An updated draft of a Senate GOP megabill significantly reduces tax incentives for wind and solar energy, basing credits on when projects begin producing electricity rather than when construction starts. The bill also introduces a tax on projects placed in service after 2027 if they use components from China. The revisions are expected to limit the number of projects qualifying for credits and reflect a push by Senate Republicans to scale back renewable energy subsidies.

The Senate's draft reconciliation bill has sparked additional concern in the clean energy industry with its proposal to impose an excise tax on certain projects. The tax, which would require companies to source components from nonprohibited countries and fulfill complex reporting requirements, is facing sharp criticism from figures such as fossil fuel advocate Alex Epstein, who said the tax is "definitely not something I would support."

Senate Republicans have introduced a revised tax and budget bill that would end the $7,500 tax credit for new electric vehicle sales and leases as well as the $4,000 credit for used EVs by Sept. 30. The bill also seeks to eliminate fines for failing to meet Corporate Average Fuel Economy standards and includes a tax exemption for interest paid on auto loans for US-made cars.

Efforts to impose fees on electric vehicles and hybrids are unlikely to make it into the Republicans' budget bill, but the issue is expected to be prominent in the next surface transportation bill as lawmakers seek to bolster the Highway Trust Fund. Many Democrats and EV advocates acknowledge the necessity of EV fees, but express concern about the scale of some proposals from the GOP.

US energy companies are significantly increasing capital expenditures to build power plants and transmission lines to meet the rising electricity demand from data centers, according to Jefferies. Utility capital spending is expected to reach $212.1 billion in 2025, a 22.3% increase from the previous year, and is projected to climb further, hitting a record $228.1 billion in 2027, as utilities and private developers ramp up spending to build infrastructure required for the digital era.

Recent record-breaking heat in the Northeast pushed power demand close to record levels, highlighting the potential for battery storage to manage such spikes. ISO New England and PJM Interconnection had to activate fossil fuel peaker plants to meet demand. Battery storage could have stored excess power during the day for use during peak times, a method successfully employed in Texas and California.

Google has signed its first energy procurement deal with a fusion company, agreeing to purchase 200 megawatts from a planned Commonwealth Fusion Systems reactor in Virginia. Google also is increasing its investment in CFS, which aims to produce commercial-scale energy by the early 2030s.

The Tennessee Valley Authority plans to convert the retired Bull Run coal-fired plant in Clinton, Tenn., into a grid stability facility using synchronous condensers, working with Eaton to convert two generators into 605-megavolt-ampere-reactive synchronous condensers. The project is part of TVA's broader evaluation of post-retirement uses for the Bull Run site, including options like battery storage and other grid stability technologies.