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Energy

Tesla Board Reportedly Eyes Musk’s Replacement

On Musk’s successor, a House vote, and Spain’s blackout

Tesla Board Reportedly Eyes Musk’s Replacement
Heatmap Illustration/Getty Images

Current conditions: Flash flood warnings remain in place today throughout the south-central U.S. Israel has requested international assistance in fighting large fires that have broken out in the hills near JerusalemMay in Europe is off to a warm start, with temperatures in the mid-80s in Paris.

THE TOP FIVE

1. Tesla board began search for Musk’s replacement: report

Tesla’s board initiated a search for a chief executive to replace Elon Musk, The Wall Street Journal reported Wednesday night. With stock prices “vaporized,” car sales floundering, and dealerships becoming targets for public frustrations with the government, the board reportedly warned Musk that he needed to shift his focus from reform efforts in Washington and back to Tesla. At the time of the conversation, which happened “about a month ago,” Musk “didn’t push back,” the Journal writes, although Musk subsequently told investors on Tesla’s earnings call last week that he’d be “allocating far more of my time to Tesla.” While the board had reportedly advanced its search for Musk’s successor to the point of having “narrowed its focus to a major search firm,” the current status of the effort to find Musk’s replacement “couldn’t be determined.”

Musk has complained to those close to him that he is “frustrated to still be working nonstop” at Tesla, and has made public comments about his compensation. He spent more than $250 million on Trump’s re-election campaign, although his company faces substantial hurdles due to the president’s policies, including a significant hit from tariffs and a loss of competitive advantage if California’s ability to set vehicle emission standards stricter than the federal government’s, which has generated significant revenue for Tesla in the form of compliance credits it’s sold to other automakers, is revoked.

2. House strikes down California’s clean truck rule, cueing up clean air vote

The House of Representatives voted 231 to 191 on Wednesday evening to revoke California’s ability to incentivize clean truck purchases, a prelude to Thursday’s vote over whether or not the state can set stricter auto emission standards than the federal limits. Thirteen moderate Democrats, including Henry Cuellar of Texas, Susie Lee of Nevada, and Tom Suozzi of New York, joined Republicans in voting to block California from requiring truck dealers to sell an increasing number of zero-emission medium- and heavy-duty vehicles over time. In a separate vote on Wednesday, the House revoked another of California’s standard-setting capabilities, designed to cut down on nitrogen oxide emissions, which Republican Morgan Griffith of Virginia described as “an effort to truly vilify diesel engines.” The measures will now be sent to the Senate.

California’s authority to set these rules comes from waivers it’s been granted by the Environmental Protection Agency under the Clean Air Act, which otherwise compels states to adhere to federal standards. The Clean Air Act also allows other states to adopt California’s standards, giving the state extraordinary influence over the automotive market.

The marquee vote, however, will come on Thursday, when the House will vote to end California’s vehicle emissions waiver, which some critics have erroneously characterized as an electric vehicle mandate. Many are skeptical, however, that Congress has the authority to revoke the waiver under the Congressional Review Act. Senate parliamentarian Elizabeth MacDonough has previously said the waivers do not qualify under the CRA and “ignoring that ruling would buck decades of precedent under presidential administrations of both parties, and would lay the foundation for potentially tricky legal fights down the road should a future president decide to grant California a new waiver,” journalist Clark Mindock writes for Landmark.

3. Debate rages over whether Spain’s renewable energy dependence caused Iberian blackout

Pablo Blazquez Dominguez/Getty Images

Monday’s 18-hour blackout across Spain and Portugal has sparked a fierce and ongoing debate over whether the Iberian Peninsula’s heavy reliance on wind and solar energy is to blame. While the investigation into the cause of the blackout is still ongoing, we do know that at the time of the outage, Spain’s grid “had little ‘inertia,’ which renewables opponents have seized on as a reason to blame carbon-free electricity for the breakdown,” my colleague Matthew Zeitlin explains. In essence, gas turbines and nuclear plants have inertia that comes from spinning metal, such as a turbine, which can provide the system with a little more momentum if a generator drops off the grid. “Solar panels, however, don’t spin,” Matthew adds — hence the current line of attack by energy transition skeptics.

On Wednesday, the president of Spain’s national grid operator, Red Eléctrica, insisted that “linking what happened on Monday to renewables isn’t correct.” Spain’s prime minister, Pedro Sánchez, has likewise claimed that “Those who link this incident to the lack of nuclear power are frankly lying or demonstrating their ignorance.” But as Matthew writes, it wouldn’t necessarily be a surprise to learn that a renewables-heavy grid struggled with maintaining reliability due to low inertia — nor is it an insurmountable challenge. Read more about how inertia may have played a part in the blackout here.

4. Equinor considers ‘legal options’ against the Trump administration over canceled wind farm

Equinor, the Norwegian state-owned energy company behind Empire Wind, is reportedly considering suing the Trump administration after the Department of the Interior canceled its Long Island offshore wind farm last month. As my colleagues Emily Pontecorvo and Jael Holzman reported at the time, Empire Wind was “the second fully permitted offshore wind project” to be targeted by the administration, and its potential cancellation represents “a huge blow to New York State’s climate and clean energy goals.”

Equinor has already spent nearly $2 billion on Empire Wind, which was almost a third complete at the time Interior Secretary Doug Burgum ordered an immediate halt to construction. The company is now “considering its legal options,” The Guardian writes, and “may take Donald Trump’s administration to court.”

5. India braces for potentially deadly slate of spring heatwaves

India is preparing for a series of heatwaves in May that could potentially strain power grids and lead to dangerous blackouts, Bloomberg reports. The warning — issued on Wednesday by the director general of India’s Meteorological Department, Mrutyunjay Mohapatra — follows what was already a difficult April in the country, with temperatures in New Delhi spiking above 100 degrees Fahrenheit earlier in the month. In Jaipur, temperatures have already broken 110 degrees, leading outdoor laborers to suffer from heatstroke. Mohapatra confirmed that above-average temperatures are expected to persist over most of the country between now and the onset of the monsoon season in June, except in some parts of the southern and eastern states. Spring heatwaves in India have been linked to climate change, with Gianmarco Mengaldo, a climate expert at the National University of Singapore and author of one such report, telling The Guardian, “Many of the events predicted for 2050 or 2070 are already happening. We underestimated the speed of change.

THE KICKER

Ministers in the UK are considering a new rule that would require almost all new homes to have rooftop solar.

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Spotlight

Data Centers Have a Farmland Problem, Too

It’s not just renewables anymore.

A data center and a farm.
Heatmap Illustration/Getty Images

The movement against data centers is raising up a raison d'etre of the anti-renewables movement: protecting would-be farmland.

Farm owners and operators across the U.S. are winning national headlines almost every week for rejecting big dollar offers from data center developers. In Hanover County, Virginia, protestors are chanting “Grow Tomatoes, Not Data Centers.” In Pennsylvania and elsewhere, Republican legislators are mulling proposals to block the sale of so-called “prime farmland” for data center development. In Texas, the fight over data center development has engulfed the race for the state’s ag commissioner seat. In the Midwest, where agriculture reigns supreme, statewide races and congressional campaigns are slowly but surely being defined by the issue. Like in Nebraska where Austin Ahlman, an independent candidate running for Congress in Nebraska’s first district, told me he believes the data center backlash is reflective of a populist politics that broadly criticize elites and top-down control of the economy: “I think sometimes people misunderstand the anxieties of rural Americans when it comes to these data centers because a lot of their fears are about control long term.”

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Hotspots

Far-Right Wind Foes Call It Quits Against Coastal Virginia

And more of the week’s top news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. Virginia Beach, Virginia – The right-wing interest group lawsuit against Dominion Energy’s Coastal Virginia offshore wind is now dead, concluding one of the wackier tales of the Trump 2.0 energy era.

  • In case you may have forgotten, conservative activists – including climate denial organization the Heartland Institute – sued the federal government in 2024 to strike down the permits for the Virginia offshore wind project arguing that it didn’t take into account impacts on North Atlantic right whales. The lawsuit played into misinformed public fears that offshore wind was killing lots of endangered whales.
  • After Trump re-entered office last year, there were glimmers this lawsuit would become a sue-and-settle case. But the feds ultimately let that idea go amidst heavy lobbying. In May, the presiding judge ruled against the conservatives and last week their lawyers dismissed the appeal.
  • This outcome removes one of the more ridiculous hypotheticals possible here – that Trump would forcibly deconstruct Coastal Virginia. The project is nearing completion and began delivering power to the coastline in March. I’d consider this one as good as done.

2. Box Elder County, Utah – Call it the Box Elder County massacre.

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Hanson Wood.
Heatmap Illustration

This week’s conversation is with Hanson Wood, chief development officer for solar developer RWE. Wood’s perspective felt crucial at a moment when the data center boom is leading to so much deal volume – even after the repeal of the Inflation Reduction Act. So I reached out to his team to see if we could talk about how he’s evaluating all things Fight-related, including the impacts of the data center backlash on solar itself. The following conversation was lightly edited for clarity.

How is solar finding opportunities in the data center development space? I know there’s conversations about speed-to-power and some deal volume, but help us get a better sense of the level of capacity being sought versus fossil or other forms of energy.

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