[USA] Trump administration to reinstate tariff on two-sided solar modules

According to a notice published in the Federal Register on April 17, 2020, the U.S. Trade Representative will withdraw its exclusion of two-sided solar panel imports from the Section 201 tariffs established in 2018 following a review of the exclusion.[1] The two-sided solar panel exemption will be lifted as early as May 18, 2020 and the tariffs will end in 2022. Two-sided solar modules, a newer technology not widely manufactured in the U.S., are projected to grow in popularity due to power-generation advantages and relative cost-competitiveness, but a big part of their price advantage over one-sided panels is the tariff exemption.

In December 2019, when the U.S. International Trade Commission (ITC) first reviewed the effectiveness of the 2018 tariffs, several U.S. solar panel manufacturers argued for applying the tariffs to two-sided solar modules. Other members of the solar industry like the Solar Energy Industries Association (SEIA) and solar developers oppose the Trade Representative’s decision and are considering opportunities for a legal challenge.[2] [3] According to SEIA and other solar analysts, China's manufacturing and production, and the global solar module market, are starting to recover after the worldwide response to COVID-19. For developers, regaining supply of solar modules is critical for projects that have not already purchased and stocked up on panels. For solar manufacturers, though, the 2018 tariffs have spurred growth; five module manufacturing utilities have opened in the U.S. since 2018.

[1] https://www.federalregister.gov/documents/2020/04/17/2020-08189/determination-on-the-exclusion-of-bifacial-solar-panels-from-the-safeguard-measure-on-solar-products

[2] https://www.seia.org/news/seia-statement-ustr-calling-remove-tariff-exclusions-bifacial-solar-modules

[3] https://www.seia.org/initiatives/international-trade

[USA] FERC approves NERC’s request for delay on reliability standards

On April 17, 2020, the Federal Energy Regulatory Commission (FERC) approved the North American Electric Reliability Corporation’s (NERC) request to delay the implementation of seven reliability standards by three to six months (October 2020-January 2021), citing the substantial impacts of the pandemic on registered entities.[1] NERC stated that registered entities "would need to expend significant effort and resources in the coming months" in order to document compliance; the pandemic would make gathering these resources substantially harder.[2]

The delayed reliability standards include four other requirements focused on bulk electric system personnel and protection control standards, and three cybersecurity Critical Infrastructure Protection (CIP) rules. CIP rules are standards for preparedness and response to serious incidents that involve critical infrastructure. Protect Our Power, a non-profit focused on grid security, advocated for FERC to approve a shorter 30-day delay to the CIP standards, arguing that cybersecurity vulnerabilities in the electric sector supply chain need to be eliminated quickly. However, NERC says the three-month delay for the cybersecurity rules is unlikely to leave the grid vulnerable and is appropriate given the current crisis.

[1]https://www.nerc.com/FilingsOrders/us/FERCOrdersRules/order%20granting%20motion%20to%20defer%20the%20implementation%20dates.pdf

[2]https://www.nerc.com/news/Headlines%20DL/Motion%20to%20Defer%20Implementation%20of%20Reliability%20Standards.pdf

[Japan] The Japanese Cabinet Approved a Business Split by Nine Utilities

Japan’s Ministry of Economy, Trade and Industry on March 13, 2020, announced that it has approved the application for a business split submitted by nine utilities. Each of the utilities’ transmission and distribution businesses will be legally separated starting on April 1, 2020. The utility split aims to secure the neutrality of the power transmission and distribution sector, in accordance with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). 

The nine utilities include the following[1];

·       Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido)

·       Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture)

·       Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture)

·       Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture)

·       Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture)

·       Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture)

·       Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture)

·       Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture)

·       Electric Power Development (J-POWER, Headquarters: Tokyo).

There are two forms of splits that will be implemented: (1) implementing a holding company structure or (2) establishing the power generation/retail division as a parent company. The image below shows the post-split business structure for each company.

[1] https://www.meti.go.jp/press/2019/03/20200313008/20200313008.html

[Japan] Chugoku Electric Power Issued Chugoku Electric Power Network Management Vision 2030

On March 13, 2020, Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture) issued the Chugoku Electric Power Network Management Vision 2030. The Management Vision 2030 addresses three key pillars: strengthening the power transmission and distribution business, developing new businesses, and contributing to regional revitalization by collaborating with the local community. In April 2020, Chugoku Electric Power Network will take over the power transmission and distribution business from EnerGia.

Chugoku Electric Power Network aims to achieve sustainable growth in the power transmission and distribution business by providing services that meet customer expectations, and by reforming its business structure in response to changes in the business environment, such as declining population, digitalization, the need for resiliency, and the introduction of renewable energy. Chugoku Electric Power Network will invest in advanced systems for operations and maintenance, cybersecurity, and monitoring to improve efficiency while maintaining a stable energy supply.

In order to develop new businesses, the company plans to collaborate with other companies in various fields such as IT, finance, and transportation. It will also explore the utilization of Artificial Intelligence (AI), Internet of Things (IoT), blockchain, Electric Vehicles (EV), and battery storage. Chugoku Electric Power Network will also focus on strengthening its two-way communication with the local community that it serves to better understand their needs and to support safe and resilient community development.[1] [2]

[1] http://www.energia.co.jp/press/2020/12365.html

[2] http://www.energia.co.jp/assets/press/2020/P200313-1a.pdf

[Japan] Chubu Electric Power, Hokuriku Electric Power, and Kansai Electric Power Began Operation of Wide-Area Supply and Demand Adjustment

Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), and Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced on March 12, 2020, that they had begun a joint wide-area supply and demand adjustment in order to improve the efficiency of their power transmission and distribution.

In order to supply electricity, the supply and demand for electricity needs to be balanced. However, power generation and demand may not always be balanced due to power supply loss or errors in demand forecasting. In the past, each utility company had to adjust the supply and demand within their service areas. However, the wide-area supply-demand adjustment allows the utility companies to cooperate in adjusting supply and demand, using the inter-regional interconnection lines connecting their service areas. The partnership helps the utility companies to reduce their operational costs.

The operation of a wide-area supply and demand adjustment is expected to expand as six more major utilities will participate in the plan. The additional six utilities are: Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), TEPCO Power Grid (Headquarters: Tokyo), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture), and Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture).[1]

[1] http://www.rikuden.co.jp/press/attach/20031201.pdf

[USA] DOE Announces Crude Oil Storage Contracts to Help Alleviate U.S. Oil Industry Storage Crunch

The U.S. Department of Energy (DOE) announced on April 14, 2020 that it is discussing contract awards with nine U.S. companies with the intention to storing their U.S. produced crude oil in the U.S.’s Strategic Petroleum Reserve (SPR).[1] The U.S. oil industry is currently faced with storage demand exceeding availability which stems from the combined effects of a sharp decline in demand due to COVID-19 and an excess of supply. In a response to this, President Trump directed the DOE to fill the SPR to capacity in mid-March 2020, though Democrats were strongly critical of the move, stating that it is a waste of resources to save the oil industry.[2] [3] On April 2, 2020, the DOE issued a Request for Proposals to use available storage capacity at the SPR for temporary storage to alleviate the strain on oil companies.[4] The awards under negotiation are for approximately 23 million barrels of crude oil storage, to be distributed across all four SPR sites. Many of the deliveries will be received in May and June 2020, but there is a possibility of early deliveries in April 2020. Companies can schedule the return of their oil through March 2021, minus a small amount of oil to cover the cost of storage.

[1] https://www.energy.gov/articles/doe-announces-crude-oil-storage-contracts-help-alleviate-us-oil-industry-storage-crunch

[2] https://www.energy.gov/articles/doe-applauds-swift-action-president-trump-initiates-process-purchase-oil-strategic

[3]https://www.markey.senate.gov/imo/media/doc/2020_03_12%20COVID%2019%20Oil%20Tax%20Break%20Trump%20signed%20copy.pdf

[4] https://www.energy.gov/articles/us-department-energy-make-strategic-petroleum-reserve-storage-capacity-available-struggling

[USA] Environmental groups sue DOE over revised appliance standards process

On April 14, 2020 the Natural Resources Defense Council (NRDC) sued the U.S. Department of Energy (DOE) in the 9th U.S. Circuit Court of Appeals in San Francisco over the DOE’s revised process for setting appliance standards.[1] Along with NRDC, parties to the suit include Earthjustice, representing the Sierra Club, Consumer Federation of America, and Massachusetts Union of Public Housing Tenants; the U.S. Public Interest Research Group; and Environment America. According to the NRDC, this lawsuit is the 107th legal challenge to the administration’s rulings on environmental issues, and the third time in five months that groups have filed suit over the appliance standards program. DOE’s revised process requires a new standard to save 0.3 quadrillion BTUs of energy consumed by appliances on site over 30 years. However, the lawsuit argues that the new process sets an arbitrary baseline for “significant savings” to establish a new standard.

The DOE, however, argues that the current rules require too much investment for savings that are not always significant. The DOE is now taking public comment on how to prioritize its review of appliance standards under the revised process.[2] Environmental advocates say they will be following it closely and believe the move is unnecessary.

[1] https://www.nrdc.org/sites/default/files/energy-efficiency-standards-20200414.pdf

[2] https://www.federalregister.gov/documents/2020/04/15/2020-07721/energy-conservation-program-procedures-for-use-in-new-or-revised-energy-conservation-standards-and

[USA] EPA rule change to save 4 coal plants across Pennsylvania and West Virginia

On April 9, 2020, the U.S. Environmental Protection Agency (EPA) updated its Mercury and Air Toxics Standards (MATS) to assist four struggling coal plants in Pennsylvania and West Virginia.[1] The coal plants burn low-quality coal refuse—waste abandoned from mining and burning coal. Under Obama-era MATS standards these plants did not meet acid gas hazardous air pollutant emissions standards, but the new rule creates a subcategory for these plants. This particular change to MATS is not likely to have a major environmental impact because of its limited scope.

According to the Anthracite Region Independent Power Producers Association (ARIPPA), a group that represents the coal refuse-to-energy industry across West Virginia and Pennsylvania, there are more than 5,000 abandoned mines across Pennsylvania that were never reclaimed, totaling between 200 million and 8 million cubic yards of waste.[2] One remediation solution for the problem, burning waste into energy, became viable in the late 1970s through the Public Utility Regulatory Policies Act (PURPA), which sought to diversify the country’s electric resource profile. Since 1987, more than 212 million tons of coal refuse have been removed in Pennsylvania alone, but the coal plants are now struggling as their economic viability has declined. Without the rule change, two of the four plants affected would have likely closed by the end of May.

[1] https://www.epa.gov/mats/regulatory-actions-final-mercury-and-air-toxics-standards-mats-power-plants

[2] https://arippa.org/wp-content/uploads/2018/12/ARIPPA-Coal-Refuse-Whitepaper-with-Photos-10_05_15.pdf

[Japan] Chubu Electric Power Invested in Pitango Healthtech Fund

Chubu Electric Power (Chuden), headquartered in Nagoya City, Aichi Prefecture, announced on February 27, 2020 that it had decided to invest in the Pitango Healthtech Fund, which was established in 2019 by Pitango Venture Capital, a leading Israeli venture capital firm.

Pitango Venture Capital has knowledge of the Israeli start-up ecosystem and has invested more than 200 companies. The Pitango Healthtech Fund will target Israeli startups in the intersection of healthcare and technology, particularly Artificial Intelligence (AI) and Internet of Things (IoT).

The investment will be made from the Chubu Electric Community Support Fund, an internal fund established in April 2019 in order to speed up investments in venture companies and venture investment funds with advanced technologies and innovative business models. It is the first time that the Chubu Electric Community Support Fund has invested in a venture investment fund.

Chuden will continue to build relationships with Israeli companies with advanced AI and IoT technologies in order to adopt cutting edge technologies and build community support infrastructure.[1]

[1] https://www.chuden.co.jp/corporate/publicity/pub_release/press/3272536_21432.html

[Japan] Tohoku Electric Power Released its Medium- to Long-Term Vision

On February 27, 2020, Tohoku Electric Power (Tohoku), headquartered in Miyagi Prefecture, released its Medium- to Long-Term Vision. Tohoku’s goal is to become a business group that grows with the sustainable development of society and contributes to the realization of a smart society in the 2030s, while improving the competitiveness of its core electricity supply business.

Tohoku’s Medium- to Long-Term Vision reflects the changes in the business environment in their operating regions of Tohoku and Niigata Prefecture. Since its founding, Tohoku has been doing so through stable power supply with our basic principle: “No prosperity regions of Tohoku, no development of our group.” However, their operating region has seen progressive depopulation, declining birthrates, and an aging population. The competition has also become more intense due to the full liberalization of the electricity retail market and the impact of digitalization on the conventional utility business model. In its Medium- to Long-Term Vision, Tohoku focuses on enhancing the competitiveness of its core business as well as setting its growth strategy in the smart society businesses, addressing various social issues.

Tohoku has set 2020 to 2024 as a transition period for Tohoku’s business model. During this time, Tohoku will strategically invest in management resources in order to shift its business model towards the realization of a smart society. The investments will include Virtual Power Plant (VPP) and battery storage, mobility services, and smart city development. Tohoku will also strengthen its core business by maintaining its diversified energy portfolio and will continue the development of new renewable and gas-fired power plants. In addition, Tohoku will improve the resiliency of its electricity network and aims to reduce its operational costs using Artificial Intelligence (AI) and Internet of Things (IoT) technology solutions. Tohoku aims to achieve consolidated cash earnings of 320 billion yen (approximately $3 billion) * in FY 2024.[1][2]

*Based on the exchange rate as of March 10th, 2020.

[1] http://www.tohoku-epco.co.jp/news/normal/1205982_1049.html

[2] http://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2020/02/27/b2_1205982.pdf

[Japan] The Japanese Cabinet Decided to Revise the Electricity Business Act to Establish a Robust and Sustainable Electricity Supply System

On February 25, 2020, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that the Cabinet had approved a bill enacting revisions to the Electricity Business Act, the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities, and the Act on the Japan Oil, Gas and Metals National Corporation, Independent Administrative Agency (JOGMEC Act)[1]. The proposed revisions aim to establish a resilient and sustainable electricity supply system. The bill was submitted to the 201st ordinary session of the Parliament.[2]

The bill, which is now pending in the Parliament, requires electricity distribution companies to coordinate on disaster response; establishes a new system supporting the introduction of renewable energy; and adds additional operations at the Japan Oil, Gas and Metals National Corporation (JOGMEC) to enable a stable energy supply. JOGMEC (Headquarters: Tokyo) is a Japanese government Independent Administrative Institution that is responsible for securing a stable supply of nonferrous metals and mineral resources.[3]

Key highlights of the proposed revisions include:

· The revised Electricity Business Act will require distribution and transmission operators to develop a disaster coordination plan and a wide-area grid maintenance plan.

· The modified Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities will require the establishment of a FIP (Feed-in Premium) scheme, which adds a premium to the market price for renewable energy production. The act also imposes external funding obligations on solar power generation companies for disposal costs. Furthermore, the act will ask the Japanese government to establish a system to support the cost of inter-regional transmission lines, which is necessary to expand the introduction of renewable energy.

· The revision of the JOGMEC Act will require the JOGMEC to launch a business to procure liquefied natural gas (LNG) and other fuel for power generation at the request of the Minister of Economy, Trade, and Industry in the event of an emergency. Additionally, in order to diversify LNG suppliers and secure a stable supply of metal minerals, JOGMEC will invest in natural gas transshipment and storage bases and mining businesses.

[1] https://www.meti.go.jp/english/information/data/laws.html

[2] http://www.shugiin.go.jp/internet/itdb_gian.nsf/html/gian/menu.htm

[3] http://www.jogmec.go.jp/about/organization_001.html

[USA] EIA April STEO—Coronavirus to cut coal use, CO2, electricity demand

In April 2020, the U.S. Energy Information Association (EIA) released its April Short-Term Energy Outlook (STEO) which documents the broad impacts of the coronavirus pandemic on the energy sector, including annual plunges in energy-related carbon emissions, electricity demand, and production of U.S. crude oil and natural gas.[1] According to the report, total U.S. power-sector generation will drop 3% in 2020 compared to an increase of 6% in 2019, leading “to an expected decline in fossil-fuel generation, especially at coal-fired power plants;”. U.S. coal production in 2020 will decrease 22% from 2019. The economic slowdown and restrictions on business and travel activity from COVID-19 will also cut energy-related carbon emissions by 7.5% in 2020. However, the agency expects emissions will increase by 3.6% in 2021.

Renewable energy is still expected to be the fastest-growing source of electricity generation and is projected to grow by 11% in 2020, but COVID-19 is "likely to have an impact" on new generating capacity buildouts. The April STEO projects that the energy sector will add more than 19 GW of wind capacity and more than 12 GW of utility-scale solar capacity in 2020. These additions are 5% and 10% lower, respectively, than in previous STEOs from the EIA.

[1] https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf

[USA] S&P Global Ratings revises its utility outlook to “negative”

In a report released on April 2, 2020, S&P Global Ratings revised its outlook for North American regulated utilities from "stable" to "negative" due to the risks posed by COVID-19 which will deplete many utilities’ “financial cushions.” [1] Despite this new vulnerability, S&P Global stated that regulated utilities are still in a better position to access credit than most other corporate industries because they sell necessities and receive a rate of return set by regulators, rather than the market. Certain utilities may be more precarious position than others, though, such as those that disproportionately depend upon commercial and industrial (C&I) customers for their revenue.

Beyond the current disaster, according to the report, circumstances like natural disasters and acquisitions had led some utilities to take on even more debt which has negatively affected the utilities’ ability to withstand current events. Some examples include PG&E, Edison International, and Sempra Energy’s issues with wildfires; NiSource Inc., which had to sell Columbia Gas of Massachusetts to Eversource Energy following charges regarding violations of federal pipeline safety laws; and Southern Co., SCANA Corp., Eversource, Duke Energy Corp., and Dominion Energy Inc., which have all been engaged in large capital projects.

[1] https://www.spglobal.com/ratings/en/research/articles/200402-covid-19-the-outlook-for-north-american-regulated-utilities-turns-negative-11415155

[USA] Dominion prepares to file Virginia IRP without natural gas buildout

On April 2, 2020, Dominion Energy asked Virginia regulators for permission to avoid certain requirements, including comprehensive analysis of new natural gas or nuclear power buildouts, for its 2020 Integrated Resource Plan (IRP) filing that it says will no longer apply. [1] Specifically, Dominion wants to stop incorporating some modeling and analysis that were required under the Clean Power Plan of 2014, which has since been replaced by the U.S. Environmental Protection Agency with the Affordable Clean Energy rule of 2019. According to the utility, a natural gas buildout would not be viable due to the 100% clean energy mandate by 2045 instituted by the Virginia Clean Economy Act (VCEA) passed on March 6, 2020.

The request marks a big shift for Dominion which has included scenarios with up to 10 new combined-cycle or combustion turbine facilities in its previous IRPs. Environmental groups believe that the lack of need for new gas infrastructure could also extend to the development of the Atlantic Coast Pipeline which is slated to run 600 miles from West Virginia, through Virginia, to eastern North Carolina.[2] However, Dominion has stated that it has no plans to make changes to the Atlantic Coast Pipeline project. Dominion will own 53% of the gas project, alongside Duke Energy, after buying Southern Company's 5% stake.

[1] http://www.scc.virginia.gov/docketsearch/DOCS/4m0c01!.PDF

[2] https://chesapeakeclimate.org/dominion-energy-abandons-gas-infrastructure-plans-due-to-passage-of-virginia-clean-economy-act/

[USA] Nuclear regulators ease some power reactor regulations in response to COVID-19

On March 28, 2020, the United States Nuclear Regulatory Commission (NRC) released a letter stating that in the face of the COVID-19 pandemic, it is allowing power reactor operators to apply for temporary exemptions from regulations limiting the amount of hours workers can stay on the job.[1] Additionally, the NRC staff is working on a separate memorandum that will guide nuclear plants as to which labor and time-intensive tasks they can temporarily waive. During normal situations, the NRC has several rules about the maximum length of employee shifts and requirements for breaks workers must take between long shifts.  However, the strains created by the COVID-19 pandemic have created a need to ensure that these regulations "do not unduly limit licensee flexibility in using personnel resources to most effectively manage the impacts" of the pandemic.

Nuclear reactors have already been enacting contingency plans designed to limit the number of workers onsite in order to avoid potential exposure to the coronavirus. It is unknown how long nuclear reactors will need operate with these reductions in staff and maintenance tasks, and whether they can stay running as often as they do in normal times, but the NRC measures to loosen restrictions are intended to ease the strain.

[1] https://adamswebsearch2.nrc.gov/webSearch2/main.jsp?AccessionNumber=ML20087P237

[USA] New Jersey looks to exit PJM capacity market, worried the MOPR will impede its 100% carbon-free goals

In response to the Federal Energy Regulatory Commission’s (FERC) December 2019 decision to expand the Minimum Offer Price Rule (MOPR) in the PJM capacity market, the New Jersey Board of Public Utilities (BPU) launched an investigation on March 27, 2020 to look into how that can achieve its clean energy objectives, including its goal of reaching 100% carbon-free energy by 2050.[1] [2] FERC’s MOPR rule raises the floor prices for state-subsidized resources which clean energy advocates believe could prevent new renewable resources from competing in the wholesale market, making it harder for states like New Jersey to achieve their clean energy goals.

The investigation will consider several questions, including whether a Fixed Resource Requirement (FRR) alternative can satisfy the state's resource adequacy needs, and if modifications to the state's default Basic Generation Service construct, the service provided to consumers who do not choose a third-party supplier, could facilitate resource adequacy procurements aligned with its clean energy objectives. An FRR approach would mean New Jersey withdraws one or more service areas from the broader PJM capacity market. An additional alternative to the capacity market would be to adopt a statewide clean energy standard that would require load-serving entities to source increased percentages of renewable or other clean energy.

[1] https://www.bpu.state.nj.us/bpu/pdf/boardorders/2020/20200325/3-27-20-2H.pdf

[2] https://assets.documentcloud.org/documents/6589824/20191219-3124-33920957.pdf

[USA] Trump administration slashes required annual fuel economy increase to 1.5%

On March 31, 2020, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) issued a final rule that weakens Obama-era fuel efficiency guidelines by requiring corporate average fuel economy (CAFE) and carbon emissions standards to increase 1.5% from 2021 to 2026 rather than 5% annually.[1] The EPA and NHTSA estimate the rule will reduce the sticker price of new cars by about $1,000, but consumers can still, by choice, buy more efficient vehicles.

The March rule is phase two of the Safer Affordable Fuel-Efficient (SAFE) rules. The first phase, issued in fall 2019, revokes states' authority to issue their own fuel standards, specifically targeting California’s fuel standards which are considered to be the biggest driver of electric vehicle (EV) deployment. In September 2019, 23 states including California sued the Trump Administration over the rule.[2] Automakers are split in their support of the lawsuit and California’s standards. Ford, Honda, BMW and Volkswagen support states' rights to set their own standards, but GM, Toyota, and Fiat Chrysler have sided with the Trump Administration's push for a single national standard. The lawsuit is currently pending, and advocates expect litigation on the second rule as well.

[1] https://www.nhtsa.gov/press-releases/safe-final-rule

[2]https://oag.ca.gov/system/files/attachments/press_releases/California%20v.%20Chao%20complaint%20%2800000002%29.pdf

[Japan] Mitsubishi Heavy Industries’ Turboden will Deliver an Organic Rankine Cycle Power Generation System to the Meadow Lake Tribal Council in Saskatchewan, Canada

On February 10, 2020, Mitsubishi Heavy Industries’ (MHI) subsidiary Turboden, a manufacturer based in Bersica, Italy that specializes in Organic Rankine Cycle (ORC) systems that produce electric and thermal power[1], announced that it would deliver an 8MW ORC power generation system to the Meadow Lake Tribal Council (MLTC) in Saskatchewan, Canada. The system will be fueled by sawmill residual wood biomass.

MTLC is a tribal council representing nine First Nation band governments in Saskatchewan. Multiple native inhabitant groups reside in the tribal area which is located near Meadow Lake in the northwestern area of the province. The ORC system will be funded by both the Canadian federal government and the Saskatchewan government as a part of the MLTC’s local development program. Approximately 5,000 households in the region will be supplied with a total of 6.6 MW of carbon neutral baseload electricity. In addition to electricity, the heat generated by this system will be supplied to NorSask sawmill’s lumber dry kiln and buildings, which is expected to reduce natural gas consumption. The NorSask Sawmill is Canada’s largest sawmill.

Although it was originally established in 1980 by professors at the Polytechnic University of Milan, Turboden was acquired by MHI in 2013. In 2016, Turboden signed a contract with Daiichi Jitsugyo (Headquarter: Tokyo, Japan), a general machinery trading company[2], to promote the marketing of its products. Since then, Daiichi Jitsugyo has become its sales distributor in Japan.[3]

[1] https://www.turboden.com/company/1058/about-us

[2] https://www.djk.co.jp/company/outline.html

[3] https://www.mhi.com/jp/news/story/200210.html

[Japan] Chubu Electric Power Will Test Information Bank MINLY in Early March 2020 in Toyota City, Aichi Prefecture

Chubu Electric Power (Chuden), headquartered in Nagoya City, Aichi Prefecture[1], announced on February 17, 2020 that it will test a local information bank, MINLY, in early March 2020 in Toyota City, Aichi Prefecture. MINLY will utilize Chuden customers’ personal data to improve their convenience and promote local economic development.

With the consent of the customers living in Toyota City or visiting the city, Chuden will consolidate, manage, and utilize their personal daily-life data (i.e. age, gender, interests or preferences and user behavior history). Customers will be offered personalized services and information that match their interests. This will include shopping information, coupons, and event information from 50 service providers and local retailers as well as approximately 25 Toyota city-owned public facilities operators. The test is supported by the Toyota City Connected Society Verification Promotion Council.

In order to launch MINLY, Chuden has obtained Information Bank P certification from the Information Technology Federation of Japan (ITrenmei, Headquarter: Tokyo)[2], which advocates for individual users’ privacy protections. As a next step, Chuden will acquire an Ordinary Certification from ITrenmei by demonstrating the project in Toyota City. The Ordinary Certification is based on the Japanese government guidelines for information banking services, and indicates that the service complies with international standards for privacy protection and information security measures.[3]

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

[2] https://www.itrenmei.jp/summary/

[3] https://www.chuden.co.jp/corporate/publicity/pub_release/press/3272452_21432.html

[Japan] Kansai Electric Power Launched an Energy Management Demonstration Project Using Solar Power and Storage Batteries

Kansai Electric Power Company (KEPCO, Headquarters: Osaka Prefecture) announced on February 17, 2020, that it has launched an energy management demonstration project that will be deployed in grocery stores using solar power systems integrated with battery storage.

 As a part of the project, storage batteries will be installed at grocery stores operated by an Osaka-based grocery retailer, Kano Co.[1], which has contracted for a KEPCO’s onsite solar power service[2]. The project will verify the effectiveness of the battery storage in reducing electricity costs. It will also use a Kanden Virtual Power Plant Integrated Platform System (K-VIPs) to validate the performance of the storage battery control technology.

 Storing surplus energy from solar power generation on batteries and discharging it at other times, such as during the night, is expected to reduce electricity costs. The stored surplus energy can also be utilized during emergencies or as part of a demand response (DR) program by responding to the signals from aggregators.

 KEPCO aims to provide comprehensive energy management services by utilizing various components such as solar power generation with battery storage and energy resource aggregation services which are expected to grow. KEPCO’s energy aggregation services help customers to increase their revenues through operational improvements for energy procurement management and facility optimization by utilizing VPP and DR.[3]

[1] https://www.kk-kano.co.jp/

 [2] The KEPCO provides commercial and industrial customers with a suite of comprehensive (one-stop-shop) solar power services, ranging from rooftop solar installations, to operations and maintenance.

[3] https://www.kepco.co.jp/corporate/pr/2020/0217_1j.html