May 1, 2025
The Iberian Blackout
I’ve spent some time this week looking into the massive blackout that struck Spain and Portugal a few days ago, and today I share some of what I’ve learned. I start with a short primer on grid operations and follow that with some initial thoughts on the significance of the Iberian blackout. The Financial Times explains what…
April 28, 2025
Why the AI Revolution Will Require Massive Energy Resources
The rapid rise of generative AI has triggered a sharp escalation in data center electricity consumption, with profound implications for national energy use, system planning, and climate goals. Data centers have long been critical infrastructure for digital services, but their energy demand is now accelerating due to the emergence of compute-intensive AI workloads. Data center…
April 21, 2025
The Nuclear Race to Power the AI Economy
America’s nuclear paradox: Yesterday’s reactors are being resurrected to power the future. For example: At Palisades, Michigan, engineers rush to repair steam generators before an October 2025 restart, while at Three Mile Island—where a 1979 meltdown once buried the country’s postwar nuclear ambitions—Microsoft has committed billions for carbon-free electricity to feed its voracious artificial-intelligence operations….
April 17, 2025
The Rigidity Cycle and the Pacing Problem
I was listening to Tyler Cowen’s Conversations With Tyler podcast with Jennifer Pahlka, rich and full of detail relevant to my previous post on the pacing problem. In addition to recommending this good conversation, I echo Tyler’s recommendation of Jen’s book Recoding America: Why Government is Failing in the Digital Age and How We Can Do Better….
April 4, 2025
A Policy Professor Grades Trump’s Trade Policies
For this first edition of THB Subscriber Questions (THBSQ#1) I am going to address one question asked by many readers. Anders Valland asks: Professor, now you know where it starts. What are your reflections on the new tariff regime? I’ll start with a disclaimer and some throat clearing — I do not research or publish in…
April 3, 2025
The Pacing Problem in Electricity
The electricity industry is undergoing an unprecedented transformation characterized by smaller-scale, decentralized, and digital technologies. But transitions are rarely easy. Significant challenges arise as the rapid pace of technological innovation exceeds the slower-moving evolution of regulatory institutions, creating what is known as the “pacing problem”. California, with its aggressive renewable energy policies and ambitious decarbonization…
March 31, 2025
Economics and Politics of Tariffs
In recent years, when teaching my senior policy capstone course I would often pivot the course on short notice to discuss current events, updating the readings on the syllabus, and often inviting guest lectures from relevant experts. Among such pivots were Covid-19, Russia-Ukraine, the U.S. elections, October 7th, and more. Part of my motivation of…
March 31, 2025
“Drill, Baby, Drill” is Nothing Short of a Myth and Populist Rallying Cry
Who uttered the quote that is the title of this post? A prominent climate activist, perhaps? Or maybe, a progressive Democratic member of Congress? No and no. The quote comes from a representative of a Texas-based oil and gas production firm last week to the Federal Reserve Bank of Dallas in its March Energy Survey. Here…
March 27, 2025
Global Energy Demand Set to Accelerate
The International Energy Agency has just published its Global Energy Review 2025. In this post I share the five most important take-aways I see in the report. I encourage you to have a look at the full report for IEA’s interpretation of its top conclusions. Let’s jump right in . . . Have a look at the figure…
March 25, 2025
The Energy Demands of the Data-Driven Future: Challenges and Solutions
Event Summary On March 25, AEI hosted a conference on the challenges of balancing energy constraints with the rapid growth of AI and data centers. AEI’s L. Lynne Kiesling opened the event and moderated the first panel, which examined the evolving energy demands of AI infrastructure. Brian George (Google), Arne Olson (Energy and Environmental Economics),…