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.

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 latest report from Ember says that for the first time, wind and solar have overtaken coal power in the U.S., together accounting for 17% of generation, compared to coal’s 15%.
• SEIA announced that solar added 50 GW of new capacity to the grid in 2024, more than any energy technology in the past two decades. 
• As reported in previous Dispatches, U.S. energy storage is also shattering records and could potentially add 18 GW in 2025, although recent tariffs and executive orders could rein in this growth and impact short-term deployment.

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.

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:

• 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.”
• 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.”

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.

• Hmmn: Tesla receives tax break for proposed battery factory near Houston 
• In the Crosshairs: A $5B loan guarantee for a long-range transmission project may be Elon Musk’s next target 
• Looming: Workers fear for the future as Trump casts a shadow over the wind industry
• Unintended Consequences: How a Trump effort to cut environmental red tape could backfire  
• 50 Shades of Green: How does your state produce its electricity? The variations are wild and weird 
• Unprecedented Challenges: Data center build-out stokes fears of overburdening biggest US grid 
• Going Off-grid: Report charts path to data centers with 100% geothermal 
• Room to Grow: U.S. wind and solar still have room for expansion to power data centers, Microsoft VP says 
• New Records: Texas broke its solar, wind, and battery records in one spring week 
• Triple Dip: Major global companies pledge historic support to triple nuclear energy 
• Glowing Pains: Developing nuclear power could cost Utah tens of billions
• Mass-produced “Microreactors”? Next up for nuclear power: small, transportable and made near Pittsburgh 
• Interview: Why offshore wind might survive in the South

• CA: Public hearing scheduled to discuss the extension of moratorium on BESS; facilities
• CA: Imperial County Planning Commission to discuss time extension for development agreement of CED Wistaria Solar 2
• FL: Lake County commission to review solar and resiliency facility ordinance
• GA: Candler County to review solar panel ordinance
• IL: Dewitt County to discuss EA for Prairie Flats Solar Project
• IL: Bechtel seeks SUP for Sandpiper Solar Project in Rock Island County
• KY: Bourbon County to review solar energy restrictions
• ME: Machias to hold public hearing on proposed Solar and Wind Moratorium Ordinances
• MA: Uxbridge Planning Board to review energy storage zoning amendments
• MA: Jupiter Power faces mounting opposition over construction of 800MWh BESS 
• MN: Hugo Planning Commission proposed changes to solar farm regulations
• MN: Freeborn Board of Commissioners rejects solar agreement resolution
• TN: Utilities issue RFPs to increase solar and BESS capacity 
• VA: Mecklenburg County Board discussed solar amendments and Antlers Road Project
• VA: King George County to review solar farm and data center proposals
• WI: Ixonia Town Board to review Jefferson County Solar Energy Ordinance
• WI: Paddock Lake to review ordinance on solar energy regulation

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. 

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.