Latest News
-
Stocks rise on tech boost, but yields drop with oil prices
MSCI's global equity gauge rose on Monday as investors awaited the release of economic data and Nvidia's results. Bond yields fell?and oil price dropped following a U.S. warning to 'expand' sanctions against Iran. The yields on U.S. 30-year and 10-year bonds fell for a second consecutive day as traders weighed up the implications of U.S. Treasury Sec. Scott Bessent’s decision to increase Treasury buybacks last week. Bessent, in what was dubbed "economic D-Day," warned on Monday that countries should cut off their financial ties to Iran or else face secondary sanctions. Oil prices dropped to their lowest level in a week on Tuesday, as traders saw economic pressure as a greater threat to oil supplies than military escalation. Wall Street's heavyweight tech sector is poised to recover some of its losses from Monday, before the release of Nvidia's second-quarter results after the market closes on Wednesday. NVIDIA RESULTS PROVIDE FOCUS Tim Ghriskey said that technology is stronger after recent weakness. He noted that Nvidia's upcoming results were on the minds of investors. "Nvidia's price to earnings ratio has dropped. Buyers of?Nvidia are here, looking for a good earnings report. Nvidia helps to lift the rest of tech market." The strategist said that Treasury yields "moved in the opposite direction?they had been moving, which is positive for stock markets," but that this move was modest. At 11:19 am. At 1519 GMT (1519 ET), the Dow Jones Industrial Average rose by 61.73, or 0.12% to 53,479.37. The S&P 500 gained 12.47, or 0.16% to 7,665.33, and the Nasdaq Composite increased by 102.64, or 0.39% to 26,082.83. The MSCI index of global stocks rose by 3.08 points or 0.27% to 1,148.31. The pan-European STOXX 600 rose by 0.37%. MSCI's broadest Asia-Pacific share index outside Japan closed at 1,642.24, up 0.56%, while Japan's Nikkei gained?328.34 or 0.50% to 65,856.43. The yield on the benchmark 10-year U.S. notes dropped 5.55 basis points from late Monday to 4.649%. The 30-year bond rate fell by 5.04 basis points, to 5.1806%. The yield on the 2-year note, which is usually in line with expectations of interest rates from the Federal Reserve, dropped 3.64 basis points, to 4.2%. The U.S. dollar was about the same as other currencies as investors considered Washington's increased sanctions against Iran, and new efforts to ease pressures on longer-dated Treasury rates. The dollar index (which measures the dollar in relation to a basket of currencies, including the yen, the euro and others) fell by 0.01%, while the euro rose by 0.07%, reaching $1.167. The dollar gained 0.11% against the Japanese yen to reach 159.25. Bitcoin gained 0.40%, reaching $79237.31, after crossing the $80,000 mark for the first since mid-May. On the energy market, U.S. Crude fell by 3.05%, to $82.42 per barrel. Brent was down to $89.20 a barrel, a drop of 3.22% for the day. Gold prices fell slightly on?the day after reaching a three-month high in the previous session. The rally lost steam near a psychologically important resistance level, and before the release of the preferred inflation gauge by the U.S. Federal Reserve on Wednesday. Spot gold dropped 0.28% to $4.637.94 per ounce. U.S. Gold Futures fell by 0.23%, to $4630.00 per ounce. (Reporting from Sinead carew in New York; Marc Jones in London; Rae Wee, in Singapore. Editing by Andrew Heavens and Nick Zieminski.
-
Gold prices continue to rise after a 3-month high ahead of US inflation data
Gold prices held steady on Tuesday, despite reaching a three-month high earlier in the session. The rally lost steam near a psychologically important resistance level ahead of this week's release of the preferred inflation gauge by the U.S. Federal Reserve. Gold spot was unchanged at $4.652.26 an ounce as of 1547 GMT (11.47 am EDT) after reaching its highest level since 14 May. U.S. gold futures increased 0.2% to $4 709.40. "I believe this is just a loss of momentum." Bart Melek said that you could 'probably attribute this drop to gold reaching a strong level of resistance at $4,700, or so. Bullion reached $4,696.18 per ounce on Monday as investors analyzed the recent U.S. Treasury Department decision to double its liquidity support and buyback operations of longer-dated bonds and notes, which drove the dollar down to an almost 3-month low. The markets are now focusing on Wednesday's U.S. The July Personal Consumption Expenditures report and Kevin Warsh’s remarks on Friday at the Jackson Hole Symposium will provide further insight into the central bank’s monetary policy outlook. The Fed is tracking PCE data to achieve its 2% inflation target. However, the soft figures for producer and consumer prices this month have reduced chances of an imminent rate increase in the U.S. According to the CME FedWatch Tool, traders are only pricing in a 38% chance of an interest rate increase in September. In an environment of high interest rates, gold loses its appeal as it doesn't yield any interest. Data released on Tuesday showed that China's net imports of gold via Hong Kong in July increased by about 11% compared to a month ago, mainly due to an increase in investment demand. Iran has pledged on the geopolitical side to fight back at the expanded U.S. sanctions aimed at isolating the Iranian economy. It expressed a?confidence in the major trading partners to?resist this pressure campaign, and said that Washington wanted to revive the talks. Silver spot fell by 0.2%, to $68.77 an ounce. Platinum dropped by 1.1%, to $1,855.32, while palladium fell 1.8%, to $1333. (Reporting and editing by Nick Zieminski, Shailesh Kumar and Pablo Sinha from Bengaluru)
-
State health department reports two deaths from measles, in Pennsylvania
Health officials announced on Tuesday that two Pennsylvania residents had died from measles. This is the first death in the state in 35 years. 393 cases have been reported in 28 counties in 2026. According to the Pennsylvania Department of Health (Pennsylvania Department of Health), both people were unvaccinated residents of Lancaster County. The department did not release any additional information, citing concerns about privacy. Debra Bogen, Secretary of Health said: "Because the measles was largely eradicated in the Commonwealth for over three decades, the public is not familiar with the disease and does not fully understand its potential severity." The Centers for Disease Control and Prevention reported 2,777 confirmed cases of measles in the United States as of August 20, 2018. The '2026 figures' represent the most U.S. cases ever recorded in one year, since the resurgence between 1989 and 1990. This period saw more than 55,000 infections with 123 deaths. The Department of Health and Human Services in the United States did not respond immediately to a comment request.
-
Andy Home: Chinese exports ease the pain of London zinc shorts
London's zinc market is still a hazardous place for bears. Metal that was expected to drop in price this year has risen. The London Metal Exchange's (LME) 3-month zinc reached a new four-year high of $3,858 a metric ton on Tuesday morning. The relentless rally has been accompanied by an abrupt contraction of the LME time spreads. This is particularly worrying for holders of zinc short positions. The premium for cash Metal?over a three-month delivery The price of a ton has dropped to $131, which is a significant drop from last October's record high of $323. The tightening market this year is due to the low?LME inventories that were the cause of the last year's shortage. Help is on the way for LME shorts. China has begun lifting exports and dispatching metal directly to LME Hong Kong warehouses. A Tale of Two Markets Zinc demand is not a booming industry. According to the International Lead and Zinc Study Group, global consumption grew modestly by 1.5% from January to may. The Group assessed a global surplus of 145,000 tons of refined metals in the first five month of the year, based on a 3.5% increase in output. However, the catch is that, just like last year, the majority of the growth in refined production came from China. Western smelters are facing extreme margin pressure as a result of the decline in treatment terms. The majority of surplus metal is therefore also found in China. Since the beginning of January, the stocks registered at the Shanghai Futures Exchange has more than doubled. LME stock, including those in off-warranty storage, is still?6,500 tonnes lower at 124.677 tons, despite recent daily deliveries to LME warehouses. HONG KONG FAST TRACK Since the beginning of last week, there have been daily warranting actions as the LME premiums for cash deliveries are increasing. The volumes have been modest, totalling?17,000 ton. However, they are enough to stabilize the on-warrant stock at around 95,000 tons. The number of off-warrant stock has increased from a low in July,?15.480 tons, to 29,627 tonnes. Hong Kong holds 5,000 tonnes of off-warrant stock and has delivered around two-thirds (?around) of the LME deliveries. Hong Kong was approved by the LME for good delivery only in July last year. But it is already acting as an arbitrage conduit. China has been historically a major importer of zinc refined. As recently as 2024, volumes reached as high as 445 000 tons. The country's smelter capacity is now so large that it is close to self-sufficiency. Imports dropped by one-third to 299,000 tonnes last year. China became a net exporter both in November and December. It delivered metal to LME storage facilities in Singapore and Taiwan in order to take advantage of the London market's cash crunch. Shanghai Metal Market (SMM), a local data provider, reports that the country became a net exporter in July with shipments of 9,200 tonnes and imports continuing to fall. This time, the pace of arrivals has clearly slowed down. So far. Turning Bullish Bulls bet that even China's Smelters will need to reduce operating rates due to the bombed out treatment charges. There are many zinc bulls in town. Over 110,000 tons have been accumulated by investment funds, the largest collective bet on higher prices since LME began publishing its position reports in 2018. The LME option market also shows a renewed interest in zinc. On the LME options market, there are nearly 1,500 open lots for December calls with a strike of $4,000 per tonne and another 757 lots at $4,500 per tonne. The bull story is that of limited mine supply. Global mine production increased by 4.8% in 2013 after three years of decline. ILZSG reports that the growth has slowed to only 1.1% between January and May this year. According to SMM, the competition for mined concentrats is so fierce that spot-treatment charges for Chinese imports have now reached a new record low of minus $117.50 a ton. China's smelters continue to?fight on. According to ILZSG, growth was "significant" for the first five months in 2026. LME bulls, and more importantly, LME short position holders, will need to know just?how important'. Andy Home is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
-
Gold's upward momentum pauses ahead of US inflation data
Gold fell?on Tuesday, after reaching a more than 3-month high earlier in the session. The rally lost momentum as it approached a psychologically important resistance level. This was also ahead of this week's release of the preferred inflation gauge by the U.S. Federal Reserve. By 1334 GMT (9.34 am EDT), spot gold had fallen 0.6% to $4,622.01 an ounce after reaching its highest level since the 14th of May. U.S. gold ?futures fell 0.4% at $4,678.10. "I believe this is a simple drop in momentum." Bart Melek is the global?head for commodity strategy at TD Securities. Bullion reached $4,696.18 per ounce on Monday as investors continued to analyze the recent U.S. Treasury Department decision to double its 'liquidity support buyback operation' for longer-dated bonds and notes, which drove the dollar down to a 3-month low. The markets are now focusing on Wednesday's U.S. The July Personal Consumption Expenditures report (PCE), and Fed Chair Kevin Warsh’s remarks at the Jackson Hole Symposium on Friday, will provide further insight into the central bank’s monetary policy outlook. Fed is tracking the PCE data for its 2% target inflation, but this month's soft consumer and producer inflation numbers have reduced chances of an imminent rate hike in the U.S. According to the CME FedWatch Tool, traders are only pricing in a 38% probability of an interest rate increase in September in the United States. In an environment of high interest rates, gold loses its appeal as it doesn't yield any interest. Data showed that China's net imports of gold via Hong Kong rose by 11% in July compared to a month earlier, mainly due to an increase in investment demand. Iran has pledged on the geopolitical side to fight against the?expanded U.S. Sanctions aimed at isolating its economy. It expressed confidence that the major?trading partner would resist this pressure campaign, and said that Washington was eager to revive the talks. Silver spot fell by 1.7%, to $67.76 an ounce. Platinum dropped 2%, to $1,837.94 and palladium fell 2.8%, to $1,319.50. (Reporting and editing by Nick Zieminski in Bengaluru)
-
Sinomine wins additional Zimbabwe Lithium export quota
Sinomine Resource Group announced that it had secured an export quota of 'another 300,000 metric tonnes of 'lithium -concentrate' from Zimbabwe. Zimbabwe, Africa’s leading producer of lithium metal for batteries, introduced export quotas on April 1st after temporarily stopping concentrate shipments from February due to alleged leakages and malpractice. It has been pressing the mining companies to process more battery metal in-country, as it aims to maximize the economic benefits from extractive industries. The country will ban exports of lithium?concentrates in January 2027. Sinomine, the company that operates the Bikita Lithium Mine in Zimbabwe, stated in a half-year?report?seen on Tuesday?that it had been granted an additional export quota for July, after receiving the first, 200,000?tons in April. The Chinese company stated that the supply of Lithium Concentrate from Bikita had returned to normal following the February to April shutdowns. It was also sufficient to meet its raw material requirements for its smelting operation in China. CHINESE FIRMS DOMINATE ZIMBABWE'S LITHIUM SECTOR Sinomine operates at Bikita two plants with a combined production capacity of 600,000 tonnes of spodumene, the main feedstock used by many lithium plants. Also, petalite, another mineral concentrate containing lithium, is produced. Sinomine reported that a recent upgrade to Bikita's technology will increase the company's annual spodumene concentration production capacity from 400,000 tons to 600,000 tons. Sinomine is building at Bikita a plant that will produce a total of?100,000.00 tons per year. It is expected to be finished by mid-2027. Lithium sulphate can be refined to become a battery grade material, such as lithium hydroxide and lithium carbonate?used in the battery manufacturing process. Zhejiang Cobalt, a Chinese company, operates the sole lithium sulphate production plant in Zimbabwe, where it started Africa's very first lithium salt exports last April. Sichuan Yahua has also built a lithium-sulfate plant in its Kamativi mine, located in western Zimbabwe. Chinese firms dominate Zimbabwe's Lithium sector, after investing around $2 billion since 2021 in mining and processing facilities. This has helped the Asian giant to consolidate its grip on the global supply chain for battery metal. (Reporting and editing by Jan Harvey; Chris Takudzwa Muronzi, Nelson Banya)
-
Bitcoin continues to grow despite US sanctions against Iran
Investors regained calm in the global bond and share markets on Tuesday, as they shrugged off U.S. sanctions plans against Iran. They began to prepare for Nvidia's earnings report due out Wednesday. U.S. Treasury secretary?Scott Bessent warned countries to cut financial ties with Iran on Monday or face secondary sanctions. However, the Treasury Department did not actually impose penalties. The news prompted a slight drop in oil prices as well as the benchmark government bond yields. This was also aided by the report that the U.S. Treasury may use its cash account to fund increased U.S. Debt Buybacks. Wall Street futures pointed to a higher start in New York soon, while European shares rose 0.4%. Investors took comfort from the U.S. Iran's announcement that was softer than expected. They also drove defence stocks higher on the assumption that the conflict would continue for some time. The dollar was also up against the euro, and the Japanese yen in the currency market. However, traders were more interested in the break-down of the correlation between bond yields and traditional U.S. Iran announcement. Michael Metcalfe of State Street Global Markets' global macro strategy said that the recent jump in yields as well as the?weakness of the dollar could indicate a return to a "negative bias". He said that the next couple of days will be very interesting, as the Federal Reserve is holding its annual Jackson Hole conference. Another area that has been affected by the so-called "dollar dilution" concerns is the global crypto market. Bitcoin reached $80,000 for the first since mid-May as an overnight 2% increase took its rise in the last 10 day past 30%. Gold fell 0.6%, to $4,624 an ounce. It is still at its highest level since May and has risen 15% in the last month. Germany's benchmark 10-year bond rate, which is used to determine euro zone borrowing rates, fell to 3.222%. It remains near its 15-year high reached last week of 3.275%. The French 30-year bond yields are at 4.862%, having reached an 18-year peak on Monday. NVIDIA LOOMS Large Investors were waiting with bated breath for Nvidia to announce its results on Wednesday. They know that the chipmaker, one of the firms at the heart of the AI boom, will have a hard time meeting high expectations. Analysts expect quarterly revenues to nearly double, to $92 billion. Full-year earnings are expected to range between $103 billion and $105 billion. According to Fabien YIP, a market researcher at?IG: "Judging by Nvidia's past performance, it wouldn't surprise me if they met the headline figures." I believe the people are interested in knowing if there are any concerns about the circular deals that are driving its growth, and if this growth percentage will be sustainable over the next few quarters. Wall Street futures indicate that the Nasdaq and S&P 500 will all be slightly higher after a slight pullback from mid-August, as market sentiment is shaky. Overnight, MSCI’s broadest index of Asia-Pacific stocks ended up 0.4%, while South Korea, Taiwan, and Japan’s Nikkei gained between 0.5% to 1%. China's CSI300 index of blue-chip stocks ended down 0.2%. Alibaba's $10.2bn share sale required a steep discount, which impacted the mood in China. Beijing also warned the U.S. Beijing said it would take "all necessary steps to protect its rights" and retaliate if Chinese firms were affected by the new sanctions imposed by the Trump administration on Iran. When asked about possible sanctions against Chinese banks, U.S. Treasury Sec. Bessent said: "We want make it clear today that no one can escape the reach of U.S. sanctions." sanctions." "Sanctions."
-
McGeever: The world braces for the escalation of Trump's Canada Tariff Stand-off
The renewed trade spat between U.S. president Donald Trump and Canadian prime minister Mark Carney occurs at a "delicate time" for both North American nations - and global economy. Mistakes made by the G7 neighbors could have a wide range of economic implications. After bilateral talks broke down on Friday, the?Trump Administration imposed 50% tariffs Saturday on a range of Canadian goods. These tariffs may seem modest at first glance, as they only apply to 5.5% of Canada’s exports to America - goods worth around $20 billion. Oxford Economics says that, if all else is equal, the U.S. tariff rate on Canadian exports will rise from 5.1% to 6.9%. In the end, it's a small issue. The potential for an escalation of violence and damaging spillovers is high. Canada is America's largest single trading partner, surpassing China. Total trade between the countries reached $715 billion in 2013, according to the U.S. Census Bureau. Canada also bought more U.S. products and services last year than any other country. Both sides appear to have already dug in. Carney has promised dollar-fordollar retaliation and Trump announced on Monday that 50% tariffs will be imposed on Canadian vehicles, trucks, and automotive parts on January 1 if a deal cannot be reached. A prolonged spat could cause 'heavy damage to Canada's economy and even trigger a recession. The U.S. consumer and business community could also be affected by the spat, whether it is through higher prices, lost exports or increased inflation. The regional impact is the greater risk to the global economy. USMCA UNDER THREATEN Trump's battle with Canada may signal the end of America's largest trade agreement, the U.S.-Mexico-Canada Agreement. Mexico is America's biggest trading partner. The total value of goods traded between the two countries reached $872 billion in 2016. USMCA is the revised version 1994's North American Free Trade Agreement. Trump decided on July 1, not to renew the agreement, but it will be subject to annual reviews. Talks are still ongoing. The pact is likely to gradually wind down if the three countries cannot agree on new revisions. It will be replaced most likely by bilateral agreements. This would add more uncertainty and complexity in the future for transshipment and investment as well as product sourcing. Trump's comments on the USMCA renewal don't inspire much confidence. "I don't care. "I don't want to" is what I really mean. I'd prefer to be independent. Mexico and Canada are dependent on us. We don't require them. They are important to them. "It's not important to us," Trump said on Fox News, July 28. Trump has often backed down from his threats in the past 17 months, but the unraveling USMCA could threaten U.S. manufacturers, so he is unlikely to throw it out. The resurgence of tensions between the United States and Canada increases the probability that this will happen. It could lead to increased inflation, job losses, higher prices, longer supply chains and more investment uncertainty. Spillover Potential The spat between the U.S. and Canada could send a signal to other U.S. trading partners. Carney has come out fighting, and appears to be prepared to defend Canada’s strategic autonomy, even at the cost of increased trade friction. Meanwhile, Mexican President Claudia Sheinbaum chose the opposite path. She is willing to reduce friction with Trump, in exchange for greater access for Mexican businesses to the U.S. Other countries are watching to see if any of the approaches will work. Carney's success in rebuffing Trump's aggressive tactic could further reduce the president's already limited?tariff powers. In February, the Supreme Court struck down Trump's sweeping import tariffs. This forced the administration to use alternative legal justifications for imposing import duties. Trump's approval rating is at a record low ahead of the U.S. Midterm Elections in November, and there are no signs that the Iran War quagmire will be resolved. The president might want to make an impact on the world stage in order to show off America's global power. He may decide to call Carney's "bluff" and stick to his position, as Canada is more vulnerable. Sheinbaum may look more intelligent, but if the end result is a USMCA that has been severely weakened, everyone will lose. The latest flare-up occurs at a time when the global economy is struggling. The yields on long-dated debt are at a multi-decade-high in the developed world. Meanwhile, the U.S. - Iran war has reached its six-month mark. Energy supply routes remain choked and inflation remains uncomfortably elevated in many countries. It's not the right environment to put one of the largest and most important supply chains in danger. You like this column? Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
AI data centers force 'peaker power' plants to be brought back into service
The demand for electricity from AI data centers is reviving peaker power plants
Peakers emit more pollutants than power plants.
The majority of power plants are located in minority and low-income communities
By Laila Kearney
Dec 23, CHICAGO -
A 60s oil-fired plant rises from an industrial site behind Dvorak Park in Chicago's working class Pilsen district. In warmer weather, the park is crowded with children playing on its colorful playground or zooming down slides.
Next year, the eight-unit Fisk Power Plant owned by Houston's NRG Energy is scheduled to be retired. The next step was artificial intelligence.
As electricity demand from data centers outstripped existing supply, prices shot up on the country's largest power market – PJM Interconnection – alarming about power shortages and making Fisk & other plants like them suddenly profitable.
Matt Pistner said that NRG's senior vice president for generation, Matt Pistner, retracted the retirement notice from eight Fisk power-generating units.
Fisk is one of a growing number "peaker" units that are being used to power the U.S.'s electrical grid, with the demand for artificial intelligence from Big Tech data centers.
Peakers are designed to operate in short bursts when electricity demand spikes. They help prevent blackouts because they can provide power at a moment’s notice. These fossil-fuelled facilities, which are often decades old, emit more pollution and produce more electricity when they're running.
The analysis of the filings at the largest power grid in the country shows that 60% of them are for renewable energy sources.
PJM has postponed, or even cancelled, plans to retire oil and gas power plants. The majority of plants that avoided shutdowns were peaker units.
The Fisk Peakers were built at the site of an old coal-fired power station which operated for more than a century. The coal plant closed in more than a ten-year period after years of opposition from local residents. However, eight peaking units powered by petroleum oil still operate at the site.
"We were very disappointed when we learned that the coal station was closing, but still producing power at the site," said Jerry Mead Lucero, a lifelong advocate of the closure of Fisk coal, who lived most of his adult years in Pilsen.
Pollution dropped after the coal plant closed, but didn't disappear. According to the Environmental Protection Agency (EPA), sulfur dioxide levels at the site ranged between 2 and 25 tons of sulfur dioxide per year, when the peaker plant, which had eight units, occasionally fired up to feed the grid.
"That is not a small amount, considering the chimneys and houses nearby," said Brian Urbaszewski. He's Director of Environmental Health Programs for Respiratory Health Association in Illinois, a nonprofit organization that helps people with respiratory diseases.
DIRTY POWER
According to research by the federal and academic authorities, peakers are often not equipped with pollution controls such as mercury scrubbers that remove toxic chemicals from power plant emissions and filters for particulates.
Environmentalists say that some chimneys or smokestacks are lower, which means pollution is more localized.
The U.S. administration of Donald Trump may be more aggressive in extending the life of peakers. It has said that it is exploring all options, including peaker plants, emergency systems and other ways to meet massively increased electricity demand.
In an interview with Chris Wright in September, the U.S. Energy secretary said that there are many peaker plants which could be operated more often. He added that air quality regulations had prevented more from being run more frequently. The biggest targets today are the spare capacity in the grid.
According to a U.S. Government Accountability Office report, peaker plants produce about 3% of?country's electricity, but they are capable of producing 19%.
If we tap into this spare capacity, it could lead to more harmful emissions being released into neighborhoods which are already overburdened by environmental hazards.
According to research by the federal government and academics, the majority of the country's peaker plants are located in communities of color with low income. This means that prolonging the life of the plants could cause more pollution to be emitted into the air.
In a 2022 study, residents of "redlined" U.S. areas, who were denied financial services like mortgages because they were primarily Black or immigrants, were 53% more inclined to have a peaker built near them since 2000, compared with those in non-redlined communities.
The study was led by UCLA Professor of Environmental Health Sciences?Lara Cushing.
The Grid is being strained by the power demands
The majority of peaker plants in the United States were built in two periods of rapid growth in energy demand: at the beginning of the 20th century, when electrical appliances became commonplace in homes; and then again in the early 2000s as computers and the economy began to grow. After the energy-sucking devices and infrastructure improved, U.S. demand for power decreased and many fossil-fired plants closed.
Solar and wind farms began to provide more energy. These only work when the sun shines and the wind blows.
The U.S. Congress directed the Government Accountability Office to investigate the use of peaker plant and their impact on American communities. Environmental justice groups urged the U.S. Congress to do so.
According to the study, peaker natural gas plants emit 1.6 more sulfur dioxide per unit of electricity generated on a median base compared with non-peaker plants.
Fisk is a part of PJM Interconnection - the largest electrical grid in the United States. It spans 13 states, and has the highest concentration of data centres anywhere on the planet. The demand from AI data centres is threatening the grid's reserves and is already driving prices up.
The prices paid by PJM power suppliers to run plants during times of high demand jumped more than 800% compared to a summer ago. This made peaker power plants more profitable.
Jeff Shields, PJM spokesman, said: "It's clear that the electricity demand in this country is greater than supply –?the market reflects it, and generators respond." "We can't afford to lose our existing generation, while continuing to add new generation in order to meet the needs of the data centers and other heavy loads that power the nation's economy."
According to an analysis of the letters sent by power companies to PJM Interconnection, 23 oil, coal and gas power plants were set to retire in PJM territory in 2025.
The letters show that since January, U.S. energy companies, grid operators, and the federal governments have postponed or cancelled retirements for 13 of these power plants. The letters showed that 11 of the plants which avoided closure were peakers.
The Department of Energy ordered that the 55-year-old "Eddystone", owned by Constellation Energy and located outside of Philadelphia be kept running. PJM requested that the Wagner peaker near Baltimore be kept running while the grid operator coordinated the transmission required for the generator to be removed.
Some of the power plants that were retained were originally built to provide power around-the clock, but were later downgraded so they only run in emergencies.
Last Line of Defense
Fisk's owner NRG Energy believes peakers are vital safeguards for grids that are increasingly needed not only for data centers, but also for electrifying manufacturing and transportation and to avoid blackouts due to winter storms or summer heatwaves.
Fisk Peakers are located in Chicago, so the city does not need to import power in an emergency if outside sources of electricity go down.
Matt Pistner, NRG Energy, said: "They are the shock absorbers and last line of defense for the system." When they are needed, there's nowhere else to turn.
Pistner said that while NRG has power-generating sources ranging from wind and solar to nuclear, oil-fired peaks add an additional layer of security by ensuring fuel can be stored locally.
A NRG spokesperson said separately that "during its run time, the power station consistently operates within federal or state environmental regulations - and we are proud to its record".
Experts in energy say that there are other options to peakers. Transmission lines that are more reliable could be used to transport electricity from areas of the country where there is an excess of power, to those who have a shortage.
Rusco, from the GAO, said that "if we did that, the system could run more efficiently. You would also probably reduce the amount of dependence on peakers."
Clean energy advocates believe that batteries, which are being improved to store power longer, can also replace peaker units.
As AI power demand increases, communities such as Pilsen that have been successful in closing some sources of pollution over the past few years may find it more difficult to combat peaker plants.
John Quigley of the University of Pennsylvania Kleinman Center for Energy Policy said: "It will result in significant cost increases for consumers of electricity and local pollution, and prevent the connection of new clean energy production to the grid."
PJM has said that it will continue to connect renewable energy, nuclear power and gas-fired electricity to the grid, regardless of how long peakers remain on.
Shields stated that "we need to get every megawatt we can right now." He added that deactivating existing plants "ignores the reality."
Northern Illinois has a growing data center market. At least one data centre is already operational in Pilsen, and there are multiple energy-intensive projects being planned for the surrounding areas. T5 Data Centers announced a 20 building campus this year.
Mead Lucero is concerned that the Fisk Peaker Units will continue to exacerbate the environmental problems in his hometown. This includes industrial truck traffic emissions, metal scrappers, and a major road cutting through the area. "You combine all these factors and you have a real problem."
(source: Reuters)