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What parliamentary elections in France and the U.K. mean for everyone else.

While America has been distracted by its suddenly-very-real upcoming election, two other important political stories have been unfolding across the pond. The results of last week’s parliamentary votes in France and the United Kingdom have the power to sway global climate policy — and they might even contain lessons for the U.S. about the rise (or fall) of the far-right.
In June, French President Emmanuel Macron called snap elections, and the far-right National Rally party led by Marine Le Pen was widely expected to achieve a majority in the country’s 577-seat National Assembly. Instead, the New Popular Front, a hastily-formed alliance between the hard left, Greens, and Socialists, came out on top in a runoff, followed by the centrist Ensemble (which includes Macron’s Renaissance party) and the National Rally in a distant third. Because no party won the 289 seats needed to gain control of the chamber, the left and center now have to form a coalition government, which means ideological compromise — something that’s distinctly un-French. “We're not the Germans, we're not the Spanish, we're not the Italians — we don't do coalitions,” one French political commentator told Sky News.
Climate change wasn’t a big theme, but the National Rally’s proposals certainly had experts nervous. The party tapped into simmering discontent among some demographics — farmers, in particular — who feel unfairly burdened by new regulations in service of the European Union’s ambitious agenda, known as the Green Deal, including a goal to cut the bloc’s net greenhouse gas emissions by at least 55% by 2030 and reach net zero by 2050. If it had won, the party planned to dismantle France’s energy efficiency rules, roll back a 2035 ban on new gas-powered cars, block new wind farms, do away with low-emission zones, and transform electricity trade. France is already the EU’s third biggest emitter, and the EU as a whole is responsible for about 9% of global CO2 emissions, although emissions have been falling, especially in the energy sector.
As the dust settles in France, the biggest danger to climate policy now is stalemate. The lackluster results for the far right are no doubt a relief to the climate conscious. “We have avoided a catastrophe,” Alain Fischer, president of the French Academy of Sciences in Paris, told Nature. The winning NFP, for its part, backs the Green Deal’s emissions targets and wants France to become “the European leader in renewable energies” through offshore wind power and the development of hydroelectric power. It also calls for the “creation of an international court for climate and environmental justice.” But the next several months are likely to be chaotic as the parties tussle over what the government should look like, and there is no deadline for these decisions to be made. The leadership limbo could bring political paralysis at a time when the EU is just getting its bearings following bloc-wide parliamentary elections — which, by the way, saw the Greens lose seats in lots of places. In response, the non-profit Climate Group put out a statement calling for the French government to “commit to safeguarding the EU Green Deal and ensuring a sustainable future for the continent.” The good news is that a large majority of EU voters want to see more climate action.
The Labour Party won the general election in a landslide, bringing an end to 14 years of Conservative Party rule. During his tenure, former Prime Minister Rishi Sunak watered down key net-zero strategies, delayed a ban on new combustion engine vehicles, scrapped energy efficiency standards, and approved a large new oil field in the North Sea. His party also pulled low-emission zones into the culture wars in a desperate attempt to win over voters. None of this played to his advantage. According to Desmog, two-thirds of the Conservative members of Parliament who were anti-net zero lost their seats, including the former energy secretary. “With a clear mandate for climate action,” wrote climate change think tank E3G, “all eyes are now on Labour to deliver.”
New Prime Minister Keir Starmer has pledged to turn the U.K. into a “clean energy superpower” by doubling onshore wind, tripling solar power, and quadrupling offshore wind by 2030. He also plans to upgrade the grid to speed the rollout of clean energy projects, while at the same time denying new licenses for oil and gas exploration in the North Sea. He wants to establish a publicly owned clean energy firm and decarbonize the power sector by 2030. And he plans to reinstate the 2030 ban on new gas cars. The goals are lofty, and meeting them will “extensive change across every sector of the economy,” wrote Carbon Brief. But Labour seems to be wasting little time. Days after taking power, the new government scrapped a ban on onshore wind farms that had been in place since 2015 and which the new Chancellor of the Exchequer Rachel Reeves called “absurd.”
The U.K. accounts for about 1% of global greenhouse gas emissions. That might be paltry compared to, say, the U.S. (13.5%) or China (32%), but it has a chance now to use its global influence and proximity to Europe to keep the needle moving in the right direction. That goes especially if it is nudged by the Green party, which surprised everyone by quadrupling its number of seats in Parliament (albeit to just four). As The New York Times noted, Britain is where the industrial revolution began, so “the speed and scale of Britain’s energy transition is likely to be closely watched by other industrialized countries and emerging economies alike.”
What’s clear from both of these cases is that people really care about climate policy and are willing to vote with that in mind. That can swing either way, though, depending on the particular set of policies and how they affect the electorate. As extreme weather intensifies, however, it may become more difficult for far-right parties to minimize the significance of climate change. “We need to recognize that extreme weather is politicizing people against this climate denial,” said Paul Dickinson, founder of CDP, an emissions disclosure platform, and co-host of the podcast Outrage + Optimism. “It is the Achilles heel of the extreme right that they’re opposed to the realities of extreme weather. That’s how I think if we’re organized and disciplined, we will defeat them.”
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The additional clean capacity would represent nearly 3% of North America’s existing total.
North America has about 37.5 gigawatts of total virtual power plant capacity, according to energy consultancy Wood Mackenzie’s latest estimate, published last year. That capacity is spread across roughly 2,000 VPPs, which aggregate distributed energy resources like batteries, smart thermostats, and heat pumps to cut, shift, or supply electricity when the grid is under strain — effectively turning them into a single, coordinated power plant.
On Thursday, Google and VPP operator Voltus announced plans to add another 1 gigawatt of clean capacity over the next three or four years — or nearly 3% of North America’s existing total. Under Voltus’ “bring your own capacity” model, Google will fund the VPP to help meet its booming data center power needs, while Voltus will enroll businesses and households across the PJM Interconnection, the notoriously overstrained grid region spanning parts of the Midwest and Mid-Atlantic, compensating them for their participation either directly or through electricity bill credits.
The announcement expands on a three-year, 100-megawatt deal the two companies signed in June, extending their commitment through 2040. Voltus CEO Dana Guernsey told me that the smaller deal gave the companies a starting point for a much more ambitious partnership. “It’s a lot easier to explain to people how you’re going to 10x if you’ve already 1x, and so we had to start somewhere,” she said. “We always had our eyes set on bigger things.”
Earlier this month, Voltus closed an oversubscribed $225 million Series D round led by Generation Investment Management to scale its VPP portfolio to 20 gigawatts by 2030. The first phase of the Google partnership is also oversubscribed, Guernsey told me. While that flexible power won’t come online until next year, this means Voltus has already lined up over 100 megawatts of accredited capacity that PJM can count on to deliver when needed, much as it would a natural gas plant or solar-plus-storage installation.
In the meantime, the VPP operator says its broader PJM portfolio has already demonstrated what it can do. Last week, an unseasonably warm stretch of fall weather required PJM to activate its Emergency Load Response Program twice. With 46 gigawatts of generation offline for planned maintenance or construction and another 15 gigawatts unexpectedly unavailable, “distributed resources came through,” Guernsey posted on LinkedIn. “This is how a modern grid should work.” Based on preliminary data, she told me that Voltus delivered about 105% of its committed load reduction during the events.
And VPPs can do more than help avert emergencies. Grid operators are increasingly calling on distributed resources for routine grid management too, such as to ease daily price spikes, reduce emissions when the sun or wind isn’t available, or relieve congestion on a local line. “It’s nearly constant. I think soon we’ll be able to say it’s like every hour,” Guernsey told me.
So far this year, Voltus has reduced electricity demand in PJM by more than 200 gigawatt-hours. Now the company plans to lean more heavily on batteries, particularly at commercial and industrial sites, to accelerate its growth. Guernsey told me that with battery costs falling, electricity prices rising, and fixed payments to participants through 2040, the math now works to deploy batteries at scale, without exposure to unpredictable wholesale electricity prices.
She’s betting that other hyperscalers will see the value in large-scale battery deployments too. Most of the buzz today has revolved around hyperscalers bringing their own generation online — both to secure power faster and head off community opposition by paying their own way. Thus far, Google is the only hyperscaler committed to bringing its own distributed capacity through a VPP. But getting the big players to embrace these new “bring your own capacity” contracts, which Voltus launched last September, is central to its growth strategy.
Guernsey has likened these novel capacity contracts to the corporate renewable power purchase agreements that Google also helped pioneer in the early 2010s. Now she sees a similar opportunity for VPPs to move from a promising concept to a mainstream procurement tool.
“There’s been this notion that we’re coming up on an inflection point for a very long time,” she said of the VPP market. “And I want to be able to say we came up on the inflection point, we went past it, and now we are scaling. And this is an awesome proof point.”
The Federal Reserve raised the federal funds rate by a quarter point, the central bank announced Wednesday afternoon, its first rate change since Chairman Kevin Warsh took his seat in May and its first rate hike in over three years.
The federal funds rate will now sit between 3.75% and 4%. According to projections by regional Federal Reserve presidents and members of the Board of Governors, the central bank expects to hike rates one more time this year.
In its now characteristically brief statements, the Federal Open Market Committee said that the hike “will support a timelier return to the Committee's 2 percent goal” for inflation. Inflation is currently running at 3.4% and has been above the Fed’s 2% target since 2021.
The FOMC’s (brief) statement explaining the hike pointed to “resilient” domestic spending and “robust” capital investment. It characterized the economy as “expanding at a solid pace,” albeit with “elevated” uncertainty due to “geopolitical developments.”
This combination of factors — high oil prices due to the partial shutdown of the Strait of Hormuz and high investment in data centers — have helped push up yields on Treasury bonds, which helped maneuver the Federal Reserve into its rate hike. These rising Treasury yields have made raising capital more difficult for sectors besides artificial intelligence, very much including the capital-intensive renewable and clean energy industries.
Warsh attributed higher Treasury yields to “economic strength, competition for capital, and geopolitics,” in his press conference following the rate announcement. The yield on the 10-year treasury bond, often used as a benchmark for the cost of money throughout the economy, rose to over 5% on the news, the highest level since 2007.
The August Electricity Price Hub data is in.
It’s another hot and expensive summer.
Across the country, average household electricity bills are up 2.7% in the first eight months of the year, according to the latest update to Heatmap and MIT’s Electricity Price Hub, tacking on $4 per month to the typical bill. This level of rise is consistent with the pace set in 2024 and 2025, but faster than 2021 and 2023.
As we’ve discussed before, some of the fastest growth in prices comes either in the Atlantic Seaboard — with Washington, D.C., Virginia, and New Jersey all having year over year growth rates of at least 7.5% — thanks largely to increased demand and capacity payments in the PJM Interconnection marketplace. Another standout so far this year is Hawaii, which is uniquely dependent on imported oil to power its grid and has seen its 12-month trailing average prices rise by over 8% so far this year.
California, which is well known for seeing especially sharp price increases in recent years largely due to wildfire-related costs, has seen somewhat restrained bill growth so far this year across the state, with the 12-month-rolling average bill rising just 3% in the past 12 months and prices going up 4%. (That price level is still quite high, however, at almost 32 cents per kilowatt-hour, compared to a national average of around 19.)
Rates charged by Southern California Edison, one of the state’s big three investor-owned utilities, are up almost 15% in the past year, averaged across its baseline regions. The MIT researchers attribute this increase to two major factors: one, a decrease in the California Climate Credit, which is paid out to electricity customers from the state’s emissions cap-and-invest program. This year, the credit for Southern California Edison ratepayers is $72, applied to bills in July and August in tranches of $36. Last year, by contrast, Southern California Edison handed out $112 in two tranches, April and October.
The second factor in Southern California Edison’s inflated bills is an increase in the fixed charge portion of the bills ratepayers receive. Following changes in California state law designed to distribute the cost of the grid more equitably, SCE revamped its rate structure at the end of last year to include a “Base Services Charge” of $24 per month for customers not enrolled in any special rate program. At the same time, SCE instituted a roughly 10% decrease in its per-kilowatt-hour electricity rate in order to protect lower-income ratepayers (who would pay a fixed charge substantially lower than the baseline $24). PG&E moved to a similar system earlier this year.
When it introduced the new rates in November of last year, SCE said that “medium energy users” would likely see little change in their bills. Price Hub data suggests, however, that the typical household has seen a bill increase from the new service charge of 13%, even before accounting for the smaller climate credit.