Singapore and Laos are taking another step toward building a cross-border carbon market. The two countries have agreed on 58 pre-approved carbon credit methodologies under their bilateral deal linked to Article 6 of the Paris Agreement.

The methodologies cover forestry, agriculture, methane reduction, biochar and renewable energy. They give project developers a clearer path to seek approval for carbon credits that could later be transferred internationally as Internationally Transferred Mitigation Outcomes (ITMOs).

Singapore and Laos signed their Implementation Agreement in September 2026. Singapore published the list of eligible methodologies on October 1.

The move could create a new pipeline of carbon projects in Laos while giving Singaporean companies another source of international carbon credits. It also adds Laos to Singapore’s growing network of Article 6 partners.

58 Methodologies Give Laos a New Carbon Project Pipeline

The new list covers a wide range of climate projects. Forestry projects can focus on protecting or restoring forests. Agricultural projects can reduce emissions or increase carbon storage. Methane projects can target emissions from waste and farming.

The list also includes biochar and renewable energy methodologies. However, the 58 methodologies do not mean that 58 projects have already been approved.

Projects must still go through Singapore and Laos’ authorization process before they can generate transferable ITMOs. Singapore says its methodology lists are designed to give developers more certainty because the methods have already been reviewed and published.

The next step will be the launch of the project application process. For developers, this could make Laos more attractive as a location for carbon projects targeting the international market.

Singapore and Laos Move From Agreement to Project Development

Singapore and Laos signed their Implementation Agreement on September 4, 2026. It was Singapore’s 12th bilateral Implementation Agreement for carbon market cooperation and its fourth with an ASEAN country.

The agreement allows eligible projects in Laos to generate carbon credits that can be transferred to Singapore, subject to approval by both countries. A key part of the system is the use of corresponding adjustments.

These adjustments help prevent the same emissions reduction from being counted twice — once by Laos and again by Singapore or another buyer. This is one of the main differences between Article 6 credits and many credits traded in the voluntary carbon market.

The agreement also sets financial and environmental safeguards. Laos will receive a 5% share of proceeds from authorized carbon credits to support climate adaptation. Another 2% of credits must be cancelled when the credits are first issued. These credits cannot be sold or used toward another climate target.

• READ MORE: Singapore, Laos Sign Article 6 Carbon Credit Deal to Unlock Climate Finance

Singapore Has Growing Demand for Carbon Credits

The Laos agreement comes as Singapore’s carbon market expands. Singapore’s carbon tax rose to S$45 per tonne of CO₂e in 2026, up from S$25 in 2024 and 2025. The government plans to raise the tax to between S50 and S80/tCO₂e by 2030.

Companies covered by the carbon tax can use eligible international carbon credits (ICC) to offset up to 5% of their taxable emissions. That creates demand for high-quality international credits.

Singapore estimates that it could need about 2.51 million tonnes of ITMOs each year during its 2021–2030 climate-target period. But supply remains a challenge.

The government has said carbon projects can take several years to develop and generate credits. Singapore has therefore been working with several countries to build future supply. Laos now becomes part of that pipeline.

Singapore Is Already Paying for High-Quality Carbon Credits

Singapore has already committed significant money to international carbon projects. The government has contracted about 2.175 million tonnes of high-quality nature-based carbon credits from projects in Ghana, Peru and Paraguay.

The contracts are worth about S$76 million in total. That equals an average value of around S$35 per tonne, although carbon prices vary between projects.

Singapore has also continued to seek new Article 6 credits from partner countries. A 2025 government tender for nature-based credits attracted offers ranging from about $19 to $41 per tonne, according to S&P Global. The tender received offers from 17 suppliers.

These prices are not a standard market price for Article 6 credits. They show, however, that buyers are willing to pay more for credits that meet stronger quality and government-approval requirements. That could benefit projects in Laos if they can meet Singapore’s eligibility rules.

Laos Could Attract New Climate Finance

For Laos, the agreement creates a potential new source of international climate finance. The country has large areas of forest and significant agricultural activity. These sectors could support projects that reduce emissions, store carbon, or improve land management.

The 58 approved methodologies give developers several possible project types to explore. But carbon revenue is not guaranteed.

Projects must prove that their emissions reductions are real and meet the rules of both countries. They must also pass the required monitoring, reporting, and verification processes.

• The 5% share of proceeds gives Laos a direct financial benefit from successful projects. The 2% cancellation requirement also adds a climate-integrity safeguard.

For example, if a project generates 100 tonnes of eligible mitigation, two tonnes would be cancelled under the agreement. Only the remaining amount could potentially be transferred, subject to all other requirements. 

Article 6 Market Is Growing, But Actual Trading Is Still Small

The global Article 6 market is expanding, but actual ITMO transfers remain at an early stage. As of September 4, 2026, the UNEP Copenhagen Climate Centre’s Article 6 Pipeline recorded 78 bilateral agreements in the East Asia and Pacific region, involving 16 countries.

• Singapore had the largest network, with 28 agreements, followed by South Korea with 14 and Japan with 32 globally.

However, only about 54,000 ITMOs had been transferred or received in the East Asia and Pacific region by that date. Globally, the number was much larger, but still concentrated in a small number of transactions.

This shows the gap between signing Article 6 agreements and actually generating tradable credits. Countries are building the rules, approving methodologies, and developing project pipelines before large-scale trading begins.

The market is also becoming more focused on high-quality credits. The World Bank says carbon credit issuances rose 8% in 2025, while credits eligible for international compliance markets continued to receive price premiums.

For Singapore and Laos, the 58 approved methodologies could help close part of that gap by giving developers a clearer route from project development to government authorization and eventual ITMO transfers.

Article 6 Market Could Expand Across Southeast Asia

The latest Singapore agreement shows how Article 6 is moving from international climate policy into actual carbon market development.

The Paris Agreement created the framework for countries to cooperate on emissions reductions. Bilateral agreements now provide the rules needed to turn that framework into transactions.

For Singapore, the goal is to secure a supply of high-quality international credits as its carbon tax rises.

For Laos, the opportunity is to attract investment into forestry, agriculture, methane reduction, renewable energy and other climate projects.

The two countries will still need to prove that projects can move from approved methodologies to real credits.

That is the next test. With 58 methodologies already eligible, Singapore’s carbon tax at S$45/tCO₂e, potential ITMO demand of 2.51 million tonnes a year, and billions of dollars of global interest in higher-quality carbon credits, the foundation is now in place.

• READ MORE: Singapore Targets 12 Million Carbon Credits in Major Article 6 Tender

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Google and Constellation Energy have signed a 20-year power purchase agreement (PPA) to add 890 megawatts (MW) of new nuclear capacity to the PJM electricity grid.

The agreement will support more than $4.3 billion of investment by Constellation to upgrade 11 existing nuclear units across Illinois, Pennsylvania, and New Jersey. The upgrades are expected to increase the plants’ output without building new reactors from scratch.

The first upgraded capacity is expected to reach the grid in 2028, with the full 890 MW targeted by the end of 2032. Constellation says the additional power is roughly equivalent to adding a large new nuclear reactor to the PJM system.

Amanda Peterson Corio, global head of energy and power at Google, said:

“We’re committed to meeting our growth responsibly by actively investing in clean, reliable power that brings new capacity to our nation’s grids. Our agreement with Constellation to fund nuclear reactor uprates will strengthen the PJM grid, which serves 67 million people, all while protecting energy affordability and supporting local union jobs.”

Google Is the Anchor Customer

Google’s role in the deal is important to understand. The tech giant is not building or operating the nuclear plants. Instead, it has committed to buying the additional electricity under the 20-year PPA.

That long-term commitment gives Constellation greater revenue certainty to invest in upgrades at its existing reactors. In other words, Google is acting as the anchor customer that helps make the nuclear uprates commercially viable.

Constellation will fund and carry out the physical upgrades, including improvements to turbines, steam generators, and digital control systems. These changes can increase the amount of electricity produced by an existing reactor without requiring a completely new plant.

The agreement is expected to:

• Add 890 MW of new, firm nuclear capacity to PJM.
• Support more than $4.3 billion of investment by Constellation.
• Sustain about 4,400 existing jobs.
• Create roughly 7,200 construction jobs during the upgrade program.
• Bring the first additional capacity online in 2028.

Google and Constellation also signed a separate 15-year agreement covering another 2,700 MW from Constellation’s PJM generation fleet.

Importantly, this second 2,700 MW should not be described as new nuclear capacity. It covers additional electricity from Constellation’s existing PJM generation assets and provides longer-term revenue certainty for those facilities. Combined, the two agreements cover 3,590 MW of electricity supply.

The Importance of Existing Nuclear Plants

The 890 MW expansion is based on nuclear uprates rather than new reactor construction.

A nuclear uprate involves upgrading an existing reactor so it can produce more electricity. This can be faster than developing a new nuclear plant because the facility already has its site, grid connection, and operating infrastructure.

The approach is becoming more important as the U.S. looks for additional firm electricity to meet growing demand.

The U.S. had 94 operating commercial nuclear reactors at 54 nuclear power plants as of March 2026, with a combined net summer generating capacity of 98,441 MW, according to the Energy Information Administration (EIA). The average nuclear capacity factor was 91% in 2025, showing how intensively the existing fleet is used.

EIA also expects U.S. electricity demand to reach new records in 2026 and 2027. Its latest outlook puts total U.S. electricity consumption at 4,288 billion kilowatt-hours in 2026 and 4,356 billion kWh in 2027. Nuclear power is expected to account for about 18% of generation in both years.

That makes additional output from existing nuclear plants an important option for meeting demand without waiting for entirely new reactors.

PJM Faces Rapid Load Growth

The Google-Constellation deal is particularly significant for PJM.

The PJM Interconnection operates the largest U.S. power market, covering 13 states and serving about 67 million people. The region is facing rapidly rising electricity demand from large data centers and other industrial customers.

PJM has proposed a “Bring Your Own Power” approach for large new electricity users. The idea is that companies adding major loads should also help bring additional generation onto the system.

The Google-Constellation agreement provides a practical example of that model.

Instead of simply connecting new data centers to the existing grid and increasing demand, Google is supporting additional generation capacity through a long-term purchase commitment.

This could help address one of the biggest challenges facing the U.S. power sector: adding electricity supply quickly enough to keep up with new demand. i.e., primarily from data centers.

Google Links Nuclear Power to Its Clean Energy Goals

The nuclear agreement also fits Google’s broader clean-energy strategy.

Google aims to operate its data centers and campuses on carbon-free energy 24 hours a day, every day, by 2030. The company has already matched 100% of its annual electricity consumption with renewable energy purchases since 2017, but its 24/7 goal is more demanding because electricity must be carbon-free at the time and location it is consumed.

The rapid expansion of AI has made that target more difficult.

Google’s 2026 Environmental Report said the company signed agreements for more than 12 GW of net-new clean energy in 2025. Between 2010 and 2025, it signed more than 240 agreements covering nearly 35 GW of new clean-energy capacity. At the same time, Google said its AI infrastructure is growing faster than the grid is decarbonizing.

Nuclear power gives Google access to carbon-free electricity that can operate around the clock, complementing variable renewable sources such as wind and solar.

The company said its nuclear agreements, including this latest deal, have now enabled more than 1.5 GW of new nuclear capacity for the U.S. power system through uprates and reactor restarts.

• RECENT: Amazon, Constellation Back $3 Billion Nuclear Expansion at Maryland’s Calvert Cliffs 

Ratepayer Protection Adds Another Layer

The agreement also aligns with the White House’s Ratepayer Protection Pledge, launched in March 2026.

Google was among seven major technology companies that initially signed the pledge. Under it, participating companies committed to build, bring, or buy the power needed for their data centers and pay for new power-delivery infrastructure required to serve them.

The pledge also calls on companies to pay for power and infrastructure brought online for their facilities even when they do not use all of that electricity.

The broader goal is to prevent the cost of rapidly growing data-center electricity demand from being shifted to residential and other existing electricity customers.

As of October 2026, the White House says the pledge has expanded to more than 300 organizations, covering about 80% of the electricity delivered to U.S. homes and businesses.

The Google-Constellation agreement fits this model because the company is helping support new power supply rather than relying only on existing grid capacity.

AI, Nuclear Power and the Grid

The deal points to a changing relationship between technology companies and the power sector.

For Constellation, it provides a long-term customer and supports billions of dollars in nuclear upgrades. For Google, it secures additional firm, carbon-free electricity while supporting its 24/7 clean-energy ambitions.

More broadly, the deal shows how large electricity users could play a bigger role in financing new power supply as the U.S. grid enters a period of rapid load growth.

Rather than waiting only for new power plants to be built, companies can help unlock additional capacity from existing infrastructure.

And lastly, for PJM, that could mean more reliable electricity. For Google, it means more power for AI and data centers. And for the U.S. nuclear industry, it creates another commercial pathway to expand generation from an existing fleet that already provides nearly one-fifth of the country’s electricity.

• READ MORE: Google, Kairos, and TVA Unlock Advanced Nuclear Energy for America’s AI Data Centers

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Verra has approved the first carbon credits generated under its methodology for reducing food loss and waste, opening a new pathway for food rescue projects to access carbon market finance.

The credits come from the Brightly – Reducing Food Loss and Waste project in the United States. The project generated 721,649 Verified Carbon Units (VCUs) by redirecting surplus food to people instead of allowing it to enter waste streams.

The milestone gives food rescue organizations a new way to monetize avoided methane emissions while addressing food insecurity. It also broadens the types of activities that can earn verified carbon credits. This goes beyond traditional areas like forestry, renewable energy, and methane capture.

Verra approved the credits under its VM0046 Methodology for Reducing Food Loss and Waste, v1.0. Mandy Rambharos, CEO, Verra, remarked: 

“Food waste is one of the most overlooked sources of methane, and preventing it is one of the most solvable issues. This first issuance under VM0046 proves that keeping food out of landfills can be measured with integrity, and that carbon markets can move finance to the organizations making it happen. It also shows why Verra keeps broadening its methodology portfolio: there are many ways to cut emissions, and each one needs a credible pathway to carbon finance.”

721,649 Credits Put Food Rescue on the Carbon Map

Brightly’s project covers food rescue activities carried out between March 2020 and December 2023. During that period, participating organizations rescued 15.3 billion pounds of surplus food. After applying historical baselines and accounting for project-related emissions, 3.1 billion pounds of the rescued food qualified for carbon crediting.

That activity produced 721,649 VCUs, with each credit representing one tonne of avoided greenhouse gas emissions. The credits received an A ex-ante rating from BeZero Carbon, indicating a high likelihood that each credit represents one tonne of avoided emissions.

SCS Global Services, a Verra-approved body, independently validated and verified the project. Then, Verra reviewed and approved the issuance.

The first issuance follows Verra’s registration of Brightly’s project in May 2026. At that stage, Verra expected the project to save about 167 million pounds of food over seven years, from 2020 to 2027. It would also cut emissions by about 115,118 tonnes of CO2e.

The latest issuance reflects verified historical activity rather than the entire future potential of the project.  

How Verra’s Food-Waste Methodology Works

Verra’s VM0046 methodology has been active since July 12, 2023. It falls under the Verified Carbon Standard’s waste-handling and disposal sector.

The methodology allows projects to quantify emissions avoided when food that would otherwise become waste remains in the human food supply chain. Projects can operate at several points along the food chain, including:

• Farms,
• Food processing facilities,
• Retailers,
• Food-service and hospitality businesses, and
• Households.

The methodology measures the emissions that would happen if the food went to a waste site, like a landfill. That makes it different from carbon removal projects. The credits represent avoided emissions, primarily by preventing food from decomposing in waste streams and generating methane.

The methodology also addresses additionality. Brightly establishes a conservative historical baseline for participating organizations, with only food rescued above that baseline eligible for crediting. This ensures that credits show real climate impact. They don’t just reward current food-rescue efforts.

• READ MORE: Verra’s VM0046 Methodology Opens New Path for Food Loss and Waste Carbon Credits

A Billion-Tonne Waste Stream With a Climate Cost

The potential market for this type of project is large because food loss and waste occur across the global food system.

The UN Environment Programme estimates that 1.05 billion tonnes of food waste were generated in 2022 at the retail, food service and household levels. That amounted to 132 kilograms per person and nearly one-fifth of food available to consumers. Households alone wasted more than 1 billion meals per day.

Food loss also occurs before food reaches consumers.

The Food and Agriculture Organization estimates that 13.2% of food is lost worldwide from harvest to retail. Additionally, 19% is wasted at retail, food service, and households, according to 2024 UNEP statistics. Together, food loss and waste account for an estimated 8% to 10% of global greenhouse gas emissions, according to FAO.

This gives carbon markets a large potential emissions reduction opportunity. However, not every tonne of wasted food automatically translates into a carbon credit.

Projects must establish baselines, quantify eligible activity, and account for emissions associated with the intervention. VM0046 provides the framework for doing that.

Carbon Revenue Could Help Scale Food Rescue

The Brightly project connects climate finance with food rescue. The company works with food rescue organizations that collect edible surplus food and redistribute it instead of allowing it to enter waste streams. The organizations can then receive revenue from carbon credit sales.

Feeding America said the majority of net proceeds from credit sales will return to participating food rescue organizations. The funding can cover costs like trucks, drivers, refrigeration, staff, and other infrastructure needed to recover and distribute food.

The scale of the network has also expanded significantly.

Brightly partners with 198 Feeding America food banks and 28 independent food rescue groups. This helps us reach communities in every U.S. state and about 97% of U.S. counties. Together, these organizations rescue more than 5 billion pounds of surplus food each year, according to Feeding America.

This can lead to a feedback loop. More carbon revenue helps organizations recover more food. This, in turn, can create further measurable emissions reductions.

Carbon Markets Broaden Beyond Forests and Renewables

The first food-loss-and-waste issuance comes as the broader carbon credit market continues to develop.

The World Bank reported that global carbon credit issuances increased 8% between 2024 and 2025, although issuance remained about 20% below its 2022 peak. Independent crediting mechanisms still accounted for about 70% of total issuance.

At the same time, carbon credit retirements fell by more than 10% in 2025. Voluntary uses made up over 80% of retired credits. Meanwhile, companies and other buyers signed around $12 billion in offtake agreements for future carbon credits. This amount is three times what was recorded in 2024.

Prices also varied sharply by project type. The World Bank said carbon credit prices declined slightly across 2025, but higher-quality and compliance-eligible credits continued to command premiums. CORSIA-eligible credits, for example, traded at around $15 to $22 per tonne, compared with roughly $1 to $14 for most other credit types.

For food-loss-and-waste projects, the key question will be whether buyers place a premium on the combination of methane avoidance, food security, and measurable local impact. 

Food Rescue Enters the Carbon Credit Economy

Verra’s first VM0046 issuance does more than create another category of carbon credits. It demonstrates that food rescue can be measured through a standardized carbon methodology and converted into a tradable environmental asset.

The Brightly project also shows how carbon finance can potentially reach organizations that traditionally depend heavily on grants and donations.

With 721,649 credits now approved from the first issuance, the project provides an initial test of demand for this new credit type. Future projects could expand the market to other parts of the food supply chain, including retailers, food processors, farms, and food-service businesses.

The climate opportunity is significant. Over 1 billion tonnes of food waste are created each year at the consumer level. This waste contributes to nearly 10% of global greenhouse gas emissions.

VM0046 does not solve that problem by itself. But it gives project developers a standardized way to measure a portion of the emissions avoided when food stays in the human food system. For carbon markets, that creates a new pathway to finance climate action while also reducing food waste and supporting food security.

• FURTHER READING: The Power of Plastic Credits: How Verra’s Waste Reduction Program Can End Global Plastic Pollution 

The post Verra Approves First Carbon Credits Under Food Loss and Waste Methodology appeared first on Carbon Credits.

The U.S. Department of War is putting new money behind a technology that could change how solar power reaches the ground: beaming electricity from space. Virginia-based startup Overview Energy received a contract through the Department of War’s Operational Energy Capability Improvement Fund (OECIF). The company will design, build, and test a ground-based homing beacon for its planned space solar system.

The contract value was not disclosed.

The beacon is a key part of Overview’s plan. It would allow satellites to identify and authenticate receiving sites on Earth before sending power to them. The company says its satellites will collect sunlight in orbit and convert it into a safe, invisible beam of near-infrared light. It plans to test the system in space in 2028, with its first geosynchronous-orbit satellites targeted for deployment from 2030. 

The Pentagon Wants Solar Power Without Fuel Convoys

The project comes as solar power is already expanding at record speed on Earth. The International Energy Agency (IEA) says solar PV additions topped 600 GW in 2025, while total renewable capacity additions reached 800 GW.

Now, U.S. energy and defense agencies are exploring whether some of that growth can move beyond the planet. 

Remote military bases can depend on fuel deliveries to keep generators running. Those supply lines can be expensive, difficult to protect, and vulnerable in conflict zones. Space-based solar power could offer another option.

Overview says its system could send power to remote or contested locations without regular fuel shipments. Satellites could also shift power between receiving sites as demand changes. That makes the technology especially interesting for military operations where reliable energy is difficult to provide.

The OECIF program is designed to support advanced technologies before they reach commercial use. The program works with military users to test new energy systems under real operational requirements.

Overview Energy is not starting from scratch. In May, the Air Force awarded the company a separate contract to study how space-based solar power could support military operations in constrained and contested logistics environments.

The latest contract focuses on a smaller but critical piece of the system: making sure the power beam reaches the right place.

A Beacon Will Tell Satellites Where to Send Power

The homing beacon would be installed at a receiving site on the ground. A satellite would use the beacon to locate the site and establish a secure connection before sending power. The system requires an active and authenticated beacon before transmission begins, according to Overview.

That security feature is important because a power beam cannot simply be pointed toward a general area. The satellite needs to know exactly where the receiver is and confirm that it is an authorized destination.

Overview plans to use near-infrared light to transmit the energy. The company says this approach would allow its satellites to deliver power to existing and future utility-scale solar infrastructure.

The system is designed around satellites in geosynchronous orbit (GEO). At that altitude, a satellite can remain aligned with the same area of Earth as the planet rotates.

Overview says this could allow its satellites to collect sunlight continuously rather than only when solar panels on the ground are exposed to sunlight. The company has already demonstrated power beaming from a moving airborne platform, testing the tracking and pointing technology that will be needed for its orbital system.

Overview Targets a 2028 Space Demonstration

The next major milestone is the company’s planned 2028 space demonstration. Overview plans to integrate the Pentagon-funded beacon into its first satellite. The company then expects to use the ground hardware as part of a larger GEO constellation targeted for deployment beginning in 2030.

These are company targets, not confirmed commercial launch dates. The 2028 test will matter because the full space-to-ground system has not yet been proven in orbit.

Several questions remain, however. The system must show that it can maintain a precise connection over the long distance between orbit and Earth. It must also demonstrate acceptable conversion and transmission efficiency while meeting safety requirements.

Launch costs are another major issue. Space-based solar systems require large structures and power-generation equipment to be placed in orbit. The economics will depend heavily on how cheaply those systems can be manufactured, launched, and maintained.

Overview has also attracted commercial interest. In April 2026, the company reached an agreement with Meta that gives the company early access to up to 1 GW of planned capacity. Overview expects commercial power delivery around 2030, although that timeline remains a company goal.

• SEE MORE: Elon Musk’s 100 GW Solar Moonshot: Can Tesla (TSLA) and SpaceX Pull It Off?

The US Is Funding Multiple Space Solar Approaches

Overview is part of a wider U.S. push into space-based energy. Another company, Katalyst Space, received an OECIF award in September to develop and launch robotic spacecraft that could assemble a large power-beaming system in orbit and transmit electricity back to Earth.

Its approach is different. Katalyst plans to use microwaves, while Overview is developing near-infrared transmission.

The Air Force Research Laboratory has also spent years studying space solar power. Its Space Solar Power Incremental Demonstrations and Research Project, or SSPIDR, is examining how satellites could collect sunlight, convert it to radio-frequency energy, and transmit it to ground-based receiving antennas.

The Arachne flight experiment is a major part of that work. It is designed to test solar power generation, beamforming, and wireless power transmission.

DARPA is separately developing technologies for airborne optical power transmission that could create more flexible wireless energy networks.

Together, these programs show that space-based power is moving beyond a purely theoretical idea. Yet, the technology remains at the demonstration stage.

Space Solar Is Arriving as Earth Solar Hits Records

The interest comes at a time when solar power is already dominating new renewable energy growth. The IEA says global renewable capacity additions reached 800 GW in 2025, up 16% from the previous year. It was the 23rd consecutive year of record renewable expansion.

Solar PV made up more than three-quarters of those additions. More than 600 GW of solar capacity was added globally, taking total installed solar PV capacity to about 2,800 GW.

China remains the biggest driver. It added nearly 500 GW of renewable capacity in 2025, including about 370 GW of solar and 117 GW of wind.                                                                                

The IEA expects renewable power capacity to grow by another 4,600 GW between 2025 and 2030, with solar PV accounting for nearly 80% of that increase. But conventional solar still faces limits.

Solar panels on Earth do not generate power at night, and their output can drop because of clouds, weather, and seasonal changes. Grid bottlenecks are also becoming a bigger problem as more renewable projects seek connections.

The IEA has identified more than 2,500 GW of renewable, storage, and large-load projects waiting in grid queues worldwide. Space solar is being developed partly as a way to overcome some of those limits.

From Climate Technology to Energy Security

Space solar power is not yet a proven low-cost alternative to conventional solar. For now, its strongest case may be energy security.

The Pentagon is interested in whether space-based power can provide electricity to locations where fuel deliveries are difficult or dangerous. At the same time, commercial companies see potential for supplying electricity to grids without building an entirely new ground-based power network.

That dual-use potential is helping attract government funding.

The climate benefits could become important if space solar eventually replaces fossil-fuel generation or reduces the need for diesel generators at remote facilities. But that outcome remains unproven.

For now, the key milestone is much simpler: can a satellite safely and efficiently send usable power to Earth? Overview’s 2028 demonstration should provide the first major answer.

If it works, space solar could move from a long-running science project toward a real energy technology. If it fails, the industry will gain valuable data on what still needs to change. Either way, the Pentagon’s latest investment shows that the race to expand solar power is no longer limited to the ground.

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