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The tech giant’s $650 million deal with Talen Energy has a lot to unpack.

When Talen Energy, which owns a 90% interest in the Susquehanna nuclear power plant in Northeastern Pennsylvania, announced it was selling a data center site adjacent to its power plant to Amazon Web Services, it raised some eyebrows in the energy world. The surprise was not because a large tech company made a big deal with a carbon-free power provider, or even that a tech company made a deal to buy power generated by a nuclear power plant. It was because Amazon was making this deal.
Amazon is a massive buyer of renewable power — it claims to be the world’s largest and says it’s responsible for 28 gigawatts of clean energy capacity — signing contracts with new wind and solar projects all over the world.
But a divide has opened up among tech giants when it comes to energy, with Amazon on one side and Alphabet and Microsoft on the other. The difference hinges on how much it matters where and when the new carbon-free power a company buys in order to match its electricity use.
What’s odd about the Talen deal is that it fits awkwardly into either approach, especially Amazon’s. Amazon does not count nuclear towards its renewable power goals, and in any case, it’s not a “new” source of carbon-free power. Instead, it allows Amazon to siphon somewhere between 480 and 960 megawatts of capacity from the 2,500 megawatt plant.
“Amazon needs power, they’re getting it at cheap rates. They don’t even want to talk about it like a climate thing,” Mark Nelson, the founder of Radiant Energy Group, told me.
In the past decade or so, technology companies have gone on a clean-power buying spree, funding new wind and solar projects all over the world. But there has been a divergence in what is thought to be the best way to go about it.
In 2019, Amazon announced a goal to add enough renewable power to the grid to match its own emissions by 2030 (since moved up to 2025) and to reach net zero by 2040.
Google has been 100% renewable in terms of buying clean power in the same amounts that it consumes since 2017. So in 2020, it set a new goal: to “run on 24/7 carbon-free energy on every grid where we operate by 2030.” This would mean not just matching total renewable purchases with total emissions, as Amazon is seeking to do, but also trying to get every hour of data center operation “matched” with an hour of renewable generation on the same grid.
Microsoft has a similar goal, and as a result, both companies have shown much more interest in nuclear power of late than is typical in the technology world.
“A huge bottleneck for growth for Amazon, Google, Microsoft, Facebook is access to constant electricity,” Nelson told me. Nuclear is a carbon-free electricity resource that can run at a steady output 24 hours a day, whereas wind and solar are both inherently variable.
Microsoft signed a deal with Constellation to supply power to data centers in Virginia and hired an official from the Tennessee Valley Authority to be its director of nuclear and energy innovations, while Microsoft founder Bill Gates and Sam Altman, the head of Microsoft-backed OpenAI have both invested in nuclear startups, as has Google.
Amazon’s approach — which it shares with several other large companies, including Meta — is not to match 24 hours of its operations with clean power bought locally, but rather to develop and purchase new wind and solar at the same scale of the power it consumes, especially in areas with dirty grids, thus matching the emissions from its consumption with the emissions reductions of new renewables projects. While a 24/7 matching approach may be naturally complementary with nuclear power, Amazon’s strategy doesn’t require it.
“We believe a focus on emissions is the fastest, most cost-effective and scalable way to leverage corporate clean energy procurement to help decarbonize global power grids at the fastest pace,” an Amazon spokesperson told me. “This includes procuring renewable energy in locations and countries that still rely heavily on fossil fuels to power their grids, and where energy projects can have the biggest impact on carbon reduction.”
Contracting out new renewable energy projects can have more bang for your buck in dirty grids, according to proponents of the Amazon philosophy, known as carbon matching. The hypothesis is that a renewable project in a fossil fuel-heavy grid will displace more dirty power than one that’s located near a datacenter in an already relatively clean grid like California or Washington State.
Princeton researchers who examined the carbon matching (Amazon) and temporal matching (Google and Microsoft) strategies argued that the carbon matching approach does not necessarily lead to more renewables — or less fossil fuels — on the grid than would have occurred in the absence of the tech companies, and thus does not actually greatly lower emissions. The temporal approach, on the other hand, can meaningfully displace fossil fuel power that would otherwise have to be on the grid to meet demand.
Nuclear advocates are clear-eyed that this deal won’t cause a new generating unit to sprout up out of the Susquehanna Valley. But they still see it as the kind of deal that can help ensure nuclear plants’ continued survival. Amazon’s $650 million buys it a 10-year agreement to purchase power from the plant, as well as “additional revenue from AWS related to sales of carbon-free energy to the grid,” which an Amazon spokesperson explained as a reference to the deal “ensur[ing] that the nuclear plant has stable revenues to continue generating clean power to the grid for the foreseeable future.”
Nelson, a passionate advocate for nuclear power, lamented the mass shutdown of nuclear power plants in the 2010s thanks to cheap natural gas knocking them out of power markets that didn’t value reliability or carbon-free energy. But now, he says, things are different.
“Now nuclear is getting valued for its climate properties, reliability, and low cost. We’re seeing nuclear plants cash in,” Nelson told me. “Long term PPAs with cold hard cash help me sleep better at night.”
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New tariffs and price floors for imported polysilicon aim to protect U.S. producers from Chinese competition.
Almost exactly a month after President Donald Trump’s landmark tax law effectively eliminated a key incentive for solar developers to buy panels made in America, his administration is throwing a lifeline to manufacturers behind the nation’s fastest-growing and quickest-to-deploy source of electricity.
On Thursday afternoon, after the markets closed, the White House announced new tariffs and minimum import prices for imported polysilicon as part of an effort to prop up the domestic supply chain for the primary ingredient in semiconductors and solar panels.
The levies come in response to complaints from polysilicon makers that the dearth of U.S. factories demanding solar-grade polysilicon made it difficult to compete with Chinese giants who benefit from selling both the solar- and microchip-grade versions of the ultra-pure industrial material derived from quartz and sand. The companies made the petition under Section 232 of the Trade Expansion Act of 1962, which gives the White House the power to restrict imports and charge tariffs on imports that demonstrably impair national security.
The Trump administration will impose a 15% tariff on all imports and set baseline prices at which the levies would apply for each component in the solar supply chain. Polysilicon will have a minimum import price of $20 per kilogram. Wafers, the ultra-thin slice of crystalline silicon that acts as the foundation of a photovoltaic cell, and ingots, the silicon material before it’s sliced, will start at $100 per kilogram. Cells, the tiny silicon-based devices that absorb photons from sunlight and break away electrons that generate electrical currents, will have a minimum price of $0.22 per watt. Modules, the completed panels, are $0.38 a watt.
The majority of U.S. solar factories simply assemble wafers and cells into modules, leaving them reliant on imports. But the policy won’t hit all at once. The Commerce Department is giving companies 120 days before the restrictions kick in.
The agency will also set up an incentive program that allows manufacturers that make large capital investments in the U.S. to avoid the worst of the levies. Jeffrey Kessler, the Under Secretary of Commerce in charge of executing on 232 cases, pushed for the provision as a bid to avoid what happened when Europe attempted to protect its own solar manufacturers by setting a minimum import price meant to keep Chinese companies from flooding the market. That policy ended up subsidizing the very Chinese parent companies putting market domination ahead of profits back home.
Avoiding that outcome is tricky under any circumstances. China and the U.S. don’t have a tax treaty, which makes it difficult for American authorities to confirm a company’s ownership structure. The surest way to seal off the U.S. market is with 100% tariffs such as those imposed on Chinese electric vehicles.
In this case, the Commerce Department decided to allow companies with active plans to onshore the solar supply chain to apply for an exemption from the new trade rules. Ahead of the announcement, sources familiar with the talks listed South Korean giant Qcells, which just opened the nation’s largest integrated solar factory in Georgia, as one obvious example of a company that would pass muster.
Solar manufacturers applauded the move. “Today’s decision from the White House balances the reality of where America’'s solar energy manufacturing is today while advancing our collective ambition to onshore the entire supply chain from polysilicon to finished panels in the U.S.,” Andy Park, the global CEO of Qcells, said in an emailed statement. “American solar manufacturers are ready to rise to the occasion.”
The trade action “creates a market where wafer and cell manufacturing can happen in the United States, and companies can go fully vertically integrated,” Nick Iacovella, the executive vice president of the Coalition for a Prosperous America, a bipartisan trade association that represents manufacturing companies at every stage of the polysilicon supply chain, told Heatmap.
“What this does is cement a key input in the supply chain that’s critical not just for chips, but for the most efficient, best-performing solar modules,” he said. “We shore up our chip supply chain at a time when there is a greater urgency to derisk from China invading Taiwan — and also during a time when the AI data center boom is driving massive demand for new energy generation, with solar driving a lot of the new capacity coming onto the grid.”
The levies come a week after the Federal Communications Commission banned the use of new types of foreign-made inverters, the equipment needed to patch solar panels onto the grid. Analysts said the ban would have a limited effect on the solar industry, since it allows for the current models on the market to be sold. The purpose of that policy is to prop up domestic factories at a moment when Europe, despite its struggle to reindustrialize, is experiencing an inverter manufacturing boom.
Despite those intentions, multiple industry sources who spoke on condition of anonymity told Heatmap that trade restrictions alone would likely prove insufficient to prop up a domestic solar supply chain at the scale needed to minimize imports.
The latest data from the Rhodium Group found that new U.S. investments in solar factories peaked from the second half of 2022 through the first quarter of 2025. During that time, as Emily reported in May, the announced projects averaged more than $2 billion per quarter. At least 30 new utility-scale solar factories opened across the U.S. just last year.
Since then, development has plummeted. Investment in new solar factories announced fell to about $350 million in the first quarter of 2026, a drop of more than 80%.
By raising the price of panels overall, the Commerce Department is providing a particular boon to America’s leading solar manufacturer, First Solar. While the Phoenix-based panel-maker’s thin-film cell technology doesn’t use polysilicon, the price hike from the tariffs will give the company an edge by allowing the company to either raise its prices to match new industry-wide benefits or undercut its competitors. Investors in the company told Heatmap its recent bookings average sales of about $0.36 per watt.
Another clear winner is T1 Energy, which Roth analysts say “would eventually be a beneficiary once it ramps up its U.S. cell manufacturing, which is now expected to come online” next year. The company’s share price spiked more than 10% in after-hours trading, while First Solar was up more than 8%.
“There are a lot of people in the administration who support solar,” Iacovella said. “They just don’t want a bunch of Chinese solar panels.”
Still, he added, “this is all about the chip supply chain.” While the benefits to solar are welcome, “this is a two-for-one.”
The Trump administration has signed a deal with RWE, a German developer, to cancel more than 3 gigawatts of offshore wind near New York and New Jersey.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
There goes another one. The German energy developer RWE has signed a $1.2 billion deal with the Trump administration to give up its claims to develop offshore wind farms in New York, California, and Louisiana. The Trump administration has now bought out 12 offshore wind leases, paying energy developers $3.93 billion for the privilege of not developing renewable energy along the American coastline.
Today’s is the largest payout yet — and fittingly so, I suppose, because it is among the most damaging. As part of the deal, RWE abandoned its plans to build a more than 3-gigawatt offshore wind farm in the New York Bight. When RWE first leased that site in 2022, it paid $1.1 billion for it — the biggest offshore wind lease auction ever held in the United States.
RWE promised that the resulting facility, dubbed Community Offshore Wind, would generate 700 jobs and $3 billion in local economic activity. It would have been close enough to New Jersey and New York that its power could have flowed to either state, although no final power contract was ever signed. Now all of that is kaput.
In the eyes of some critics, RWE had overpaid for that lease — and in that context, the Trump administration has I suppose done the German developer a favor, bailing them out from a bad investment in a legally dubious manner. (New York’s attorney general is suing to block a similar payout to Total Energies.)
But even beyond that context, there remains one big problem with these deals — an issue even more glaring now than when Trump started targeting wind projects last year. It is that the United States — and especially the Northeast, and especially New York — needs as much electricity as it can get right now. The Trump administration is striving to bring new power demand online in the form of data centers, but cutting off new sources of generation if they fail to meet its aesthetic standards.
Anticipating this sensitivity, RWE’s press statement announcing the deal goes on to list major energy projects that it’s committed to in the United States. These projects all involve, coincidentally (or not), fossil fuels: They include a $900 million stake in a Louisiana liquified natural gas export terminal and a $300 million reservation for new natural gas turbines. (RWE implies, but doesn’t say outright, that it will build 15 natural gas peaker plants with these turbines.) When we asked for more details about these projects, and whether we should anticipate anything new, RWE immediately got back to us: “We are unable to discuss further details on the investments.”
Yet as RWE well knows, these projects won’t help solve a coming energy shortage in New York or New England. For one, the Louisiana LNG export terminal is, well, an export terminal: It will help move energy out of the country, not generate more of it at home. Those exports might boost Americans’ fortunes in a vague, long-term, balance-of-payments way, but they won’t keep a lid on anyone’s power bills (which, by the way, just hit an all-time high). More importantly, the 15 peaker plants that RWE cites are largely going to be built … in other regions of the country. If the lights go out on Houston Street, a new gas plant in Houston can’t help.
Americans paid $217 on average for electricity last month, according to Heatmap and MIT’s Electricity Price Hub.
July is typically the season of high electricity bills, and this year is no exception.
Nationally, the average electricity bill spiked to $217, an all-time high, according to new data from Heatmap and MIT’s Electricity Price Hub. That’s up from $177 in June, and $215 last July. Meanwhile, electricity rates were 19 cents per kilowatt-hour, virtually unchanged from June and slightly higher than July of last year.
Throughout the country, many ratepayers are seeing higher costs and charges in the portion of their bill covering the cost of power generation.
Once again, some of the most notable electricity price and bill trends were seen in the mid-Atlantic region, the heart of the data center boom and the anchor area of the PJM Interconnection. The region also includes Virginia, where Florida utility and energy developer NextEra is attempting to acquire the commonwealth’s dominant utility, Dominion.
In July, Dominion customers saw typical generation charges rise to $155 a month, up from $124 a year ago. Overall bills for Dominion customers were about $259 this past month.
The higher bills are in part due to the “fuel charge rider” that went into effect this past month to help recover about $1 billion in additional generation costs claimed by the utility. Those charges stem in part from higher fuel costs this past winter, when natural gas prices spiked to their highest level since the winter of 2022-23, Dominion officials said in a filing to the state’s utilities regulator. The MIT researchers estimate that the fuel charge added around $53 to July bills, up $12 from July of last year.
In neighboring Delaware, bills were $216 a month in July, a record high, while prices were around 19 cents per kilowatt-hour. Customers of the state’s main utility, Delmarva Power, saw a near 20% hike in the supply charge in their standard service offerings, as prices rose from around 16 cents per kilowatt-hour from last year.
The Delaware Public Service Commission voted at the beginning of last month to allow an interim rate increase of about $3 per month for the typical customer, which went into effect July 9. Soon after, Delaware Governor Matt Meyer signed a law giving the state’s regulators more discretion to reject putting certain utility costs into the rate base and thus limit subsequent price hikes requested by utilities. The governor’s office described the law as a mechanism “to prioritize prudent spending over unchecked cost recovery.”