WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! In today’s edition of Daily on Energy, we dive right into the president’s decision to mobilize hundreds of thousands of National Guard troops in Washington, D.C. Interior Secretary Doug Burgum was present at the White House for this morning’s announcement, where he advocated for the use of U.S. Park Police to reduce crime.
Plus, we take a look at a report that offers new estimates about how much energy artificial intelligence could be using in just five years’ time.
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Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
BURGUM BACKS POLICE PRESENCE IN DC: President Donald Trump this morning announced the federalization of the D.C. Metropolitan Police Department and activated hundreds of National Guard troops to address crime in the nation’s capital.
Trump’s cabinet members joined the president in making the announcement, including Interior Secretary Doug Burgum. As the U.S. Park Police operate under the DOI, Burgum said it is their responsibility to protect the nation’s monuments, including the National Mall, Washington Monument, and Jefferson Memorial. He added that the agency is pleased with Trump’s action today, allowing U.S. Park Police to “enforce the law.”
Burgum said that there are a variety of parks in D.C. that are under federal control, but that during the Biden administration, they were “littered” with homeless camps. Since March, Burgum said, U.S. Park Police have removed 70 homeless camps.
Park police “continue to do a great job, whether it’s in their vehicles, on foot, or on the mounted police that you see around the National Mall, and President Trump, they thank you,” Burgum said. “The rank and file is so happy to be enforcing the law again.”
TOP SENATE DEMOCRAT SLAMS TRUMP OVER WITHDRAWING GRAIN BELT FUNDS: New Mexico Sen. Martin Heinrich, the top Democrat on the Senate Committee on Energy and Natural Resources, lambasted the Trump administration in a recent interview over its decision to pull funding for a multi-state transmission project – a move he claims will increase energy costs.
Quick reminder: Late last month, the Department of Energy canceled a $4.9 billion conditional loan commitment for the multi-state transmission project. Grain Belt has not been abandoned by developer Invenergy, which will be seeking additional funding from the private sector to support its construction. The transmission line is expected to provide upward of five new gigawatts of energy across the Widwest and would primarily be connected to wind and solar power facilities.
What they’re now saying: Heinrich recently spoke with Canary Media, saying the decision to roll back the loan commitment is just one instance of the administration – particularly the Department of Energy and Interior Department – creating uncertainty in the energy and financial markets.
“When you have a big transmission project like this one, there are $52 billion in energy savings over the course of the next decade, and that should be accruing to consumers,” Heinrich told the outlet. “And if you put all of this in jeopardy, the real impact is that costs are going up, and then when you put all of these permits that are usually very predictable and are now uncertain, all of this is going to raise costs for consumers — for retail consumers and for commercial consumers.”
Heinrich has accused DOE of acting illegally by pulling the funding. He has since written a letter to Energy Secretary Chris Wright requesting information regarding the decision to cancel the loan guarantee. That letter was sent on July 29. The senator told Canary Media he has not received a response.
AI POWER DEMAND TO JUMP 10X IN JUST FIVE YEARS: Artificial intelligence is expected to continue to dominate energy demand growth through the end of the decade, with new research estimating that consumption will increase by roughly 10 times what the tech currently uses.
The details: New analysis conducted by the Electric Power Research Institute released today found that total AI power capacity could jump to more than 50 gigawatts by 2030. That is roughly equivalent to the amount of energy produced by 50 large nuclear reactors, which produce around 1 gigawatt of power. At this rate, the report estimated, AI could consume more than 5% of energy generated in the U.S. by 2030.
By comparison, current AI power demand is estimated to be at around 5 gigawatts.
The report warned that it remains unclear whether this demand from AI, data centers, and Big Tech can actually be met, as substantial upgrades must be made to the national grid and the amount of generation available. EPRI did note that there is a chance the rapid demand growth could be slowed due to constraints related to building out the grid.
Key quote: “To meet these rising energy demands, data center developers and power providers are embracing innovative solutions in a build-to-balance approach,” EPRI President and CEO Arshad Mansoor said in a statement. “Building new infrastructure along with balancing through flexibility in data center design will be critical to accelerate grid connections, while minimizing costs and enhancing system reliability.”
POLISH WIND INDUSTRY FACES BIG BLOW: The wind industry is facing another big blow in Europe, with Polish President Karol Nawrocki vowing not to sign a piece of legislation that would ease regulations for onshore wind projects.
The details: Nawrocki’s spokesperson confirmed on Monday that the president would not be supporting the bill, according to Reuters. If signed into law, the bill would ease rules for building new land-based wind farms, by shrinking the distance required between proposed turbines and residential areas. It would also maintain existing restrictions on projects proposed near protected natural areas and would freeze energy prices for residents until the end of the year.
Polish lawmakers have said the bill is key for supporting renewable energy growth in the country while also lowering energy prices. Nawrocki’s office confirmed that the bill will not get his approval, and that the president plans to present his own plan for lowering energy prices.
WIND GIANT’S SHARES TUMBLE, POINTING FINGERS AT TRUMP: Ørsted, the largest offshore wind developer in the world, saw its value plummet by roughly 30% as it plans to raise more than $9 billion by selling new shares.
The details: Ørsted announced the rights issue this morning, saying it will amount to 60 billion Danish Kroner (around $9.4 billion). The company said it was issuing the new shares after it was unable to complete a partial divestment of the Sunrise Wind project off the coast of New York. As a result, the company is required to fund the entire construction, and will need an additional 40 billion Danish Kroner ($6.2 billion) to do so.
The Danish renewable energy company is placing blame on the Trump administration for disrupting its business, describing the administration’s crackdown on the industry as an “unprecedented regulatory development.”
“Long-term, the fundamentals for offshore wind remain strong in our core markets in Europe,” president and CEO Rasmus Errboe said in a statement. “However, Ørsted and our industry are in an extraordinary situation with the adverse market development in the US on top of the past years’ macroeconomic and supply chain challenges. To deliver on our business plan and commitments in this environment, we’ve concluded that a rights issue is the best solution for Ørsted and our shareholders.”
The Danish state, Ørsted largest shareholder, is backing the rights issue and has agreed to buy more of the securities. The move is not expected to instill any confidence in investors, as analysts have widely forecast that the market will react negatively to the rights issue.
FINLAND CHARGES OIL TANKER OVER CUTTING UNDERSEA CABLES: Russia’s “shadow fleet” of oil tankers is primarily known for skirting around western sanctions, but Finnish authorities now allege that the fleet could be involved in cutting undersea cables.
The details: Finland’s National Prosecution Authority said earlier today that the country had filed charges against the captain and two crew members of an oil tanker previously suspected of being a part of Moscow’s “shadow fleet,” according to the New York Times. The three individuals face charges on suspicion of sabotaging European infrastructure.
The crew members, who have not been identified, have been accused of being involved in an incident where the tanker’s anchor was dragged on the seabed and cut five undersea cables in the Gulf of Finland.
Finnish authorities seized the vessel, also known as the Eagle S, after the cables were cut last December. It was ultimately released in March, however, Finland continued to investigate eight crew members that were onboard.
Russia has reportedly denied involvement in the incident and the three crew members have also denied the accusations, the New York Times reported.
CALIFORNIA ‘MEGA’ WILDFIRE: The Gifford wildfire located in central California has burned at least 114,000 acres as of Sunday morning, becoming the state’s largest wildfire this year.
The Gifford fire is now considered a “mega-fire” because over the weekend it burned more than 100,000 acres. It is located in the Los Padres National Forest in San Luis Obispo County. As of yesterday morning, it is 21% contained, but evacuation orders are still in place. Evacuation orders have been issued through San Luis Obispo County and Santa Barbara County.
Cal Fire San Mateo, Santa Cruz Unit tweeted today “This mega fire passed 100,000 acres on Saturday and these firefighter hand crews are working hard in Division N on the northeast portion of the fire.”
“Everyone is doing well and working hard building and strengthening control lines, and assisting with firing operations, which involves setting a controlled fire ahead of the main wildfire to remove the fuel like dry grass and brush in the main fire’s path,” they added.
ICYMI – EPA TERMINATES UNION CONTRACTS: The Environmental Protection Agency on Friday terminated contracts with four unions, an action meant to align with the administration’s efforts to ban collective bargaining for government employees.
The EPA canceled contracts with the American Federation of Government Employees, the largest representing EPA employees, as well as the National Association of Government Employees, Engineers and Scientists of California, and the National Association of Independent Labor.
“EPA is working to diligently implement President Trump’s Executive Orders with respect to AFGE, including ‘Exclusions from Federal Labor-Management Relations Programs,’ in compliance with the law,” an EPA spokesperson told Politico in a statement.
Throughout the year, the Trump administration has reshaped the EPA through layoffs and restructuring. AFGE Council 238 President Justin Chen spoke out against the termination of the contracts, calling it “unlawful and authoritarian.”
Read more by Washington Examiner’s Brady Knox here.
A LOOK AHEAD:
Aug. 13 Factor This is holding a webinar on how evolving trade policies and conditions are affecting long-term financing solutions, investment structures and profitability of projects in the renewable energy sector.
Aug. 13 The International Energy Agency is poised to release its August Oil Market Report.
Aug. 13 – 14 The Statistics, Analytics, and GIS in Energy (SAGE) Conference is being held in Des Plaines, Illinois.
Aug. 14 Electrify DC is holding a virtual coaching session on how homeowners can electrify their households with solar panels, heat pumps, and much more.
Aug. 14 The International Energy Agency is holding a webinar on how developing countries can advance infrastructure to consider adopting nuclear energy technologies.
Aug. 15 President Donald Trump is set to meet with Russian President Vladimir Putin in Alaska.
RUNDOWN
Reuters The airline industry’s dirty secret: Clean jet fuel failures
E&E News How Chris Wright recruited a team to upend climate science
New York Times America’s Clean Hydrogen Dreams Are Fading, Again