Deep Insight: Why we need Grid Investment
This week, Contrary Research published a deep dive into the US electric grid, tracing its evolution from a centralized monopolistic system to what it needs to be today, a decentralized energy network.
It's a timely read as grid infrastructure remains one of the biggest bottlenecks to achieving widespread electrification and meeting clean energy targets.
In the US about 70% of the transmission lines are over 25 years old, with many having exceeded their design life. It’s compounded by a nationwide transformer shortage and utility retirements making it harder to diagnose and repair grid issues.
At the same time, grid complexity is rising.
As Packy McCormick noted, the ‘the more progress we make in wind, solar, EVs, and electrification, the more unstable the grid gets.’ We're effectively asking a centralized machine to operate like a distributed network.
Take rooftop solar; excess energy can feed into neighborhood circuits, causing voltage spikes that outdated systems can’t manage. Energy creation, storage, and consumption have all become decentralized and volatile, yet the underlying infrastructure wasn’t built for this shift.
That’s why the challenge isn’t just about adopting new technologies, it’s about orchestrating an ecosystem of devices, software and economic incentives to work in harmony.
The future of energy might resemble the internet where we have ‘open standards, smarter endpoints, and new business models that turn a patchwork of systems into a resilient web.’
These challenges are why investment in grid technology continues to rise and governments, driven by climate targets, continue to invest heavily in new infrastructure.
It’s a vertical I’m interested in and expect to be continuing to write about over the next few years.
In this issue there are:
8 Startup Fundings
17 Policy and Regulatory Changes
7 New National Infrastructure Projects & Priorities
0 New investment funds
3 Acquisitions
7 News articles
7 new jobs posted - view here
Reading time: 13 min
Does the email get cut off by your reading application? You can view the full version online here.
AI adoption in Construction Survey (regular content below)
Nate Fuller and Hamzah Shanbari (both guest contributors here) are undertaking an unsponsored research effort to capture how AI is being adopted across the construction value chain.
It includes what is working, what’s changing in the workforce and how companies are preparing for what’s next. The goal is to share these findings at an upcoming industry conference and release a research report.
I’m personally interested because we’ve moved past the peak of the AI hype cycle where every innovation team was trialing every AI tool. Now, I’m curious to learn what’s stuck.
If you have a few minutes, I’d encourage you to contribute here.
Startup Funding
Construction Management
WakeCap, a Dubai startup, raised $28m in Series A funding. They have developed a project intelligence and controls platform that uses a wearable solution (knob which attaches to hardhats) to offer real time visibility into projects such as daily production rates, automated timekeeping, equipment utilization and safety detection. More here.
[View open jobs - 1 role in Sales, 1 role in Finance, 1 role in Project Management, 1 role in Software]
Green Materials
Exterra Carbon Solutions, a Canadian startup, raised CAD $20m in funding. They have developed a solution which converts the asbestos fibers in leftover rock and mining waste into minerals which can be used for low carbon building materials including as cement additives. More here.
ST Bungalow LLC, a New York startup, received grant funding (undisclosed). They are developing a stay in place formwork system which is made from recycled materials and can be used to reinforce concrete flatwork such as floors removing the need to rebar. More here.
3D Printing
MX3D, a Dutch startup, raised €7m in Series A funding. They have developed a wire arc additive manufacturing method which allows them to 3D print metals and resin in mid-air without the need for support structures and have found traction in AEC in the bridge sector. More here.
[View open jobs - 2 roles in Sales, 1 role in Other]
Monitoring
Xoople, a Madrid startup, raised €115m in funding. They have developed a solution which delivers continuous Earth surface data specifically for AI analysis automatically monitoring, identifying and predicting changes. They’ve found traction in AEC being used for tasks such as site suitability assessments and infrastructure planning, to monitoring of projects, tracking movement of materials from source to site and rapid evaluation of build and infrastructure damage during and following natural disasters. More here.
Notes:
This solution appears to be a more real time version of Nearmap.
Nearmap takes periodic snapshots of Earth allowing users to access high resolution satellite data of a location and track the changes over time.
We used it for site feasibility analysis (maps were exported to real world coordinates in CAD) as well as monitoring of construction changes over time to understand future asset maintenance requirements i.e when were asphalt overlays completed.
Home Building
LynxCraft, a UK startup, raised Pre-Seed funding. They have developed an end to end platform which simplifies the homebuilding process for real estate investors and architects allowing users to easily receive plot information, design their home with cost estimates, download the technical documentation and source suppliers and builders. More here.
Renovation
Protio, a Greek startup, raised €1m in funding. They are developing a real estate platform which assists with energetic renovations, helping users generate a renovation budget, book appointments with the required partner and assist with receiving subsidies. More here.
Other
Zeno Power, a Washington startup, raised $50m in Series B funding. They are developing a battery which uses the heat emitted from nuclear waste to power systems in extreme environments where solar cells and batteries fail such as space and underwater. More here.
Notes:
This solution is really interesting to me as my team worked on a project in Antarctica.
Given the challenges of the environment, supply chain and power were critical problems which needed to be solved during the design phase to verify constructability.
A solution such as this could be viable to provide continuous power without requiring the stockpiling of fuel.
Note: Algoma, a startup funding round announced as undisclosed in mid-April has revealed this week they raised $2.3m in Seed funding led by Zacua Ventures.
Policy and Regulatory Changes
US
Trump Team Weighs Expediting Nuclear Power Plant Construction
Trump administration officials are crafting executive orders to expedite the approval and construction of nuclear power plants across the US.
The effort, described by an administration official and other people familiar with the deliberations, is still a work in progress.
At least one of the potential measures would direct changes at the Nuclear Regulatory Commission that could expedite reviews of plant designs, including new small modular reactors.
There Is No ‘Energy Emergency,’ a New Lawsuit Claims
Fifteen states sued the Trump administration over its declaration of an “energy emergency,” arguing that there is no emergency.
The president’s Jan. 20 executive order, “Declaring a National Energy Emergency,” directed federal agencies to speed up energy projects like drilling for oil and natural gas and mining for coal.
It excluded wind and solar energy.
It stated that energy production was not meeting the nation’s needs.
They are arguing that the order instructs regulators to illegally bypass reviews of fossil fuel projects, potentially damaging the environment.
House Republicans Plan Big Cuts to the IRA’s Clean Energy Grants
Republicans on the House Committee on Energy and Commerce unveiled their draft budget proposal.
It features widespread cuts to the Inflation Reduction Act and other clean energy and environment programs.
These proposed cuts would impact:
The Loan Programs Office would have its IRA-specific funding pulled, reducing its overall ability to lend.
Programs to finance zero-emissions vehicle manufacturing, repowering or retooling energy infrastructure to lower emissions, loan guarantees for Native American tribes, and loans to build transmission lines.
Grant programs to help implement clean energy policies
Such as programs for training and education for the IRA’s home energy programs, grants for siting transmission lines, and grants for planning offshore wind and its associated transmission.
The overall recommendations would reduce deficits by more than $880 billion from 2025 to 2034.
U.S. and China agree to slash tariffs for 90 days in major trade breakthrough
The deal means ‘reciprocal; tariffs between both countries will be cut from 125% to 10%.
Trump administration to audit billions in energy grants awarded under Biden
The Trump administration said it will audit some $15 billion in grants to power grid and manufacturing supply chain projects awarded during the Biden administration.
If it is determined that projects do not meet standards, they may be modified or terminated.
US to rescind rule that lowered solar, wind project fees on federal land
The Trump administration took steps to rescind a Biden-era regulation that lowered fees for renewable energy projects on federal lands.
The rule provided a ~80% cut in project fees for wind and solar energy developments.
They are saying the rule unfairly favored development of wind and solar facilities.
State Budget Goes Small On Climate
New York’s budget includes $1 billion for climate action.
This will go mostly toward greening buildings and transportation.
It includes more than $200 million for “thermal energy networks,” which can allow entire neighborhoods to switch to efficient, electric heating and cooling.
It’s a record amount, but less than the state was supposed to raise by charging polluters.
Transportation Secretary Unveils Plan to Overhaul of Aging Air-Traffic Systems
The eight-page framework seeks to upgrade systems.
This includes the radio systems, replacing copper wiring with fiber optics, digitizing flight data management tools and updating air-traffic control facilities around the country.
The proposals will be dependent on support from Congress for funding.
DOT awards $3.2B to 180 projects
The U.S. Department of Transportation awarded $3.2 billion in grants to fund 180 projects last week.
Grants went to programs administered directly by the DOT with the Federal Highway Administration receiving over $1.4 billion, or about 44% of the total.
They had inherited 3,200 unobligated grants previously announced by the Biden administration and have so far approved 329 of those grants.
House Bill 47 Delays Effective Date for North Carolina's New Building Code
The new law appropriates $524 million to fund homebuilding, agricultural recovery, and infrastructure repairs in the mountains related to the storm damage.
It also sends a much-delayed $217 million to Eastern North Carolina for use in home replacement and other infrastructure repairs.
Another key provision involves a change to the building code making the earliest effective date for the New Code appear to be July 31, 2026 (delaying by at least 12 months).
Federal agencies told to start tracking building occupancy
Federal agencies must send the Office of Management and Budget biweekly reports.
This will identify how much their buildings are occupied as part of an effort to make better use of government facilities.
The goal is to implement a return-to-office policy Trump ordered on his first day in office.
The agencies are to meet a minimum 60% weekly average occupancy based on a calculation that assumes each employee gets 150 square feet of space.
China
Global supply chains threatened by lack of Chinese rare earths
Beijing in early April placed export restrictions on seven rare earth elements and permanent magnets.
These are vital for products ranging from electric vehicles to wind turbines, humanoid robots and fighter jets.
US manufacturers, including Tesla, Ford and Lockheed Martin, have voiced concern over the new Chinese export controls.
Notes:
China has almost complete control of the Rare Earth material supply chain.
They mine 70% of rare earth concentrates, process 87% and refine 91%.
It’s used in permanent magnets, 94% of which are made in China.
These controls impact the manufacturing sector (e.g EV car production) which could have a downstream impact on factory construction.
China doubles down on urban upgrades to boost high-quality development
The country unveiled a set of guidelines, pledging increased policy and financial support for urban renewal projects.
This can range from gas pipe updates and lift installations to the renovation of old factories into commercial zones.
The country initiated over 60,000 urban renewal projects in 2024, with a total investment of 2.9 trillion yuan (about 402.8 billion U.S. dollars).
India
Industries using cleaner tech, reducing pollution may face fewer regulations
India’s Central Pollution Control Board will provide incentives to industries as they adopt cleaner fuels and technologies.
It would allow them to attain better pollution index numbers which could result in fewer regulatory burdens.
Eligible units need to demonstrate measures taken to reduce emissions and waste generation such as:
Treating and reusing wastewater
Reducing freshwater consumption
Switching to alternative cleaner fuels or technology
Notes:
This may impact the industrial construction sector and the design requirements stipulated by clients.
Canada
B.C. supports projects that help communities prepare for climate emergencies
The Province is providing more than $40 million for 61 projects.
These are projects which address natural and climate-driven hazards, such as floods, drought, extreme temperatures, earthquakes and landslides.
Ontario releases plan to boost housing, transit construction
The Act aims to reduce housing costs and accelerate construction by standardizing and simplifying development charges, building standards, and approval processes.
This will be across Ontario’s 444 municipalities.
Ontario is injecting an additional $400 million into the Housing-Enabling Water Systems Fund (HEWSF) and the Municipal Housing Infrastructure Fund (MHIP).
This will bring the total to nearly $2.3 billion over four years.
It will enable housing-related water and infrastructure projects that support the construction of new homes.
UAE
Will your DEWA bill go down? Dubai unveils smart building push to cut utility costs
The Dubai Smart Buildings Policy outlines standards for smart buildings that use renewable energy, intelligent water networks, smart parking, automated climate control, and real-time monitoring systems.
The policy aims to reduce power consumption in buildings by 25%, water use by 15%, and operational costs by 20%.
Adoption of the policy currently remains purely voluntary in new buildings.
It will be backed by initiatives to encourage adoption by investors and developers in due course.
National Infrastructure Projects & Priorities
Global
LSE Group Study Finds $1 Trillion Industry in Climate Adaptation
Companies responding to the physical risks associated with climate change generated over $1 trillion in combined revenues last year.
This is from products and services that contribute to climate adaptation.
The study looked at companies in sectors ranging from logistics to food processing and real estate.
Notes:
This is a large area of opportunity for construction firms as well as ConTech firms enabling them.
US
Equinor threatens to cancel NY offshore wind project
Unless the Trump administration lifts a stop-work order issued by the Interior Department, Equinor will terminate a New York offshore wind project.
Equinor began offshore work on Empire Wind in March having already spent $2.7 billion on the $5 billion project.
The 54 turbine project would generate enough electricity to supply 500,000 homes.
The order is costing the company $50 million a week.
Google will commit early-stage development capital to advance the development of three projects.
Each project would generate at least 600 megawatts (MW) of power capacity, with the option for commercial off-take once complete.
SoftBank Stargate Venture With OpenAI Snags on Tariff Fears
SoftBank Group Corp.’s plans to invest $100 billion in artificial intelligence infrastructure in the US have slowed.
It means SoftBank has yet to develop a project financing template or begin detailed discussions with banks, private equity investors and asset managers.
Additionally financiers are reassessing data centers in the wake of growing economic volatility and cheaper AI services.
UK
UK government on the fence over Chinese involvement in massive new wind farm
Ministers have entered into discussions with developer Green Volt this week.
They will decide if Mingyang, China's largest offshore wind company, should be awarded the multi-million-pound contract.
According to sources, Green Volt has struggled to find a UK turbine manufacturer large enough for the job, prompting the international search.
UAE
OpenAI, Oracle to Help UAE Develop Massive Data Center
The UAE announced a 5-gigawatt data center campus in Abu Dhabi.
OpenAI is expected to be one of the primary anchor tenants.
Once completed, the sprawling facility would cover 10 square miles and use roughly as much power as five nuclear reactors.
Brazil
China Is Building Megaports in South America to Feed Its Need for Crops
China’s state-owned agricultural conglomerate, Cofco, is building its biggest export terminal outside China at Santos, Brazil.
This is to manage shipments of corn, sugar and soybeans.
Chinese companies are laying hundreds of miles of railroad across Brazil’s agricultural heartland and finishing work on a $3.5 billion deep-water port on Peru’s Pacific coast.
The trade war with the U.S. has heightened the urgency of these projects.
Acquisitions
Veea, a New York company offering smart edge solutions, is acquiring Crowdkeep, an Internet of Things (IoT) platform offering real time people and asset positioning solutions to industries such as construction to improve jobsite safety. More here.
Notes:
Edge computing allows devices in remote locations to process data at the ‘edge’ of the network, either by the device or locally rather than in a centralized server.
CM Labs Simulations, a Canadian company providing simulators and services to help train crane and heavy equipment operators, acquired AI Redefined (AIR), a Montreal company, that has developed an AI platform to support human-AI collaboration including an Operator AI apprentice. More here.
Glider, a UK company providing a complete asset lifecycle information management platform, acquired Sitedesk, which enables the use of digital twins through reality capture, Building Information Modeling (BIM) data and 3D modelling. More here.
Notes:
This acquisition will result in Sitedesk’s visualisation capabilities integrated into Glider’s intelligent information management platform.
News
Cement-like building material doubles up as an electrolyte in rechargeable battery
Researchers in France and Spain have developed a cement-like material from a geopolymer.
It can simultaneously serve as a solid electrolyte in a rechargeable electrochemical energy storage system.
America’s infrastructure notches first-ever ‘C’ grade
Power-Hungry Data Centers Are Warming Homes in the Nordics
Cyberthreats surge against US logistics infrastructure
The U.S. saw a 136% increase in Advanced Persistent Threat (APT) activity.
A $12 Billion Window Into AI’s Race for Power
US power generation deals announced through mid-May add up to $51 billion.
NASA Enables Construction Technology for Moon and Mars Exploration
As Nuclear Power Makes a Comeback, South Korea Emerges a Winner
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.