[Japan] Kansai Electric Power Company and Nihon Unisys Launched a Demonstration Project on Developing a Trading System for Surplus Solar Electricity Using Blockchain Technologies

Kansai Electric Power Company (KEPCO, Headquarters: Osaka Prefecture) and Nihon Unisys announced on December 9, 2019 the launch of a demonstration project for a system to determine the trading price of surplus solar electricity and environmental values[1] generated by prosumers[2].

The demonstration project will run until March 31, 2020. It will utilize blockchain technologies to develop a system to help consumers, prosumers, and businesses that participate in the RE 100 initiative to determine the trading price of surplus electricity. RE 100 is an initiative launched by the Climate Group of the United Kingdom (UK) and the CDP (formerly the Carbon Disclosure Project), a UK-based non-profit that is championing the use of 100% renewable energy for electricity for business operations.[3]

Nihon Unisys, headquartered in Tokyo[4], manufactures computer equipment and develops various software products.[5] In this project, Nihon Unisys will be responsible for developing and evaluating the system, while KEPCO will construct, demonstrate, and evaluate the system at the test center. The project has adopted four trading methods: Match-Price Auction, Single-Price Auction, Price Discrimination, and Dynamic Pricing.[6]

Since October 2018, KEPCO and Nihon Unisys have been working with prosumers and consumers to conduct a study to determine the price of surplus electricity generated by solar power generation, as well as to develop a new platform for direct trading. The two companies were able to simulate Peer-to-Peer (P2P) electricity trading by using blockchain technologies, and determined the transaction prices based on different trading methods.[7]

[1] Environmental value means electricity used by a prosumer itself and its surplus electricity.

[2] A prosumer is someone who both produces and consumers energy, in part, due to the rise of new connected technologies and the steady increase of more renewable energy such as solar and wind onto the electric grid.

https://www.energy.gov/eere/articles/consumer-vs-prosumer-whats-difference

[3] http://there100.org/

[4] https://www.unisys.co.jp/e/about/profile.html

[5] https://www.unisys.co.jp/e/solutions_services.html

[6] https://www.kepco.co.jp/corporate/pr/2019/pdf/1209_2j_01.pdf

[7] https://www.kepco.co.jp/corporate/pr/2019/1209_2j.html

[Japan] Keidanren Launched the Challenge Zero Initiative

On December 12, 2019, Keidanren (also known as the Japan Business Federation), in cooperation with the Japanese Government, announced the launch of the Challenge Zero Initiative. The Initiative will support innovations to build a zero-carbon society; promote Environmental, Social, and Governance (ESG) investments; and facilitate collaboration among the private sector, government, and academic institutions.

Keidanren is an economic organization that represents a membership comprised of 1,376 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations.[1]

The launch of the Challenge Zero Initiative was driven by the Japan's Long-term Strategy under the Paris Agreement, issued by the Japanese Cabinet in June 2019, which declared that Japan would seek to become a “decarbonized society” by 2050.[2] Keidanren has noted that since the Long-term Strategy under the Paris Agreement was issued, the Japanese business community has realized that more concrete and ambitious actions would be needed to create innovation in order to pursue a low-carbon society.

The Challenge Zero Initiative asks participating companies and organizations to commit to one or more of the goals set by the Initiative and to report their activities to achieve their commitments. The goals include promoting disruptive innovation for net-zero-carbon technologies, demonstrating and deploying those technologies; and financing companies that make low-carbon commitments. Keidanren plans to provide more detailed information on the Challenge Zero Initiative to member companies and organizations soon.[3] [4]

[1] https://www.keidanren.or.jp/profile/pro001.html

[2] https://www.env.go.jp/press/106869.html

[3] https://www.keidanren.or.jp/journal/times/2019/1212_02.html

[4] https://www.keidanren.or.jp/policy/2019/109.pdf

［USA］New Jersey outlines sweeping plans to achieve 100% clean energy by 2050

On January 27, 2020, New Jersey Governor Phil Murphy (D) released a wide-ranging “Energy Master Plan” with details on how the state could achieve 100% clean energy by 2050.[1] [2] To reinforce the initiatives proposed in the plan, the governor also signed  Executive Order No. 100 which directs the state’s Department of Environmental Protection (DEP) to make comprehensive regulatory reforms.

Current efforts by the state to reduce greenhouse gas emissions are insufficient to achieve the target of 80% reduction from 2006 levels set by the state’s Global Warming Response Act passed in summer 2019 and the plan seeks to address this gap.[3] The governor’s plan provides more specifics on how the state can reach this goal by delineating seven areas of focus: the transportation sector, renewable energy and DERs, energy efficiency, the building sector, the use of "integrated distribution plans," incentivizing clean energy in underserved communities, and attracting supply chain businesses to create clean energy "clusters." Major suggestions in the plan include ensuring 7.5 GW of offshore wind is part of the energy mix by 2035, requiring utilities to explore “non-wire solutions” (i.e. projects or investments that may defer or replace distribution or transmission upgrades by reducing load), and building up EV charging infrastructure.

[1] https://nj.gov/governor/news/news/562020/approved/20200127a.shtml

[2] http://d31hzlhk6di2h5.cloudfront.net/20200127/84/84/03/b2/2293766d081ff4a3cd8e60aa/NJBPU_EMP.pdf

[3] https://www.nj.gov/governor/news/news/562019/approved/20190617a.shtml

［USA］Dairyland Power Cooperative plans to retire 345 MW of coal

Dairyland Power Cooperative, a Wisconsin electric utility, announced in January 2020 that it is planning to retire Genoa Station 3, a 345 MW coal plant, in 2021, five to ten years earlier than previously planned.[1] Utility officials ultimately determined cheaper, cleaner resources were preferable over keeping the coal plant open. This announcement follows a January 16, 2020 Wisconsin regulatory decision approving Dairyland’s 625 MW gas-fired Nemadji Trail Energy Center (NTEC), which will be co-owned with Minnesota Power, a Minnesota utility. The gas plant, which will serve customers in Minnesota and Wisconsin, requires permission from both Minnesota and Wisconsin regulators. Although the plant received approval from Minnesota regulators in October 2018, the Minnesota Court of Appeals ordered further analysis in December 2019 and directed Minnesota’s Public Utilities Commission to do an environmental impact assessment of the plant. Dairyland is currently reviewing the Court of Appeal’s decision to determine how it will impact the project’s timeline.

[1] https://www.dairylandpower.com/content/dairyland-announces-genoa-station-3-retirement-plans

［USA］ New Jersey proposes utilities recover lost revenues, earn bonuses for beating energy savings targets

On January 22, 2020, New Jersey’s Board of Public Utilities (BPU) released a proposal that would give utilities the opportunity to earn bonuses or incur penalties for beating or failing to meet energy efficiency savings targets.[1] In addition, the proposal would allow utilities to recover lost revenues related to their efforts. The cost recovery proposal follows a straw proposal released in December 2019 that outlined how utility efficiency programs will be managed and suggested implementation of new energy-saving pilots.[2] Both proposals would help implement the changes to New Jersey’s energy system the Governor Phil Murphy (D) signed in May of 2019 which boosted efficiency targets and set a 50% renewable goal by 2030.[3] In addition to addressing how utilities will approach efficiency measures, the cost recovery proposal will help address how utilities will pay for the changes under the Clean Energy Act of 2018. The 2018 law requires electric utilities to achieve annual energy use reductions of 2% or greater within five years of the new rules being implemented which imposes significant costs for utilities.

[1]https://www.bpu.state.nj.us/bpu/pdf/publicnotice/NJBPU_EE_Final_Cost_Recovery_Mechanism_Proposal_1.22.20.pdf

[2]https://www.bpu.state.nj.us/bpu/pdf/publicnotice/EE_%26_Peak_Demand_Program_Administration_Straw_Proposal_122019.pdf

[3] https://nj.gov/governor/news/news/562018/approved/20180523a_cleanEnergy.shtml

［USA］APS Commits to Carbon-free Power by 2050

On January 22, 2020, Arizona Public Service (APS), Arizona’s largest electricity provider, announced a goal to deliver 100 percent clean, carbon-free electricity to customers by 2050.[1] APS also has a nearer-term 2030 target of achieving a resource mix that is 65 percent clean energy, including 45 percent from renewable energy. The utility also plans on ending all coal-fired generation by 2031 which is seven years earlier than previously planned. Currently, APS gets 22 percent of its power from coal and 26 percent from gas and oil.[2] The Palo Verde nuclear plant accounts for 25 percent of the mix, renewables deliver 12 percent, and demand-side management accounts for 16 percent. The APS commitment is notable because Arizona has not passed sweeping climate or carbon policy at the state level. The decision places APS on a list of major electric utilities committing to carbon-free energy sources. Other utilities committed to decarbonization include Xcel Energy, Duke Energy, and Public Service Enterprise Group (PSEG).

[1] https://www.aps.com/en/About/Our-Company/Newsroom/Articles/APS-sets-course-for-100-percent-clean-energy-future

[2] https://www.aps.com/-/media/APS/APSCOM-PDFs/About/Our-Company/Doing-business-with-us/Resource-Planning-and-Management/2017IntegratedResourcePlan.ashx

［USA］New Bill Introduced in Georgia Legislature Would Require Companies to Treat Coal Ash Like Municipal Solid Waste

A new bill—H.B. 756— that would require disposal of coal ash or combustion residuals (CCR) to be as rigorous as municipal solid waste (MSW) was introduced by Rep. Robert Trammell (D) in the Georgia legislature on January 14, 2020.[1] In December 2019, Georgia became the second state allowed the U.S. Environmental Protection Agency to run its own coal ash permitting program which will allow the state flexibility in how it cleans up the toxic waste. Georgia Power's current plans for closing its ash sites includes leaving CCR in unlined ponds. By contrast, MSW in Georgia is disposed in landfills with both bottom liners and collections systems for leachate.

Recently, concerns over the risk of groundwater contamination have grown and a number of states have mandated coal ash cleanup. North Carolina, for example, ordered Duke Energy to excavate roughly 72.5 million metric tons of CCR.[2] There has been no such order in Georgia, though a 2018 report on the coal-fired power plants in the state found that groundwater was contaminated near all but one site.

[1] http://www.legis.ga.gov/Legislation/20192020/187853.pdf

[2] https://news.duke-energy.com/releases/duke-energy-north-carolina-regulators-and-environmentalists-reach-agreement-to-permanently-close-all-remaining-ash-basins-in-north-carolina

［USA］Brookings Report Finds Land Battles Jeopardize Wind and Solar Development

A new report released in January 2020 by the Brookings Institution finds that although renewable energy is popular, siting projects may become more difficult as wind and solar take up more land across the United States.[1] The report emphasizes several problems with renewable energy siting. Wind and solar generation require about 10 times as much land per unit of power produced than fossil fuel plants and unlike fossil fuels, they are located only where the resource is available. In addition, most new wind turbines being installed in the United States today are the height of a 35-story building and can often be seen for long distances. All of these factors play a role in how accepting local communities are of new renewable energy development. People often cite concerns over property values, noise, and bird deaths caused by wind turbines.

According to the Brookings report, some renewable technologies like offshore wind turbines and rooftop solar could offer workarounds for these problems. However, the report states that technological solutions are not enough and policy solutions such as regulations that declare sensitive areas off limits while streamlining development elsewhere in designated renewable zones should be considered.

[1] https://www.brookings.edu/wp-content/uploads/2020/01/FP_20200113_renewables_land_use_local_opposition_gross.pdf

［USA］Seattle to Transition Municipal Buildings Away from Fossil Fuels

On January 8, 2020, Seattle Mayor Jenny Durkan signed Executive Order 2020-01 to advance a Green New Deal for the city.[1] The executive order’s goals mirror those in the city’s climate action plan, released in April 2018, and includes substantial provisions for transitioning municipal buildings away from using fossil fuels through electrification.[2] Under the executive order, all new or substantially altered city-owned buildings will be required to use electricity rather than fossil fuels for activities such as heating, cooling, or cooking. In order for buildings to be considered completed or altered during the 2021 or 2022 budget year, strategies for using electricity over fossil fuels must be submitted by June 1, 2020. An interdepartmental team is tasked with forming a strategy to electrify buildings by January 2021.

By electrifying its buildings, Seattle is taking a big step towards reducing its carbon emissions. According to the Sierra Club, buildings are responsible for 35% of Seattle’s emissions.[3] Although there are some concerns that electrifying buildings does not solve issues of fossil fuel reliance—79% of national energy production comes from fossil fuels—, Seattle is a unique case.[4] According to the city’s utility, Seattle City Light, 91% of the city’s energy mix is hydroelectricity while coal and natural gas make up 1% each.[5]

[1] https://durkan.seattle.gov/wp-content/uploads/sites/9/2020/01/Final-Executive-Order-2020-01-Advancing-a-Green-New-Deal-for-Seattle_.pdf

[2] http://greenspace.seattle.gov/wp-content/uploads/2018/04/SeaClimateAction_April2018.pdf

[3] https://www.sierraclub.org/washington/sierra-club-s-response-mayor-durkan-s-executive-order

[4] https://www.eia.gov/todayinenergy/detail.php?id=41353

[5] https://www.seattle.gov/light/FuelMix/

［USA］Recent ACEE Report Finds Most Utilities Aren't Getting Full Value from Smart Meters

According to a report released by the American Council for an Energy-Efficient Economy (ACEEE) on January 9, 2020, most utilities are missing the opportunity to utilize advanced metering infrastructure (AMI) to help customers conserve energy.[1] AMI has grown rapidly in the past decade, now accounting for nearly half of all meters in the U.S. At the end of 2019, there were 98 million smart meters deployed by utilities and by the end of 2020, that number could reach 107 million.[2] However, ACEEE found that these smart meters are being underutilized by utilities; of the 52 utilities ACEEE surveyed, only one, Portland General Electric (PGE), was found to use smart meters to their fullest potential. PGE taps into all six use cases ACEEE identifies for applying API data: time of use rates, real-time energy use feedback for customers, behavior-based programs, data disaggregation, grid-interactive efficient buildings, and conservation voltage reduction.

These use cases leverage AMI data by pairing it with customer engagement tools, pricing strategies, and programs that support customer action. A failure to optimize AMI investments can lead to regulators denying future grid modernization efforts. In 2019, for example, Virginia regulators rejected Dominion Energy’s proposal for a smart meter deployment.

[1] https://aceee.org/sites/default/files/publications/researchreports/u2001.pdf

[2]　https://www.edisonfoundation.net/iei/publications/Documents/IEI_Smart%20Meter%20Report_2019_FINAL.pdf

［Japan］ Tohoku Electric Power Company and SRA Tohoku Have Launched an AI Application for Transmission Tower Assessment

On November 28, 2019, Tohoku Electric Power Company (Tohoku, Headquarters: Miyagi Prefecture) and SRA Tohoku (Headquarters: Sendai), an IT company that develops computer programming and AI applications[1], announced that they have launched an Artificial Intelligence (AI) application for assessing the deterioration level of transmission towers.

The AI application can instantaneously evaluate the deterioration level of transmission towers based on the images captured by drones. The AI application’s database will gather and combine the information regarding deteriorated towers, including images of the towers and their geolocation. The integrated database should help utility companies to easily identify the deterioration trends for the entire transmission power systems as well as helping them to centrally monitor and assess towers’ conditions.

By using this application, the planning of repair work that previously took about 25 hours can be carried out within about 4 hours. It can also avoid human error from visual inspection when assessing steel towers’ deterioration levels.[2]

[1] https://www.sra-tohoku.co.jp/ai-pkg/

[2] http://www.tohoku-epco.co.jp/news/normal/1204579_1049.html

[Japan] Tokyo Electric Power Company Holdings Announced Three Electricity Rate Plans in Hokkaido, Hokuriku, Chugoku, and Shikoku regions

Tokyo Electric Power Company Holdings (TEPCO), headquartered in Tokyo, announced on November 12, 2019, that it would expand its electricity rate plans to include residential customers outside of its existing service areas in regions such as Hokkaido, Hokuriku, Chugoku, and Shikoku regions from November 13, 2019.

TEPCO provides residential customers with three electricity rate plans. The Standard S and Standard L plans are available in the Hokkaido and Hokuriku regions, and the Standard A plan is available in the Chugoku and Shikoku regions. When compared to the existing prices provided by the incumbent utility companies in each area, the TEPCO rate plans will save each customer about 3% of their electricity costs.

In Japan, the retail electricity market has been completely deregulated since April 1, 2016, and consumers—including households and businesses—are allowed to freely choose their retail electricity providers and rate plans.  Since then, TEPCO has been providing discount electricity rate plans for residential customers in the Chubu and Kansai regions, and in the Tohoku and Kyushu regions since August 2019. Currently, the company offers services nationwide except in Okinawa Prefecture.[1]

[1] http://www.tepco.co.jp/ep/notice/pressrelease/2019/1520325_8664.html

[Japan] Kansai Electric Power Company Will Conduct a Demonstration Test on the Frequency Control of a Power System Using Storage Batteries

Kansai Electric Power Company (KEPCO, Headquarters: Osaka Prefecture) announced on November 29, 2019, that a total of 10 companies including KEPCO will conduct a demonstration test on the frequency control of a power system using storage batteries. The test will run from December 2, 2019 to January 31, 2020. It will integrate the battery control system “K-LIBRA” with 8 different storage batteries produced separately by each battery manufacturer. “K-LIBRA” was jointly developed by KEPCO and NEC, a major Tokyo-based IT and electronics company.[1]

The demonstration test will examine the battery control system’s ability to remotely control all of the tested batteries with the fast charge-discharge capability. It also validates the performance of the system’s response capabilities for short cycle load fluctuations by analyzing the response time and the control accuracy of batteries in response to the signal emitted from “K-LIBRA.”  Furthermore, the demonstration test evaluates the effectiveness of the system’s additional functions to maximize the frequency control capabilities. Based on the test results, KEPCO aims to commercialize the battery control system in fiscal year (FY) 2020.

In early 2019, KEPCO, ELIIY Power (a Tokyo-based company that develops high capacity batteries[2]), and Sansha Electric Manufacturing Co. (an Osaka-based company machinery manufacturer[3]) completed a preliminary demonstration test to collectively and remotely control the charge-discharge performance for a total of 10,000 storage batteries in response to short cycle frequency fluctuations in the power system.[4]

The project is funded by the Agency for Natural Resources under Japan’s Ministry of Economy, Trade and Industry (METI), through its FY2018 Demonstration Project on Virtual Power Plant (VPP) Utilizing Demand Side Energy Resources.[5]

[1] https://jpn.nec.com/profile/corp/outline.html

[2] https://www.eliiypower.co.jp/company/index.html

[3]http://www.sansha.co.jp/user_data/company/company.php?transactionid=5642f6fe202e98ff6d6489c915b7eef78fe1a2e8

[4] https://www.kepco.co.jp/souhaiden/pr/2019/0522_1j.html

[5] https://www.kepco.co.jp/souhaiden/pr/2019/1129_1j.html

［USA］ Elizabeth Warren Unveils ‘Blue New Deal’ With Support for Offshore Wind

On December 10, 2019, Democratic presidential candidate Elizabeth Warren announced an environmental proposal that recommends a variety of ocean-related conservation and energy plans titled the “Blue New Deal.” [1] One of the primary focuses of Warren’s proposal is how the U.S. can use the ocean as a place for energy development and production. While she cites a variety of clean energy technologies, including more out-there proposals for wave energy and algae-based biofuels, Warren emphasizes offshore wind as an area for major growth. The Blue New Deal lists several benefits of offshore wind including carbon-free energy production and boosts to the economy. Warren’s campaign cites statistics that by 2030 offshore wind from Maine to Maryland could provide 36,000 full-time jobs in the U.S. Currently, only one offshore wind project—the 30-megawatt Block Island farm off the coast of Rhode Island [2]— is in operation but several developers have major offshore installations in the works. Under the Blue New Deal, federal clean energy tax credits would be extended but any incentives available to offshore wind would depend on the project benefiting nearby communities. These promises address current concerns in coastal communities that offshore wind will hurt their economies.

[1] https://elizabethwarren.com/plans/blue-new-deal

[2] https://kokosingindustrial.com/projects/block-island-wind-farm/

［USA］Vineyard Wind wins 804 MW bid for offshore wind in Connecticut

On December 5, 2019, Connecticut's Department of Energy and Environmental Protection (DEEP) selected Vineyard Wind, an offshore wind developer, to proceed to contract negotiations with electric distribution companies in the state to provide 804 MW of offshore wind through the development of the Park City Wind Project.[1] The bid was selected through a request for proposals from DEEP following the signing of HB 7156 (also called Public Act 19-71) on June 7, 2019 which requires the state to solicit up to 2,000 MW of offshore wind. [2],[3] The project is the largest purchase of renewable energy in Connecticut’s history—accounting for 14% of the state’s electricity supply—and is considered a major step toward Governor Lamont’s goal of a 100% zero-carbon electricity supply by 2040. The Park City Wind Project is Vineyard Wind’s second offshore wind project in the U.S. and will be built in the same federal waters lease area as the developer’s Massachusetts project. It is expected to come online in 2025.

[1] https://www.ct.gov/deep/cwp/view.asp?Q=610542&A=5009

[2] https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&which_year=2019&bill_num=7156

[3] https://www.cga.ct.gov/2019/ACT/pa/pdf/2019PA-00071-R00HB-07156-PA.pdf

［USA］ NorthWestern Energy to acquire 25% share of Colstrip; plans to reduce carbon by 90%

NorthWestern Energy, a utility company based in Sioux Falls, SD, announced on December 10, 2019 that it plans to purchase Puget Sound Energy's (PSE) 25% share of Montana's coal-fired Colstrip Unit 4 for just $1.[1] If the plan is approved by the Montana Public Service Commission and Washington Utilities Transportation Commission, NorthWestern would procure 185 MW of generation from Colstrip Unit 4 which would bring its totally share of the unit to 55%. According to NorthWestern, the purchase, although contrary to its carbon-reduction goals, will help the utility to meet a winter peak capacity deficit and preserve reliability for its customers. Currently, NorthWestern’s energy portfolio for Montana is 60% carbon-free. The utility will set aside the benefits from the transaction to address the environmental costs associated with its existing ownership when the time comes to retire Unit 4. For PSE, the sale of its share of the Colstrip unit will help the utility reduce its coal fleet by 50% and give them a lead on meeting Washington state’s requirement for electric utilities to eliminate coal-fired generation from their portfolios in the next five years.[2],[3]  

[1] http://www3.northwesternenergy.com/our-company/media-center/current/news-article/2019/12/10/NorthWestern-Energy-to-acquire-25-share-of-Colstrip-Unit-4-from-Puget-Sound-Energy

[2] https://www.pse.com/press-release/details/pse-moves-closer-to-coal-free-electricity-years-ahead-of-schedule?utm_source=Social&utm_medium=TWITTER&utm_campaign=Engagement

[3] https://www.utc.wa.gov/regulatedIndustries/utilities/energy/Pages/CETAoverview.aspx

[Japan] Chubu Electric Power Has Partnered with Novars, a Dry-Cell Battery Manufacturer, to Develop New Senior Monitoring Services

Chubu Electric Power (Chuden), headquartered in Nagoya City, Aichi Prefecture[1], and Novars[2], a Tokyo-based wireless dry cell battery manufacturer, announced on October 25, 2019 that they have reached an agreement to jointly develop new monitoring services for senior citizens in order to respond to the increasing demand for senior care. Novars develops and commercializes a dry-cell battery integrated with a communication module called “MaBeee[3]”. The device is designed to provide remote monitoring services for seniors and children via a connected network. The two companies aim to ultimately improve users’ safety and security through the use of Artificial Intelligence (AI) and Internet of Things (IoT).

 Chubu Electric Power Group Management Vision wants Chuden to “provide innovative services for new communities” through AI and IoT, as well as other advanced technologies, in addition to strengthening its core energy business operations. Subsequently, it has recently established a distinct business segment in April 2019 that emphasizes providing and managing new community services.

 Additionally, Chuden has agreed to invest in Novars by providing some capital through a third-party allotment. Chuden’s investment will be contributed from the Chubu Electric Power Community Support Fund, which supports venture capital funds and startups with advanced technologies or innovative business models related to monitoring services. The fund, a corporate venture capital fund, was established in April 2019 as an internal fund for Chuden[4].

[1] https://www.chuden.co.jp/english/corporate/ecor_company/ecom_outline/index.html

[2] http://novars.jp/

[3] http://novars.main.jp/new_WP/company

[4] https://www.chuden.co.jp/corporate/publicity/pub_release/press/3272005_21432.html

［USA］Dan Brouillette Confirmed by the U.S. Senate to be Secretary of Energy

On December 2, 2019, the day after Secretary Rick Perry resigned, the United States Senate confirmed Dan Brouillette—former Deputy Secretary of Energy under Secretary Rick Perry—to be the 15th U.S. Secretary of Energy in a bipartisan vote of 70-15.[1] The vote follows the November 14th Senate Committee on Energy and Natural Resources hearing on Brouillette’s nomination where he pledged to fight for Department of Energy’s (DOE) budget and reiterated his commitment to a holistic approach to energy which includes using coal and other fossil fuels as baseload energy.[2] Before his transition to the DOE, Brouillette worked in the transportation private sector for United Services Automobile Association (USAA) and Ford Motor Company, where he served in leadership positions.[3] He also worked in several government positions prior to his private sector work such as Chief of Staff to the U.S. House of Representatives Committee on Energy and Commerce.

[1] https://www.energy.gov/articles/dan-brouillette-confirmed-us-senate-be-secretary-energy

[2] https://www.energy.senate.gov/public/index.cfm/2019/11/full-committee

[3] https://www.energy.gov/articles/dan-brouillette-sworn-deputy-secretary-united-states-department-energy

［USA］ITIF Releases Report on Using Tax Incentives to Drive Clean Energy Innovation

The Information Technology & Innovation Foundation (ITIF), a think tank that promotes innovation-friendly policies in science and technology, released a report on December 2, 2019 that found that existing federal tax credits for solar and wind power need to be reformed and are not conducive to development of new clean energy technologies.[1] According to the report, an extension of credits would favor the most widely used technologies over younger, more expensive alternatives that could eventually prove superior. Currently, tax credits for solar and wind are set to wind down over the next few years. The investment tax credit (ITC), most typically used for solar, drops from 30% in 2019 to 10% in 2022 for utility-scale systems and for residential systems it disappears completely in 2022. Starting next year, wind developers can no longer claim a production tax credit (PTC) for new projects. Despite these phase-downs or phaseouts, the ITIF says that both the wind and solar industries would keep growing. Instead of an extension to these tax credits, the ITIF report envisions new tax credits for early adopters of new technologies and innovations, which would allow companies to scale up and work out the kinks in their product.

[1] https://itif.org/publications/2019/12/02/less-certain-death-using-tax-incentives-drive-clean-energy-innovation

［USA］Nevada PUC floats proposal for 1,000 MW storage target by 2030

The Public Utilities Commission of Nevada (PUCN) submitted a proposal to the Nevada state’s Legislative Counsel Bureau on November 26, 2019.[1] Under the proposal, PUCN would adopt a 1,000 MW statewide energy storage target for utilities by the end of 2030. To achieve this, it is proposed that there would be biennial targets, beginning with 100 MW by the end of 2020 and then ramping up to 400 MW and 800 MW by 2024 and 2028, respectively. Beginning in 2022, utilities in Nevada would be required to file progress updates with the commission. The proposal comes more than two years after SB 204 directed the commission to look into requiring utilities to purchase storage.[2] PUCN has looked into the costs and benefits of storage and commissioned a report on these concerns in 2018 which found that the most cost-effective amount of storage for Nevada’s market conditions in 2030 was in the 700 MW to 1,000 MW range.[3] Most recently, NV Energy, a public utility, proposed on June 24, 2019 to procure 590 MW of energy storage which would put the proposal by the PUCN seven years ahead of schedule.[4]

[1] http://pucweb1.state.nv.us/PDF/AxImages/DOCKETS_2015_THRU_PRESENT/2017-7/43083.pdf

[2] https://legiscan.com/NV/bill/SB204/2017

[3] https://brattlefiles.blob.core.windows.net/files/14618_economic_potential_for_storage_in_nevada_-_final.pdf

[4] http://pucweb1.state.nv.us/PDF/AxImages/DOCKETS_2015_THRU_PRESENT/2019-6/39888.pdf