This week’s episode explores rising electricity costs and why they’re so hard to track, alongside growing concerns about overbuilding power for AI data centers. Paul and Mike break down supply chain bottlenecks slowing U.S. data center growth, Europe’s hydropower shortfall due to climate impacts, and a massive solar development in California that could reshape rural energy and land use. The energy transition is accelerating, but not without real-world constraints.
Paul Gerke (00:02)
Hey everybody—never mind the snickering in the background. That’s just the cue to begin another episode of This Week in Clean Tech, your 15-minute roundup of the biggest stories in climate and clean energy.
You’re joining us on Friday, April 3rd. We’ve got a guest on the line—Jeff St. John from Canary Media—waiting patiently.
I’m Factor This Content Director Paul Gerke, joined as always by clean tech commentator Mike Casey of Tigercomm.
Mike, how are you?
Mike Casey (00:36)
You are remarkably clean-shaven, Paul. Are you at a trade show?
Paul Gerke (00:41)
Had to look presentable this morning. Amazing what a collared shirt can do.
Mike Casey (01:08)
Well, happy spring. We’ve got a flood of stories this week—Jeff should feel lucky we picked him.
Paul Gerke (01:26)
If you want to be part of the show, email us at TWIC@tigercomm.us
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Alright Mike—story one.
Story 1: Rising Electricity Costs
Mike Casey (01:47)
From Heatmap: what Americans are really paying for electricity.
Paul Gerke (01:56)
Electricity rates are up about 33% over the last five years—adding roughly $35 per month to household bills.
But unlike gas prices, these increases are less visible and harder to track.
More than half of Americans now say their electricity bills are causing financial stress.
To address this, Heatmap and MIT launched the Electricity Price Hub—a tool that tracks real-time electricity costs across utilities nationwide.
Mike Casey (02:58)
The key point is that price per kilowatt-hour doesn’t tell the whole story.
Usage matters—and bills can swing wildly month to month. In 2025, the median difference between someone’s lowest and highest bill was $92.
There’s also a lack of transparent, timely data, which leads people to guess at causes—often incorrectly.
Paul Gerke (03:53)
And renewables often get blamed, even though research shows they’re a minor factor in rising costs compared to other drivers.
Story 2: AI Demand and Overbuilding Risk
Paul Gerke (04:25)
Next story—from the Financial Times: concerns about overbuilding power for AI data centers.
Mike Casey (04:49)
David Crane of Generate Capital warns that the rush to build power infrastructure for data centers could lead to excess capacity.
If demand doesn’t materialize—or becomes more efficient—someone still has to pay for those unused assets.
And that cost could fall on utilities—and ultimately consumers.
Paul Gerke (06:00)
I’m less worried about too much generation and more concerned about transmission and interconnection.
Even if we overbuild power plants, we still need infrastructure to move that electricity where it’s needed.
Right now, co-located data center power systems are still mostly theoretical—there aren’t large-scale examples operating yet.
So the real bottleneck remains getting power onto the grid and delivered efficiently.
Story 3: AI Buildout and Supply Chain Constraints
Mike Casey (07:32)
Story three from Bloomberg: America’s AI buildout hinges on Chinese electrical parts.
Paul Gerke (07:56)
This is where things get complicated.
Nearly half of the data centers planned in the U.S. this year are expected to be delayed or canceled, according to Sightline Climate.
About 12 gigawatts of capacity is supposed to come online by 2026, but only a third is actually under construction.
One major reason: a shortage of electrical equipment.
We’re talking transformers, switchgear, and batteries—critical components that are in short supply and have long lead times.
Domestic manufacturing is ramping up, but not fast enough. So developers still rely heavily on imports, particularly from China.
And without this equipment, there is no data center—no matter how much money you have.
Mike Casey (09:12)
To deal with that, companies like Microsoft and Amazon are trying to secure equipment early in the process.
Others are investing directly in manufacturing.
But the reality is, the U.S. still depends on China for key electrical components—just as China depends on the U.S. for advanced chips.
If we restrict those imports, we risk slowing down our own AI development.
Story 4: Europe’s Hydro Shortfall
Paul Gerke (10:02)
Story four—from Bloomberg: Europe’s clean energy reserves are under pressure after a dry winter.
Mike Casey (10:23)
Norway—often called Europe’s “battery”—is facing its driest winter in decades.
Snow reserves are at their lowest levels in 20 years, creating a deficit of about 25 terawatt-hours—nearly one-fifth of its annual hydropower output.
Exports to the UK and Germany have dropped significantly, and electricity prices in parts of Sweden have surged.
Paul Gerke (11:11)
Hydropower is one of the oldest renewable energy sources, but it’s becoming less reliable in some regions due to climate disruption.
Less snow means less water—and less generation.
At the same time, demand is rising due to cold weather.
Norway also saw reduced wind generation this year, compounding the problem.
And with higher gas prices driven by global conflict, the situation becomes even more difficult.
Story 5: Massive Solar Development in California
Mike Casey (11:58)
Alright—final story. Jeff St. John from Canary Media joins us to talk about a massive solar project in California.
Jeff, welcome. What’s the big takeaway?
Jeff St. John (12:22)
Thanks, Mike.
This is one of the most ambitious clean energy development efforts I’ve seen. It’s essentially a master plan to convert large areas of farmland in California’s Central Valley into solar generation.
We’re talking about roughly 136,000 acres targeted for development—part of a broader effort to repurpose land that’s no longer viable for agriculture due to water shortages.
The Westlands Water District, which has struggled with declining water availability, is leading this effort alongside developers.
They’re also planning a major transmission line to connect the project to the grid—something that’s critical for making all of this work.
Paul Gerke (14:38)
What stands out to me is the level of coordination required.
It’s one thing to get a few landowners on board—it’s another to align hundreds of thousands of acres and multiple stakeholders.
And this isn’t just solar—it includes storage and long-term planning.
Jeff St. John (15:05)
Exactly.
Part of the strategy is allowing farmers to redirect water resources from land they convert to solar toward more productive farmland.
That creates an economic incentive to participate.
But there are still challenges—especially around community impacts.
Many people in the region rely on agriculture for jobs, and there are concerns about whether large-scale solar development will provide comparable economic benefits.
There’s also a push for community benefit agreements—ensuring that local residents see real investment from these projects.
Mike Casey (16:43)
This project also challenges a few common assumptions:
That the U.S. can’t build big infrastructure anymore
That California is too difficult to build in
That rural communities are opposed to renewable energy
This seems to cut against all three.
Jeff St. John (17:21)
It does—but there are still real tensions to work through.
Transmission remains a major hurdle, and ensuring that local communities benefit will be key to long-term success.
Cleantecher of the Week
Paul Gerke (21:08)
Alright—Cleantecher of the Week.
This week we’ve got two: Tim Sahay and Katie McKenzie, hosts of a new podcast called The Poly Crisis.
The show covers geopolitics, climate, finance, and industry—right in our wheelhouse.
Congrats to Tim and Katie.
Wrap-Up
Mike Casey (21:36)
Thanks to our producer Brian Mendez—and to Alex Peterson and Claire Quirin for pulling together this week’s stories.
Paul Gerke (21:47)
And thank you to all of you for listening—and to Jeff St. John for joining us.
If you enjoyed the show, subscribe, leave feedback, and send us story ideas at TWIC@tigercomm.us
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You can find all the articles we discussed in the episode description or at FactorThis.com.
Until next time—be good people.