State of the transition: tariffs, shortages, data centers, and Europe vs China

This week, we’re asking the central question of the energy transition: How fast are we going? Clean energy is bringing in $2 trillion of investment annually. Wind and solar now account for the vast majority of new electricity capacity globally. And we may already be at “peak trade” of fossil fuels. And yet, when we look at the share of renewables in final energy consumption, they’re increasing only incrementally around the world. At the current linear pace, meaningful decarbonization may take decades longer than needed. This week, we’re joined by one of the most prolific and respected market analysts for a 360-degree view of how the transition is playing out. In this episode, Michael Cembalest, chairman of market and investment strategy for J.P. Morgan Asset & Wealth Management and author of the influential "Eye on the Market" newsletter, walks us through his annual energy analysis – a comprehensive assessment that covers dozens of economic and financial trends in energy. This conversation has a little bit of everything. Cembalest walks us through his "scorpion bowl chart" that shows the gap between clean energy deployment and impact. We also dig into the transmission crisis, rising costs, equipment delays, and tariffs. And we cover the data center challenge, Europe’s economic challenges, and China’s rise. But it’s not all gloomy. Cembalest also identifies where real progress is happening, and what a realistic path forward might look like. Open Circuit is supported by Kraken, the only proven, AI-powered operating system for utilities. Learn how Kraken helps unlock excellent customer experiences, increased innovation and reduced operational costs at kraken.tech. Open Circuit is brought to you by On.Energy. As one of the fastest-growing battery storage IPPs, On.Energy delivers turnkey resiliency solutions for utilities and enterprise customers. Whether you’re managing data centers or local grids, we help bring storage to your fleet. Learn more at on.energy. Credits: Co-hosted by Stephen Lacey, Jigar Shah, and Katherine Hamilton. Produced and edited by Stephen Lacey. Original music and engineering by Sean Marquand.