Welcome to GridBrief, your source for in-depth analysis of the critical issues shaping the energy industry. Today, we're unpacking the latest developments in U.S. energy policy, PJM’s capacity market debates, and Pennsylvania’s pointed warnings to the grid operator. Dive in for key insights, a fresh Good Bet/Bad Bet, and a quick scan of the latest energy headlines. Let’s get into it.

Chris Wright's Confirmation Hearing—A High-Energy Debate

Chris Wright, President-elect Donald Trump’s nominee for energy secretary, appeared before the Senate for a lively confirmation hearing. Wright, the CEO of Liberty Energy, championed Trump’s "bold energy agenda," which prioritizes maximizing American energy production and cutting regulatory hurdles. He pledged to support all energy sources, from fossil fuels and nuclear power to geothermal energy, while emphasizing the importance of energy security and affordability.

The hearing saw Wright acknowledge that fossil fuel combustion has raised atmospheric CO2 levels but stressed the need for energy trade-offs to balance economic growth and environmental stewardship. A staunch advocate for oil and gas, Wright also highlighted emerging energy technologies, particularly geothermal and nuclear, which he described as transformative for meeting future energy demands.

Wright’s comments on wildfires sparked sharp criticism. When asked about his past remarks downplaying wildfire concerns, Wright stood by his statements, framing the issue as one of poor forest management rather than inherent risks. This drew heated responses from senators representing fire-prone states.

Protests erupted throughout the hearing, with activists interrupting proceedings to call attention to climate concerns and energy policy. The contentious nature of the session underscored the polarizing divide over Wright’s nomination and the broader energy policies of the incoming administration.

PJM Faces Resistance Over Capacity Market Reforms

PJM Interconnection’s proposed overhaul of its capacity market rules is under fire from various stakeholders, including power providers, renewable energy advocates, and ratepayer groups. The changes would require renewable and storage resources to participate in capacity auctions while revising rules for market seller offer caps (MSOC). PJM argues that these reforms would enhance price formation and ensure adequate power supplies, but opponents say the plan risks inflating capacity costs and deterring renewable energy development.

Critics, including PJM’s market monitor, warn that the reforms could lead to skyrocketing capacity prices, with estimates suggesting ratepayers could face a $25 billion cost burden in the next auction. Renewable energy groups contend the proposal would unfairly penalize intermittent resources with double penalties for non-performance, potentially driving them out of the market.

Support for the reforms comes from utility regulators and major companies like Dominion Energy, who argue that the changes are essential for ensuring reliability. Even supporters, however, caution that additional measures are needed to mitigate risk and encourage participation. With deep divisions among stakeholders, PJM’s proposals now head to FERC, where the debate over the future of capacity market rules will continue.

Pennsylvania Governor Shapiro's Warning to PJM

Governor Josh Shapiro of Pennsylvania has issued a stern warning to PJM Interconnection, urging the grid operator to revise its capacity market price cap before the upcoming auction. Shapiro argued that the current cap could result in billions of dollars in unnecessary costs for consumers and signaled that Pennsylvania might reconsider its role within PJM if reforms are not made.

In a letter to PJM’s leadership, Shapiro advocated for aligning the price cap with recommendations from state leaders and market monitors. He criticized the grid operator for pushing ahead with auctions that could impose excessive costs on ratepayers, describing this as unacceptable. Other states, including Maryland, New Jersey, and Illinois, have echoed similar concerns.

Shapiro’s stance reflects broader frustration among state leaders over escalating electricity prices and perceived market failures. PJM has defended its efforts, citing ongoing initiatives to streamline interconnections and adjust capacity market rules. However, the governor’s sharp rhetoric signals mounting pressure on PJM to take decisive action ahead of the next capacity auction, which is scheduled for later this year.

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

Conversation Starters

• Yahoo: Bill Gates’ TerraPower Receives Permit for 345 MW Reactor
  Wyoming approves the first commercial advanced nuclear reactor, marking a milestone in zero-carbon energy development.

• OilPrice.com: Sweden Builds Nuclear Waste Facility for 100,000 Years
  Sweden follows Finland’s lead with a deep-earth repository for radioactive waste, solving a critical lifecycle challenge for nuclear energy.

• Physics World: Semimetal Outperforms Copper in Thin Films
  Stanford researchers find that niobium phosphide conducts electricity better than copper at nanoscale thicknesses, a breakthrough for next-gen nanoelectronics.

Good Bet, Bad Bet

Good Bet: BlackRock's Pragmatic Pivot
BlackRock’s recent exit from the Net Zero Asset Managers initiative may have ruffled ESG advocates, but it’s proving to be a savvy financial move. With mounting legal pressure from states and a shifting regulatory environment under the new administration, the company’s decision positions it to refocus on core client investment goals without the distractions of political scrutiny. The market seems to agree—BlackRock’s stock has stabilized after the announcement, and analysts are bullish on its ability to navigate these turbulent times while maintaining its dominance in asset management.

Bad Bet: Hydrogen-Powered Cars Will Dominate the Roads by 2020
Remember the early 2000s hype around hydrogen fuel cell vehicles? Touted as the future of clean transportation, hydrogen cars were expected to replace internal combustion engines within a couple of decades. Yet, 2025 has arrived, and electric vehicles—powered by batteries, not hydrogen—are dominating the market. High costs, limited infrastructure, and competition from EVs have kept hydrogen cars in the niche category, far from the sweeping revolution once promised.

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!