[World] Asia faces supply disruptions due to Iran war

As of late March 2026, the Iran war has upended the global LNG outlook, with the blockage of the Strait of Hormuz causing crude and oil product flows to plunge from 21 million barrels per day (mb/d) to 2 mb/d. Gulf countries have cut total oil production by more than 11 mb/d. [1] Natural gas prices in Asian markets have risen sharply since the start of the war, reflecting the region’s greater exposure to supply disruptions via the strait. [2] An estimated 12%-16% of global ethylene capacity and 20% of methanol capacity have been impacted by the war in Iran, according to S&P Global Energy. This has caused producers and governments to bolster the resilience of their supply chains, due to these restricted flows of ethylene, methanol, and other petrochemical feedstocks damaging global derivatives pricing. The International Energy Agency (IEA) asserts that the war, which began in late February, has caused the largest supply disruption in the history of the global oil market.

[1] https://www.iea.org/topics/the-middle-east-and-global-energy-markets?

[2] https://www.spglobal.com/energy/en/news-research/latest-news/chemicals/032526-wpc-2026-iran-war-prompts-nations-companies-to-reconsider-supply-chain-strategies-panel

[USA] DOE declares that emergencies requiring coal plants to run need not be imminent

The DOE’s May 23 2025 order directing Consumers Energy to continue running a coal plant in West Olive, Michigan, past retirement, faced challenges from Michigan, Minnesota, Illinois, the Sierra Club, and other groups. [1] They contend that the DOE failed to show the Midcontinent region around the plant faces an energy emergency. In response, the DOE told a federal appeals court that the DOE secretary has broad authority under the Federal Power Act to declare emergencies to prevent power plants from retiring, and that they need not be imminent. [2] In a March 17 brief with the US Court of Appeals for the DC Circuit, the DOE states that the statute’s text grants the secretary discretion to determine that an emergency exists. [3] In these orders, the DOE asserts that the power plants need to keep running to prevent blackouts in the face of rising electric demand. Under the Federal Power Act, the DOE has not allowed these orders to lapse, issuing new 90-day orders when the old ones expire. 

[1] https://s3.documentcloud.org/documents/27899615/doe202cbrief.pdf

[2] https://www.energy.gov/sites/default/files/2025-05/Midcontinent%20Independent%20System%20Operator%20%28MISO%29%20202%28c%29%20Order_1.pdf

[3] https://www.energy.gov/ceser/does-use-federal-power-act-emergency-authority

[USA] FERC rejects complaint over PJM interconnection practices

As of March 19, 2026, the Federal Energy Regulatory Commission (FERC) rejected a complaint from RWE Clean Energy about how PJM Interconnection calculates and assigns interconnection upgrade costs for new power projects. [1] The case involved a solar and battery project in Maryland, where RWE argued that PJM’s study process led to unexpectedly high grid upgrade costs. FERC ruled that PJM followed its approved tariff rules, but it also noted that interconnection cost uncertainty remains a broader industry concern that can affect new generation projects trying to connect to the grid. In the same session, FERC reduced the allowed return on equity for transmission owners in New England under ISO New England, lowering it from 10.57% to 9.57%, which affects utilities like Eversource Energy. The commission also approved changes in the Midwest under Midcontinent Independent System Operator related to how certain emergency-related costs are shared across the grid.

[1] https://www.ferc.gov/media/e-6-el26-7-000

[USA] Tesla and LG set to build $4.3 billion battery plant

As of March 16, 2026, Tesla and LG Energy Solution have reached a $4.3 billion agreement to build a new battery factory in Michigan. [1] The plant is expected to start operating around 2027 and will produce lithium iron phosphate (LFP) batteries, which are widely used in large-scale energy storage systems. These batteries will mainly support Tesla’s energy storage products, which help store electricity and supply power when demand is high or when renewable generation is low. The deal is part of a broader effort to increase battery manufacturing in the United States and strengthen domestic supply chains. The agreement includes a multi-year supply commitment, with flexibility to adjust production volumes and extend the contract depending on future demand, and it focuses specifically on supplying batteries for Tesla’s energy storage business rather than its electric vehicles.

[1] https://www.doi.gov/trump-administration-announces-deals-totaling-56-billion-during-indo-pacific-energy-security-summit

[USA] US to release 172 million barrels of oil from Strategic Petroleum Reserve

As of March 11, 2026, 32 members of the International Energy Agency (IEA) unanimously agreed to release 400 million barrels of oil and refined products from their reserves. [1] The Department of Energy has been authorized to begin releasing 172 million barrels from the Strategic Petroleum Reserve starting March 16, 2026. The barrels will be released over the course of 120 days based on planned discharge rates. The IEA holds emergency stockpiles of more than 1.2 billion barrels of crude oils. The recent release of the barrels is designed to mitigate market impacts of the ongoing conflict in the Middle East, and the closure of commercial tanker traffic in the Strait of Hormuz. According to the IEA, an average of 20 million barrels per day of crude oil were transited through the Strait in 2025, and options for oil flows to bypass the route are limited.

[1] https://www.iea.org/news/iea-member-countries-to-carry-out-largest-ever-oil-stock-release-amid-market-disruptions-from-middle-east-conflict

[USA] US lifts sanctions on Russia due to oil market volatility

As of March 12, 2026, the Office of Foreign Assets Control (OFAC) lifted US sanctions on Russian oil in order to mitigate global oil market volatility and avoid economic fallout from the war on Iran. Senate Democratic leaders issued a joint statement on the move, condemning the decision due to the ongoing war in Ukraine. [1] The license issued by OFAC to lift the sanctions also failed to account for the requirement to notify Congress 30 days in advance of taking the action, as specified by the Countering America’s Adversaries Through Sanctions Act. [2] The license, entitled “General License 34,” provides a waiver for the temporary sale of Russian crude oil until April 11. This was the second significant rollback of the Ukraine war-related US sanctions, which aims to tame energy prices after US and Israeli strikes on Iran stopped shipping through the Strait of Hormuz.

[1] https://www.banking.senate.gov/newsroom/minority/senate-democratic-leaders-release-joint-statement-on-trump-administrations-weakening-of-sanctions-on-russian-oil-in-attempt-to-dampen-economic-impacts-of-trumps-iran-war

[2] https://ofac.treasury.gov/media/935191/download?inline

[Japan] Japan and Canada sign strategic agreement in defense and energy

As of March 6, 2026, the Prime Ministers of Canada and Japan released a joint statement on the Canada-Japan Comprehensive Strategic Partnership to adapt to the evolving geopolitical landscape and protect joint interests. [1] The two countries established a Canada-Japan Comprehensive Strategic Roadmap which will provide concrete direction for the cooperation. It prioritizes security and defense, economic security, supply chains and technology, trade and investment, energy security and food security, the Arctic, environment and climate cooperation, and academic and cultural exchanges. Listed strategic sectors for cooperation include clean energy, advanced manufacturing, critical minerals, and supply chains.

[1] https://www.pm.gc.ca/en/news/statements/2026/03/06/joint-statement-canada-japan-comprehensive-strategic-partnership

[USA] Senate Democrats restart permitting negotiations

As of March 4, 2026, Democratic senators stated that they would restart talks with Republicans to overhaul permitting regulations after the Trump administration began reviewing approvals for large-scale solar and wind projects. [1] In a statement, Sens. Sheldon Whitehouse of Rhode Island and Martin Heinrich of New Mexico said that after discussions with colleagues, they have decided to reopen negotiations on permitting reform. They state that moving forward, they expect “no further interference with already-permitted wind projects” and that the “initial movement [they’ve] seen on solar project permitting will accelerate, and other renewable projects will move forward as well.”

[1] https://www.heinrich.senate.gov/newsroom/press-releases/heinrich-and-whitehouse-joint-statement-on-permitting-reform

[USA] White House announces Ratepayer Protection Pledge

As of March 4, 2026, the White House announced a nonbinding Ratepayer Protection Pledge with major AI and tech companies, including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI, to ensure that data center expansion does not raise residential electricity costs. [1] The data center developers promised to build or buy the generation resources needed to power their data centers, pay for all infrastructure-related costs, transmission and distribution equipment, negotiate rate structure with local utilities and state governments, and make backup generation available to grid operators to use in emergencies. [2] In return, President Trump promised the companies permit approvals within a span of two to four weeks, although the federal government does not have the authority to approve new generation permits.

[1] https://www.whitehouse.gov/articles/2026/03/president-trump-secures-historic-commitment-to-keep-electricity-costs-down-amid-data-center-boom/#:~:text=White%20House%20Special%20Advisor%20for,not%20passed%20onto%20American%20households.

[2] https://www.whitehouse.gov/fact-sheets/2026/03/fact-sheet-president-donald-j-trump-advances-energy-affordability-with-the-ratepayer-protection-pledge/#:~:text=Under%20President%20Trump's%20leadership%2C%20Amazon,ensuring%20such%20expenses%20are%20not

[USA] Significant renewable and battery capacity growth forecasted for 2026

As of February 24, 2026, the Energy Information Administration‘s (EIA) latest Electric Power Monthly report confirmed that solar is the fastest-growing form of US electricity. Utility-scale solar, thermal, and photovoltaic generation expanded by 34.5% during 2025, while that from estimated small-scale solar PV systems rose by 11% during 2025 when compared to the previous year. [1] Wind remains the top renewable energy source, with wind turbines across the country producing 10.3% of US electricity in 2025. Wind and solar combined provided 15.7% more electricity than did coal last year and 8.7% more than nuclear power plants. Renewables altogether produced almost 26% of total US generation – including wind, solar, hydropower, biomass, and geothermal. In 2025, utility-scale solar  capacity grew 27,738.4 MW, while small-scale solar capacity increased by 6,277.4 MW. EIA forecasts continued strong solar growth, with 44,470 MW utility-scale solar capacity added by the end of 2026. Capacity growth from utility-scale renewables and batteries in 2026 is projected at 80,809.2 MW. Should EIA’s forecast materialize, by the end of 2026, the mix of all renewables, including estimated small-scale solar, would reach 525,356.1 MW, surpassing natural gas at 514,212.5 MW, excluding battery storage capacity.

[1] https://www.eia.gov/electricity/monthly/

[USA] US Supreme Court rules against tariffs imposed under IEEPA

As of February 20, 2026, the US Supreme Court issued a decision on two appeals concerning the tariffs that President Trump imposed under the International Emergency Economic Powers Act (IEEPA). The Court held the IEEPA does not give the President the authority to impose tariffs, thereby affirming a lower court decision that invalidated two sets of the IEEPA tariffs. Article I of the US Constitution gives Congress the power to impose import tariffs and regulate foreign commerce. Congress has also enacted several laws that give the executive branch the power to impose tariffs, which the executive branch has used in recent administrations. IEEPA gives the President extensive authorities to address emergencies and regulate or prohibit imports of certain property. On February 1, 2025, President Donald Trump invoked IEEPA to announce tariffs on imports from Canada, Mexico, and the PRC, later imposing additional tariffs of at least 10% on imports from almost all US trading partners. The Court held that IEEPA’s phrase “regulate…importation” does not authorize the President to impose tariffs. The Court declined to interpret the verb “regulate” to include tariffs, partly because that would render IEEPA unconstitutional to the extent that it would authorize export tariffs as well.

[1] https://www.congress.gov/crs-product/LSB11398

[Japan] JERA, QatarEnergy, and METI sign MOU for emergency supply

As of February 3, 2026, JERA announced that it has signed a memorandum of understanding (MOU) with Japan’s Ministry of Economy, Trade and Industry (METI) and QatarEnergy to establish a trilateral cooperation framework to secure more liquefied natural gas supplies in emergencies. [1] Under the MOU, if global LNG market tightness or large-scale natural disasters in Japan threaten stable domestic energy supply, and if METI determines that the conditions warrant action, METI may request QatarEnergy to consider supplying additional LNG to Japanese buyers including JERA. Qatar has already been a key LNG supplier to Japanese buyers including JERA for over three decades. The MOU is intended to enable coordination between METI and QatarEnergy to allow for flexible response and stable energy supply in Japan.

[1] https://www.jera.co.jp/en/news/information/20260203_2352

[USA] Coal plant owners deny need for DOE ‘emergency order’ to run coal plant

As of January 29, 2026, the owners of a Colorado power unit say the Department of Energy (DOE) violated their constitutional rights by ordering them to continue running a coal-fired generator they had been planning to retire for years. [1] In a request for clarification and rehearing, the Tri-State Generation and Transmission Association and the Platte River Power Authority stated that the order constitutes both a “physical taking and a regulatory taking” of property by the government without compensation or due process, by mandating the generator’s availability to operate. They also asserted that keeping the unit available to operate “will not best meet DOE’s goal of securing dispatchable electricity resources in the northwestern United States.” Energy Secretary Chris Wright employed his emergency powers to issue the order on December 30, 2025, the day before the 427-MW coal-fired unit of the Craig Generating Station was due for retirement. His justification was the power supply shortfall in the Midwest. Tri-State and Platte River, the unit’s owners, contend that DOE failed to demonstrate the existence of a pressing emergency that would require the plant’s continued operation.

[1] https://s3.documentcloud.org/documents/26776337/order-no-202-24-14-petition-for-rehearing-of-tri-state-generation-and-platte-river-final-combined-1.pdf

[USA] House holds subcommittee hearing on oversight of FERC

On February 3, 2026, House representatives questioned members of the Federal Energy Regulatory Commission (FERC) about electric affordability, grid reliability, and the agency’s reviews of natural pipelines and liquefied natural gas projects. [1] This year, FERC will begin reviewing plans explaining how transmission providers intend to comply with FERC Order 1920, which was issued in 2024. The order requires grid planners to develop transmission plans that look 20 years ahead and gives states a greater role in cost allocation. Commissioner Judy Chang stated that if the transmission system is not ready, it becomes the bottleneck; it is time for the industry to ensure that the system is ready to connect both large loads and the generators. Commissioner David Rosner highlighted the problem by citing the example of a gas-fired power project in PJM’s fast-track interconnection process for bringing power plants online to meet its resource adequacy needs that require $1 billion in grid upgrade costs. Rosner suggested that this cost was driven more by the lack of transmission, since the project requires 100 miles of 345-kV transmission lines to come online. FERC Chairman Laura Swett called for an end to the “flip-flopping of FERC’s regulatory paradigm and the uncertainty that is created by increasing regulation” that exceeds what FERC’s mission is under the law.

[1] https://energycommerce.house.gov/posts/subcommittee-on-energy-holds-hearing-on-the-oversight-of-ferc

[USA] Senators at permitting reform hearing call for more certainty

As of January 28, 2026, Senators at a permitting reform hearing expressed the desire to advance permitting reforms, but Sen. Sheldon Whitehouse D-R.I. stated that progress hinges on the Trump administration ending its moves to halt renewable energy development. [1] Sen. Shelley Moore Capito, R-W.Va., stated that she called the hearing with Whitehouse to get back on the path towards “fruitful compromise.” On December 18, 2025, the House had passed the Standardizing Permitting and Expediting Economic Development Act, called the SPEED Act, which revised the National Environmental Policy Act (NEPA). However, Sen. Whitehouse and Sen. Martin Heinrich, D-N.M., ended permitting reform discussions on December 22 after the Trump administration ordered work to halt on all offshore wind farms under construction.

[1] https://www.epw.senate.gov/public/index.cfm/2026/1/hearing-to-improve-the-federal-environmental-review-and-permitting-processes-part-ii

[USA] 4 of 5 offshore wind projects win court injunction from Trump freeze

As of January 29, 2026, the 800-MW Vineyard Wind project offshore Massachusetts was allowed to resume construction by a federal judge’s ruling. [1] Vineyard Wind became the fourth offshore wind project to receive an injunction against the stop work orders issued by the Trump administration, which cited national security concerns as the reason for the pause. The project developer said that after the order was issued, it reached out to confer with government agencies to “forge a path forward without litigation,” but that those agencies would refuse to discuss the new information about supposed national security impacts. The injunction followed similar rulings in cases brought by other offshore wind developers like Coastal Virginia Offshore Wind, Revolution Wind, and Empire Wind. In a January 27 release following the ruling, Vineyard Wind expressed the intention to continue to work with the administration to understand the matters raised in the order.

[1] https://s3.documentcloud.org/documents/26471416/revolution-wind-injunction-order.pdf

[Japan] Japan’s first commercial floating offshore wind farm commences operation

As of January 5, 2026, Kansai Electric Power Co., announced that the 16.8 MW Goto Offshore Wind Farm began commercial operation as Japan’s first commercial floating offshore wind farm. [1] The wind farm is the first facility of its kind in Japan to be certified by Japan’s Minister of Economy, Trade and Industry, and Minister of Land, Infrastructure, Transport and Tourism under the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities. The wind farm uses a hybrid spar-type floater with a steel upper section and concrete lower section. The electricity generated will be supplied preferentially to local retail electricity providers.

[1] https://www.kepco.co.jp/english/corporate/pr/2026/pdf/jan5_1.pdf

[USA] Court rules that Trump administration illegally cut clean energy grants

As of January 12, 2026, the US District Court for the District of Columbia found that the Trump administration violated the Fifth Amendment when it canceled clean energy grants in 2025 based on whether the projects were located in states that voted for the president in 2024. [1] According to the court, “there is no rational relationship” between the location-based grant terminations and the government’s stated interest of aligning grant funding with agency priorities. The decision covers seven grants worth $27.6 million. The US Department of Energy’s terminations included more than $7.5 billion in financial awards. The lawsuit was filed in November 2025 by St. Paul, Minnesota, and a coalition of energy and community advocates, including the Environmental Defense Fund (EDF). While the court decision impacts a limited number of grants, EDF officials stated that the court’s reasoning and legal holding would apply to “all who were subject to this unconstitutional action.”

[1] https://library.edf.org/AssetLink/qj678808620ih52ism862br428xshpaw.pdf

[USA] OpenAI pledges to pay its own way to power Stargate data centers

As of January 20, 2026, OpenAI announced a plan to commit to paying their own way on energy for its Stargate data center projects. [1] The company noted that the plan would be tailored to each community and region of operation, due to unique conditions in each location. The proposed initiatives range from bringing new dedicated power and storage that the project fully funds, to adding and paying for new energy generation and transmission resources. This includes: funding incremental generation and grid upgrades for their load; planning together with local utilities, transmission providers, and state utility regulators, and regional grid operators; and developing strategies for operating AI campuses as flexible loads so as to contribute to demand response programs. The company highlighted several examples where it has already begun implementing this. For example, in Wisconsin, Oracle and Vantage are working with WEC Energy Group to develop new generation and capacity, including solar and battery. The development partners have committed to underwrite 100 percent of the power infrastructure needed for the project through a dedicated electricity rate from WEC.

[1] https://openai.com/index/stargate-community/

[USA] Trump administration pushes PJM to hold ‘emergency’ auction

As of January 16, 2026, the Trump administration and a bipartisan group of governors asked PJM Interconnection, the country’s largest wholesale electricity market, to hold a one-time emergency auction to provide data centers with new sources of power. [1] They urged PJM to do so, so that data center owners could bid on 15-year power purchase agreements, in an abrupt departure from how the grid operator normally functions. [2] The data centers would be required to pay for the new generation built for them, regardless of whether they use the power or not, according to a US Department of Energy fact sheet on the agreement. The auction could support up to $15 billion in new power plants. PJM said it will work with its stakeholders to see how the proposal aligns with a plan for handling data center interconnections that PJM’s board is set to release. The proposal cites several supporting reasons, including providing revenue certainty to new generation, protecting residential customers from capacity price increases, allocating costs to data centers, and improving load forecasting, among others.

[1] https://www.energy.gov/documents/statement-principles-regarding-pjm

[2] https://www.energy.gov/articles/fact-sheet-trump-administration-outlines-plan-build-big-power-plants-again