Essential News for Corporate Energy Risk Managers
Author: Graham Foster
As electricity costs rise in the U.S., with demand on the upswing, experts are stressing the importance of flexible energy management in data centers. The Federal Energy Regulatory Commission (FERC) recently directed system operators to expand transmission capabilities for large power consumers, highlighting the immediate need for data centers to adapt their energy requirements. Research indicates that even a small reduction—1% to 2%—in data center power use during peak times could lower electricity bills by 0.5% to 2.8% and enhance reliability. A 2026 study from Duke University showed that flexibility in energy management could expedite the interconnection of data centers…
Platte River Power Authority Launches Virtual Power Plant Initiative Platte River Power Authority, a public utility in Colorado, is teaming up with EnergyHub to create a virtual power plant (VPP). This collaboration aims to deliver dispatchable power to support a growing reliance on renewable energy sources. Maia Jackson, communication supervisor for Platte River, mentioned in an email, “We believe the VPP will be a significant resource.” The first program of this initiative is set to kick off in late summer, initially focusing on smart thermostats, with electric vehicle (EV) charging management coming later in the year. These services will be…
California to Sue Over Wind Lease Buyouts California is preparing to file a lawsuit against the U.S. Department of the Interior and other parties regarding the Trump administration’s decision to “buy back” offshore wind leases. Attorney General Rob Bonta announced this plan on Tuesday, highlighting the state’s concerns about lease agreements, including the Golden State Wind project located off California’s coast. Bonta argued that these buyouts violate the Outer Continental Shelf Lands Act. He stated that the lease cancellations hinder California’s ability to develop wind energy effectively in this region. This issue isn’t new; other states, including New York and…
Dive Brief: The United States welcomed 3.3 GW/8.4 GWh of new energy storage during the first quarter of 2026, as reported by Wood Mackenzie and the American Clean Power Association. All sectors—utility-scale, residential, and commercial—achieved record installations for this typically slower period. According to forecasts, cumulative energy storage capacity in the U.S. is expected to reach 200 GW/655 GWh by 2031, marking a significant increase from current levels. This aligns with predictions from the U.S. Energy Information Administration indicating that storage capacity will double by the end of 2027. Wood Mackenzie and ACP’s recent updates anticipate that supportive tax policies…
Frontier Climate Expands Carbon Removal Buying Group with Anthropic’s Participation Frontier Climate, a group focused on purchasing carbon removal credits and supported by major companies like Stripe, Google, and Shopify, recently announced that Anthropic has officially joined its ranks. As part of this collaboration, Frontier plans to invest $915 million in various carbon removal companies, raising its total commitment to $1.8 billion. The additional funding aims to enhance Frontier’s focus on purchasing carbon dioxide removal (CDR) solutions while ensuring that these investments support long-term demand for the technology. Anthropic, known for its development of the AI platform Claude, is joining…
Key Update: Sunrun, Tesla, and Renew Home plan to add nearly 17 GW of distributed energy capacity to enhance the U.S. power grid, according to company statements released Wednesday. This collaboration, labeled a “capacity-as-a-solution” initiative, leverages the vast resources of the country’s biggest home energy providers. According to Chris Rauscher from Sunrun, their solar and battery customers are mainly located in key areas like Texas, California, and Virginia. Renew Home manages over 8 million smart thermostats and other connected devices. The alliance aims to tackle the challenge of connecting data centers to the grid swiftly while offering benefits to middle-class…
Key Highlights: Viridi and Budderfly have joined forces to implement Viridi’s “fail-safe” battery systems across 100 commercial sites in the U.S. This partnership aims to enhance energy efficiency for businesses like restaurants and retailers, without requiring any upfront costs. The initial phase has begun, with installations in a manufacturing facility and several restaurant franchises. Insightful Overview: Recent reports suggest that the U.S. will add 18.9 GW of energy storage by 2025. Most of this growth is expected to come from utilities, but commercial sectors lag significantly due to financial and regulatory hurdles. Budderfly’s approach allows businesses to adopt energy storage…
Weather Patterns Shifting Due to El Niño El Niño has formed in the Pacific Ocean, potentially changing weather patterns across the United States, which may complicate forecasting for electric utilities, according to meteorologists at AccuWeather. The National Oceanic and Atmospheric Administration (NOAA) confirmed this development on June 11. Experts believe that while this El Niño could help utilities prepare for a busy hurricane season, it may introduce risks to operations in other areas. The last El Niño lasted from 2023 into 2024, and this new one appears to be intensifying quickly, impacting weather across the U.S. Weather Forecasts and Regional…
### Key Highlights: – A group of 80 Maryland lawmakers is supporting a complaint to the Federal Energy Regulatory Commission (FERC). They are concerned about how PJM Interconnection allocates costs for transmission lines that primarily benefit out-of-state data centers. – Maryland ratepayers are expected to pay $1.6 billion over the next ten years for these transmission projects. This total comes from recent plans approved by PJM, which seem to focus more on serving data centers in Virginia rather than benefiting Maryland residents. – The legislators argue that the current cost allocation is unfairly burdensome for Maryland, especially considering the state’s…
Overview: Climate solutions company Carbon Direct has issued new guidelines to assist buyers in acquiring low-carbon fuels in the voluntary market. The guidance, titled “Criteria for High-Quality Low Carbon Fuels,” is centered around six essential principles, including preventing environmental and social damage, accurate carbon accounting, reducing leakages, proper sourcing of materials, and ensuring additionality—meaning the emissions reductions wouldn’t happen without the revenue from carbon credits. Carbon Direct acknowledged the lack of a single framework to help buyers navigate the numerous certifications available, stating that their new criteria aims to address this issue. Insights: According to Carbon Direct, the criteria is…
