Data centers, a bolster to the energy storage market, face notable delays and public pushback
Between the Terminals
TLDR · What matters most
- The Federal Energy Regulatory Commission on Tuesday rejected Commonwealth Edison’s “notice of cancellation” of a transmission security agreement, or TSA, for a 1.8-GW, $20-billion data center PowerHouse Hillwood Holding is developing in Joliet, Illinois.
- And the Oklahoma Office of Management and Enterprise Services is spearheading the $832 million “Three Corners Connection” project, which aims to create a high‑capacity link between the Southwest Power Pool in Oklahoma and the Western Electricity Coordinating Council in Colorado, according to the summary.
- DALLAS, Texas – September 22, 2026 — Trina Storage, a global leader in energy storage solutions, today unveiled an exclusive preview of its upcoming Elementa Hybrid Genset solution at Data Center World Power 2026.
- The U.S. energy economy employed 8.4 million workers in 2025 and lost 86,000 jobs, according to estimates by the Department of Energy (DOE).
- The company has supplied systems for a 120 MW/240 MWh project in Yangzhou, Jiangsu province, a 200 MW/400 MWh standalone battery in Ningxia, and projects in Europe.
BESS Technology
Trina Storage Teases “Elementa Hybrid Genset” at Data Center World Power to Tackle North America’s AI Data Center Power Bottlenecks
Accelerated Time-to-Power: Enables on-site microgrid deployment to energize facilities years ahead of sluggish utility grid connections, aligning with developer 2027 NTP (Notice to Proceed) and 2029 COD (Commercial Operation Date) windows.
- The official commercial launch of the Elementa Hybrid Genset solution—featuring complete engineering documentation, final commercial configurations, and technical whitepapers—will take place at RE+ 2026 in Las Vegas, Nevada, from November 16–19.
- As hyperscalers and developers race to bring gigawatt-scale AI workloads online, utility grid interconnection wait times in parts of the United States, including Virginia, have stretched up to 5 to 7 years.
- DALLAS, Texas – September 22, 2026 — Trina Storage, a global leader in energy storage solutions, today unveiled an exclusive preview of its upcoming Elementa Hybrid Genset solution at Data Center World Power 2026.
Pylontech starts mass production of 588 Ah, 601 Ah storage cells
Pylontech said the higher capacity reduces the number of cells and interconnections in a storage system.
- Pylontech said it has started mass production of 588 Ah and 601 Ah prismatic LFP cells at its manufacturing base in Hefei, China’s Anhui province, and has already produced more than 100 MWh of the cells.
- The cells are being integrated into its PyOcean systems, the 6.25 MWh PyOcean-M7-6250 and 8 MWh PyOcean-M9-8000, which Pylontech said are set to enter project delivery.
- The company has supplied systems for a 120 MW/240 MWh project in Yangzhou, Jiangsu province, a 200 MW/400 MWh standalone battery in Ningxia, and projects in Europe.
Data Centers
Efforts to curb data center speculation gain ground across the US
There, it’s up to vertically integrated utilities — with increasing scrutiny from state policymakers and regulators — to sort out speculative requests from those more likely to get built.
- More than $170 billion in AI data center capacity has been “blocked, withdrawn, or stalled” by community opposition since January 2024, the energy advisory company Relae, formerly Carbon Direct, said in June.
- On June 18, the PUCT adopted a cluster study framework for prospective loads larger than 75 MW that officials said would streamline a “lengthy and repetitive” sequential study process as ERCOT stakeholders work to develop a comprehensive transmission planning framework later this year.
- Goldman Sachs said in May it sees U.S. data center power demand more than doubling from its 2025 levels to reach 66 GW in 2027.
Oracle issues force majeure notice to Blue Owl following series of setbacks at Project Jupiter data center campus – report
The company also announced an up to $1 million funding package to support research into the potential deployment of carbon capture and sequestration at the campus and across the state.
- Should the 2.5GW data center campus, dubbed Project Jupiter, fail to come online in 2028 as planned, the cloud giant is seeking to delay the payments it would have to make, rather than forfeit its tenancy, the report added.
- The 1,400-acre campus is expected to span four data center buildings and is being built by Stack and BorderPlex Digital Assets, with the companies previously announcing plans to invest up to $165 billion in the project.
- Earlier this month, Oracle issued a Request for Proposals (RFP) to develop 2GW of new renewable energy capacity in New Mexico, which would support power delivery at the Project Jupiter campus.
Nvidia launches BESS qualification program for AI data centers, names just Tesla, LG, Hitachi
As one of the first qualified BESS solutions in the NVIDIA DSX Ready program, this recognition reinforces Hitachi Energy’s position at the forefront of AI factory electrification combining advanced technologies, power quality solutions and systems expertise to support end-to-end power infrastructure for the next generation of AI applications.”
- Marco Berardi, head of grid & power quality solutions and service at Hitachi Energy: “As AI factories continue to scale, customers need power systems that can be deployed, integrated, and expanded quickly while maintaining reliability and resilience.
- Building on our differentiated local manufacturing capabilities and technology leadership, we will further expand our digital infrastructure business and accelerate growth in this rapidly evolving market.”
- Hitachi Energy’s BESS, comprising its WD4 PCS and battery storage, at 5 MW AC output and 10 MWh capacity.
Victoria, Australia, proposes rules requiring data centers to secure own renewable energy supply
The new rules will additionally prohibit data centers from being sited in residential areas, such as near schools and childcare centers, as well as in rural areas unable to support them.
- The southeastern Australian state of Victoria has proposed new rules requiring data centers in the region to secure a renewable energy supply for their operations, among several other requirements.
- Under the proposal, data centers will be required to bring their own renewable energy supply and storage, match new demand with new generation, and cover connection and network upgrade costs.
- The federal government also floated plans for new rules that would have required data centers to power a portion of their installations with renewable energy.
Manufacturing
CATL Debrecen Kicks Off Trial Operations in its New Cell Building
Once all facilities ready, the Hungarian plant will be CATL's largest manufacturing base outside China with a 100 GWH capacity.
- After obtaining the occupancy permit in August 2026, the company obtained all relevant permits and completed all pre-conditions required by its IPPC permit prior to start trial operations from 22 September on the first two production lines of its cell manufacturing facility.
- CATL announced the construction of its second European battery plant in Debrecen in August 2022, with the aim of integrating to the European automotive and e-mobility supply chain and better serve leading European automakers.
- CATL begins trial production on 22, September, 2026 in its newly build cell factory in Debrecen as the company had fulfilled all preconditions required to commence trial run.
Tower Semiconductor to establish large-scale optical chip hub as part of $4bn Japanese investment pledge
This will allow the chipmaker to produce the equivalent of 45,000 300mm wafers per month in 2029, an approximately 40x increase on production figures from 2025, Nikkei Asia reported.
- The Israeli chipmaker already has three manufacturing sites in Japan and originally announced plans to expand its silicon photonics, silicon germanium, and advanced packaging capabilities in July 2026.
- At the time, Tower said the expansion across Japan will help support “rapidly growing long-term customer demand,” substantially increasing the company’s manufacturing capacity.
- Tower Semiconductor plans to establish its largest optical chip production hub in Japan, as part of a wider $4 billion investment in the country.
BYD Launches Major 44-Metric Ton Electric Truck in IAA Transport
“From batteries and solar power to energy storage, FLASH Charging and commercial vehicles, we provide a one-stop solution for sustainable commercial transport,” Li said.
- “For the long term, we will produce everything we sell in Europe here locally,” Li told the media at the launch of the ETT44.
- At the launch, Li also announced that BYD will set up a factory in Europe for the full line up of electric vehicles.
- Under continental regulations, manufacturers must cut fleet-wide emissions from heavy commercial vehicles by 45 percent by 2030, rising to 90 percent by 2040.
Policy & Markets
FERC rejects ComEd’s cancellation of PowerHouse Hillwood data center contract
“Though we decline to assert primary jurisdiction over the interpretation of ambiguous contract terms involving credit support, our commitment to fair cost allocation, ratepayer protection, and regulatory clarity remains unwavering,” FERC Chairman Laura Swett and Commissioner Lindsay See said in a joint concurrence.
- FERC’s decision highlights the “criticality” of the potential reforms that the agency proposed in large load interconnection show cause orders it issued in June to regional transmission organizations and independent system operators, the commissioners said.
- “The idea that $1 may provide appropriate security to any such agreement strikes me as an embarrassing legal fiction: insulting to the underlying ratepayers, stakeholders, and the grid itself that bear the real risk of this project,” LaCerte said.
- The Federal Energy Regulatory Commission on Tuesday rejected Commonwealth Edison’s “notice of cancellation” of a transmission security agreement, or TSA, for a 1.8-GW, $20-billion data center PowerHouse Hillwood Holding is developing in Joliet, Illinois.
Nearly 37,000 clean energy jobs lost in 2025, E2 reports
E2 reports that, combined, the existing jobs cut last year and the announced jobs that were canceled add up to more than 120,000 positions.
- In the first five months of 2025, E2 reported that the cancelations, which include solar module as well as battery and electric vehicle (EV) facilities, totaled $15.5 billion in investments and were expected to create 12,000 new jobs.
- According to E2’s Clean Economy Works project tracker, companies canceled or downsized 142 clean energy manufacturing, generation and storage projects in 2025, representing $57.8 billion in lost business investment.
- The U.S. energy economy employed 8.4 million workers in 2025 and lost 86,000 jobs, according to estimates by the Department of Energy (DOE).
How to make renewables auctions resilient to supply chain shocks
It also suggests that circular economy measures can mitigate supply shocks in energy transition technologies by lowering dependence on imported materials, advising that public support for collection and recycling capacity will become increasingly important as waste from renewable energy supply chains grows.
- The agency’s latest report says renewable energy supply chains have been “a source of systemic vulnerability” through the 2020s with a series of overlapping shocks, most recently including the Strait of Hormuz crisis, raising costs, delaying projects and straining finances.
- While lead time extensions can assuage delivery delays, and adjustments to bonds or penalties can reduce the financial consequences of noncompliance, neither directly addresses the underlying shock,” the report explains.
- “When embedded in a wider policy framework, auctions can help countries anticipate shocks, reduce external dependence and capture more of the socioeconomic value created by the energy transition,” the agency says.
No ITC? No problem. Solar’s value proposition was never about the subsidy
Utility rates will continue to increase at elevated rates due to the backlog of regulated utility capital expenditures – according to a 2026 Lawrence Berkeley National Laboratory analysis, commercial and industrial nominal utility rates have already climbed 26-27% since 2019, with prices set to rise further.
- Massachusetts, for example, recently won regulatory approval for SMART 3.0, a full redesign of its solar incentive program that will now pay out over 20 years, up from its previous 10 years.
- Beyond policy, Onyx will lead on adapting on the commercial side, offering more flexible PPA terms — from adjusted pricing structures to varied contract lengths — that allow businesses to hedge their power prices and protect their profit margins in this rising utility rate environment.
- In a post-ITC world, solar companies will continue to expand their businesses faster and more nimbly as the technology has been proven and is a more affordable energy option, especially with the backdrop of ever increasing fuel prices.
Projects & Operations
Advanced transmission projects get $1.9B in DOE funding
The U.S. Department of Energy plans to offer $1.9 billion to help fund 31 grid-improvement projects that are expected to add 23 GW of capacity to the transmission system, it said Thursday.
- The Colorado Energy Office is sponsoring a $1.2 billion project that would deploy advanced transmission technologies to “expand interregional transfer capability, improve system reliability, enhance operational flexibility, and strengthen grid resilience across Colorado, Texas, and neighboring regions,” according to DOE’s project summary.
- “These selected SPARK projects put advanced transmission technologies to work, modernizing critical infrastructure, maximizing the capacity of existing lines, and unlocking more than 20 GW of additional grid capacity,” DOE Office of Electricity Assistant Secretary Catherine Jereza said in a press release.
- And the Oklahoma Office of Management and Enterprise Services is spearheading the $832 million “Three Corners Connection” project, which aims to create a high‑capacity link between the Southwest Power Pool in Oklahoma and the Western Electricity Coordinating Council in Colorado, according to the summary.
Spain prepares to allocate up to 11 GW for renewable energy and storage
The Guardo-Velilla process could provide access to grid capacity for long-duration storage projects, with reversible hydropower able to shift electricity generation between periods of lower and higher demand.
- Spain plans to allocate up to 11 GW of grid access capacity for renewable energy and energy storage projects at transition hubs, including dedicated competitive tenders for two sites in Palencia.
- The future tender will be established through a regulatory order and will assess projects against socioeconomic and environmental criteria, alongside applicable technical requirements for grid connection.
- Projects will have to meet technical requirements, undergo applicable environmental assessments and commit to socioeconomic measures benefiting the relevant transition area.
Energy Department Announces Speed to Power Investments Across 26 States to Lower Electricity Costs and Improve Grid Reliability
WASHINGTON—The U.S. Department of Energy’s (DOE) Office of Electricity (OE) today announced its intention to help fund 31 grid-improvement projects across 26 states as part of the Department’s Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK) initiative.
- The projects will receive $5.25 billion in total, $1.9 billion in federal funding from DOE and $3.35 billion in recipient cost-share funding, to improve grid reliability and lower electricity costs for approximately 100 million Americans.
- “These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable, and secure power that will fuel American prosperity for decades to come.”
- By maximizing existing rights-of-way, the selected projects will eliminate congestion bottlenecks and avoid expensive greenfield construction—lowering operating costs to help reduce consumer electricity bills.
Abu Dhabi targets 15 GW of energy storage by 2035
“As this advanced capacity is commissioned, the contribution of gas-fired generation, which provides the flexibility needed to firm intermittent renewable output, is expected to decline,” EWEC said in a statement.
- In late 2024, it secured sites for 4.5 GW of additional solar capacity across Al Faya, Al Khazna and Al Zarraf.
- Emirates Water and Electricity (EWEC), the sole procurer and supplier of electricity and water in Abu Dhabi, has set a new target of more than 35 GW of installed solar capacity by 2035.
- EWEC has also set an interim target of 14 GW by 2030, meaning at least a further 21 GW of solar capacity would need to be installed between 2031 and 2035 to meet the new target.