Grids versus the Big Chill

[Loretta Lohman]

Operators face demand they’ve “never experienced”

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The massive storm that blanketed large swaths of the US over the weekend will test infrastructure and commuters’ patience today. And with the cold set to stretch all week, the challenges aren’t going away. Today’s newsletter brings you the icebox that is most of the US, with energy demand surging as grids grapple with damaged power lines and disrupted operations. Plus, European North Sea states just gave offshore wind a boost with pledges to invest $11.3 billion by 2030. It’s another win for green investors, who poured a record amount of money into the sector last year. Did someone forward you this newsletter? Subscribe to Green Daily to get free climate reads delivered straight into your inbox six days a week. Big Chill fallout By Lauren Rosenthal, Naureen S Malik, Joe Wertz and Elizabeth Rembert US power grids are under mounting pressure following a winter storm that blanketed the South and Mid-Atlantic with deep cold and heavy ice, driving up heating demand and raising the risk of blackouts.  The storm affected millions of people across the eastern two-thirds of the US. Roughly 825,000 homes and businesses were without electricity as of 7:30 a.m. New York time as snow and ice ravaged local distribution lines, according to data from PowerOutage.com. More than half of the outages were reported in three states: Tennessee, Mississippi and Louisiana. The US Capitol on Jan. 25, 2026 Photographer: Luke Johnson/Bloomberg So far, power grids have avoided large system-level cuts, but sub-zero temperatures and dangerous wind chills are set to linger all week, testing seasonal power demand records from Texas to New England. Some areas have reported extensive damage to trees and power lines and blocked roads, which could slow electricity restoration, said Nicole Joniak, a meteorologist at AccuWeather Inc. “Power may take days to be restored across the hardest hit areas,” she said. “This will be especially dangerous, as temperatures will be well below historical averages across much of the eastern and central United States this week.” Snow removal equipment at LaGuardia Airport Photographer: Michael Nagle/Bloomberg In New York City, today’s commute will be messy for those willing to brave it. Commuter lines run by the Metropolitan Transportation Authority are operating with modified schedules on Monday, while at least one private bus operator, Boxcar, used by New Jersey workers, suspended its service because of the inclement weather.  New Jersey Transit, which halted bus, lightrail and train service on Sunday, said that it will resume operations in phases. The system’s three light rails will start for the morning commute while bus service will be determined based on road conditions later in the day.  The nation’s largest grid operator, PJM Interconnection LLC, warned it was facing seven straight days of unprecedented demand and pushed power plants to secure natural gas supplies through the week.  The Electric Reliability Council of Texas is forecasting record demand of up to 86 gigawatts on Monday, which could exceed the previous high set in August 2023. Both operators have taken the unusual step of paying major customers such as manufacturers to curb electricity use to prevent rolling residential blackouts.  Other grid operators have been obtaining waivers from some pollution limits so they can boost generation from dirtier power-plants such as diesel and coal. US energy officials also asked grid operators to make backup power available from facilities including data centers. Power lines covered in ice during a winter storm in east Nashville, Tennessee Photographer: Kate Dearman/Bloomberg Temperatures in many of the hardest-hit regions may only reach the teens and low-20s on Monday. The US National Weather Service has warned that frigid temperatures could last into February across the eastern half of the country. Meanwhile, Europe is facing forecasts of heavy snow and ice for the next two weeks. A winter storm has already hit the region’s north and east, disrupting transport and power systems. Snow-covered solar panels on a house near Berlin, Germany Photographer: Krisztian Bocsi/Bloomberg The winter storm triggered red weather alerts in Germany, where 20 centimeters (7.9 inches) of snow is expected in the south-central region and as much as 15 centimeters in the northeast, according to government forecaster DWD. Snow accumulation on solar panels is expected to limit electricity generation in some parts of the country today, according to MetDesk meteorologist Matthew Dobson. An orange weather warning was issued for southeast Sweden, with up to 30 centimeters of snow forecast from this afternoon through tomorrow. The national weather forecaster SMHI warned that power cuts would likely occur and told people not to venture outside unless necessary. Denmark, Poland and even the Balkans are facing alerts for freezing weather too. Read the full stories on the US storm and the freeze blanketing Europe on Bloomberg.com. Subscribe to Weather Watch for more news on how extreme weather impacts markets, businesses and the economy. Gassed up $6 The price US natural gas soared above for the first time since 2022 as demand surges across the country. WFH if you can “This is a very dangerous combination of heavy snow and extreme, extreme cold temperatures” Kathy Hochul New York Governor Offshore wind gets a boost By Petra Sorge Countries including the UK, Germany and Norway have pledged €9.5 billion ($11.3 billion) to expand offshore wind capacity in the North Sea by 2030, in a bid to boost the region’s energy independence. Leaders and energy ministers from nine nations are meeting in Hamburg today to sign the declaration, which will mobilize €1 trillion of capital in Europe, create 91,000 jobs and reduce power production costs by 30% by 2040, according to industry group WindEurope. The pact aims to turn the North Sea into “the world’s largest clean energy reservoir,” the UK energy ministry said. Offshore wind turbines off the coast in Clacton On Sea, UK Photographer: Carlos Jasso/Bloomberg The commitment underscores Europe’s continued support for the technology, despite recent criticism by US President Donald Trump, who has labeled Europeans that install windmills as “losers.” The nations aim to jointly develop 100 gigawatts of offshore wind capacity by 2050 — the bloc’s climate-neutrality target — while strengthening protections for energy infrastructure, Bloomberg News reported Friday. That effort includes wind farms linked to multiple countries via interconnectors and an interconnected offshore grid. Read the full story on Bloomberg.com and subscribe for unlimited access to all coverage on renewable investments. Clean tech’s record year By Coco Liu Global investment in the energy transition grew by 8% to a record $2.3 trillion last year, according to BloombergNEF, defying fears that the shifting political landscape and economic uncertainty would halt the world’s clean energy progress. Yet there are signs that while investments are increasing, they’re not doing so fast enough to accelerate the energy transition at the speed needed. About $1.2 trillion of that poured into renewable energy and power grids, both of which play a vital role in serving rising electricity demand from data centers, a new report published Monday found. Electrified transportation, which includes electric vehicles and charging infrastructure, also attracted $893 billion last year, thanks in large part to strong growth in Asia and Europe. “This past year has showcased that despite policy and trade headwinds, the global energy transition is resilient and provides a number of opportunities for investors,” said Albert Cheung, deputy chief executive officer at BloombergNEF. “As many economies look to strengthen energy security and build domestic supply chains, clean energy investment will continue to rise, especially as it relates to global data center buildouts.” The Asia Pacific region — led by China, India and Japan — was responsible for nearly half of all global spending on energy transition technologies in 2025, according to the report. There are some warning signs about the speed and scale of clean tech funding. Despite huge amounts of capital flowing in, global renewable energy investment dropped 9.5% year-on-year in 2025 as China’s regulatory reform dampened activity in the world’s largest market. The policy change also led to China’s first decline in energy transition investment since 2013, though the country still outspent any other nation in green funding. Read the full story, including the investment trends in other regions. BNEF is hosting a summit in San Francisco starting today, and we’ll have the key takeaways tomorrow. This week’s Zero Decarbonizing energy is just one part of the climate story. The other half is electrifying as much as possible. That is why electrification, not decarbonization, is likely going to be the most important climate story of 2026. Kingsmill Bond is a strategist at thinktank Ember and the author of a paper called the Electrotech Revolution. This week on Zero, Bond tells Akshat Rathi why he believes electrification is inevitable, and what happens to those that are left behind. Listen now, and subscribe on Apple, Spotify or YouTube to get new episodes of Zero every Thursday. More from Green Ulysses Mako AUV being used for seagrass restoration in Perth, Australia. Photographer: Stathi Weir/Ulysses An increasing number of companies are developing novel technologies aimed at helping accelerate the growth of blue carbon credits, an underdeveloped corner of the offset market.  Scientists estimate that, even under optimal conditions, protecting existing coastal habitats and large-scale restoration efforts would likely avoid or remove only a few percent of the world’s global greenhouse gas emission. But the projects can also deliver added environmental benefits and fetch higher prices than other nature-based carbon removal credits, making them attractive to buyers and local developers alike. The manager overseeing Janus Henderson Investors’ flagship sustainable fund says there’s little to indicate that US President Donald Trump’s anti-green rhetoric will derail the rally gripping clean-energy stocks. Data centers siphon huge amounts of energy to power artificial intelligence. But their environmental footprint starts to balloon even before the first server switches on due to the immense amount of carbon-intensive concrete needed to build them. More from Bloomberg Business of Food for a weekly look at how the world feeds itself in a changing economy and climate, from farming to supply chains to consumer trends Hyperdrive for expert insight into the future of cars Energy Daily for a daily guide to the energy and commodities markets that power the global economy CityLab Daily for top stories, ideas and solutions, from cities around the world Tech In Depth for analysis and scoops about the business of technology Explore all Bloomberg newsletters. 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