstruction of Puerto Rico’s grid, 75% of the funding remains unspent nearly a decade after Hurricane Maria laid waste to the U.S. territory’s electrical system. The Federal Emergency Management Agency alone is sitting on $8.4 billion, and just 400 of the 16,000 miles of transmission and distribution lines that were slated for tree trimming have had overgrown vegetation cleared. That’s all according to the findings of a new report from the Government Accountability Office, an independent federal watchdog within the government. One bright spot for Puerto Ricans has been the success of residential solar panels and batteries in supplying power during frequent outages. But the report notes that the Energy Department canceled up to $350 million in grants for installing solar panels on the homes of disabled and low-income Puerto Ricans. “The GAO report confirms what we’ve been saying for months: This administration’s shortcomings and the lack of coordination among all stakeholders have delayed the disbursement of funds,” Representative Pablo José Hernández Rivera, Puerto Rico’s resident commissioner, a nonvoting delegate to the U.S. Congress, said in a statement. “Puerto Rico needs less division and excuses and more teamwork with results.”
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Last year, Wyoming, the country’s top coal-producing state, announced that its first new coal mine to open in decades would also produce rare earths. Now West Virginia, where the waning coal industry nevertheless remains a central part of the culture and economy, is getting in on the rare earths game. On Wednesday, an investment company led by the Trump administration’s former critical minerals czar unveiled plans to develop a new hub for refining rare earths out of ore in Rupert, a tiny mountain town in southeastern West Virginia. The project is being developed by the White House and led by Drew Horn, who worked as an adviser to the Energy Department and the Office of the Director of National Intelligence during Trump’s first term. Described as a “partnership,” the deal includes the Houston-based rare earths refiner Flash Metals USA, the industrial giant AmForge, and the Greenbrier Smokeless Coal Company, which already operates a metallurgical coal mine in Rupert.
“The initiative is backed entirely by private investment — not state government subsidies, taxpayer funding, or state incentives,” GreenMet, the investment company leading the project, said in a statement. “Instead, private investors recognized West Virginia’s abundant natural resources, skilled workforce, and strategic advantages, committing approximately $150 million to launch this first-of-its-kind processing hub.” While the future refineries aim to extract traces of rare earths left behind in coal mine waste, the project has already secured deals to buy more ore from Greenland, Canada, and Cameroon to beef up its output.
There was once a time when hydrogen fuel cells seemed like a serious rival to lithium battery packs as the energy source to power future passenger vehicles. But over the past decade, battery-powered electric vehicles won the market as prices came down and the infrastructure for buying hydrogen fuel lagged. Still, the limits of batteries — which are already very heavy in passenger cars, and weigh multiple tons when large enough to propel trucks — to affordably power tractor-trailer trucks seemed to leave the heavy-duty vehicle market open to hydrogen. But an article in the in-house magazine of Sinopec, China’s state-owned oil company, now calls into question hydrogen’s future in trucking in the People’s Republic, which has one of the most built-out networks for using the technology anywhere in the world. “In the past, it was generally assumed that electric vehicles would replace gasoline and hydrogen vehicles would replace diesel,” the Mandarin-language article reads, according to a translation I ran through Claude. “But with advances in EV technology and the development of charging and battery-swapping infrastructure, the traditional hydrogen vehicle scenarios of ‘medium-to-heavy loads and long range’ are now also trending toward being taken over by battery-electric heavy trucks.”
Meanwhile, in the inland Henan province, a pair of deep geothermal wells were connected to create a closed-loop system. The wells, dug nearly 11,500 feet deep, reach a temperature of nearly 245 degrees Fahrenheit. Once completed, the wells will be part of seven separate systems designed by developer Wanjiang New Energy to provide district heating. The technology, Think Geo Energy noted, “unavoidably draws comparisons to the closed-loop geothermal technology designed and built by Eavor Technologies,” whose CEO Mark Fitzgerald joined Heatmap’s Shift Key podcast last year.
Build Your Dreams? More like Beat Your Deliveries. Chinese auto giant BYD delivered 557,090 fully electric vehicles in the second quarter of 2026 — trouncing the roughly 400,000 deliveries Tesla is expected to report for the same quarter, according to Electrek. We’ll find out later today when Tesla announces its latest earnings.
Plus, Google and Amazon report on what hyperscaling has done to their emissions.
There’s an interesting new report out today from the progressive think tank Groundwork Collaborative that makes a case for how Democrats can harness the artificial intelligence and data center boom to help the power grid — while also cutting costs for electricity customers.
But first, some news. We’ve known for some time now that artificial intelligence is transforming America’s biggest technology companies, turning them into major energy consumers and even quasi-industrial firms. Now we have even more evidence that it’s driving up their carbon emissions, too.
Google and Amazon released their annual sustainability reports yesterday, and both show huge surges in their energy use and climate pollution. Google’s greenhouse gas pollution grew by 18% last year, its largest year-over-year jump on record, and its energy use leapt by 37%. The company’s energy use rose by more than a quarter last year; it now uses roughly 3.5 times as much energy as it did before the pandemic.
Amazon’s climate pollution, meanwhile, increased by more than 16%, surging by the equivalent of more than 10 million metric tons of carbon dioxide. Emissions from its purchased electricity increased 34% since last year. If you feel like you’re seeing more Rivian-made Amazon delivery vans on the road, you’re not wrong: The company claims it deployed an additional 21,000 last year.
What’s driving this surge? The AI boom, of course. “Our AI infrastructure buildout is currently accelerating faster than the grid is decarbonizing,” Kate Brandt, Google’s chief sustainability officer, said in a statement.
What to do about it? That’s what Groundwork’s report is about.
“How do we bring down costs now? How do we bring down costs in the long term? And how can we make those two things mutually reinforcing?” Grayson Flood, the report’s author and a former policy adviser to Representative Alexandria Ocasio-Cortez, told me. “We wanted to be pretty direct about addressing what we see as a broken incentive structure within the system, particularly for interregional transmission.”
The report outlines a few novel ideas about how to lower prices immediately, in part to get through a coming multi-year “crunch,” during which the power grid in some regions will be maximally constrained while utilities work to bring new power plants online:
The report also imagines several policy ideas to help build out the grid. One of them is a Grid Trust Fund, a new federal bank account funded through an excise tax on data centers and other large electricity loads.
The government has often turned to funds like these to support infrastructure that creates a natural monopoly at national scale, Flood said. “The interstate highway is the most notorious example, but you can look at airports, you can look at seaports — they have these types of trust funds. There’s a lot of precedent for this in the tax code, and they tend to be financed with excise taxes on some sort of corresponding usage of the infrastructure.”
Under his scheme, the new excise tax would fall on big power users like data centers or crypto miners that don’t generate many permanent local jobs — in other words, aluminum smelters, steel mills, and semiconductor fabs would be exempt from it. But even just taxing electricity for large loads at 1 or 1.5 cents per kilowatt-hour, he said, could throw off more than $100 billion in a decade. That money could then be used to fund new transmission projects, technical assistance for utilities, ratepayer relief, or economic development.
That trust fund would be partly overseen by a National Power Authority, a new government corporation modeled on the Tennessee Valley Authority or the Energy Department’s existing power marketing administrations. This authority would have limited powers and would be partly inspired by Texas’ successful effort to centrally plan transmission lines in order to expand its electricity market.
The new authority would plan and develop interregional transmission, linking far-flung regions of the country to create new power markets. It would also have the power to build new 24/7 zero-carbon electricity power plants with high up-front capital costs, such as new geothermal projects, offshore wind farms, or nuclear plants.
“People talk about the power grid as a platform,” Flood said. But “right now, the grid is not functioning as a backbone and platform, it’s functioning as a bottleneck.”
The goal of the report, he said, is to ask: “How do we build [the power grid] as a backbone to support the growth of private markets, whether that’s in renewable energy generation, or an AI data center, or a new hospital that’s showing up?”
It’s an interesting document. Many energy wonks have proposed plans to shift some of the costs of expanding the electricity system out of the ratebase — that is, out of customers’ power bills — and onto the tax base, which is funded in a more progressive way. (I recently argued for a national, publicly funded grid buildout in The New York Times.) The new Groundwork report, in essence, tries to reframe those ideas for an era of populist politics — and one in which Americans are suspicious of data centers, as Heatmap’s polling has shown.
In its fusion of populist and pro-growth attitudes, this new set of proposals reminds me of New York City Mayor Zohran Mamdani’s attempt to freeze the rent for some tenants while passing major supply-side reforms allowing new housing construction. That effort has won Mamdani praise from many housing advocates in New York (even as some remain dubious about his de facto rent freeze). Whether that kind of politics works at a national level remains to be seen.