[Japan] Hokuriku Electric Power Accelerates Investment by Entering Overseas Power Business

Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), released its 2030 Long-Term Vision Plan and Medium-Term Management Plan (2020 version) in April 2020. The 2030 Long-Term Vision sets a goal of investing more than 200 billion yen (approximately $1.9 billion[1]) through Fiscal 2030 as part of its growth strategy. Rikuden identified three strategic areas of growth to accelerate investment: 1) supporting the local community through addressing challenges, 2) creating new services through a fusion of existing assets and new technology, and 3) entering overseas power businesses. [2]

As part of its efforts to invest in overseas energy businesses, on April 21, 2020, Rikuden announced its investment in Japan Energy Capital 1 L.P., which targets overseas renewable energy business in Turkey and Jordan as well as energy technology venture companies in Europe and the U.S. It is Rikuden’s first overseas business investment. [3] On April 30, 2020, Rikuden further announced that it will establish Hokuriku Electric Power Business Investment G.K. in June 2020. The subsidiary will focus on accelerating investments in Rikuden’s strategic areas of growth. According to Rikuden, it will continue to cultivate new business opportunities and make investments to accelerate its growth. [4]

[1] ¥ 1 = $ 0.0094 USD. Based on the exchange rate as of May 8th, 2020.

[2] http://www.rikuden.co.jp/press/attach/19042502.pdf

[3] http://www.rikuden.co.jp/press/attach/20042101.pdf

[4] http://www.rikuden.co.jp/press/attach/20043003.pdf

[Japan] Hokkaido Electric Power Acquired Shares of Alten RE Developments America B.V.

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) announced that it had acquired a 40% stake in Alten RE Developments America B.V. (Alten America, Headquarters: Amsterdam, Netherlands), as part of its participation in the operation of the Cubico Alten Aguascalientes Solar Project in Mexico. Alten America is a subsidiary of Alten Renewable Energy Developments B.V. (Alten), which invests in solar power generation businesses. Alten owns a 20% share of Alten America.

Alten America has a 30% stake in the Solar Power Project Company, thus HEPCO will own a 12% share of the Company. It will be the first time HEPCO has joined an overseas power generation business. The Cubico Alten Aguascalientes Solar Project, located in the El Llano municipality of Aguascalientes, includes two solar power plants with a total installed capacity of 290MW. The power generated by the two plants will be sold to the state-owned power utility, Comisión Federal de Electricidad (Headquarters: Mexico City, Mexico). HEPCO expects to earn a stable income from this investment as the Cubico Alten Aguascalientes Solar Project has a long-term power purchase agreement with Comisión Federal de Electricidad.[1] [2] This investment aligns with the goals laid out in HEPCO’s Management Vision 2030, in which HEPCO committed to expanding its domestic and overseas renewable businesses to contribute to a sustainable society.

[1] https://www.hepco.co.jp/info/2020/1250847_1844.html  

[2] https://wwwc.hepco.co.jp/hepcowwwsite/info/2020/__icsFiles/afieldfile/2020/04/30/200430.pdf

[Japan] Hokkaido Electric Power Released the Hokuden Group Management Vision 2030

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) released its “Hokuden Group Management Vision 2030.” HEPCO transferred its Power Transmission & Distribution Division to the newly established “Hokkaido Electric Power Network " to legally separate the transmission and distribution divisions on April 1, 2020. The business split was implemented to comply with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). This is a major turning point because even after the split, both companies will still collaborate to supply electricity. The Management Vision discusses HEPCO’s plans on how the two companies will collaborate to provide stable electricity and its business plans in response to the changes in the business environment, including intensifying competition, advancements in technology, climate change issues, and an aging society.

The Management Vision 2030 sets two phases before and after the restart of HEPCO’s Tomari Nuclear Power Plant. The target profit of phase 1 will be 23 billion yen (approximately $215 million) and phase 2 will be 45 billion yen (approximately $422 million) [1]. HEPCO aims for the early restart of the Tomari Nuclear Power Plant to achieve a more balanced generation mix in terms of S+3E (Safety + Energy Security, Economic Efficiency, and Environment). HEPCO’s goal is to reduce CO2 emissions by half or more by FY2030, which is equivalent to 10 million tons or more/year (FY2013 baseline), through the restart of Tomari Nuclear Power Plant and an increase in renewable energy, as well as the use of Liquefied natural gas (LNG) fired thermal power. HEPCO’s three reactors at Tomari Nuclear Power Plant have been shut down since the Fukushima accident, waiting for the regulatory approval for the restart.

HEPCO will also facilitate its business growth through expanding its business outside of the Hokkaido area and overseas, and by entering into new businesses that utilize digital technologies, such as IoT and drones in a wide range of sectors, including transportation and real estate. HEPCO will also strengthen its resiliency against natural disasters. The newly established Hokkaido Electric Power Network will play a critical role in ensuring the secure and stable supply of electricity. [2] [3]

Issue 2 Attachment_Hokuden Group Management Goals_wcore.jpg

[USA] Energy sector jobs plunge at 'historic' rate amid COVID-19 crisis

On May 18, 2020, the BW Research Partnership, an economic research firm, released a report that found that the coronavirus pandemic has eliminated five years of job growth across the U.S. energy sector.[1] Since the beginning of the pandemic, the energy sector has lost 1.3 million jobs and nearly a million of those were lost in April 2020 alone. According to the report, job losses in the fuels sector made up about 10% of the cuts in April 2020. The motor vehicles industry was the hardest hit in April 2020, with 340,000 jobs being cut in April 2020. Coal mining (including electric power generation) experienced 4,000 job losses in April 2020, bringing the total losses to more than 9,000 jobs since the beginning of the pandemic. For oil and gas drilling and refineries, 40,000 jobs were cut in April 2020 and nearly 90,000 jobs have been lost since the beginning of March 2020.

Out of all the state, California has taken the greatest hit, losing more than 124,000 jobs since the onset of the pandemic. Texas and Michigan also had high job losses with 78,700 and 64,500, respectively. The report also notes that despite only making up 14% of the industry, Latino workers made up 23% of total job losses.

[1] https://bwresearch.com/covid/docs/BWResearch_EnergyJobsAprilCOVID-19Memo_05-18-2020.pdf

[USA] Colorado judge clears way for Tri-State exit fee determinations

On May 15, 2020 Colorado Administrative Law Judge (ALJ) Robert Garvey granted a motion for summary judgement filed by La Plata Electric Association (LPEA) and United Power—two cooperative power providers—to not allow Tri-State Generation and Transmission (G&T) to raise a federal preemption defense.[1] In 2019, modifications to Tri-State’s bylaws allowed Tri-State to add new non-utility members which brought Tri-State under FERC jurisdiction. Therefore, Tri-State had argued that federal law preempts state law in the issue of exit fees . The ruling, however, has stated that the issue falls under state purview and has cleared the way for state regulators to determine the fees the two cooperatives will pay to exit Tri-State’s service.

United Power, LPEA and other members of Tri-State have pressed to leave Tri-State's service over dissatisfaction with the G&T provider’s generation mix which heavily relies on coal. Tri-State, however, says it is working to eliminate coal emissions in New Mexico by the end of 2020 and in Colorado by 2030. According to a new report by the Rocky Mountain Institute, Tri-State’s new clean energy plan is a well thought out approach to phasing out 1 GW of coal.[2]

[1] https://www.documentcloud.org/documents/6895523-Interim-Decision-Granting-Motion-for-Summary.html

[2] https://rmi.org/tri-state-chooses-the-low-carbon-path/

[USA] PJM MOPR could cost market consumers up to $2.6B annually according to new report

According to a May 2020 report released by consulting firm Grid Strategies, the Federal Energy Regulatory Commission’s (FERC) 2019 Minimum Offer Price Rule (MOPR) decision could cost customers in the PJM Interconnection from $1 billion to $2.6 billion annually.[1] The new estimate updates a previous cost analysis done by the group in August 2019 which found the MOPR could cost up to $5.7 billion per year.[2] The newest analysis finds the rule could cost consumers nearly $24 billion over the next nine years if FERC adopts minimum bid levels closer to PJM’s initial proposal rather then its most recent finding. Under that scenario, it is likely that subsidized nuclear units in Illinois, New Jersey, and Ohio will not be able to clear the capacity market. Under another scenario that assumes FERC adopts more recent PJM minimum bid levels, Grid Strategies still estimates that the rule will cost customers $10 billion over the same period. In this scenario, it is still possible that some units would not clear under PJM’s newest bid numbers.

Grid Strategies’ analysis comes in the midst of efforts by PJM to negotiate with stakeholders concerned by the MOPR’s potential impacts on state resource goals. Maryland and New Jersey have stated that they are looking at pursuing a Fixed Resource Requirement alternative which would allow parts or all of their state to secure capacity outside the wholesale market.[3]

[1] https://gridprogress.files.wordpress.com/2020/05/a-moving-target-paper.pdf

[2] https://gridprogress.files.wordpress.com/2019/08/consumer-impacts-of-ferc-interference-with-state-policies-an-analysis-of-the-pjm-region.pdf

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

[Japan] Hokuriku Electric Power Accelerates Investment by Entering Overseas Power Business

Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), released its 2030 Long-Term Vision Plan and Medium-Term Management Plan (2020 version) in April 2020. The 2030 Long-Term Vision sets a goal of investing more than 200 billion yen (approximately $1.9 billion[1]) through Fiscal 2030 as part of its growth strategy. Rikuden identified three strategic areas of growth to accelerate investment: 1) supporting the local community through addressing challenges, 2) creating new services through a fusion of existing assets and new technology, and 3) entering overseas power businesses. [2]

As part of its efforts to invest in overseas energy businesses, on April 21, 2020, Rikuden announced its investment in Japan Energy Capital 1 L.P., which targets overseas renewable energy business in Turkey and Jordan as well as energy technology venture companies in Europe and the U.S. It is Rikuden’s first overseas business investment. [3] On April 30, 2020, Rikuden further announced that it will establish Hokuriku Electric Power Business Investment G.K. in June 2020. The subsidiary will focus on accelerating investments in Rikuden’s strategic areas of growth. According to Rikuden, it will continue to cultivate new business opportunities and make investments to accelerate its growth. [4]

[1] ¥ 1 = $ 0.0094 USD. Based on the exchange rate as of May 8th, 2020.

[2] http://www.rikuden.co.jp/press/attach/19042502.pdf

[3] http://www.rikuden.co.jp/press/attach/20042101.pdf

[4] http://www.rikuden.co.jp/press/attach/20043003.pdf

[Japan] TEPCO Power Grid, Hokuriku Power Electric, Osaka Gas, and Saibu Gas Entered into a Capital and Business Alliance with Japan Infrastructure Waymark

On April 20, 2020, Japan Infrastructure Waymark (JIW, Headquarters: Osaka), which is wholly owned by Nippon Telegraph And Telephone West (NTT West, Headquarters: Osaka)[1] and provides infrastructure inspection solutions using drones, announced that it had entered into a capital and business alliance with four utility companies, TEPCO Power Grid (Headquarters: Tokyo), Hokuriku Power Electric (Headquarters: Toyama Prefecture), Osaka Gas (Headquarters: Osaka)[2], and Saibu Gas (Headquarters: Saitama Prefecture)[3]. In addition to the four utility companies, an IT solution provider, NTT Data (Headquarters: Tokyo)[4]; a Tokyo-based venture capital firm, Drone Fund[5]; and an engineering company, Toyo Engineering (Headquarters: Chiba Prefecture)[6] also joined the alliance.  

Aging infrastructure and labor shortages are making it increasingly challenging for utility companies to efficiently inspect a large amount of infrastructure, such as power plants, transmission towers, and electric poles. The four utility companies and Toyo Engineering partnered with JIW to improve the efficiency of infrastructure maintenance work by developing Artificial Intelligence (AI) and drone solutions. The collaboration will develop AI and drone technologies for monitoring and inspection, ensuring more sophisticated, safe, and high-quality maintenance work. The alliance also facilitates sharing inspection expertise and enhanced AI solutions based on the collected data. [7] [8] [9] [10]

[1] https://www.ntt-west.co.jp/corporate/about/profile.html

[2] https://www.osakagas.co.jp/en/aboutus/corporate_profile/

[3] https://seibugas.com/wp/company_group/%E4%BC%9A%E7%A4%BE%E6%A6%82%E8%A6%81/

[4] https://www.nttdata.com/global/en/about-us/company-profile

[5] https://dronefund.vc/en/about/

[6] https://www.toyo-eng.com/jp/ja/company/outline/

[7] https://www.jiw.co.jp/20200420-infra-tieup/

[8] http://www.rikuden.co.jp/press/attach/200420001.pdf 

[9] https://www.osakagas.co.jp/company/press/pr2020/1286672_43661.html

[10] https://www.tepco.co.jp/pg/company/press-information/press/2020/1539425_8615.html

[USA] Great River Energy to close 1.15 GW North Dakota coal plant

On May 7, 2020, Great River Energy, an electric transmission and generation cooperative in Minnesota, announced that it plans to significantly reduce its carbon footprint by replacing a North Dakota coal plant with renewable energy projects, market purchases and grid-scale battery technology.[1] Under the plan, the 1,151 MW Coal Creek Station would be retired in the second half of 2022 and 1,100 MW of wind energy would be purchased by the end of 2023. Great River Energy will also modify the 99 MW lignite coal-fired Spiritwood Station power plant to burn natural gas, install a 1-MW/150-MWh battery demonstration system, and repower its Blue Flint biorefinery with natural gas. According to the cooperative, the changes will significantly reduce member power supply costs, and will allow it to provide a 95% carbon-free energy portfolio.

Environmental activists praised the decision to close the Coal Creek Station, but North Dakota lawmakers are concerned that it will affect the state’s economy. North Dakota Governor Doug Burgum (R) said his administration is "more determined than ever to find a path forward for Coal Creek Station that preserves high-paying jobs. ... We remain committed to bringing stakeholders to the table to evaluate all options and find opportunity in this uncertainty."[2]

[1] https://greatriverenergy.com/major-power-supply-changes-to-reduce-costs-to-member-owner-cooperatives/

[2] https://www.governor.nd.gov/news/burgum-statement-great-river-energys-announcement-retire-coal-creek-station-2022

[USA] New report finds oil demand may not recover until 2026

According to a report released by Wood Mackenzie on May 12, 2020, demand for crude oil will take until at least 2026 to recover under a full recovery scenario.[1] In its report, Wood Mackenzie examined several trends happening as a result of the pandemic: reduced travel and trade, greater government involvement, and increased automation. The analysts then developed three scenarios for how those trends could affect energy over the next two decades. In the ‘Full recovery’ scenario, there is a rapid return to pre-pandemic conditions. Under the ‘Go it alone’ scenario, economies are slow to recover from the pandemic, with mixed outcomes for coal, oil and natural gas. And finally, in the ‘Greener growth’ scenario, governments focus stimulus programs on supporting the energy transition.

While natural gas use and coal use are expected to trend upward and downward, respectively, across all scenarios, crude oil demand is less predictable. Under the ‘Greener growth’ scenario, for example, oil demand would slowly rebound over the next decade, followed by a sudden decline in 2030 as policies reinforce the energy transition and electric vehicles take hold. In the other scenarios, oil demand slowly increases over the next two decades.

[1] https://www.eenews.net/assets/2020/05/13/document_ew_02.pdf

[USA] St. Louis becomes first Midwest city to pass a Building Energy Performance Standard

On May 7, 2020, St. Louis, Missouri Mayor Lyda Krewson signed into law a Building Energy Performance Standard (BEPS) plan that requires buildings in the city to meet energy efficiency standards and establishes resources to help building owners achieve the savings associated with energy efficiency.[1] [2] St. Louis is the first Midwest city and one of only four jurisdictions (includes: Washington State, Washington, D.C., and New York City) in the U.S. to pass a BEPS. The BEPS plan will help the city achieve its goal of eliminating community-wide greenhouse gas emissions by 2050.

The BEPS plan only applies to buildings that are 50,000 square feet or larger and were already required to report their energy and water use under current city law.[3] Under BEPS, these buildings will be required to meet several levels of energy performance. The BEPS plan also requires several energy-saving actions, including upgrading HVAC units, ventilation, lighting and elevators. In addition, the new law sets up a Building Energy Improvement Board to help ensure buildings are complying with new standards and consider owners’ alternative plans when compliance is not possible. The board will be made up of nine members from utilities, labor, affordable housing owners and tenants, and commercial buildings.

[1] https://www.nrdc.org/media/2020/200506

[2] https://www.nrdc.org/experts/nrdc/st-louis-becomes-third-us-city-adopt-bold-standards-slash-energy-waste-buildings

[3] https://www.stlouis-mo.gov/internal-apps/legislative/upload/as-amended/BB219AACombined.pdf

[Japan] Japanese Utilities’ Response to COVID-19

On April 7, 2020, the Japanese Government announced a state of emergency in seven prefectures, including Tokyo and Osaka. On April 10, 2020, Aichi Prefecture and Gifu Prefecture also declared a state of emergency on their own. Amid the outbreak of COVID-19, Japanese electric power companies are taking measures to secure a stable power supply while ensuring the safety and health of their employees and customers.

For instance, Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture) has implemented several measures in response to COVID-19. It implemented remote work and replaced business trips with video conferencing to enable social distancing. It also shifted commuting times to avoid the peak traffic times for those who still have to commute. As of April 10, 2020, of the approximately 16,100 Chuden staff, approximately 3,600 worked from home. Since April 8, 2020, Chuden established a backup team to respond to the operations for a central power supply command center, which operates 24/7, to maintain a stable supply and service level, even if an employee is infected. JERA (Headquarters: Tokyo), the Japanese largest thermal power company, prohibited entry to the main control room of plants, except for the person in charge. Kansai Electric Power (Headquarters: Osaka) has increased the number of commuter buses at its operating nuclear power plants to strengthen social distancing. [1] [2]

[1] https://www.chuden.co.jp/publicity/press/1201168_3273.html

[2] https://www.nikkei.com/article/DGXMZO58360870S0A420C2X93000/

[Japan] Toyota and Chubu Electric Power Jointly Establish Toyota Green Energy

On April 3, 2020, Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Toyota Motor (Toyota, Headquarters: Toyota City), and Toyota Tsusho (Headquarters: Nagoya City) announced that they had reached an agreement to establish Toyota Green Energy, which aims to obtain and operate Japanese renewable energy sources for the Toyota Group in the future. Chuden owns 40 percent of shares of Toyota Green Energy, and Toyota Motor owns 50 percent of shares of it. The establishment of Toyota Green Energy is expected in July 2020.

Based on the Toyota Environmental Challenge 2050, Toyota plans to create a society in which people, cars, and nature coexist by making the environmental impact of cars closer to zero, and by making a positive impact on the earth and society. Through Toyota Green Energy, Toyota will contribute to the realization of a low-carbon society by reducing the CO2 emitted from plants and other facilities.

Chuden has been working to expand the use of renewable energy, with the aim of deepening Environmental, Social, and Governance (ESG) management and contributing to the resolution of issues identified by the United Nations (UN) in the Sustainable Development Goals (SDGs). By partnering with Toyota, it will strive to improve Japan's energy self-sufficiency rate and reduce CO2 emissions.[1]

[1] https://www.chuden.co.jp/publicity/press/1201128_3273.html

[USA] New Mexico regulators delay two solar+storage projects intended to replace San Juan coal plant

On April 29, 2020 the New Mexico Public Regulation Commission voted 3-2 to delay the decision on whether to approve two solar-plus-storage projects that the Public Service Company of New Mexico (PNM), the New Mexico’s largest investor-owned utility, had proposed as part of the replacement generation for its San Juan coal plant.[1] The regulators determined that they could not approve the two solar projects before taking a closer look at the utility’s full replacement plan. The two projects in question are the Arroyo (300 MW of solar and 40 MW/160 MWh of battery storage) and the Jicarilla (50 MW solar and 20 MW/80MWh of battery storage) projects. The two projects are part of PNM's broader plan to add 350 MW of solar capacity, 380 MWh battery storage, and 280 MW of natural gas to replace its coal-fired generation. PNM has plans to spend $733 million in order to replace its coal-fired generation.[2]

Environmental groups and PNM have both stated that they were not happy with the decision, though they both understood in part the commission's reasoning. A major downfall to the delay is that the projects won’t be able to secure the full value of the solar investment tax credit as it winds down, making the projects' future prices unknown.

[1] https://www.santafenewmexican.com/news/local_news/regulators-again-delay-decision-on-pnms-solar-proposals/article_475242f8-8a32-11ea-aa6c-571c28313f6f.html

[2] https://www.prnewswire.com/news-releases/pnm-files-consolidated-application-for-san-juan-generating-station-300878854.html

[USA] SCE procures 770 MW of battery storage to bolster California's grid

On May 1, 2020, Southern California Edison (SCE) announced that it is procuring a 770 MW/3,080 MWh package of battery resources to bolster grid reliability.[1] This procurement is more than the entire energy storage market in the U.S. for all of 2019. The utility has contracts with seven battery projects developers, ranging from 50 MW to 230 MW and slated to come online in August 2021. The largest of the projects is a 230 MW facility by NextEra Energy in California’s Riverside County. Most of the projects will be co-located with adjacent solar plants. The utility plans to ask the CPUC for approval of the contracts later in May 2020. According to SCE, the battery projects will enhance electric grid reliability and help address potential energy shortfalls identified by regulators in California. In 2019, the California Public Utilities Commission (CPUC)raised concerns that retiring fossil fuel resources, shifting peak periods, and increasing levels of renewables would create reliability issues.[2] The CPUC has also stated that battery storage will play a critical role in California’s effort to supply all electricity from zero-carbon resources by 2045. Recently, the CPUC adopted an optimal resource portfolio to reach California’s goals; the portfolio requires 1 GW of long-duration storage by 2026 and tripling battery storage capacity from 2020 levels.


[1] https://newsroom.edison.com/releases/sce-grows-clean-energy-portfolio-enhances-system-reliability-with-770-megawatts-of-new-energy-storage-capacity

[2] http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M319/K349/319349071.PDF

[USA] Dominion Energy Virginia set to quadruple renewable energy in new integrated resource plan

On May 1, 2020, Dominion Energy filed its 15-year, long-term integrated resource plan (IRP) for Virginia which includes three separate models to increase solar, wind, and energy storage capacity.[1][2] According to the IRP, the utility has already begun to transition its generation fleet away from fossil fuels; over the past decade more than 2.2 GW of coal, oil, and gas-fired generation has been retired. Currently the utility has 396 MW of solar, 1.8 GW of energy storage, and 12 MW of offshore wind under construction or in operation. Its latest IRP would add between 6.7 GW and 18.8 GW of solar, up to 2.7 GW of storage and up to 5.1 GW of offshore wind in the next 15 years. It would also add natural gas resources and potentially keep more gas-fired generation on the system to address system reliability.

In April 2020, Virginia passed the Virginia Clean Economy Act (VCEA) which set a goal of 100% clean energy resources by 2045 and requires the addition of up to 5.2 GW of offshore wind.[3] Three of the four scenarios Dominion proposed take into account the VCEA and other legislation passed in spring 2020, while one presents a “low cost” plan.

[1] https://news.dominionenergy.com/2020-05-01-Dominion-Energy-Virginia-Quadruples-Renewable-Energy-and-Energy-Storage-in-Long-Term-Integrated-Resource-Plan

[2] https://www.dominionenergy.com/library/domcom/media/about-us/making-energy/2020-va-integrated-resource-plan.pdf?modified=20200501191108

[3] https://www.governor.virginia.gov/newsroom/all-releases/2020/april/headline-856056-en.html

[USA] Duke Energy sets goal to double renewable capacity by 2025

On April 28, 2020, Duke Energy released two new documents, a 2019 Sustainability Report and a 2020 Climate Report, and announced plans to add 8,000 MW of wind, solar and biomass by 2025, which would double its total renewable energy.[1] [2] [3] The announcement is a part of Duke’s larger plan to achieve 50% lower CO2 emissions by 2030 and net-zero carbon emissions by 2050. Currently, Duke's regulated electric utility generation is 31% natural gas, 31% nuclear, 24% coal and 5% renewables. By 2030, Duke predicts its mix will be 42% natural gas, 30% nuclear, 11% coal, and 14% renewables. Duke says by 2050 renewables will make up the largest share at 36% while natural gas will drop to 6%.

Fossil fuels will still account for more than half of its generation, but the utility says it remains on track to achieve its 2030 goal. Although it has received criticism for relying on natural gas when it could use energy storage, Duke has asserted that adding new natural gas is necessary. According to Duke’s climate report, a “no new gas” scenario would create installation and operational challenges because current energy storage technology would not be able to handle the capacity and energy gap created by coal retirement. Duke also noted that the incremental costs of achieving net zero emissions under a no new gas scenario "would increase by three to four times" compared to adding gas resources.

[1] https://news.duke-energy.com/releases/new-duke-energy-reports-show-progress-toward-ambitious-climate-and-sustainability-goals?_ga=2.46264229.348135488.1588192929-1661836963.1588192929

[2] https://www.duke-energy.com/_/media/PDFs/our-company/Climate-Report-2020.pdf

[3] https://sustainabilityreport.duke-energy.com/

[USA] Chicago requires new residential, commercial construction include EV charging capabilities

On April 24, 2020, the Chicago City Council approved an ordinance that requires new construction of residential and commercial buildings to guarantee at least 20% of parking spaces are ready for electric vehicle (EV) charging equipment to be installed.[1] . The ordinance also requires at least one of the EV-ready spaces be disability accessible and new buildings must have charging infrastructure in place or actual charging stations installed during construction. The new rules only apply to residential buildings with five or more units and commercial buildings with 30 or more parking spaces.

Chicago is committed to reaching 100% renewable energy for all its municipal buildings by 2025 and all city buildings by 2035. In addition, the Chicago Transit Authority plans to electrify its fleet of over 1,850 buses by 2040. According to Chicago officials, the new ordinance is in response to growing EV adoption across the United States; by 2040 more than half of all new car sales will be electric. Consumer advocates like Citizens Utility Board (CUB) say the new ordinance makes Chicago a national leader in its efforts to increase adoption of EVs, and called for similar policies to be adopted more widely.[2]

[1]https://www.chicago.gov/city/en/depts/cdot/provdrs/conservation_outreachgreenprograms/news/2020/april/chicago-city-council--approves-ordinance-to-increase-chicago-s-e.html

[2] https://www.prnewswire.com/news-releases/new-electric-vehicle-ordinance-makes-chicago-national-leader-301047088.html

[USA] Rooftop solar applications up 40% despite COVID-19

According to a filing with the Hawaiian Public Utilities Commission (PUC) released on April 22, 2020, Hawaiian Electric (HECO) has not seen a drop in applications for rooftop solar system interconnections despite the shelter-in-place order; between March 5 and April 15, 2020, the company received 40% more applications than the same period in 2019.[1] The filing was in response to a letter submitted to the PUC by Hawaiian distributed energy resource (DER) groups on April 3, 2020, which outlines various measures to expedite interconnection processes and support the DER sector during the COVID-19 pandemic.[2] According to the groups, which include the Distributed Energy Resources Council, Hawaii PV Coalition, and Hawaii Solar Energy Association, streamlining HECO’s interconnection processes could help customers complete installations and shrink their electric bills. The groups recommended that distributed systems below 25 kW be allowed to operate once they are installed as well as other provisions to help the distributed solar sector.

In its response, the HECO remarked that solar contractors are continuing to work and building inspections are still progressing so the pandemic should not significantly hamper the installation of DER in the near term. The utility also listed some of the measures it is taking to ensure interconnection processes are smooth such as remotely reviewing applications and loosening deadlines for installations to be completed, but noted that some of the group’s suggestions would lead to safety risks.

[1] https://dms.puc.hawaii.gov/dms/DocumentViewer?pid=A1001001A20D22B62259D00190

[2] https://dms.puc.hawaii.gov/dms/DocumentViewer?pid=A1001001A20D03B54540J00106

[USA] DOE announces $28 million to develop ultrahigh temperature materials for gas turbine applications

On April 21, 2020, the U.S. Department of Energy (DOE) announced up to $28 million in funding for a new Advanced Research Projects Agency-Energy (ARPA-E) program called ULtrahigh Temperature Impervious Materials Advancing Turbine Efficiency (ULTIMATE).[1][2] The goal of the ULTIMATE program is to improve the efficiency of gas turbines by increasing the temperature capability of the materials used in parts such as the turbine blade. Blade material temperature capability has improved steadily over the last few decades to 1100 ºC, the DOE believes there are opportunities to discover, develop, and implement novel materials that work at temperatures significantly higher than industry standard superalloys. ULTIMATE projects will develop and demonstrate ultrahigh temperature materials that can operate in high temperature and high stress environments of a gas-turbine blade. The ULTIMATE program will target enabling gas-turbines blades to operate continuously at 1300 ºC in a material test environment—or with coatings, with turbine inlet gas temperatures of 1800 ºC or higher. According to the DOE, improving gas turbine efficiency will create opportunities to generate more energy savings, lower carbon emissions, and benefit the economy.

[1] https://www.energy.gov/articles/department-energy-announces-28-million-develop-ultrahigh-temperature-materials-gas-turbine

[2] https://arpa-e.energy.gov/?q=arpa-e-programs/ultimate