Search Climate Insights Directory

The report identifies metering and telemetry as a primary barrier to scaling virtual power plants (VPPs) in the United States, citing inconsistent regional requirements and hardware restrictions. It evaluates five metering approaches based on affordability, reliability, and fairness to provide actionable recommendations for grid operators and policymakers. Additionally, it references a companion report specifically addressing utility VPPs where the utility acts as the service purchaser.

The document argues that fusion energy is transitioning from laboratory research to commercial viability, with many U.S. startups projecting grid connection by the first half of the 2030s. It outlines how states can create competitive advantages by implementing specific regulatory reforms, such as becoming an NRC Agreement State to manage radiological licensing, and by adopting legislative tools like explicitly defining fusion as a clean energy source in state statutes. The brief also suggests financial mechanisms including state-level investment tax credits, the creation of dedicated fusion energy funds, and the repurposing of retired fossil fuel sites—termed "fusion brightfields"—to leverage existing grid infrastructure. Additionally, it emphasizes the importance of developing specialized workforces and innovation hubs around universities and national laboratories to support the industry's growth.

The report argues that smart grids are essential for ASEAN to integrate rapidly growing solar and wind capacity while supporting industrial growth. It estimates that an investment of $4 billion to $10.7 billion is needed to modernize power systems, which could potentially unlock $2.3 billion in annual economic value by 2040 and create between 243,000 and 649,000 jobs. The document highlights the need for regional cooperation to harmonize grid codes and mobilize green finance to overcome current fragmented standards and financing gaps.

The global economy is undergoing an 'electrotech revolution' driven by drastic cost reductions in solar, wind, and battery technologies, with clean energy investments projected to top US$2 trillion in 2025. Canada is well-positioned due to its low-cost electricity and critical mineral reserves, but faces rising electricity demand in provinces like B.C., Quebec, Ontario, and Alberta that exceeds supply. To compete, the author recommends that Canadian governments strengthen clean electricity regulations and tax credits, support the electrification of heavy industries (such as steel and cement) through blended finance and carbon pricing, and create incentives to develop critical minerals value chains while sharing financial risks with investors.

The briefing explains that the western grid operates as an interconnected web where electricity flows across state and utility boundaries to balance supply and demand. It highlights that most major utilities in the West acted as both importers and exporters of electricity in 2024, providing a critical safety net during emergencies. Case studies from 2024 illustrate how the Pacific Northwest relied on imports from the Southwest and Rockies during a January cold snap, and how Montana imported 59% of its demand during a July heat wave and generator outage. The document concludes that increasing demand from AI and manufacturing necessitates further investment in regional transmission planning and projects like SunZia and Greenlink.

The report examines how battery energy storage can enhance grid reliability—specifically resource adequacy, stability, and resilience—while reducing costs. It contrasts the successful deployment of batteries in Texas (ERCOT) and California (CAISO), where well-defined ancillary services and value stacking have lowered costs, with the PJM region, where high uplift costs and interconnection hurdles persist. The author recommends that regulators and planners define competitive ancillary service products, properly value resource adequacy, and modernize interconnection processes to replace expensive legacy fossil fuel generators.

The document challenges the common use of the term "baseload" as a justification for favoring specific energy resources, clarifying that "baseload" refers to the minimum constant load of an electric system rather than a specific type of power plant. It argues that describing certain resources as "baseload resources" does not prove they are the most cost-effective or reliable options for meeting that demand, nor does it guarantee grid security during peak demand. The brief aims to distinguish between "baseload," "dispatchable," and "firm" resources to counter rhetoric suggesting that retiring such resources inherently risks grid reliability.

The briefing identifies regulatory uncertainty, slow permitting, and the lack of a cohesive strategy as primary barriers to geothermal energy in California. It proposes establishing a statewide strategic plan, streamlining environmental reviews, updating decades-old well regulations to accommodate next-generation technologies, reforming interconnection and resource adequacy frameworks to reflect year-round value, and increasing funding for high-upfront pre-development costs.

As of Q2 2025, US utility resource plans show a trend of increasing electricity demand projections and a corresponding increase in planned gas power plant capacity, leading to a widening gap between projected emissions and net-zero targets.

The Union of Concerned Scientists finds that major transmission projects in California are experiencing significant delays, averaging an additional 6.1 years beyond original estimates. These delays, driven by utility reprioritization and permitting hurdles, hinder the integration of clean energy and threaten grid reliability. The brief recommends expanding competitive solicitation, increasing agency permitting capacity, implementing public financing, and deploying grid-enhancing technologies.

RMI analysis indicates that repealing tech-neutral clean electricity tax credits, such as the Investment Tax Credit (ITC) and Production Tax Credit (PTC), would significantly raise electricity costs for American farmers and rural electric cooperatives. For a mid-sized dairy farm, annual costs could increase by $10,000 in 2026, while Wisconsin’s Dairyland Power Cooperative could see project costs more than double, increasing annual costs by $137 million. These credits are described as essential for reducing operating costs, diversifying income, and improving grid resilience in rural areas, which already face a 33 percent higher energy burden than the rest of the nation.

US utilities face a projected 270 GW power gap due to rising demand from AI and electrification and the retirement of coal plants. While utilities are increasingly relying on gas-fired capacity, major turbine manufacturers (GE Vernova, Siemens Energy, and Mitsubishi Power) report delivery timelines extending to 2028-2030 and record backlogs. This supply crunch, combined with rising procurement costs—exemplified by a $900 million cost increase for Duke Indiana's Cayuga plant—creates reliability risks. The report suggests alternatives such as energy efficiency, virtual power plants, grid-enhancing technologies, and clean repowering to meet near-term load growth.

The Department of Energy (DOE) has ordered the J.H. Campbell coal plant in Michigan and units of the Eddystone oil and gas plant in Pennsylvania to remain open, overturning planned retirements. Earthjustice contends these orders are an illegal abuse of Section 202(c) of the Federal Power Act, as there is no evidence of a reliability risk. The document asserts that these actions override state regulators and market decisions to prop up uncompetitive fossil fuels, potentially costing utility customers millions and hindering the transition to clean energy.

California possesses vast untapped geothermal potential, particularly in superhot rock resources, which could significantly support the state's clean energy goals. However, the industry faces substantial barriers, including a lack of long-term strategic planning, complex and lengthy permitting processes, outdated regulations, and interconnection uncertainties. The report recommends the creation of a statewide strategic plan, streamlining environmental reviews, updating well regulations, and establishing a clean energy infrastructure financing fund to attract private capital and accelerate deployment.

The report critiques the reliance on Levelized Cost of Electricity (LCOE) for power system planning, noting that while useful for tracking historical technology costs, it fails to account for system-wide needs, generation profiles, and integration costs. It highlights that clean firm technologies can reduce overall system costs despite higher LCOEs. The authors recommend moving toward comprehensive system-level analyses that model temporal and spatial constraints to optimize decarbonization pathways.

Michigan faces grid reliability issues, including frequent blackouts and narrowing capacity for peak demand. Virtual power plants (VPPs), which aggregate distributed energy resources (DERs), are proposed as a solution to support the state's clean energy goals of 80% by 2035 and 100% by 2040. The document recommends that utilities seek funding from the Department of Environment, Great Lakes, and Energy (EGLE) and the Michigan Public Service Commission (MPSC), utilize the MPSC's 90-day pilot review program, and that the legislature mandate VPP implementation. Additionally, it suggests the MPSC allow residential and small commercial aggregation in wholesale markets and update metering infrastructure procurement to ensure DER integration capabilities.

The North Plains Connector (NPC) is a $3.2 billion, 420-mile high-voltage direct current transmission project designed to connect the western and eastern electric grids. The developer, North Plains Connector LLC, has adopted a "landowner-first approach," prioritizing voluntary agreements over eminent domain and modifying the route by adding 50 miles to accommodate local siting requests. Community benefits include $3.9 million in grants distributed via local foundations, over $62 million in federal TSED grants secured for local infrastructure, and the creation of approximately 800 construction jobs. The project also facilitates expanded wind energy exports for the Standing Rock Sioux. While this high-upfront-investment model has reduced local opposition, the document notes it requires "patient capital" and its long-term financial efficiency compared to traditional development remains unproven.

The U.S. may need to triple its transmission capacity by 2050, requiring over $40 billion in annual investment by 2031. Relying on private, for-profit utility financing risks increasing consumer rates and reducing political support for the energy transition. Research commissioned by the Clean Air Task Force (CATF) in California suggests that public or public-private financing using low-cost public debt could save ratepayers up to $3 billion annually, or $123 billion over 40 years. To achieve these savings, the document recommends that policymakers employ new institutional models, such as dedicated transmission authorities, and utilize low-cost public debt like bonds and loans. It highlights the roles of existing authorities in New Mexico and Colorado as examples. Key recommendations for state transmission authorities include using planning processes to test alternative financing, appointing coordinators to speed up implementation, utilizing credit enhancements, and issuing general obligation or revenue bonds to alleviate costs for ratepayers.

The report finds that large-scale transmission projects in the US are cost-effective, with analyzed projects delivering benefits that exceed their costs and often surpass original expectations and regulatory standards.

RMI introduces the "Power Couples" model, which pairs large electricity consumers, such as AI data centers, with new-build wind, solar, and battery resources located near existing generators with approved grid interconnections. This approach aims to bypass long grid access wait times—which can reach five years for generation and eight years for transmission—while ensuring that the costs of new demand are borne by the users rather than general ratepayers. RMI's analysis indicates that this strategy could satisfy over 50 GW of new load at an average of 88% carbon-free energy, with significant opportunities concentrated in the PJM, ERCOT, and Southeast regions.