Labor shortages remain a reality for US manufacturing in 2025, although the situation has eased since peaking in 2021. More than one-fifth of plants that did not meet full capacity production reported insufficient labor and skills shortages are a drag on their business, a significant reduction from the 46.3% high in 2021 but still double the 2014 to 2016 average.
PJM Interconnection is proposing grid upgrades costing between $5.9 billion and $6.3 billion to address growing energy demands driven by increased data center operations and vehicle and heating system electrification. These projects, part of the 2024 Regional Transmission Expansion Plan, focus on accommodating current and future load growth, optimizing regional power flows and adapting to changes in generation resources.
Battery technology has experienced rapid growth since 2021 and grid-scale installations are becoming more common. In this episode of The Indicator podcast, the team dives into three grid-scale battery success stories, with a focus on how the technology is increasing grid reliability as more renewables come online.
Carbon-free energy sources accounted for 96% of new US power capacity in 2024, with 56 gigawatts added, according to this chart based on Cleanview data. Solar led with 34 gigawatts, followed by energy storage at 13 gigawatts, while wind installations declined due to supply chain issues. Despite the rise in clean energy, fossil fuels still dominate US power generation.
The Loan Programs Office has awarded a $1.76 billion conditional loan guarantee to Hydrostor to support a compressed-air energy storage project in California. The Willow Rock project is expected to begin operations in 2030 and would be able to store up to 4,000 megawatt-hours of power. "What LPO is saying is this is creditworthy technology that is ready for deployment," said CEO Curt VanWalleghem.
The 2022 fusion experiment at Lawrence Livermore National Laboratory that demonstrated ignition, producing more energy than it consumed, marked a pivotal moment in fusion research. Efforts are underway on multiple fronts to scale fusion as a clean energy source, and private investment in the field has soared to more than $7 billion in recent years. However, engineering obstacles must first be overcome, including developing materials that can perform well under extreme conditions and producing sufficient tritium fuel.
Artificial intelligence presents a huge opportunity for grid modernization and clean energy deployment in the US, says national climate adviser Ali Zaidi in this interview. Zaidi envisions federal, state and private stakeholders working together to scale clean power cost-effectively and in a way that supports data center development. "I don't see these objectives at cross purposes with one another. I actually see AI as an accelerant to our ambition on the electricity grid," says Zaidi.
The producer price index was up 0.2% last month, and 3.3% from a year earlier, according to the Labor Department. The monthly increase was smaller than the 0.4% in November, while the annual figure was above the previous month's 3%. Core producer prices, which removes the food and energy categories, were flat compared with the previous month and up 3.5% over the past 12 months.
Cleveland-Cliffs and Nucor are reportedly considering an offer for US Steel in a proposal. Cleveland-Cliffs would make a cash offer for US Steel and sell a portion of the assets to Nucor. The move comes after a previous bid by Cleveland-Cliffs stalled and the Biden administration blocked a tie-up between US Steel and Nippon Steel.
President-elect Donald Trump's economic team is reportedly considering a plan to gradually increase tariffs by 2% to 5% monthly using the International Emergency Economic Powers Act. The approach aims to boost negotiating leverage and mitigate inflation spikes. The proposal, still in early stages, has not been presented to Trump, sources say.
