As Washington rewires its energy priorities, political reality is colliding with grid stress and AI-driven load growth. Energy Secretary Chris Wright is pushing back on GOP efforts to gut clean tech tax credits, FERC is weighing a shift toward mandatory reserve margins, and Texas just gave the green light to a seismic $26 billion power merger. This is GridBrief: where markets, mandates, and megawatts converge.

Wright to GOP: Don’t Kill Nuclear and Geothermal Tax Credits

Energy Secretary Chris Wright is throwing his weight behind long-term tax credits for nuclear and geothermal energy, calling on Congress to preserve key provisions from the Inflation Reduction Act through 2031—even as Republicans eye those credits for elimination.

• Wright likened the need for support to that of wind and solar a decade ago, saying the same runway is necessary to help commercialize fusion, fission, and deep geothermal.

• The comments come just days before the Senate takes up the sweeping One Big Beautiful Bill Act, which would slash most climate-related incentives.

Why it matters:
Wright is no climate progressive—he’s the architect of the Trump administration’s energy doctrine. But his backing for targeted credits underscores a growing consensus: without federal tailwinds, advanced nuclear and geothermal won’t scale fast enough to meet AI-fueled load growth.

GridBrief Context:
This isn’t about ideology—it’s about timing. Nuclear and geothermal take years to bring online, and load is rising now. Stripping the tax credits may slow exactly the types of projects needed to stabilize the future grid.

FERC Conference: Should Reserve Margins Be Mandatory?

As grid reliability falters across regions, FERC held a high-stakes conference last week to debate whether it’s time to require standardized reserve margins and resource procurement mandates for all load-serving entities (LSEs).

• NERC CEO Jim Robb warned of a “growing risk of unserved energy across the continent,” largely due to premature retirements and insufficient dispatchable capacity.

• CAISO’s 25 GW buildout—over 12 GW of which is storage—is a notable exception, but most other regions are struggling to maintain balance as renewables surge.

What’s on the table:
Outgoing Chairman Mark Christie floated a provocative hypothetical: Should FERC impose universal reserve mandates across all regions?

• ISO leaders responded cautiously—New England said it wouldn’t work due to market structure; SPP and MISO noted they already use similar frameworks but still face escalating risk.

• Several CEOs warned that capacity adequacy alone doesn’t equal reliability—dispatchable fuel-secure generation remains the missing piece.

Bottom line:
The grid is Balkanized, and voluntary adequacy may no longer be enough. If FERC doesn’t act soon, expect more DOE emergency orders—and more blackouts.

Texas Approves Constellation–Calpine Merger, Creating a Powerhouse

The Public Utility Commission of Texas approved Constellation Energy’s $26 billion acquisition of Calpine, moving the deal closer to federal and New York sign-off.

• The merger will combine the country’s largest nuclear operator with one of the top gas-fired fleets, creating a coast-to-coast platform built for around-the-clock reliability.

• Constellation gains deep geothermal and hydrogen pilot assets from Calpine, adding fuel diversity to its already zero-carbon backbone.

Why this matters:
With data centers doubling every few years and dispatchable resources in short supply, this merger gives Constellation unmatched leverage in balancing baseload and peaking needs.

GridBrief Take:
This is more than M&A—it’s vertical integration for the AI energy era. Expect regulators to scrutinize market power, especially in PJM and ERCOT. But the case for this merger—as a national reliability anchor—is stronger than ever.

Upgrade to Grid Brief Premium to get extra deep dives into energy issues all over the world.

Conversation Starters

• RC Energy – “American Energy Dominance Is Imperative”
  With AI projected to eat 9% of U.S. electricity by 2030, leaders from OpenAI, NVIDIA, and DOE are pushing for permitting reform and faster grid modernization. Every year of delay could be a strategic loss to China.

• BBC – “Britain Pays Wind Farms to Not Produce Power”
  Offshore wind farms were paid £72,000 in a half hour to curtail output due to transmission bottlenecks. It’s a cautionary tale for U.S. grid planners—build the wires, or pay the price.

• WSJ – “Chinese Battery Maker Halts U.S. Factory Build”
  AESC paused its $1.6B battery plant in South Carolina amid Trump-era tariffs and clean energy subsidy rollbacks. It’s the first major casualty of the policy shift—but likely not the last.

Good Bet, Bad Bet

Good Bet: Geothermal Developers with DOE Backing
Companies like Fervo Energy and Eavor have new political tailwinds. Wright’s full-throated support for geothermal tax credits—combined with data center developers hunting for clean, firm power—puts them in prime position for offtake deals and DOE support.

Bad Bet: Transmission-Agnostic Wind Expansion
As Britain’s curtailment costs spiral and the U.S. still struggles to expand high-voltage lines, wind projects without firm transmission plans are increasingly risky. Investors betting on output, not access, may soon get stuck in the same queue hell as the developers.

Share Grid Brief

We rely on word of mouth to grow. If you're enjoying this, don't forget to forward Grid Brief to your friends and ask them to subscribe!