The global energy chessboard is shifting fast. This week’s GridBrief unpacks the World Bank’s nuclear pivot, the EPA’s regulatory rollback on carbon and mercury emissions, and a quieter—but more structurally dangerous—bottleneck strangling clean energy ambitions: a global shortage of high-voltage power cables.

World Bank Reverses Nuclear Ban, Shifting Power in Global Energy Markets

In a seismic policy reversal, the World Bank has lifted its 60-year-old de facto ban on funding nuclear energy projects. The decision opens the door for developing nations to leapfrog fossil fuels by building out nuclear capacity—particularly next-gen small modular reactors (SMRs)—with Western financial backing.

Until now, the World Bank’s stance effectively forced low-income countries to depend on coal or sign 40-year fuel lock-in deals with Russia and China. That geopolitical imbalance may begin to shift. The U.S., the Bank’s largest shareholder, pushed hard for this move, seeing an opportunity to dislodge Russian and Chinese influence in emerging nuclear markets like Ghana and Vietnam.

For U.S. firms developing SMRs, this could be the beginning of a long-overdue demand surge. Treasury Secretary Scott Bessent has framed the reversal as a chance to “revolutionize energy supply” in the Global South, but it’s just as much about securing strategic footholds for American nuclear tech abroad.

Meanwhile, Germany—once the anti-nuclear poster child—has softened its stance under a new CDU government, creating the political space for a broader Western nuclear renaissance. Even some skeptics like the Union of Concerned Scientists are beginning to see the writing on the wall.

The World Bank’s next debate? Whether to lift its ban on oil and gas drilling. Stay tuned.

EPA Slashes Power Plant Emission Rules, Drawing Legal Fire

The Environmental Protection Agency has proposed repealing carbon emissions limits and mercury standards for fossil fuel power plants—a sharp about-face from Biden-era climate rules. The move is framed as a necessary course correction for grid reliability and economic competitiveness, but critics argue the EPA's legal justification is on shaky ground.

At issue is the Biden administration’s prior rule, which leaned heavily on carbon capture technology—a solution not yet commercially viable at scale. Industry groups including the Edison Electric Institute applauded the rollback, saying the old rule would have forced premature coal plant closures across regions already on the brink of capacity shortfalls.

The EPA claims this reversal will save the power sector $19 billion over two decades. But environmental law experts point out that the new rule conveniently stops counting the social cost of carbon, which had previously accounted for up to $370 billion in climate and health benefits.

If the EPA’s cost-benefit math doesn’t hold up in court, the agency could be looking at yet another Supreme Court defeat. For now, public comment is open for 45 days—and both sides are lawyering up.

Cables Are the Next Great Grid Bottleneck

Forget transformers and solar panels—high-voltage transmission cables have become the newest choke point in the energy transition. Global demand for grid-scale cabling has outstripped supply, and manufacturers are cautious about scaling up, citing long ROI timelines and political uncertainty.

The stakes are enormous. According to the IEA, the world needs to build 80 million kilometers of new transmission by 2040—equal to the entire existing global grid. But the small club of manufacturers (like Denmark’s NKT and France’s Nexans) are struggling to meet demand.

Why? The cables themselves are feats of engineering, requiring 200-meter-tall towers, deepwater ports, and years of planning. They’re also built bespoke for each project, which makes mass production—and rapid scaling—nearly impossible. The result is a global logjam in projects from offshore wind to nuclear interconnectors.

China has emerged as a potential challenger in this space, but Western nations remain wary of trading grid infrastructure security for lower costs. Meanwhile, U.S. and European developers are facing years-long delays for cable access—a problem that’s slowing down even well-funded clean energy projects.

This isn’t just a supply issue—it’s a national security one. Grid resilience may now depend on something as mundane as copper rope.

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Conversation Starters

• Reuters – Amazon signs nuclear deal with Talen Energy to power data centers.
  Amazon Web Services will buy up to 1,920 MW from Talen’s Pennsylvania nuclear plant under a deal lasting through 2042. The companies are also exploring SMR development within Talen’s footprint.

• Heatmap – Trump has a power price problem.
  Electricity prices are rising even as inflation falls, thanks to surging demand in PJM states and sluggish new generation. Political pressure is mounting, especially in Mid-Atlantic swing states.

• C3 Solutions / IER Webinar – Can states force fossil fuel companies to pay climate reparations?
  New York’s $3B/year Climate Superfund Act is under DOJ challenge. A June 17 webinar will explore whether these laws are bold climate action—or unconstitutional power grabs.

Good Bet, Bad Bet

Good Bet: Nuclear Infrstructure
With the World Bank lifting its nuclear ban and big tech firms like Amazon locking in nuclear power purchase agreements, the smart money’s moving toward SMR suppliers and grid-scale reactor manufacturers. U.S. firms like BWX Technologies and X-energy may soon find themselves riding a global demand wave backed by public and private capital alike.

Bad Bet: Transmission Timeline Promises
Utilities, regulators, and developers have all made bold promises about transmission expansion. But with high-voltage cable backlogs stretching years and manufacturer capacity capped, don’t bet on project timelines holding. The wires are the weakest link.

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