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Good morning and happy Friday,
As the BDD went to press late Thursday, it looked like a government shutdown had been averted, although Trump’s tariff turmoil sent stocks tumbling this week. In the space of 24 hours, Ontario slapped a 25% tax increase on electricity exports to the U.S., only to back down after the President threatened to double tariffs on Canadian metals.
Meanwhile, the CERAWeek conference spawned lots of attention-grabbing headlines, including DOE Chief Chris Wright trashing renewables and irrational, 'quasi-religious' climate policies, Interior Secretary Burgum suggesting Biden “stole trillions” by halting offshore drilling without mentioning Trump’s offshore wind moratorium, and NextEra’s CEO warning against scorning renewables amidst long lead times for gas and nuclear development (here’s a 5 minute video).
In other news, the EPA launched an assault on environmental regs, although hurdles await this deregulatory spree.
Read on for more.
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Not Down and Not Out
Despite “wide-ranging attacks on renewables,” the clean energy industry “is on pace for record growth this year,” with construction of solar and energy storage capacity expected to reach all-time highs. As demand for electricity continues to increase, here’s how renewables are delivering:
⚡️ The Takeaway
Don’t “rein” on the parade. ACP released a new report this week that finds U.S. electricity demand is “projected to surge 35-50% by 2040, driven by domestic manufacturing growth, data centers, and mass electrification,” a state of affairs that calls for an “all of the above” approach to energy. With the right policies in place, solar and storage are expected to continue to boom – but a slowdown could result in nearly $250 billion of lost investment over the next decade.
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Reconcilable Differences?
While a potential shutdown was in the headlines this week, work on a budget bill – which Republicans hope to have ready by Memorial Day – is ongoing. IRA tax credits continue to drive investment – will they get chopped to help achieve massive spending cuts? Here are a few points to ponder:
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Last Sunday, 21 House Republicans sent a letter to Speaker Johnson asking him to preserve the IRA tax credits. That’s encouraging, but even for supporters, the issue “may not be a hill to die on.”
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At the state level, advocates across the country are working to make the case for federal incentives for clean energy, the majority of which are going to red districts, including several in North Carolina.
- Meanwhile in Texas, soaring demand for electricity is prompting “a quiet shift” in the politics of energy as “many lawmakers are recognizing the need to support all types of generation.”
⚡️ The Takeaway
Political tightrope. Republicans face a $369 billion dilemma: cutting IRA incentives would satisfy small-government advocates but risk billions in red-district investments. The Musk-led "green freeze" crusade creates a particularly awkward position for pro-business conservatives as manufacturers and utilities increasingly depend on these incentives. Watch for strategic carve-outs that preserve the most politically valuable credits while claiming victory on spending cuts.
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Leverage Your Potential
As many middle-schoolers could tell you, an object raised off the ground gains potential (stored) energy; when released, gravity pulls it back to Earth, converting the potential energy into kinetic energy.
It’s a pretty straightforward concept, and one that’s being taken to new heights – literally – by a partnership between a Swiss company (Energy Vault) and the Chinese government, as described in this accompanying video.
The EVx gravity energy storage system (GESS) will reach 40 stories (more than 120 m) and is being built in Rudong County, which lies about 100 miles north of Shanghai.
The building will house “a massive mechanical tower for lifting giant blocks weighing 24 tons” apiece. At times when electricity from wind and solar projects exceeds demand, the surplus energy will be used to raise the blocks; later, when additional electricity is needed, the blocks will be lowered, releasing their stored energy.
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The blocks used by EVx can be made from anything, including “soil, sand, or recycled waste,” which means the system doesn’t need any rare earth minerals and offers “a cleaner, more durable, and geopolitically flexible alternative to lithium-ion batteries.”
Gravity energy storage is rapidly evolving beyond concept stage, with multiple companies racing to scale. While Energy Vault builds skyward in China, Gravitricity is going underground, repurposing abandoned mine shafts in Scotland. With mechanical simplicity, mineral independence, and 80%+ efficiency, this technology isn't just falling into place – it's rising to meet our grid-scale storage needs.
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Building American power requires a powerful team. |
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