British carbon tax leads to 93% drop in coal-fired electricity

China Solar Grid Parity signals unsubsidized industrial and commercial PV, rooftop solar, and feed-in tariff guarantees competing with grid electricity and coal power prices, driven by cost declines, policy reform, and technology advances.

Key Points

Point where PV in China meets or beats grid electricity, enabling unsubsidized industrial and commercial solar.

✅ City-level analysis shows cheaper PV than grid in 344 cities.

✅ 22% can beat coal power prices without subsidies.

✅ Soft-cost, permitting, and finance reforms speed uptake.

Solar power has become cheaper than grid electricity across China, a development that could boost the prospects of industrial and commercial solar, according to a new study.

Projects in every city analysed by the researchers could be built today without subsidy, at lower prices than those supplied by the grid, and around a fifth could also compete with the nation’s coal electricity prices.

They say grid parity – the “tipping point” at which solar generation costs the same as electricity from the grid – represents a key stage in the expansion of renewable energy sources.

While previous studies of nations such as Germany, where solar-plus-storage costs are already undercutting conventional power, and the US have concluded that solar could achieve grid parity by 2020 in most developed countries, some have suggested China would have to wait decades.

However, the new paper published in Nature Energy concludes a combination of technological advances, cost declines and government support has helped make grid parity a reality in Chinese today.

Despite these results, grid parity may not drive a surge in the uptake of solar, a leading analyst tells Carbon Brief.

Competitive pricing

China’s solar industry has rapidly expanded from a small, rural program in the 1990s to the largest in the world, with record 2016 solar growth underscoring the trend. It is both the biggest generator of solar power and the biggest installer of solar panels.

The installed capacity of solar panels in China in 2018 amounted to more than a third of the global total, with the country accounting for half the world’s solar additions that year.

Since 2000, the Chinese government has unveiled over 100 policies supporting the PV industry, and technological progress has helped make solar power less expensive. This has led to the cost of electricity from solar power dropping, as demonstrated in the chart below.

In their paper, Prof Jinyue Yan of Sweden’s Royal Institute of Technology and his colleagues explain that this “stunning” performance has been accelerated by government subsidies, but has also seen China overinvesting in what some describe as a clean energy's dirty secret of “redundant construction and overcapacity”. The authors write:

“Recently, the Chinese government has been trying to lead the PV industry onto a more sustainable and efficient development track by tightening incentive policies with China’s 531 New Policy.”

The researchers say the subsidy cuts under this policy in 2018 were a signal that the government wanted to make the industry less dependent on state support and shift its focus from scale to quality.

This, they say, has “brought the industry to a crossroads”, with discussions taking place in China about when solar electricity generation could achieve grid parity.

In their analysis, Yan and his team examined the prospects for building industrial and commercial solar projects without state support in 344 cities across China, attempting to gauge where or whether grid parity could be achieved.

The team estimated the total lifetime price of solar energy systems in all of these cities, taking into account net costs and profits, including project investments, electricity output and trading prices.

Besides establishing that installations in every city tested could supply cheaper electricity than the grid, they also compared solar to the price of coal-generated power. They found that 22% of the cities could build solar systems capable of producing electricity at cheaper prices than coal.

Embracing solar

Declining costs of solar technology, particularly crystalline silicon modules, mean the trend in China is also playing out around the world, with offshore wind cost declines reinforcing the shift. In May, the International Renewable Energy Agency (IRENA) said that by the beginning of next year, grid parity could become the global norm for the solar industry, and shifting price dynamics in Northern Europe illustrate the market impact.

Kingsmill Bond, an energy strategist at Carbon Tracker, says this is the first in-depth study he has seen looking at city-level solar costs in China, and is encouraged by this indication of solar becoming ever-more competitive, as seen in Germany's recent solar boost during the energy crisis. He tells Carbon Brief:

“The conclusion that industrial and commercial solar is cheaper than grid electricity means that the workshop of the world can embrace solar. Without subsidy and its distorting impacts, and driven by commercial gain.”

On the other hand, Jenny Chase, head of solar analysis at BloombergNEF, says the findings revealed by Yan and his team are “fairly old news” as the competitive price of rooftop solar in China has been known about for at least a year.

She notes that this does not mean there has been a huge accompanying rollout of industrial and commercial solar, and says this is partly because of the long-term thinking required for investment to be seen as worthwhile.

The lifetime of a PV system tends to be around two decades, whereas the average lifespan of a Chinese company is only around eight years, according to Chase. Furthermore, there is an even simpler explanation, as she explains to Carbon Brief:

“There’s also the fact that companies just can’t be bothered a lot of the time – there are roofs all over Europe where solar could probably save money, but people are not jumping to do it.”

According to Chase, a “much more exciting” development came earlier this year, when the Chinese government developed a policy for “subsidy-free solar”.

This involved guaranteeing the current coal-fired power price to solar plants for 20 years, creating what is essentially a low feed-in tariff and leading to what she describes as “a lot of nice, low-risk projects”.

As for the beneficial effects of grid parity, based on how things have played out in countries where it has already been achieved, Chase says it does not necessarily mean a significant uptake of solar power will follow:

“Grid parity solar is never as popular as subsidised solar, and ironically you don’t generally have a rush to build grid parity solar because you may as well wait until next year and get cheaper solar.”

Policy proposals

In their paper, Yan and his team lay out policy changes they think would help provide an economic incentive, in combination with grid parity, to encourage the uptake of solar power systems.

Technology costs may have fallen for smaller solar projects of the type being deployed on the rooftops of businesses, but they note that the so-called “soft costs” – including installation and maintenance – tend to be “very impactful”.

Specifically, they say aspects such as financing, land acquisition and grid accommodation, which make up over half the total cost, could be cut down:

“Labour costs are not significant [in China] because of the relatively low wages of direct labour and related installation overhead. Customer acquisition has largely been achieved in China by the mature market, with customers’ familiarity with PV systems, and with the perception that PV systems are a reliable technology. However, policymakers should consider strengthening the targeted policies on the following soft costs.”

Among the measures they suggest are new financing schemes, an effort to “streamline” the complicated procedures and taxes involved, and more geographically targeted government policies, alongside innovations like peer-to-peer energy sharing that can improve utilization.

As their analysis showed the price of solar electricity had fallen further in some cities than others, the researchers recommend targeting future subsidies at the cities that are performing less well – keeping costs to a minimum while still providing support when it is most needed.

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U.S. Hybrid Vehicle Sales Outlook highlights rising hybrid demand as an EV bridge, driven by emissions rules, range anxiety, charging infrastructure gaps, and automaker strategies from Ford, Toyota, and Stellantis across U.S. markets.

Key Points

Forecast of U.S. hybrid sales shaped by EV adoption, emissions rules, charging access, and automaker strategies.

✅ S&P sees hybrids at 24% of U.S. sales by 2028

✅ Bridges ICE to EV amid range and charging concerns

✅ Ford, Toyota, Stellantis expand U.S. hybrid lineups

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models.

Ford Motor is the latest of several top automakers, including Toyota and Stellantis, planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.

The companies are pitching hybrids as an alternative for retail and commercial customers who are seeking more sustainable transportation, but may not be ready to make the leap to a full electric vehicle.

"Hybrids really serve a lot of America," said Tim Ghriskey, senior portfolio strategist at New York-based investment manager Ingalls & Snyder. "Hybrid is a great alternative to a pure electric vehicle (and) it's an easier sell to a lot of customers."

Interest in hybrids is rebounding as consumer demand for pure electrics has not accelerated as quickly as expected, with EV market share dipping in Q1 2024 according to some analyses. Surveys cite a variety of reasons for tepid EV demand, from high initial cost and concerns about range to lengthy charging times and a shortage of public charging infrastructure in many regions.

“With the tightening of emissions requirements, hybrids provide a cleaner fleet without requiring buyers to take the leap into pure electrics,” said Sam Fiorani, vice president at AutoForecast Solutions.

S&P Global Mobility estimates hybrids will more than triple over the next five years, accounting for 24% of U.S. new vehicle sales in 2028. Sales of pure electrics will claim about 37%, supported by strong U.S. EV sales into 2024 momentum, leaving combustion vehicles — including so-called “mild” hybrids — with a nearly 40% share.

S&P estimates hybrids will account for just 7% of U.S. sales this year, and pure electrics 9%, underscoring that EV sales still lag gas cars as internal combustion engine (ICE) vehicles take more than 80%.

Historically, hybrids have accounted for less than 10% of total U.S. sales, with Toyota’s long-running Prius among the most popular models. The Japanese automaker has consistently said hybrids will play a key role in the company's long-range electrification plans as it slowly ramps up investment in pure EVs.

Ford is the latest to roll out more aggressive hybrid plans. On its second-quarter earnings call in late July, Chief Executive Jim Farley surprised analysts, saying Ford expects to quadruple its hybrid sales over the next five years after earlier promising an aggressive push into all-electric vehicles.

“This transition to EVs will be dynamic,” Farley told analysts. “We expect the EV market to remain volatile until the winners and losers shake out.”

Among Ford’s competitors, General Motors appears to have little interest in hybrids in the U.S., while Stellantis will follow Toyota and Ford’s hedge by offering U.S. buyers a choice of different powertrains, including hybrids, until sales of pure electric vehicles start to take off after mid-decade, a potential EV inflection point according to forecaster GlobalData.

In a statement, GM said it, echoing leadership's view that EVs won't go mainstream until key issues are addressed, "continues to be committed to its all-electric future ... While we will have hybrid vehicles in our global fleet, our focus remains on transitioning our portfolio to electric by 2030.”

Stellantis said hybrids now account for 36% of Jeep Wrangler sales and 19% of Chrysler Pacifica sales. In addition to new pure electric models coming soon, "we are very bullish on hybrids going forward," a spokesperson said.

This year, manufacturers are marketing more than 60 hybrids in the U.S. Toyota and its premium Lexus brand are selling at least 18 different hybrid models, enabling the Japanese automaker to maintain its stranglehold on the sector.

Hyundai and sister brand Kia offer seven hybrid models, with Ford and Lincoln six. Stellantis offers just three, and GM’s sole entry, due out later this year, is a hybrid version of the Chevrolet Corvette sports car.

But hybrids remain in short supply at many U.S. dealerships.

Andrew DiFeo, dealer principal at Hyundai of St. Augustine, south of Jacksonville, FL, doesn't see EV adoption hitting the levels the Biden administration wants until EV charging networks are as ubiquitous as gas stations.

"Hybrids are a great bridge to whatever the future holds,” said DiFeo, adding, “I've got zero in stock (and) I've got customers that want all of them."

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Switch-On Project Electric Trucks accelerate California freight decarbonization, deploying Volvo VNR Electric rigs with high-capacity charging infrastructure, zero-emissions operations, and connected safety features to cut greenhouse gases and improve urban air quality.

Key Points

A California program deploying Volvo VNR Electric trucks and charging to decarbonize freight and improve air quality.

✅ 70 Volvo VNR Electric trucks for regional logistics

✅ Strategic high-capacity charging for heavy-duty fleets

✅ Lower TCO via fuel savings and reduced maintenance

In a significant step toward sustainable transportation, the Switch-On project is bringing 70 Volvo VNR Electric trucks to California. This initiative aims to bolster the state's efforts to reduce emissions and transition to greener logistics solutions. The arrival of these electric vehicles marks an important milestone in California's commitment to combating climate change and improving air quality.

The Switch-On Project: Overview and Goals

The Switch-On project is a collaborative effort designed to enhance electric truck adoption in California. It focuses on developing the necessary infrastructure and technology to support electric vehicles (EVs) in the freight and logistics sectors, building on recent nonprofit investments at California ports. The project not only seeks to increase the availability of electric trucks but also aims to demonstrate their effectiveness in real-world applications.

California has set ambitious goals for reducing greenhouse gas emissions, particularly from the transportation sector, which is one of the largest contributors to air pollution. By introducing electric trucks into freight operations, the state aims to significantly cut emissions, improve public health, and pave the way for a more sustainable future.

The Volvo VNR Electric Trucks

The Volvo VNR Electric trucks are specifically designed for regional distribution and urban transport, aligning with Volvo's broader electric lineup as the company expands offerings, making them ideal for the needs of California’s freight industry. With a range of approximately 250 miles on a single charge, these trucks can efficiently handle most regional routes. Equipped with advanced technology, including regenerative braking and connectivity features, the VNR Electric models enhance operational efficiency and safety.

These trucks not only provide a cleaner alternative to traditional diesel vehicles but also promise lower operational costs over time. With reduced fuel expenses and lower maintenance needs, and emerging vehicle-to-grid pilots that can create new value streams, businesses can benefit from significant savings while contributing to environmental sustainability.

Infrastructure Development

A crucial aspect of the Switch-On project is the development of charging infrastructure to support the new fleet of electric trucks. The project partners are working on installing high-capacity charging stations strategically located throughout California while addressing utility planning challenges that large fleets will pose to the power system. This infrastructure is essential to ensure that electric trucks can be charged efficiently, minimizing downtime and maximizing productivity.

The charging stations are designed to accommodate the specific needs of heavy-duty vehicles, and corridor models like BC's Electric Highway provide useful precedents for network design, allowing for rapid charging that aligns with operational schedules. This development not only supports the new fleet but also encourages other logistics companies to consider electric trucks as a viable option for their operations.

Benefits to California

The introduction of 70 Volvo VNR Electric trucks will have several positive impacts on California. Firstly, it will significantly reduce greenhouse gas emissions from the freight sector, contributing to the state’s ambitious climate goals even as grid expansion will be needed to support widespread electrification across sectors. The transition to electric trucks is expected to improve air quality, particularly in urban areas that struggle with high pollution levels.

Moreover, the project serves as a model for other regions considering similar initiatives. By showcasing the practicality and benefits of electric trucks, California hopes to inspire widespread adoption across the nation. As the market for electric vehicles continues to grow, this project can play a pivotal role in accelerating the transition to sustainable transportation solutions.

Industry and Community Reactions

The arrival of the Volvo VNR Electric trucks has been met with enthusiasm from both industry stakeholders and community members. Logistics companies are excited about the opportunity to reduce their carbon footprints and operational costs. Meanwhile, environmental advocates applaud the project as a crucial step toward cleaner air and healthier communities.

California’s commitment to sustainable transportation has positioned it as a leader in the shift to electric vehicles amid an ongoing biofuels vs. EVs debate over the best path forward, setting an example for other states and countries.

Conclusion

The Switch-On project represents a major advancement in California's efforts to transition to electric transportation. With the deployment of 70 Volvo VNR Electric trucks, the state is not only taking a significant step toward reducing emissions but also demonstrating the feasibility of electric logistics solutions.

As infrastructure develops and more electric trucks hit the roads, California is paving the way for a greener, more sustainable future in transportation. The success of this project could have far-reaching implications, influencing policies and practices in the broader freight industry and beyond.

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Octopus Energy US Renewables Investment signals expansion into the US clean energy market, partnering with CIP for solar and battery storage projects to decarbonize the grid, boost resilience, and scale smart grid innovation nationwide.

Key Points

Octopus Energy's first US stake in solar and battery storage with CIP to expand clean power and grid resilience.

✅ Partnership with Copenhagen Infrastructure Partners

✅ Portfolio of US solar and battery storage assets

✅ Supports decarbonization, jobs, and grid modernization

Octopus Energy, a UK-based renewable energy provider known for its innovative approach to clean energy solutions and the rapid UK offshore wind growth shaping its home market, has announced its first investment in the US renewable energy market. This strategic move marks a significant milestone in Octopus Energy's expansion into international markets and underscores its commitment to accelerating the transition towards sustainable energy practices globally.

Investment Details

Octopus Energy has partnered with Copenhagen Infrastructure Partners (CIP) to acquire a stake in a portfolio of solar and battery storage projects located across the United States. This investment reflects Octopus Energy's strategy to diversify its renewable energy portfolio and capitalize on opportunities in the rapidly growing US solar-plus-storage sector, which is attracting record investment.

Strategic Expansion

By entering the US market, Octopus Energy aims to leverage its expertise in renewable energy technologies and innovative energy solutions, as companies like Omnidian expand their global reach in project services. The partnership with CIP enables Octopus Energy to participate in large-scale renewable projects that contribute to decarbonizing the US energy grid and advancing climate goals.

Commitment to Sustainability

Octopus Energy's investment aligns with its overarching commitment to sustainability and reducing carbon emissions. The portfolio of solar and battery storage projects not only enhances energy resilience but also supports local economies through job creation and infrastructure development, bolstered by new US clean energy manufacturing initiatives nationwide.

Market Opportunities

The US renewable energy market presents vast opportunities for growth, driven by favorable regulatory policies, declining technology costs, and increasing demand for clean energy solutions, with US solar and wind growth accelerating under supportive plans. Octopus Energy's entry into this market positions the company to capitalize on these opportunities and establish a foothold in North America's evolving energy landscape.

Innovation and Impact

Octopus Energy is known for its customer-centric approach and technological innovation in energy services. By integrating smart grid technologies, digital platforms, and consumer-friendly tariffs, Octopus Energy aims to empower customers to participate in the energy transition actively.

Future Prospects

Looking ahead, Octopus Energy plans to expand its presence in the US market and explore additional opportunities in renewable energy development and energy storage, including surging US offshore wind potential in the coming years. The company's strategic investments and partnerships are poised to drive continued growth, innovation, and sustainability across global energy markets.

Conclusion

Octopus Energy's inaugural investment in US renewables underscores its strategic vision to lead the transition towards a sustainable energy future. By partnering with CIP and investing in solar and battery storage projects, Octopus Energy not only strengthens its position in the US market but also reinforces its commitment to advancing clean energy solutions worldwide. As the global energy landscape evolves, including trillion-dollar offshore wind outlook, Octopus Energy remains dedicated to driving positive environmental impact and delivering value to stakeholders through renewable energy innovation and investment.

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Wave Energy Converters can deliver marine power to the grid, with DOE-backed PacWave enabling offshore testing, robust designs, and renewable electricity from oscillating waves to decarbonize coastal communities and replace diesel in remote regions.

Key Points

Wave energy converters are devices that transform waves' oscillatory motion into electricity for the grid or loads.

✅ DOE's PacWave enables full-scale, grid-connected offshore testing.

✅ Multiple designs convert oscillating motion into torque and power.

✅ Ideal for islands, microgrids, and replacing diesel generation.

Waves off the coast of the U.S. could generate 2.64 trillion kilowatt hours of electricity per year — that’s about 64% of last year’s total utility-scale electricity generation in the U.S. We won’t need that much, but one day experts do hope that wave energy will comprise about 10-20% of our electricity mix, alongside other marine energy technologies under development today.

“Wave power is really the last missing piece to help us to transition to 100% renewables, ” said Marcus Lehmann, co-founder and CEO of CalWave Power Technologies, one of a number of promising startups focused on building wave energy converters.

But while scientists have long understood the power of waves, it’s proven difficult to build machines that can harness that energy, due to the violent movement and corrosive nature of the ocean, combined with the complex motion of waves themselves, even as a recent wave and tidal market analysis highlights steady advances.

″Winds and currents, they go in one direction. It’s very easy to spin a turbine or a windmill when you’ve got linear movement. The waves really aren’t linear. They’re oscillating. And so we have to be able to turn this oscillatory energy into some sort of catchable form,” said Burke Hales, professor of cceanography at Oregon State University and chief scientist at PacWave, a Department of Energy-funded wave energy test site off the Oregon Coast. Currently under construction, PacWave is set to become the nation’s first full-scale, grid-connected test facility for these technologies, a milestone that parallels U.K. wind power lessons on scaling new industries, when it comes online in the next few years.

“PacWave really represents for us an opportunity to address one of the most critical barriers to enabling wave energy, and that’s getting devices into the open ocean,” said Jennifer Garson, Director of the Water Power Technologies Office at the U.S. Department of Energy.

At the beginning of the year, the DOE announced $25 million in funding for eight wave energy projects to test their technology at PacWave, as offshore wind forecasts underscore the growing investor interest in ocean-based energy. We spoke with a number of these companies, which all have different approaches to turning the oscillatory motion of the waves into electrical power.

Different approaches
Of the eight projects, Bay Area-based CalWave received the largest amount, $7.5 million. 

″The device we’re testing at PacWave will be a larger version of this,” said Lehmann. The x800, our megawatt-class system, produces enough power to power about 3,000 households.”

CalWave’s device operates completely below the surface of the water, and as waves rise and fall, surge forward and backward, and the water moves in a circular motion, the device moves too. Dampers inside the device slow down that motion and convert it into torque, which drives a generator to produce electricity, a principle mirrored in some wind energy kite systems as they harvest aerodynamic forces.

“And so the waves move the system up and down. And every time it moves down, we can generate power, and then the waves bring it back up. And so that oscillating motion, we can turn into electricity just like a wind turbine,” said Lehmann.

Another approach is being piloted by Seattle-based Oscilla Power, which was awarded $1.8 million from the DOE, and is getting ready to deploy its wave energy converter off the coast of Hawaii, at the U.S. Navy Wave Energy Test site.

Oscilla Power’s device is composed of two parts. One part floats on the surface and moves with the waves in all directions — up and down, side to side and rotationally. This float is connected to a large, ring-shaped structure which hangs below the surface, and is designed to stay relatively steady, much like how underwater kites leverage a stable reference to generate power. The difference in motion between the float and the ring generates force on the connecting lines, which is used to rotate a gearbox to drive a generator.

″The system that we’re deploying in Hawaii is what we call the Triton-C. This is a community-scale system,” said Balky Nair, CEO of Oscilla Power. “It’s about a third of the size of our flagship product. It’s designed to be 100 kilowatt rated, and it’s designed for islands and small communities.”

Nair is excited by wave energy’s potential to generate electricity in remote regions, which currently rely on expensive and polluting diesel imports to meet their energy needs when other renewables aren’t available, and similar tidal energy for remote communities efforts in Canada point to viable models. Before wave energy is adopted at-scale, many believe we’ll see wave energy replacing diesel generators in off-the-grid communities.

A third company, C-Power, based in Charlottesville, Virginia, was awarded more than $4 million to test its grid-scale wave energy converter at PacWave. But first, the company wants to commercialize its smaller scale system, the SeaRAY, which is designed for lower-power applications. 

″Think about sensors in the ocean, research, metocean data gathering, maybe it’s monitoring or inspection,” said C-Power CEO Reenst Lesemann on the initial applications of his device.

The SeaRAY consists of two floats and a central body, the nacelle, which contains the drivetrain. As waves pass by, the floats bob up and down, rotating about the nacelle and turning their own respective gearboxes which power the electric generators.

Eventually, C-Power plans to scale up its SeaRAY so that it’s capable of satellite communications and deep water deployments, before building a larger system, called the StingRAY, for terrestrial electricity generation.

Meanwhile, one Swedish company, Eco Wave Power, is taking another approach completely, eschewing offshore technologies in favor of simpler wave power devices that can be installed on breakwaters, piers, and jetties.

“All the expensive conversion machinery, instead of being inside the floaters like in the competing technologies, is on land just like a regular power station. So basically this enables a very low installation, operation, and maintenance cost,” explained CEO Inna Braverman.

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FERC Transmission Planning Overhaul streamlines interregional grid buildouts, enabling high-voltage lines, renewable integration, and grid reliability to scale, cutting fossil reliance while boosting decarbonization, climate resilience, and affordability across regions facing demand and extreme weather.

Key Points

Federal rule updating interregional grid planning to integrate renewables, share costs, and improve reliability.

✅ Accelerates high-voltage, interregional lines for renewable transfer

✅ Optimizes transmission planning and cost allocation frameworks

✅ Boosts grid reliability, resilience, and emissions reductions

The US took a significant step towards a cleaner energy future on May 13th, 2024. The Federal Energy Regulatory Commission (FERC) approved the first major update to the country's electric transmission policy in over a decade, while congressional Democrats continue to push for action on aggregated DERs within FERC's remit today. This overhaul aims to streamline the process of building new power lines, specifically those that connect different regions. This improved connectivity is crucial for integrating more renewable energy sources like wind and solar into the national grid.

The current system faces challenges in handling the influx of renewables, and the aging U.S. grid amplifies those hurdles today. Renewable energy sources are variable by nature – the sun doesn't always shine, and the wind doesn't always blow. Traditionally, power grids have relied on constantly running power plants, like coal or natural gas, to meet electricity demands. These plants can be easily adjusted to produce more or less power as needed. However, renewable energy sources require a different approach.

The new FERC policy focuses on building more interregional transmission lines. These high-voltage power lines would allow electricity generated in regions with abundant solar or wind power, and even enable imports of green power from Canada in certain corridors, to be transmitted to areas with lower renewable energy resources. For example, solar energy produced in sunny states like California could be delivered to meet peak demand on the East Coast during hot summer days.

This improved connectivity offers several advantages. Firstly, it allows for a more efficient use of renewable resources. Secondly, it reduces the need for fossil fuel-based power plants, leading to cleaner air and lower greenhouse gas emissions. Finally, a more robust grid is better equipped to handle extreme weather events, which are becoming increasingly common due to climate change, and while Biden's climate law shows mixed results on decarbonization, stronger transmission supports resilience.

The need for an upgrade is undeniable. The Biden administration has set ambitious goals for decarbonizing the power sector by 2035, including proposals for a clean electricity standard as a pathway to those targets. A study by the US Department of Energy estimates that achieving this target will require more than doubling the country's regional transmission capacity and increasing interregional capacity by more than fivefold. The aging US grid is already struggling to keep up with current demands, and without significant improvements, it could face reliability issues in the future.

The FERC's decision has been met with praise from environmental groups and renewable energy companies. They see it as a critical step towards achieving a clean energy future. However, some stakeholders, including investor-owned utilities, have expressed concerns about the potential costs associated with building new transmission lines, citing persistent barriers to development identified in recent Senate testimony. Finding the right balance between efficiency, affordability, and environmental responsibility will be key to the success of this initiative.

The road ahead won't be easy. Building new power lines is a complex process that can face opposition from local communities, and broader disputes over electricity pricing changes often complicate planning and approvals. However, the potential benefits of a modernized grid are significant. By investing in this overhaul, the US is taking a crucial step towards a more reliable, sustainable, and cleaner energy future.

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