Welcome to today’s GridBrief, where we dive into the latest energy developments shaping markets, policies, and innovations. With trends in utility control, wind power waste, and nuclear advancements, the grid continues to be a battleground of interests.

Municipalization Push - A Losing Proposition

The push for municipalization—where local governments take over private utilities—is gaining steam in cities like San Diego, San Francisco, and Rochester, New York. Advocates claim this shift will reduce rates and speed up the transition to clean energy. Yet, history proves that government-run utilities often deliver the opposite: higher costs, operational inefficiency, and service delays. San Diego’s activists recently submitted over 30,000 signatures to put the issue on the ballot, even as their City Council remains skeptical, citing incomplete financial plans.

The trend isn’t isolated. New York lawmakers are debating the creation of public power entities in response to high utility rates and billing failures. However, attempts at municipalization, such as Maine’s failed public power referendum last year, reveal the challenges. Private utilities argue that transitioning to public ownership introduces hidden costs, higher taxes, and potential service cuts—leaving consumers to foot the bill for unproven promises.

Wasted Wind Power in the UK – A Cautionary Tale

The UK is breaking records in wind generation—and in wasting it. A staggering $1.3 billion has been spent this year alone on “congestion costs,” paying wind farms to shut down because the grid can’t handle their output. Scottish wind projects, including billion-dollar developments like Seagreen and Viking, were repeatedly curtailed during storms because transmission infrastructure hasn’t kept pace with renewable expansion.

This highlights a glaring issue: massive investments in wind power are undermined by outdated grids. In the U.S., similar grid bottlenecks threaten to squander billions sunk into renewables. Until transmission catches up, consumers will pay the price, both in wasted potential and inflated electricity costs.

GE Vernova’s Big Bet on Small Modular Reactors

GE Vernova is leading the charge to deploy its BWRX-300 small modular reactors (SMRs) across the developed world, with plans for 57 units by 2035. These reactors, smaller and cheaper than traditional nuclear plants, could transform nuclear energy by providing scalable, cost-effective solutions. The BWRX-300 generates 300 MW—enough to power 200,000 homes—and costs $2 billion to $4 billion, compared to $10 billion-plus for larger plants.

GE is already collaborating with Ontario Power, TVA, and Synthos Green Energy to standardize reactor designs and streamline global deployment. Tech giants like Microsoft and Amazon are expressing interest in SMRs to power their energy-hungry AI data centers. With utilities and tech leaders on board, GE Vernova’s modular approach could reinvigorate the nuclear sector after decades of stagnation.

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Conversation Starters

• The Atlantic: The U.S. Warms to Nuclear: A new era is dawning for nuclear energy as Congress, corporations, and regulators set ambitious goals to expand capacity. This could be the nuclear revival advocates have been waiting for.
  

• The Guardian: Blair’s Think Tank: Nuclear Fears Are Overblown: The Tony Blair Institute says global emissions would be 6% lower today if not for fears stemming from Chernobyl and Fukushima. The narrative needs a rethink, it argues, to unlock nuclear’s potential.
  

• SCMP: Indonesia’s Nuclear Ambitions: Southeast Asia’s largest economy plans two nuclear plants as part of a push for 75% clean energy by 2040. Critics call it risky and unnecessary, given the region’s vast renewable potential.

Good Bet, Bad Bet

Bad Bet: 1974’s Nuclear Overconfidence
In 1974, the chairman of the Atomic Energy Commission confidently predicted the U.S. would have over 1,000 nuclear reactors by the year 2000. The reality? A fraction of that—due to skyrocketing costs, public opposition, and regulatory hurdles. Nuclear’s promise remains, but the path has always been harder than the optimists believed.

Good Bet: GE Vernova’s SMR Revolution
GE Vernova’s BWRX-300 small modular reactors are redefining nuclear economics, offering scalable, cost-effective solutions that are attracting utilities and tech giants alike. With deployment plans already underway in North America, Europe, and beyond, GE is poised to reshape the nuclear landscape.

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