[USA] DOE launches $1B plan to support clean hydrogen program

On July 5, 2023, the Department of Energy (DOE) released a Notice of Intent (NOI) to invest up to $1 billion in a demand-side initiative to support Regional Clean Hydrogen Hubs (H2Hubs).[1] Funded by the Bipartisan Infrastructure Law (BIL), the H2Hubs program will help form the foundation of a national clean hydrogen network. According to the announcement, the investment will “help ensure both producers and end users in the H2Hubs have the market certainty they need during the early years of production to unlock private investment and realize the full potential of clean hydrogen.” The clean hydrogen sector could provide 100,000 net new direct and indirect jobs by 2030 according to DOE’s Pathways to Commercial Liftoff: Clean Hydrogen report.

The NOI includes a Request for Information (RFI) on the program’s design and, among other things, seeks public input on potential benefits and risks, operating models, governance structures, and equipped implementing partners. Later in 2023, the Biden administration will announce the selection of six to 10 H2Hubs for a combined total funding of up to $7 billion in federal funding. The proposed mechanism outlined in the NOI will help connect the H2Hubs to prospective purchasers.

[1] https://www.energy.gov/articles/biden-harris-administration-jumpstart-clean-hydrogen-economy-new-initiative-provide-market

[USA] Duke Energy to sell unregulated distributed generation business to ArcLight affiliate

On July 5, 2023, Duke Energy announced that it has reached an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC, a middle market infrastructure investor, for an enterprise value of $364 million.[1] The utility expects approximately $259 million of proceeds from this transaction. Duke Energy intends to finalize the sales for its utility-scale and distributed generation businesses by the end of 2023 and will utilize the proceeds to strengthen its balance sheet and avoid additional holding company debt issuances associated with these assets. The distributed generation business being sold includes REC Solar operating assets, development pipeline, O&M portfolio, and distributed fuel cell projects managed by Bloom Energy. The transaction is subject to the satisfaction of customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Act. In addition, approval from the Federal Energy Regulatory Commission (FERC) will be required for the sale of the Bloom Energy distributed fuel cell assets.

[1] https://investors.duke-energy.com/news/news-details/2023/Duke-Energy-to-sell-commercial-distributed-generation-business-to-ArcLight-for-364-million/default.aspx

[USA] FERC gives approval for construction on Mountain Valley Pipeline

On June 28, 2023, the Federal Energy Regulatory Commission authorized the resumption of construction for the Mountain Valley pipeline.[1] Mountain Valley Pipeline, which is set to run about 300 miles from northwestern West Virginia to southern Virginia, was initially approved by FERC in 2017. However, the project has faced several court decisions rejecting its federal permits due to environmental concerns. FERC’s recent order follows the passage of the debt ceiling bill earlier in June, which required federal agencies to approve the pipeline. In FERC’s unanimous order, the commission said that all work, including portions of the project that will run through the Jefferson National Forest, could proceed. The order authorizes FERC’s Office of Energy Projects to approve any future changes to the project as long as the director of the office finds them “to be needed to complete construction.”

[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20230628-3041&optimized=false

[USA] GM announces V2H systems for its EVs

On June 28, 2023, General Motors announced product details for its initial suite of systems enabling owners of its electric vehicles (EVs) to export power to homes and the electric grid.[1] The systems, branded Ultium Home, will be the first solutions to be made available to residential customers through GM Energy. The announcement included three products: Ultium Home V2H Bundle, which will allow customers to use their GM EVs for vehicle-to-home (V2H) functionality; Ultium Home Energy System, designed for customers seeking V2H and stationary storage; and Ultium Home Energy Storage Bundle, designed for customers who only want stationary storage.

In addition to these products, GM announced that customers looking to integrate solar can work with SunPower. Each of the products will be connected to the GM Energy Cloud, a software platform that will allow customers to manage the transfer of energy between applicable and connected GM Energy assets. According to the announcement, the exact pricing and rollout dates for the products will vary.

[1] https://investor.gm.com/news-releases/news-release-details/gm-energy-simplifies-energy-management-three-easy-bundle-options

[USA] FlexCharging releases EV demand management solution designed for smaller utilities

On June 15, 2023, FlexCharging, a provider of electric vehicle (EV) managed charging, announced the release of EVision, an EV integration and demand response software solution.[1] As more EVs hit the road, smaller utilities, which may have fewer resources, are faced with the challenge of developing their own demand management initiatives. The cloud-based application allows electric utility cooperatives (co-ops) and municipal utilities to start their own managed charging programs.

EVision, in cooperation with their local utility, turns charging on and off remotely when drivers are home to avoid expensive electricity rates, tracks the charging, and makes sure that the EV owners get incentives. The software uses individual co-ops’ branding to maintain a seamless connection between drivers and utility. According to the press release, EVision “helps reduce the emissions from EV charging, lowers the cost of charging for EV owners, and minimizes charging during peak hours.” The product is available now to utilities of all sizes in the U.S., Canada, Australia, and parts of the EU.

[1] https://www.prnewswire.com/news-releases/flexcharging-launches-evision-managed-charging-solution-301851647.html

[USA] NYISO Board selects transmission project to deliver offshore wind energy from Long Island

On June 20, 2023, the New York Independent System Operator (NYISO) announced that its Board of Directors had selected the Propel Alternate Solution 5 transmission project to meet the Long Island Offshore Wind Export Public Policy Transmission Need (Long Island Need).[1] The New York State Public Service Commission (PSC) initially declared the Long Island Need in March 2021, launching an effort by NYISO’s team of experts, the New York State Department of Public Service, developers, and stakeholders to address transmission needs in and around Long Island.

Propel Alternate Solution 5 will deliver at least 3,000 MW of offshore wind power from Long Island to the rest of New York. The project will add three new underground cables connecting Long Island with the rest of the state and a 345 kV transmission backbone across western/central Long Island. Through a partnership called Propel NY, the New York Power Authority and New York Transco will develop the project. Propel Alternate Solution 5 is expected to be in service by May 2030, with an estimated cost of $3.26 billion. According to NYISO’s analysis, the project's potential economic benefits are comparable to or greater than the project cost over 20 years. NYISO expects the project to bring the state closer to its 9,000 MW of offshore wind energy goal by 2035.

[1] https://www.nyiso.com/-/press-release-%7C-nyiso-board-selects-transmission-project-to-deliver-offshore-wind-energy

[USA] Enel announces plans to build solar PV cell and panel manufacturing facilities in Oklahoma

On May 22, 2023, Enel North America, partnered with Italian company 3Sun USA, announced plans to build one of the largest solar photovoltaic (PV) cell and panel manufacturing facilities in Inola, Oklahoma, about 25 miles east of Tulsa.[1] Enel has a large presence in Oklahoma, with more than 2 GW of renewable energy capacity representing over $3 billion in total investments over the last ten years. Construction for the manufacturing facility is planned to begin in fall 2023, with the first panel produced and available to the market by the end of 2024. The company expects the factory to reach 3 GW of annual capacity in 2025, with a possible future expansion to 6 GW. The factory represents over $1 billion in initial investments and expects to create over 1,800 construction jobs.

According to the press release, the planned facility will be among the first in the U.S. to produce solar cells and will incorporate a high-performance bifacial heterojunction technology (HJT). The bifacial HJT can secure higher than average energy production, producing approximately 15-20% more electricity than conventional single-sided panels. It also provides significant efficiency improvements, with a certified cell efficiency of 24.6%. In addition, the technology’s lower degradation ensures a longer useful life for modules, and the cells’ high density is conducive to a variety of applications, such as land-constrained utility-scale installations or rooftops.

[1] https://www.enelnorthamerica.com/newsroom/news/search-press/press/2023/05/3sun-oklahoma

[USA] DOE announces initiative to encourage clean fuels and products

On May 24, 2023, the Department of Energy (DOE) announced the launch of the Clean Fuels and Products Shot, an initiative that aims to reduce greenhouse gas emissions (GHGs) from carbon-based fuels and products.[1] The initiative is the seventh under the DOE Energy Earthshots. The new initiative will encourage the development of sustainable feedstocks and conversion technologies necessary to produce crucial fuels, materials, and carbon-based products that are better for the environment than current petroleum-derived components. The Clean Fuels and Products Shot aims to meet projected 2050 net-zero emissions demands for 100% of aviation fuel; 50% of maritime, rail, and off-road fuel; and 50% of carbon-based chemicals by using sustainable carbon resources. According to the announcement, the initiative could help eliminate more than 650 million metric tons of carbon dioxide equivalent per year by 2050.

During the DOE secretary’s announcement at the Idaho National Laboratory, a ribbon-cutting also took place for the Biofuels National User Facility. The $15 million, 3-year long facility upgrade is designed to solve critical biofuels production challenges associated with the feeding, handling, and preprocessing of diverse biomass and waste materials.

[1] https://www.energy.gov/eere/clean-fuels-products-shottm-alternative-sources-carbon-based-products

[USA] Port of Long Beach proposes offshore wind manufacturing facility

On May 9, 2023, the Port of Long Beach in California released plans to build an offshore wind turbine manufacturing facility.[1] The port is seeking state and federal dollars to fund the $4.7 billion project, which would be capable of assembling floating wind turbines as tall as the Eiffel Tower. The location, about 20 miles south of Los Angeles International Airport, is uniquely suited for building the largest such facility of any U.S. seaport. Port officials presented a detailed design for the project, called Pier Wind, to the Los Angeles Board of Harbor Commissioners on May 8 and released it more widely on May 9. The port aims to start construction in 2027, completing phase one in early 2031 and finishing two additional phases by 2035. Each turbine could generate 20 MW of electricity. The project would help California meet its goal of producing 25 GW of offshore wind power by 2045 and contribute toward lowering the national cost of offshore wind power by 70% by 2035.

[1] https://polb.com/port-info/projects/#pier-wind

[USA] DOE releases proposed framework for national transmission corridors

On May 9, 2023, the Department of Energy’s (DOE) Grid Deployment Office (GDO) released a proposed framework for designating National Interest Electric Transmission Corridors (NIETCs) for specific transmission projects.[1] NIETCs are areas where new or upgraded power lines would benefit consumers by easing existing or future constraints that limit the ability to move power to where it is needed. According to the press release, the designation of a NIETC could unlock critical federal investment and regulatory and permitting tools to spur urgent transmission investments. Specifically, transmission projects in a national corridor can use the DOE’s $2.5 billion Transmission Facilitation Program under the Bipartisan Infrastructure Law (BIL) and the $2 billion Transmission Facility Financing Program under the Inflation Reduction Act (IRA). A NIETC designation also allows the Federal Energy Regulatory Commission (FERC) to issue permits for transmission lines in a corridor when state regulators lack the authority to site the line, have not acted on an application to site the line for over a year, or have denied an application.

Under the DOE’s proposal, transmission developers could apply for NIETC designation in areas where the department has identified transmission needs through its National Transmission Needs Study, which it expects to issue late this summer. Beyond transmission developers, the DOE is considering opening the pool of applicants to tribal authorities, states, non-transmission-owning utilities, local governments, and generation developers. The DOE has requested comments on final guidelines, procedures, and evaluation criteria for the designation process. The DOE plans to issue NIETC application guidance in Fall 2023.

[1] https://www.energy.gov/gdo/articles/doe-proposes-national-interest-electric-transmission-corridor-designation-process

[USA] Microsoft reaches agreement to buy fusion power

On May 10, 2023, Helion Energy announced that it has reached an agreement with Microsoft to provide the company with electricity from its first fusion power plant.[1] Constellation Energy will serve as the power marketer and will manage transmission for the project. Helion’s fusion power plant is expected to be online by 2028, and the company is targeting power generation of 50 MW or greater after a 1-year ramp-up period. Helion has previously built six working prototypes and was the first private fusion company to reach 100-million-degree plasma temperatures with its sixth fusion prototype. Currently, the company is building its seventh prototype, which is expected to demonstrate the ability to produce electricity in 2024.

“We are optimistic that fusion energy can be an important technology to help the world transition to clean energy,” said Brad Smith, Vice Chair and President at Microsoft. The development of a commercial fusion power facility will help Microsoft to achieve its goal of being carbon negative by 2030 and also support the development of a new clean energy source for the world.

[1] https://www.helionenergy.com/articles/helion-announces-worlds-first-fusion-ppa-with-microsoft/

[USA] DOE funds 11 community-scale geothermal system design projects

On April 25, 2023, the Department of Energy announced that 11 communities across 10 states will receive funding to design geothermal heating and cooling systems.[1] Geothermal systems utilize the relatively stable temperatures underground to transfer heat into buildings in the winter and out of them in the summer through a distribution network of underground pipes. These systems run on electricity, though they do not substantially increase electricity demand. The announcement represents the first of two phases in a $13 million initiative to support the design and deployment of community geothermal heating and cooling systems. The projects are part of the Biden administration’s Justice40 initiative, which sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities.

Communities selected by the DOE include Ann Arbor, Michigan; Chicago, Illinois; New York City, New York; Duluth, Minnesota; Framingham, Massachusetts; Wallingford, Connecticut; Carbondale, Colorado; Middlebury, Vermont; Seward, Alaska; Shawnee, Oklahoma; and Nome, Alaska. The 11 selected projects include more than 60 partners across the U.S.

[1] https://www.energy.gov/articles/doe-announces-13-million-support-community-geothermal-heating-and-cooling-solutions

[USA] Black Hills Energy announces feasibility study of hydrogen generation from coal

On May 1, 2023, Black Hills Energy, a utility that serves 1.3 million customers in eight Western states, announced that it was awarded a grant from the Wyoming Energy Authority (WEA) to conduct a feasibility analysis on hydrogen generation using coal from its Wyodak Mine in Campbell County, WY.[1] The program’s partners include Black Hills, Babcock & Wilcox (B&W), and members of the Chemical and Biomolecular Engineering Department at Ohio State University. The program will use B&W’s BrightLoopTM chemical looping technology, an oxidation reduction chemical process that produces hydrogen and a nearly pure product stream of carbon dioxide without the need for carbon capture equipment to extract carbon emissions. As part of the analysis, a conceptual design and estimate for a semi-commercial scale plant will be developed. If feasible and cost-effective, a second phase would include the construction of the facility using the BrightLoop technology at Black Hills Energy’s Neil Simpson Complex in Wyoming.

[1] https://www.blackhillsenergy.com/news/black-hills-energy-explores-versatility-of-wyoming-coal

[USA] NY Gov. Hochul enacts gas ban and carbon trading program

On May 3, 2023, New York Governor Kathy Hochul (D) signed the FY 2024 Budget, which included several measures designed to accelerate the state’s shift away from fossil fuels, into law.[1] Included in the $229 billion budget is the nation’s first statewide ban on natural gas and other fossil fuels in new buildings, with the requirement coming into effect for new construction in 2025.[2] In addition, the budget includes the first cap-and-invest program on the East Coast. It authorizes the New York Power Authority (NYPA) to act as a developer of renewable power facilities and requires six peaker plants in New York City operated by NYPA to be shut down by 2030. The budget also allocates $400 million to provide relief to residents experiencing high electric bills as well as lowering energy burdens through electrifications and retrofits. New York has one of the most ambitious climate plans in the U.S. The state’s 2019 Climate Leadership and Community Protection Act (CLCPA) requires an 85% reduction in greenhouse gas emissions by 2050, almost half of which must be reached by 2030.

[1] https://www.governor.ny.gov/news/governor-hochul-announces-highlights-historic-fy-2024-new-york-state-budget

[2] Hospitals, critical infrastructure, and commercial food establishments are exempt. Buildings where the local grid is not capable of handling the load are also exempt.

[USA] New Jersey initiates process for second offshore wind transmission solicitation

On April 26, 2023, the New Jersey Board of Public Utilities (NJBPU) requested that PJM Interconnection include New Jersey’s current public policy of 11 GW of offshore wind by 2040 into the grid operator’s Regional Transmission Expansion Planning (RTEP) using their State Agreement Approach (SAA).[1] The SAA is a transmission-building tool established by PJM to allow states in its territory to plan and pay for their own power lines, preventing a more complex development plan involving cost-sharing with other states. The SAA was used previously by New Jersey for another set of transmission projects. SAA 2.0 will solicit proposals to develop an additional 3.5 GW needed at the Deans 500 kV substation to reach the state’s new 11 GW goal. Transmission developers will be allowed to propose cost-effective alternative points of interconnection as well. The Deans 500 kV substation was identified for SAA 2.0 due to its location near load centers, accessibility to offshore wind lease areas, and its capability to accommodate the desired injection.

[1] https://nj.gov/bpu/newsroom/2023/approved/20230426.html

[USA] Environmental groups sue for oil and gas leasing phaseout on federal lands

On April 25, 2023, environmental groups[1] sued the U.S. Department of the Interior for failure to respond to a January 2022 rulemaking petition to phase out oil and gas development on federal lands[2]. More than 360 groups signed the initial petition, which asked the Biden administration to enact a policy framework to phase out nearly all oil and gas development on federal lands by 2035.[3] According to the press release announcing the lawsuit, research published since this petition shows that developed countries must end oil and gas extraction by 2031 to avoid the negative effects of warming 1.5 degrees Celsius, the target the United Nations has set to prevent some of the worst potential climate impacts. In the two years since coming to office, the Biden administration has approved 6,430 permits for oil and gas drilling on public lands, outpacing the Trump administration.

Under the Administrative Procedure Act, federal agencies are required to initiate rulemaking or provide a substantive response to rulemaking petitions within a reasonable timeframe. The lawsuit alleges that the Biden administration’s failure to respond to the petition is an unreasonable delay, citing the urgency of the climate crisis.

[1] Center for Biological Diversity, Wildearth Guardians, and Friends of the Earth

[2] https://biologicaldiversity.org/w/news/press-releases/lawsuit-targets-us-delay-on-petition-to-phase-out-public-lands-oil-drilling-2023-04-25/

[3] https://biologicaldiversity.org/programs/public_lands/energy/dirty_energy_development/pdfs/Petition-to-Phase-Down-Fossil-Fuel-Production-on-Public-Lands-and-Water-19-Jan-2022.pdf

[USA] Coalition urges Congress to include critical transmission funding in FY 2024 budget

A coalition of over 40 clean energy organizations, environmental groups, developers, manufacturers, labor and consumer groups, and other nonprofits[1] sent a letter to the leaders of the Senate Appropriations Committee on April 24, 2023, urging Congress to provide robust funding for high-capacity transmission deployment and research through the Department of Energy’s (DOE) Fiscal Year 2024 budget.[2] The organizations highlighted the new research, such as the DOE’s draft Transmission Needs Study, emphasizing the “pressing need for additional electric transmission infrastructure” in nearly all regions of the country. The letter states that increased funding for the Grid Deployment Office (GDO), Office of Electricity (OE), and Energy Information Administration (EIA) “is critical to drive substantial clean energy deployment, unleash billions in private investment, create thousands of new jobs, deliver low-cost energy to benefit customers, and substantially reduce emissions.”

Specifically, the organizations encouraged Congress to consider funding for the GDO to support innovative efforts to address planning and permitting challenges to enable a resilient and reliable electricity system; support for GDO to designate National Interest Electric Transmission Corridors on a route-specific, applicant-driven basis; funding for the OE to help ensure the electric grid is resilient to increasingly severe weather, cyber, and physical attacks; robust investment in the Transmission Reliability and Resilience and Applied Grid Transformation Solutions programs; and additional funding for the EIA to upgrade its emissions data dashboard.

[1] American Clean Power Association, American Council on Renewable Energy, Americans for a Clean Energy Grid, Berkshire Hathaway Energy, BlueGreen Alliance, Business Council for Sustainable Energy, Cypress Creek Renewables, Enel North America, Hannon Armstrong Sustainable Infrastructure Capital, Innergex Renewable Energy, International Brotherhood of Electrical Workers Local Unit 1245, Invenergy, Longroad Energy, National Electrical Manufacturers Association, Natural Resources Defense Council, NextEra Energy Transmission, Niskanen Center, Onward Energy, Pattern Energy, Pine Gate Renewables, Sol Systems, Solar Energy Industries Association, SOLV Energy, TPI Composites, VEIR, and Vestas-American Wind Technology.

[2] https://cleanpower.org/news/40-organizations-call-on-congress-to-include-critical-transmission-funding-in-fy-2024-budget/

[USA] EDF study finds utilities, fleet owners, consumers benefit when utilities cover infrastructure costs to support EV charging

According to a new report released on April 14, 2023, by the Environmental Defense Fund (EDF), an international nonprofit focused on solutions to environmental problems, utilities covering the cost of infrastructure upgrades needed for fleet charging can increase their revenue without raising electricity rates.[1] Large-scale electrification of medium- and heavy-duty vehicles is essential for the U.S. to meet its climate goals. However, the cost of upgrading the electrical infrastructure required to make a commercial site ready for EV charging, called “make-ready,” can account for up to 30% of the total cost of charging for fleets. Most U.S. utilities and regulators have been reluctant to finance these grid upgrades due to fears that it will lead to increasing everyone's electricity rates to pay for them.

The analysis, conducted for EDF by Synapse Energy Economics, uses two New York State utilities—Con Edison and National Grid—as case studies. It found that if utilities cover the make-ready cost for both private and municipal fleets, the investment will pay off for utilities and have a positive to neutral impact on ratepayers in both utility service areas. The study finds that with managed charging— the practice of aligning EV charging during times when clean, affordable electricity is most abundant — Con Edison’s make-ready program generates $1.1 billion in net revenue between 2023-2045, while National Grid’s program generates $141 million in the same time period. Managed charging is the practice of aligning EV charging during times when clean, affordable electricity is most abundant, reducing stress on the larger grid and mitigating pollution from power plants. Even without managed charging, the analysis found that investing in make-ready programs still had a positive to neutral impact. In addition, EDF contends that the results can be applied to states across the country due to the nature of the utilities studied; the two New York utilities are at opposite ends of the spectrum regarding grid costs, electricity demand profiles, and region.

[1] https://www.edf.org/media/worth-investment-report-finds-utilities-fleet-owners-consumers-benefit-when-utilities-cover

[USA] PJM asks FERC to help resolve generator complaints about Winter Storm Elliott penalties

On April 14, 2023, PJM Interconnect asked the Federal Energy Regulatory Commission (FERC) to help lead discussions to resolve eight pending complaints against the grid operator by power plant owners over penalties for failing to meet their capacity obligations during December 2022 Winter Storm Elliott.[1] At the peak of Winter Storm Elliott, about 57,000 MW were offline in PJM’s footprint.[2] About 63% of all outages were natural gas-fired power plants, 28% coal, 4% oil, 2% nuclear, 1% hydroelectric, and about 1% other. According to a fact sheet released by PJM, about 200 market participants face roughly $1.8 billion in performance penalties for falling short of their required power deliveries on December 23 and 24.

In the request, PJM said FERC should appoint one or more settlement judges to help PJM, the complainants, and the intervenors resolve as many of the non-performance charge disputes as possible. PJM said it plans to answer each complaint and show that in each case, the assessed non-performance charges follow its tariff; that the relevant tariff provisions are just and reasonable, assuming they are even open to challenge; and that PJM properly invoked its emergency procedures. However, PJM noted that it recognizes there are benefits to a quick resolution to the dispute.

[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20230414-5132&optimized=false

[2] https://www.pjm.com/-/media/markets-ops/winter-storm-elliott/faq-winter-storm-elliott.ashx

[USA] NARUC, NASEO launch Advanced Nuclear State Collaborative

On April 10, 2023, the National Association of Regulatory Utility Commissioners (NARUC) and the National Association of State Energy Officials (NASEO) announced the launch of the Advanced Nuclear State Collaborative (ANSC), a program to support the deployment of new nuclear generation in the U.S.[1] The program is supported by the Department of Energy (DOE) and will gather state utility regulators and state energy officials to enhance collective understanding of regulatory and policy questions surrounding reviews and deployment of new nuclear generation. The organizations invited states that are considering or actively working toward deploying advanced reactors to join ANSC because membership offers an opportunity for direct support from nuclear experts while participating in real-time peer learning. More than 30 utility commissions and state energy offices representing 23 states have signed on to join the ANSC. Program activities began in March 2023 with introductory calls from NARUC and NASEO to members, and a site visit to Richland, Washington, is scheduled for late April 2023.

[1] https://www.naruc.org/about-naruc/press-releases/new-naruc-naseo-advanced-nuclear-state-collaborative-helps-better-inform-state-approaches-to-new-nuclear-generation/