The details: Last week’s heat dome had the power system working overtime: Electrical output surpassed 100K GWh…for the first time in history, EEI reported. (The previous record: >99K GWh in July 2022.) 

Yes, but: As we reported, even with such high output, the grid experienced widespread blackouts last week—nearly 1M homes and businesses lost power. 

The warning: The recent record is roughly 22% higher than the country’s average weekly generation level, according to EEI data. It’s “a preview of what the grid of the future must be built to handle,” EEI President and CEO Drew Maloney said in a statement.

What’s the hold-up? That figure is included in the draft of the DOE’s latest National Transmission Needs Study, which breaks down line constraints and traffic jams throughout the country. What’s driving these (literal) gridlocks? 1) price variance between day-ahead and real-time markets 2) high net load 3) cold weather and 4) intermittent generation.

The fix? Interregional transmission is especially handy during peak periods, the DOE wrote, in addition to reducing electricity costs throughout the year. (It’s particularly valuable for ERCOT and its neighboring regions.)

Big spenders: Transmission investment over the past decade “varies considerably” by region, the agency pointed out. Who’s leading the charge: PJM East and ERCOT spent the most over that period ($3.5B and $2.1B per year), and ERCOT installed the most circuit-miles (over 20K)...more on that below.

The playbook: Everybody’s talking about the grid operator’s connect-and-manage framework. How it works: Resources don’t have to wait for the transmission upgrades required for “full deliverability.” ERCOT gives them the go-ahead to connect, then handles congestion via prices and dispatch (while building new lines). 

The pocketbook: All that new generation, including a growing chunk of renewables, has given ERCOT some of the lowest electricity prices in the country. Other regions “can learn from the Texas model by separating physical interconnection from full deliverability and by treating transmission as shared economic infrastructure,” research scientist Joshua D. Rhodes, author of a new report on ERCOT, wrote on LinkedIn.

The big question: Can the same model work for large loads like data centers? Probably, according to Rhodes…but it’ll need firm guardrails like financial commitments and enforceable curtailment.

The pitch: Sunrun wants to tap its 1.1M customers to offer extra compute power to AI developers. How? The company is testing compute nodes in homes with its solar and battery systems and selling that capacity to tech companies. The pilot is set to wrap up in the next few months.   

The benefits: Customers will be compensated for participating, and hyperscalers get “a flexible, scalable source of compute capacity,” Sunrun said in a statement. It’s the latest major DER move from Sunrun, which announced a 16-GW VPP with Tesla and Renew Home last month. Dive deeper: Check out our Power Perspectives episode on how DERs could save the grid.

Speaking of batteries: Peak Energy is planning a $71M grid-scale sodium-ion storage factory in California. Production for the buzzy battery chemistry is set to kick off in early 2027. 

The EPA wants to speed up air pollution permits amid the data center buildout. 👀

What happened: The agency has proposed scrapping its public input requirement for “minor source” air permits…which include the tractor trailer-sized diesel generators that data centers use for backup power. This equipment can spew out pollutants linked to heart disease and cancer.

The alternative: Instead, the proposal would let state and local air agencies decide on public participation requirements. “This approach is intended to reduce administrative burden and responsibly speed up permitting,” the EPA wrote. 

That reminds us: As we previously reported, Elon Musk’s Colossus 2 data center in Mississippi is allegedly running 27 gas turbines without a permit (the NAACP is suing over Clean Air Act violations).

On nuclear: Global capacity is projected to rise by 44% over the next decade and reach 535 GW, thanks in part to rapid buildouts in India and China. The latter is set to eclipse the US and become the world’s top nuclear power.

On crude: But the US isn’t slowing down on the oil side. Last year, the country cranked out 13.6M/barrels per day and kept its spot as the leading crude oil producer (a trend that began in 2018 when the nation beat out Russia).