Energy storage expands globally, while PJM’s large-load plans face a regulatory setback
Between the Terminals
TLDR · What matters most
- “We find that several provisions of the proposed tariff appear to place obligations directly on eligible new large loads, which are, for the most part, retail customers; that certain other provisions appear to dictate which retail customers taking retail service will be curtailed; and that the proposed compensation framework appears to establish a retail rate,” FERC said in rejecting the IRAS framework.
- Approved on Oct. 7 by the program’s executive committee, the auction involves BRL 13.2 billion in catalytic capital expected to mobilize BRL 36.75 billion in private funding, for a potential total of BRL 49.95 billion across six strategic value chains.
- Several other large-scale storage projects have reached financial close in recent months, including a 77 MW/308 MWh battery storage project near Johannesburg and a 660 MWh battery that forms part of a hybrid site which will wheel power to private end-users across the grid.
- In its second-quarter filing, Constellation said it had already signed an additional 920 MW of long-term nuclear PPAs with investment-grade customers, generally lasting 15 to 20 years and beginning between 2029 and 2032.
- Utility-scale solar developers maintain a buffer thanks to 168 GW of safe-harbored capacity, but module prices are still projected to climb ~5% annually through 2030.
Data Centers
How colocation providers find and reclaim stranded power capacity
This whitepaper shows how full-chain telemetry delivers the real-time proof to replace nameplate estimates with measured peak draw, and how recovering 2–3% of portfolio power unlocks ~$2.2M in ARR per megawatt without costly grid or facility upgrades.
- Legacy spreadsheets and isolated meters can't locate or validate this headroom, exposing you to missed tenant deals, lost revenue, and SLA disputes.
- High-density AI workloads and multi-year grid delays are squeezing colocation providers to squeeze every available watt out of existing facilities.
- Yet up to 60% of capacity stays stranded across nameplate gaps, phase imbalances, comatose servers, thermal limits, and static redundancy.
Protecting uptime in the age of AI: coating considerations for AI data centers
The bottom line is that a coatings partner for hyperscale AI data center work needs to operate at hyperscale too, with consistent global specifications, localized technical service and field support, and the supply capacity to back it all up.
- The right coating choice can directly accelerate manufacturing output and shorten time-to-delivery for critical data center components, while still delivering the durability required to withstand fabrication, handling, transport, and installation without field rework.
- Cooling towers: Critical to ensuring data centers can reject heat and maintain operations, cooling towers create a constantly wet and chemically aggressive environment that requires a lining that protects structures from constant moisture and chemically treated water that eats at unprotected steel.
- Battery storage: These chemically aggressive environments, where an acid spill can prove catastrophic, need durable flooring that can withstand not only potential acid drips and electrolyte spills, but also be able to deal with heavy equipment loads like battery racks and forklifts.
Manufacturing
Building quality domestic U.S. cell fabs is more important than technology-choice today
This increases the challenge for silicon-based solar cell manufacturing in the United States today.
- The United States is at the very start of a new wave of building c-Si cell factories, having watched from the sidelines as annual production volumes from Chinese companies routinely exceeded 500 GW annually since 2020.
- Having, say, 20-30 GW of high-quality solar cell factories in the United States by the end of 2029 is way more important than the technology used in the first 2-3 GW.
- Forecasting to the end of 2027 is not easy, coming from such a low base and with strong capex allocated to new cell factories over the past 6-12 months.
Policy & Markets
FERC rejects most of PJM’s large load interconnection plan
Key elements of PJM’s Interim Resource Adequacy Service framework, or IRAS, which would allow large loads to connect to the grid without matching new capacity if they agree to be curtailed in the lead-up to grid emergencies, intrude on state jurisdiction over retail rates and appear to discriminate against large loads, FERC said.
- “We find that several provisions of the proposed tariff appear to place obligations directly on eligible new large loads, which are, for the most part, retail customers; that certain other provisions appear to dictate which retail customers taking retail service will be curtailed; and that the proposed compensation framework appears to establish a retail rate,” FERC said in rejecting the IRAS framework.
- PJM is reviewing the commission’s order with “an eye toward how we can fulfill FERC’s requirements while recognizing the responsibilities FERC indicated belong to the states and honoring the concept that existing electricity customers should not be unfairly burdened by new, energy intensive customers in the form of higher costs or decreased reliability,” Jeffrey Shields, PJM spokesman, said in an email to Utility Dive on Monday.
- The Federal Energy Regulatory Commission on Friday largely rejected the PJM Interconnection’s plan for bringing data centers and other large loads onto its system, including proposed interim service and “bring your own new capacity” rules.
Four-hour BESS undercuts gas peakers in 43 global markets
While a temporary cost increase is anticipated when the Investment Tax Credit (ITC) phases out in the late 2030s, hardware commoditization, alternative cell chemistries, and localized manufacturing expansion are expected to drive long-term storage LCOE down 10% by 2060.
- Utility-scale solar developers maintain a buffer thanks to 168 GW of safe-harbored capacity, but module prices are still projected to climb ~5% annually through 2030.
- Competitive Chinese exports are expected to drag the regional average down to $92/MWh by 2036, though tariff-heavy markets like Japan and Australia will maintain a premium.
- Four-hour battery storage sits at $120/MWh in 2026 and is forecast to fall 33% to $80/MWh by 2035, displacing open-cycle gas peaking across every gas market in the region.
Over 600 Projects Enter Phase I of PJM’s New Interconnection Process
PJM expects electricity demand to increase by up to 70 GW by 2038, driven largely by data centers and other Large Load customers.
- PJM currently has 49 GW of generation with signed agreements, but many of these projects are either not being built at all or are being slowed by hurdles such as state permitting and supply chain backlogs.
- Demand growth is outpacing the addition of new supply, risking reliability and making the timely interconnection of new resources critical to keeping the lights on for 67 million people in 13 states and the District of Columbia.
- The first phase of PJM’s new interconnection process started Sept. 28, with 617 projects capable of generating nearly 169 GW of electricity remaining in the study Cycle.
4-hour battery storage is cheaper to install than gas turbines all across globe
Solar PV retains its position as the cheapest power technology in Europe, with fixed-tilt LCOE forecast to fall 22% by 2060 as capital costs decline and technology improves, despite a 14% capex increase in 2026 driven by higher PV module costs.
- Utility-scale solar is partially protected by 168 GW of safe-harboured capacity, though module prices are still expected to rise around 5% annually through 2030.
- According to Solar Power World, Competitive Chinese supply is expected to pull the rest of Asia Pacific average down to $92/MWh by 2036, though markets including Japan, Australia and the Philippines will remain at a premium due to import duties, elevated installation costs and domestic manufacturing policies.
- Onshore wind capex is declining at an average annual rate of 2.5% through the remainder of this decade as OEMs leverage financial stability and compete for growing demand, with rising capacity factors taking over as the primary LCOE driver after 2030, pushing costs to $60/MWh by 2060.
C&I storage the ‘sleeping giant waking up’, says WoodMac
The utility segment is now reported in three parts: standalone, solar-paired and wind-paired, instead of one, because the three are growing for different reasons, at different speeds and in different places.
- Aging storage assets will only start to come offline and be replaced at scale after 2030, adding 40 GWh of repowered capacity by 2035, led by the US, Japan and Germany.
- Contracted offtake for storage has passed 130 GW, with utility power purchase agreements and tolling deals together accounting for more than three-quarters of all contracts signed, according to our global offtake tracker.
- Regulatory changes are central to this: India’s new rules will require solar and wind projects commissioned after July 2027 to include co-located storage equal to at least 10% of capacity, rising to a four-hour minimum duration from 2029.
DOE presses PJM on ratepayer protections from large load costs
“A capability to continuously track whether a project enters into service — and therefore benefits from the capacity and system investments procured to serve it — or is delayed, reduced, or cancelled, can help assign costs for new generation to the customers responsible for those investments,” the DOE said.
- The grid operator intends to acquire 6.8 GW of new capacity to make up for a shortfall from the capacity auction for the 2028/29 delivery year, according to a fact sheet on the auction process.
- “PJM should implement the cost allocation and other reforms identified by the Commission to ensure that the costs of serving new data centers or other large electric energy loads are not unfairly shifted to PJM’s existing ratepayers,” DOE said in its position statement, which appears to be the first one it has filed at FERC in at least five years.
- PJM should file a proposal by Oct. 29 in response to the Federal Energy Regulatory Commission’s decision last month that the grid operator’s backstop procurement plan needed changes, including to address flaws in its cost-allocation framework, according to the DOE’s “statement of position” filed with FERC on Wednesday.
Renewable developers back MISO’s accelerated interconnection queue plan
In a protest over the higher threshold for network upgrade cost increases to trigger penalty-free withdrawals, Pathway Power, an independent power producer, said the proposal was crafted by MISO and a limited number of stakeholders — Clearway Energy Group, NextEra Energy Resources and EDP Renewables — with only 10 days for comments.
- Without the proposed changes, according to MISO, the "Definitive Planning Phase–2022” interconnection study process will likely be delayed by at least 18 months, affecting other queue cycles.
- The Midcontinent Independent System Operator’s proposal to speed up its remaining legacy interconnection queue study — which includes about 71 GW of projects — received widespread support from renewable energy developers and state utility regulators, according to Monday filings at the agency.
- “These measures will accelerate the resolution of legacy queue congestion, provide greater cost certainty for interconnection customers, and prevent prolonged study timelines that have historically hindered interconnection customers from getting generation onto the Transmission System,” MISO said.
Private LTE: How utilities should think about cost, control and tradeoffs
When it relies on an external provider, it gains speed, reach, and potentially lower upfront cost—but gives up some control over service levels, prioritization, cybersecurity, and long-term access.
- They will evaluate the full range of connectivity options, understand the tradeoffs associated with each, and determine where ownership and control create meaningful enterprise value.
- That business case should not begin and end with: “How much will this network cost?”
- In many cases, it's also an opportunity to avoid future costs and establish a platform for capabilities the organization will need over time.
Safety & Thermal Events
Volkswagen recalls more than 22,500 ID.4 EVs and tells owners to charge to just 80%
In a letter sent to the National Highway Traffic Safety Administration (NHTSA) on October 6, VW said it planned to recall 22,524 ID.4 SUVs for model years 2023 to 2026.
- Although the root cause is still unknown, VW said charging the high-voltage battery to over 80% of its capacity in certain models in the affected range could trigger “thermal propagation,” or, in other words, a fire within the battery.
- In the US, Volkswagen said it had received 22 claims between January 18, 2024, and August 07, 2026.
- Volkswagen will send additional letters once a fix is available.
Broader Lithium-ion
U.S. electricity use for electric vehicles increasing at a slower pace in 2026
Overall, U.S. light-duty electric vehicle electricity use has more than doubled since 1H23, totaling nearly 14 billion kilowatthours in 1H26.
- We estimate light-duty electric vehicles in the United States consumed 8% more electricity during the first six months of 2026 than in the last half of 2025 (2H25) in our Monthly Energy Review, down from the 13-24% growth seen in six-month periods in recent years.
- The slowing electric vehicle electricity consumption growth followed a decline in sales after U.S. federal tax credits expired in September 2025.
Projects & Operations
Brazil allocates $860 million for batteries under investment program
The two mechanisms are projected to support BRL 27 billion and BRL 22.95 billion in investment, respectively.
- Approved on Oct. 7 by the program’s executive committee, the auction involves BRL 13.2 billion in catalytic capital expected to mobilize BRL 36.75 billion in private funding, for a potential total of BRL 49.95 billion across six strategic value chains.
- The approved proposals also allocate approximately BRL 249.8 million to research, technological development and technology-based entrepreneurship.
- Brazil’s fifth Eco Invest Brasil auction has earmarked BRL 4.55 billion ($860 million) for batteries and energy storage systems, representing 70% of the BRL 6.5 billion allocated to critical minerals, batteries and electric mobility.
South Africa to procure 4.6 GW of battery storage
South Africa’s IRP sets a target of adding more than 105 GW of new generation capacity by 2039, including 25 GW of solar, as the country looks to gradually reduce its dependence on coal.
- Several other large-scale storage projects have reached financial close in recent months, including a 77 MW/308 MWh battery storage project near Johannesburg and a 660 MWh battery that forms part of a hybrid site which will wheel power to private end-users across the grid.
- The government of South Africa is planning to procure 4.6 GW of battery storage and 5 GW of gas-fired power plants as the first allocations under the country’s Integrated Resource Plan (IRP) 2025.
- Initially prioritising the development of 9.6 GW of storage and gas-to-power plants responds to the electricity system’s immediate requirements for storage, flexibility and dispatchable supply, a statement published by the South African government explains.
Google Deal Backs 890 MW of Constellation Nuclear Uprates at 11 PJM Reactors
Hyperscaler Google and Constellation Energy, the largest nuclear operator in the U.S., have signed a 20-year power purchase agreement (PPA) designed to support $4.3 billion of upgrades at 11 nuclear units across the PJM Interconnection, which is slated to add 890 MW of generating capacity from Constellation’s existing reactors by the end of 2032.
- In its second-quarter filing, Constellation said it had already signed an additional 920 MW of long-term nuclear PPAs with investment-grade customers, generally lasting 15 to 20 years and beginning between 2029 and 2032.
- It arrives one week after Constellation signed a separate nuclear agreement with Amazon, announcing a 20-year agreement that covers 690 MW from the 1,790-MW Calvert Cliffs nuclear plant in Maryland, including an approximately 190-MW uprate expected online between 2030 and 2032.
- While the Calpine acquisition added about 23 GW of predominantly natural gas-fired, geothermal, battery, and solar generation after required asset divestitures, Constellation has described the combination as a way to pair its nuclear fleet with dispatchable gas generation and expand its ability to serve growing power demand across multiple markets.
PJM approves fast-track interconnection for 2.1 GW from Engie, LS Power
LS Power intends to add 455 MW to its 810-MW combined cycle Hunterstown power plant in Adams, Pennsylvania, PJM said.
- The PJM Interconnection has approved three initial projects totaling 2.1 GW — two storage projects planned by Engie IR Holdings and a gas-fired uprate proposed by an LS Power unit — in its Expedited Interconnection Track process, the grid operator said Thursday.
- The fast-track interconnection review process is for projects larger than 250 MW that are backed by a primary siting authority and can begin operating within three years, PJM said.
- PJM expects the projects will come online in mid-2029.
ContourGlobal breaks ground on 509 MW solar-plus-storage project in Arizona
The solar-plus-storage array will allow ContourGlobal to expand its U.S. clean energy footprint, bringing its domestic portfolio to 2.4 GW of thermal, renewable, and storage capacity operating or under construction.
- According to data from the Solar Energy Industries Association (SEIA), solar accounts for 18.23% of the state’s total electricity generation, which is enough to power close to 2 million homes, while supporting 9,768 clean energy jobs and over $24.2 billion in total capital investments.
- ContourGlobal broke ground on Project Sterling, a 509 MWp / 450 MWac solar facility paired with 360 MW / 1.4 GWh of battery energy storage in Mohave County, Arizona.
- ContourGlobal will develop, own, and operate the project, which is scheduled for completion in 2028.
Storage Market Outlook
ESMO draws on Benchmark’s proprietary grid and behind the meter data on U.S. energy storage deployment, which when combined with SEIA’s industry leading expertise, provides a detailed analysis of the state of the U.S. energy storage market and forecasts to inform industry leaders, investors, manufacturers, and policymakers.
- By 2030, the market is set to exceed annual installations of 110 GWh and install a cumulative 683 GWh.
- U.S. battery energy storage capacity nearly doubles in the first 18 months of the Trump administration as grid operators turn to storage to strengthen grid reliability.
- In the BTM space, residential storage added 657 MWh and commercial and industrial (C&I) added 1.8 GWh, largely on the back of demand from data centers.
Energy Department Announces $4.2 Billion Investment to Boost Nuclear Power and Help Lower Energy Costs in Pennsylvania and Ohio
Vistra’s planned investments at Beaver Valley in Pennsylvania and Davis-Besse and Perry in Ohio will produce more electricity from existing nuclear plants without requiring new transmission corridors or equivalent new generation resources, while supporting the plants’ operation for an additional 20 years beyond their existing licenses.
- The projects will preserve nearly 4 gigawatts (GW) of reliable baseload power—enough to power more than 3 million homes—and add 433 megawatts (MW) of new nuclear capacity, helping meet growing electricity demand in Pennsylvania, Ohio, and across the PJM region.
- WASHINGTON—The U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) today announced a conditional loan commitment of up to $4.2 billion to finance nuclear uprates and modernization across Vistra’s nuclear fleet in Pennsylvania and Ohio.
- “These investments will extend the life of existing reactors, increase nuclear generation, and deliver abundant, around-the-clock power to lower costs and power American prosperity for decades to come.”
NTPC tenders 3.3 GWh of battery storage in India
The selected bidder will also be required to provide comprehensive operation and maintenance services for 15 years.
- The 1 GW solar project at Kambadur, Anantapur, Andhra Pradesh, is proposed to be executed in two 500 MW blocks under the EPC mode.
- Three blocks will each have a capacity of 300 MW/900 MWh, while the fourth will have a capacity of 200 MW/600 MWh.
- The tender specifies a design life of 25 years for the BESS, including its batteries, from the date of commissioning, with capacity degradation to be considered as per the bidder’s proposal for daily single-cycle operation.
Grenergy secures $457 million for 1.8 GWh Chile battery portfolio
Spanish renewable energy developer Grenergy has secured $457 million in non-recourse senior financing for a Chilean portfolio comprising 446 MW of solar capacity and approximately 1.8 GWh of battery energy storage.
- With the latest transaction, Grenergy has secured more than $2.4 billion in non-recourse financing in Chile for its Oasis de Atacama and Central Oasis hybrid platforms and the Palmas cluster.
- Previous transactions include $268 million in financing announced in May for Monte Águila, a Central Oasis project combining 342 MW of solar capacity with 1,034 MWh of battery storage.
- Six of the Palmas projects will incorporate battery systems with a combined capacity of 289 MWh.
Energy Dome opens CO2 Battery manufacturing plant in Italy
Energy Dome also cited Italy’s National Integrated Energy and Climate Plan, grid operator Terna’s stated need for 50 GWh of storage by 2030 and the new MACSE storage procurement mechanism as factors supporting demand for energy storage.
- It plans to increase total investment to approximately €6.5 million over the next two years, with the goal of tripling production capacity and expanding the local workforce from 30 employees to between 80 and 90 by 2028.
- Energy Dome said it has shipped the first dome manufactured entirely in-house to India for the 20 MW/160 MWh Kudgi project with state-owned power company NTPC.
- The company reports a presence across four continents, with more than 2 GWh of projects operational or under contract, more than 3 GWh of authorized projects and a development pipeline exceeding 30 GWh.
Galileo secures consent for eight-hour and four-hour BESS in Italy
Dolzani said this matters because the key parameters of Italy’s regulated mechanisms can shift significantly between auctions.
- Terna’s first MACSE auction in September 2025 awarded about 10 GWh for 2028 delivery at a weighted average of €12,959/MWh per year.
- Galileo said it has secured consents for more than 650 MW of solar and storage in Italy over the past 18 months.
- Zurich-based developer Galileo has secured consent for 250 MW of battery energy storage projects in Italy and expects consent for about 100 MW more in the coming weeks.
Maryland nets 440 MW/1,760 MWh in first bulk energy storage procurement
Evan Vaughan, executive director of the regional clean energy group MAREC Action, said Thursday’s selections will help mitigate the effects of PJM’s high capacity prices.
- The grid operator faces a capacity shortfall of 6.8 GW for the 2028-2029 delivery year, up 300 MW from the previous period, as capacity prices remain at the $325/MW-day cap.
- Passed in 2025, the Next Generation Energy Act requires Maryland to conduct at least two solicitations for a combined 1.6 GW of energy storage capacity.
- The finalists are Flatiron Energy’s 400 MW/1,600 MWh Chalk Point Storage Project in south-central Maryland and REV Renewables’s 40 MW/160 MWh Jade Meadow III Battery Storage Project in the far western part of the state.
Reducing risk before construction begins is the job of a good EPC
For developers and project investors, that execution history provides something that a project model can’t: evidence of a team that can deliver bankable projects.”
- The company said it has maintained a 0.00 Total Recordable Incident Rate (TRIR) through its five projects in 2025, totaling over 200,000 worker hours, and that it has also maintained that record so far through 2026.
- “Our track record of completing projects on time and within budget, all while maintaining a 0.0 TRIR throughout 2025 and year to date in 2026, reflects our values and discipline.
- In March, the company was presented with a Perfect Record Award from the National Safety Council, a nonprofit public service organization founded in 1913.
PV Solar
More than 70% of announced U.S. solar manufacturing expansion plans yet to be financed
The forecast for 2027 solar manufacturing capex reveals that more than 70% of the announcements made by companies over the past 12-18 months (that would have necessitated spending in 2027) are either unfunded or stranded.
- U.S. solar manufacturing capex peaked in 2024 (almost $4 billion), with more than half this spending coming from just two companies; First Solar and Qcells.
- Those who heard my talk at the recent Solar Manufacturing USA 2026 event in Austin, Texas on 22-23 September will recall me stating that capex is the most important aspect of solar market research and part of understanding this relates to spending cycles.
- I will return to 2030 production forecasting in the coming days, pending the ‘Tesla’ question.
Tools, Data & Guides
A new VPP framework can center the energy transition in Illinois around customers: ComEd VP
As more technologies become capable of supporting the grid, Illinois will need clear rules for how different resources participate, how their contributions are measured and valued, and how programs can deliver benefits to participating customers and the broader system.
- By the end of 2027, ComEd will file a broader Virtual Power Plant framework that goes beyond batteries and incorporates more of the technologies that customers use every day.
- ComEd’s recently approved Scheduled Dispatch Virtual Power Plant program will allow customers with eligible battery systems to make a portion of their battery capacity available during certain peak periods in exchange for performance-based compensation.
- Realizing its full potential will require collaboration among utilities, regulators, technology providers and customers, with a continued focus on programs that deliver measurable value while protecting customer choice.
PJM Introduces Default Dashboard to Data Viewer Tool
Data Viewer is PJM’s tool that allows users to view public operational and market data graphically.
- Previously, the My Data Viewer dashboard was only available to users signed in to their PJM.com accounts.
- Once logged in, they can customize their My Data Viewer panels via Settings to view the information that is important to them, including the size and position of each panel.
- PJM has updated its Data Viewer tool to highlight commonly accessed information through a new default dashboard view.