Energy Transition, Renewables, Emissions, Carbon
May 6, 2026
ET Highlights: US southwest sees over 3 GW new solar additions, Shell preps refinery for green hydrogen, New Zealand faces carbon credit demand crunch
Energy Transition Highlights: Our editors and analysts bring together the biggest stories in the industry this week, from renewables to storage to carbon prices.
Top story
US SPP eyes another capacity uptick as solar leads 2026 additions
The Southwest Power Pool is positioned to see another uptick in generating capacity additions this year, led by solar, as the region prepares for increasing peak load driven by an acceleration in interconnection requests from large loads such as data centers.
Power developers are scheduled to bring roughly 5.2 gigawatts of new capacity into service within the SPP footprint in 2026, according to an analysis of S&P Global Market Intelligence data. The total includes 3,098 megawatts of solar capacity, 795 MW of gas, 767 MW of wind and 529 MW of energy storage.
The 5.2 GW of new capacity, should it all come to fruition, would represent a 5.4% increase over the roughly 4.9 GW of capacity additions for SPP in 2025. Last year saw a noticeable jump in capacity additions within the region after an average of just 3 GW in the preceding four-year period of 2021 to 2024, with a low of 1.9 GW in 2024.
The planned new capacity, which could boost cumulative capacity in SPP to 124.8 GW, will arrive as peak load continues to rise in the region. The grid operator has seen a nearly 11% increase in peak demand in the last four years, and "all indicators suggest that these trends will, at least, continue, and most likely accelerate," SPP said in a November 2025 filing with the US Federal Energy Regulatory Commission.
These capacity additions and rising peak load are also occurring during a year in which the grid operator, as of April 1, expanded its services when nine load-serving utilities in the Western US became full regional transmission organization members and participants in SPP's wholesale market.
Benchmark of the Week
$51.95/mwh
On April 1, Platts M2MS power forward curves showed SPP North Hub's on-peak July package at $51.95/megawatt-hour and the December package at $45.95/MWh. Compared with SPP North Hub, the day-ahead on-peak locational marginal prices averaged $47.95/MWh and $33.85/MWh in July 2025 and December 2025, respectively.
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Shell readies Europe’s largest refinery for green hydrogen
Shell is poised to start renewable hydrogen operations at Europe's largest refinery, with its Holland Hydrogen 1 electrolyzer close to completion as the company gears up to meet expanding European green fuel regulations. The 200-megawatt renewable hydrogen plant, built at the end of the Maasvlakte man-made extension to the Port of Rotterdam on land reclaimed from the sea, will produce 60 metric tons/day to supply Shell's nearby 404,000 b/d Pernis refinery in Rotterdam from later in 2026.
Global Biofuels Alliance targets SAF corridors, advances methanol for marine sector
The Global Biofuels Alliance is in active negotiations with the governments across the world to establish a sustainable aviation fuel corridor linking global airports, a framework designed to drive SAF policy harmonization and standardization across jurisdictions and position India as a global aviation bunkering geography, GBA Director Joshua Wycliffe said at an industry event in New Delhi. Wycliffe framed the corridor initiative as a response to a structural problem in the global SAF market, a widening mismatch between carrier-level SAF commitments and the absence of binding national policy mandates in many jurisdictions. Wycliffe said it would also help position India as a "global bunkering geography" — a strategically significant designation given India's refining capacity, ethanol surplus, and geographic location on major international aviation corridors.
S&P Global Energy Core
New Zealand climate body warns of NZU shortfall risk by 2028, sees volatile spikes
New Zealand’s Climate Change Commission warned that demand for New Zealand Units may outpace supply as early as 2028, potentially triggering volatile price spikes and prompting government intervention, according to its annual advice on NZ ETS auction settings for 2027–2031. The CCC recommended keeping auction volumes and price controls unchanged for now, with only minor technical and inflationary adjustments, to avoid further unsettling the market. However, the commission's analysis points to a possible unit shortfall risk by the late 2020s, as the stockpile of privately held units has drawn down faster than expected, falling to 50.2 million at the end of 2024, compared with a previous forecast of 67.9 million.
Verra reinstates eight China carbon projects after quality reviews
Verra has reinstated eight carbon projects in China, which span afforestation, reforestation, and grassland management activities, following the conclusion of quality control reviews initiated in December 2025, it said in a statement. The reinstatements include six afforestation and reforestation initiatives and two improved grassland management projects, with issued credits ranging from around 30,000 Verified Carbon Units for the Qinghai reforestation project to 2 million VCUs for the Zhangye grassland scheme. The projects were placed on hold as part of a broader review Verra launched across 35 registered natural climate solutions projects in China.
57 countries pledge roadmaps for fossil fuel transition
Fifty-seven countries on April 30 agreed to develop national roadmaps for transitioning away from fossil fuels, marking the first coordinated effort to implement the landmark pledge made at the UN Climate Change Conference in Dubai in late 2023. The First Conference on Transitioning Away from Fossil Fuels, held in Santa Marta, Colombia, concluded with commitments to establish three working groups focused on reducing economic dependence on fossil fuels, transforming energy supply and demand, and advancing international cooperation. The participating nations, which include major fossil fuel producers, represent about one-third of global GDP.