[USA] U.S. Department of Commerce recommends tariffs on wind tower imports from four countries

On June 30, 2020, the U.S. Department of Commerce announced the results of its antidumping duty and countervailing duty investigations into importers of wind towers from Canada, Indonesia, South Korea (antidumping only), and Vietnam.[1] According to the Department of Commerce, importers of wind towers from these countries sold their products at less than fair value in the United States. Antidumping duties prevent products manufactured overseas from being sold by foreign firms in the U.S. at "less than fair value.” Countervailing duties attempt to offset the subsidies that foreign governments provide for some exporting firms by imposing duties on the goods exported to the U.S. According to the Department of Commerce, the four countries combined accounted for about 76% of all imported utility-scale wind towers in 2019, or about $350 million worth. The Department of Commerce recommended tariffs ranging from roughly 5% (Korean imports) to 66% (Vietnamese imports) of the value of the imports. Those fees would go into effect if the U.S. International Trade Commission decides to support the recommendation in August 2020.

The Department of Commerce investigation stems from a request made in July 2019 by the Wind Tower Trade Coalition (WTTC), which argued that imports were undercutting U.S. producers. However, a majority of the wind industry oppose the request. The American Wind Energy Association (AWEA) has warned that the request would raise the average cost of wind turbines by 10% to 18%.[2]

[1] https://www.trade.gov/press-release/us-department-commerce-finds-dumping-and-countervailable-subsidization-imports-0

[2] https://www.awea.org/Awea/media/Resources/Fact%20Sheets/AWEA_Tariffs-Put-Jobs-at-Risk-FINAL.pdf

[USA] Dominion announces successful installation of 2nd offshore wind farm in United States

Dominion Energy announced on June 29, 2020 that it has successfully installed its two turbine, 12-megawatt Coastal Virginia Offshore Wind (CVOW) pilot project 27 miles off Virginia Beach.[1] The CVOW pilot project is the first offshore wind farm to be installed in federal waters and is the second offshore wind farm in the United States. The CVOW pilot project—engineered and constructed by the world's largest offshore wind developer, Ørsted A/S—is currently undergoing testing and is anticipated to come online by the end of summer 2020. According to Dominion, the pilot will provide enough power at peak capacity to power 3,000 homes. The pilot project lays the groundwork for a separate Dominion 2,600-MW proposal which will be built in multiple phases about 30 miles from Virginia Beach starting in 2024 and generate enough power for 650,000 homes. In a statement, Dominion Energy Chairman, President and CEO Thomas F. Farrell, II said, "The construction of these two turbines is a major milestone not only for offshore wind in Virginia but also for offshore wind in the United States.” He also emphasized the importance of the pilot for bringing new clean energy jobs to Virginia, which Virginia Governor Ralph Northam echoed in his own statement.

[1] https://news.dominionenergy.com/2020-06-29-Dominion-Energy-Completes-Construction-of-First-Offshore-Wind-Project-in-U-S-Federal-Waters

[Japan] Tokyo Gas Invested in Floating Wind Power Company Principle Power

Tokyo Gas (Headquarters: Tokyo[1]) announced on May 27, 2020, that it has invested more than 2 billion yen (approximately $18 million)[2] in Principle Power (Headquarters: Emeryville, California, U.S.), a wind power technology developer that owns the WindFloat technology. With its investment, Tokyo Gas has become one of Principle Power’s major shareholders.

WindFloat is a patented technology owned by Principle Power. It is a floating foundation for offshore wind turbines. The technology has achieved high stability in various aquatic environments and is expected to be widely adopted by floating offshore wind projects around the world in the future. It has already been used in some large wind turbine projects in Europe. The introduction of WindFloat technology is expected to drive the implementation of floating offshore wind turbines in Japan, where the availability of shallow seabeds is limited.

Tokyo Gas has been investing in renewable energy sources in Japan and overseas to achieve net-zero CO2 emissions. According to its management vision, Compass 2030, it aims to reach 5GW of renewable power generation capacity by 2030. Investment in Principle Power’s technology is expected to further accelerate this effort.

Takeshi Uchida, President of Tokyo Gas, said, “Our company is working to build up renewable energy sources inside and outside of Japan in order to achieve net-zero CO2 emissions as set forth in our Group Management Vision, “Compass 2030.” Principle Power, with its advanced technology and proven track record in the field of floating offshore wind, which is expected to grow in Europe and in Asia, is an ideal partner for Tokyo Gas, and this investment will give us a good start in promoting floating-type wind power generation projects in Japan and in other parts of the world.” [3] [4]


[1] https://www.tokyo-gas.co.jp/en/aboutus/profile.html

[2] ¥ 1 = $ 0.0092 USD. Based on the exchange rate as of June 4, 2020.

[3] https://www.tokyo-gas.co.jp/Press/20200527-01.html

[4] https://www.tokyo-gas.co.jp/Press_e/20200527-01e.pdf

[Japan] Kyushu Electric Power Group Acquired Geothermal Company Thermochem and PT. Thermochem Indonesia

Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[1]) announced on June 1, 2020, that Kyuden International Corporation[2] and West Japan Engineering Consultants[3], which are both subsidiaries of Kyuden, have concluded a share purchase agreement for the acquisition of Thermochem and PT. Thermochem Indonesia (Collectively “Thermochem”). The two companies, based in the U.S. and Indonesia respectively, offer geothermal technical and consulting services.[4]

Thermochem has contributed to the implementation of flow measurement and testing services during the well-drilling work at the Sarulla Geothermal Independent Power Producer (IPP) project in Indonesia. Kyuden has participated in this project, which is one of the largest geothermal IPP projects in the world. Thermochem has a strong reputation among geothermal developers and operators worldwide for its advanced technical capabilities and knowledge.

This is the first time that Kyuden Group has independently acquired an overseas business. Leveraging Termochem’s knowledge and experience, Kyuden will continue to expand its geothermal power generation business. Based on the Kyuden Group Management Vision 2030, the Kyuden Group plans to contribute to the development of renewable energy and a sustainable society by acquiring equity ownership of 5 GW of overseas electricity generation businesses. [5] [6]

[1] https://www.kyuden.co.jp/english_company_outline_index.html

[2] https://www.kyuden-intl.co.jp/en/company/

[3] https://www.wjec.co.jp/company/location.html

[4] https://www.kyuden.co.jp/var/rev0/0243/8936/12fkcd49.pdf

[5] http://www.kyuden.co.jp/press_h200601b-1.html

[6] https://www.kyuden.co.jp/var/rev0/0243/8935/bj2rx941.pdf

[Japan] Japan’s Ministry of Economy, Trade, and Industry Issued an Interim Report on the Post-2020 Infrastructure Systems Export Strategy

On May 21, 2020, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that the Roundtable Panel for the Post-2020 Infrastructure Systems Export Strategy had published its interim report. The interim report includes the results of discussions from the two sessions held by the panel on April 24, 2020 and May 11, 2020. The panel discussed Japan’s current position in the global market. The panel also discussed strategies for promoting the export of electricity and energy infrastructure systems moving forward, considering the global economy, environmental issues, and the new challenges introduced by COVID-19. The panel consists of members from industry, government, and experts in the fields.

The report noted that access to a stable electricity supply is increasing in global importance. In the short-term, the outbreak of COVID-19 has accelerated the digitalization of society as more people work remotely and rely on online services, which has increased the demand for electricity. In the medium to long term, the electricity demand will continue to grow primarily in the Asia Pacific due to regional population and economic growth.

There will be a shift to renewable energy and distributed energy resources globally. However, it is expected that many emerging countries will continue to rely on fossil fuels to meet their electricity demand. The report also noted that the market environment for sustainable energy solutions will become increasingly competitive as the interest in SDGs (Sustainable Development Goals) rises. 

Recognizing the increasing competition in the global market, the report provided a potential approach for the Japanese government and industry to support energy and electricity infrastructure systems exports. It addressed the importance of strengthening public and private partnerships in order to put forward projects that cater towards each country’s energy and sustainability goals in terms of technology solutions, infrastructure, capacity building, and financing. The report recommends that Japanese industry members should accelerate their renewable energy systems exports and focus on Japan’s competitive areas, such as offshore wind and consumer energy solutions. The report also identified other potential areas for opportunities, including hydrogen utilization, CCS (Carbon Capture and Storage), energy efficiency, and advanced coal fired technologies.[1] [2] [3]

[1] https://www.meti.go.jp/press/2020/05/20200521001/20200521001-1.pdf

[2] https://www.meti.go.jp/press/2020/05/20200521001/20200521001.html

[3] https://www.meti.go.jp/english/press/2020/0521_003.html

[USA] West Coast utilities propose charging stations for electric trucks along I-5 and connected highways

In a report issued on June 17, 2020 through the West Coast Clean Transit Corridor Initiative, nine West Coast utilities and two agencies representing 24 municipal utilities[1] have recommended electric-charging stations for trucks every 50 miles along Interstate 5 (I-5) and connecting highways.[2] [3] According to the report, the first phase would build 27 sites along I-5 for medium-duty electric vehicles (EVs) by 2025. By 2030, 14 of those charging sites would be expanded to also accommodate heavy duty EVs. The report says that by 2030, 8% of all trucks on the road in California are expected to be electric. Sixteen of the sites will be in California, five in Oregon, and six in Washington. The report found that the plan could take years because rural areas do not have the generating capacity for charging medium-duty EVs and no rural area along I-5 can serve heavy-duty EVs so infrastructure to provide these services have to be built. However, most utilities in urban areas have the ability offer medium-duty EV charging.

The report recommends expanding state, federal, or private programs that provide funding for electrification. Several utilities in California like Pacific Gas & Electric Company (PG&E) and Southern California Edison (SCE) have programs that support the adoption of electric trucks, but more support will be needed for the report’s recommended infrastructure.

[1] Los Angeles Department of Water & Power (LADWP), Northern California Power Agency (NCPA), Pacific Gas and Electric Company (PG&E), Pacific Power, Portland General Electric (PGE), Puget Sound Energy (PSE), Sacramento Municipal Utility District (SMUD), San Diego Gas & Electric (SDG&E), Seattle City Light (SCL), Southern California Edison (SCE), and Southern California Public Power Authority (SCPPA)

[2] https://westcoastcleantransit.com/resources/WestCoastCleanTransitNewsRelease-Website.pdf

[3] https://www.westcoastcleantransit.com/#resources-section

[USA] FERC issues white paper considering incentives for voluntary cybersecurity investments

On June 18, 2020, the Federal Energy Regulatory Commission (FERC) released a white paper on transmission incentives for utilities making cybersecurity enhancements to the electric grid.[1] The white paper asks stakeholders to address a variety of questions, including whether a project- specific return on equity (ROE) for voluntarily employing cybersecurity enhancements is enough to incentivize investments that exceed the requirements of the Critical Infrastructure Protection (CIP) Reliability Standards. For non-ROE incentives, the white paper proposes that cybersecurity investments be eligible for Construction Work in Progress, recovery of abandoned plant costs, and accelerated depreciation which are the same incentives offered under FERC’s electric transmission incentives policy. Construction Work in Progress incentives allow a party to record the current costs related to long-term projects. Recovery of abandoned plant costs is the ability of an entity to recover costs if the project is canceled for reasons beyond the entity's control. Accelerated depreciation allows for greater tax deductions in the early years of an asset. The white paper requests comments on the paper within 60 days and reply comments within 75 days.

[1] https://www.ferc.gov/sites/default/files/2020-06/notice-cybersecurity.pdf

[USA] Report: U.S. local governments signed 335 renewable energy deals since 2015

According to data released on June 17, 2020 from the Local Government Renewables Action Tracker, local governments have signed 335 deals to procure 8.28 gigawatts (GW) of renewable energy in the last five years.[1] [2] That figure is more than the total combined energy generation capacity of Alaska, Hawaii, Rhode Island, and Vermont. A few of the largest deals from the last five years include a 50 MW solar deal by Sanford, Maine, and a 100 MW deal by Cincinnati, Ohio. The Local Government Renewables Action Tracker was created by the American Cities Climate Challenge Renewables Accelerator, an initiative that supports Bloomberg Philanthropy’s cities renewable program, to show and support the growing shift by local governments toward clean energy. The tracker has two primary components: a transaction map that shows all renewable energy transaction implemented by local governments from January 1, 2015 to March 31, 2020; and an engagement map that details the efforts those governments have made to advance their renewable goals.

[1] https://www.wri.org/news/2020/06/release-us-local-governments-lead-way-clean-energy-transition

[2] https://cityrenewables.org/local-government-renewables-action-tracker/

[USA] Vectren Energy announces plans to reduce coal mix 78% to 12% by 2025

On June 15, 2020, Vectren Energy, a subsidiary of CenterPoint Energy based in Indiana and parts of Ohio, announced it would retire 730 MW of coal by 2030 which would bring its resource mix to 12% coal-fired power by 2025.[1] As of 2020, the utility’s generation portfolio is 78% coal. Under Vectren’s preferred integrated resource plan (IRP), which is based on an all-resource request for proposals, the utility would add 700 MW to 1000 MW of solar+storage, 300 MW of wind, 30 MW of demand response resources and 460 MW of combustion turbine natural gas plants. In total, the mix would be 64% renewable energy plus demand response by 2025. According to Vectren, the proposed plan is expected to reduce greenhouse gas emissions (GHG) 75% below 2005 levels by 2035 and save customers up to $320 million over the next 20 years.

In recent years, the utility has been under pressure from state legislators to keep Indiana coal online. In 2019, Indiana lawmakers proposed legislation that would place a moratorium on new resources in the state in order to protect coal-fired power from getting replaced.[2] Though the bill failed in the 2019 legislative session, in early 2020 lawmakers passed House Bill 1414 which makes coal plants in the state more difficult to retire.[3] Vectren’s new plan, though, bucks these pressures.

[1] https://www.centerpointenergy.com/en-us/corporate/about-us/news/1348

[2] http://iga.in.gov/documents/b14c355b

[3] https://legiscan.com/IN/bill/HB1414/2020

[USA] Supreme Court reverses lower court decision, allows construction on Atlantic Coast Pipeline

On June 15, 2020, the Supreme Court issued a 7-2 ruling reversing a lower court decision on Atlantic Coast Pipeline LLC v. Cowpasture River Preservation Association which stopped construction on the $7.4 billion, 600-mile Atlantic Coast Pipeline (ACP) owned by Duke Energy and Dominion Energy.[1] The Supreme Court ruling gives the U.S. Forest Service, an agency of the U.S. Department of Agriculture that administers U.S. national forests and grasslands, the authority to grant the ACP developers right of way on the project because it goes over 600 feet underground across a portion of the Appalachian Trail, which is part of the National Park System. This does not necessarily mean that the U.S. Forest Service will approve the project. Critics of the pipeline say that the pipeline still has other hurdles in its path and the decision is not a definitive greenlight for the project. However, both utilities issued statements that the ruling is "an affirmation for the Atlantic Coast Pipeline."

The Supreme Court ruling will also affect the Mountain Valley Pipeline, a 303-mile project running from West Virginia to southern Virginia by crossing the Jefferson National Forest.[2] Construction on the nearly completed project was previously halted due to the Atlantic Coast Pipeline case.

[1] https://www.scotusblog.com/case-files/cases/atlantic-coast-pipeline-llc-v-cowpasture-river-preservation-association/

[2] https://www.mountainvalleypipeline.info/

[USA] Minnesota Power energizes Great Northern Transmission Line

On June 11, 2020, Minnesota Power, the state’s second largest investor-owned utility, energized its 224-mile, 500 kV transmission line, Great Northern Transmission Line (GNTL), that will bring the utility to 50% renewable energy in 2021.[1] The GNTL brings 250 MW of hydropower from Manitoba, Canada to Northern Minnesota and was completed in February 2020. With the GNTL energized and connected to Manitoba Hydro’s Manitoba Minnesota Transmission Project, the utilities now have a unique “mechanism that quickly balances energy supply and demand in Minnesota and Manitoba" which enables the utilities to use wind power more effectively. The utility first filed permits for the project in 2014. This is a big shift for Minnesota Power which generated most of its power from coal in the early 2000s.[2] Now, the only coal units in the utility’s portfolio are Boswell Energy Center’s 355 MW and 585 MW units 3 and 4, respectively.

[1]https://minnesotapower.blob.core.windows.net/content/Content/Documents/Company/PressReleases/2020/20200611_NewsRelease.pdf

[2] https://www.mnpower.com/Company/Generation

[USA] DOE announces $11 billion in energy cost-savings from Better Buildings Initiative partners

On June 9, 2020, the U.S. Department of Energy (DOE) announced the roughly 950 public and private sector organizations in DOE’s Better Buildings Initiative have reached nearly $11 billion in energy-cost saving.[1] [2] Better Buildings Initiative partners have also saved nearly 1.8 quadrillion British thermal units of energy (Btu), which is equivalent to the electricity consumption of 27 million homes in one year. Partners represent 32 of America’s Fortune 100 companies, 12 of the top 25 U.S. employers, 12% of the U.S. manufacturing energy footprint, and 13% of U.S. commercial building space. Of these partners, 20 reached their energy efficiency goals in the past year, including Bank of America, Michigan State University, and University of Utah. Other partners like Iron Mountain and Kohl’s Department Stores have previously reached their energy efficiency goals and have set new ones.

DOE’s Office of Energy Efficiency and Renewable Energy also announced four new Better Buildings efforts: the Better Buildings Workforce Accelerator, the Better Buildings Sustainable Corrections Infrastructure Accelerator, the Integrated Lighting Campaign, and the Building Envelope Campaign.[3] [4] [5] [6] These new programs aim to increase energy productivity, encourage investments in renewable energy and energy storage in public facilities, integrate advanced lighting controls in buildings, and help building owners and managers develop more energy-efficient building materials.

[1] https://www.energy.gov/articles/doe-announces-11-billion-energy-cost-savings-better-buildings-initiative-partners

[2]https://betterbuildingssolutioncenter.energy.gov/sites/default/files/attachments/DOE_BBI_2020_Progress_Report.pdf

[3] https://betterbuildingssolutioncenter.energy.gov/accelerators/workforce

[4] https://betterbuildingssolutioncenter.energy.gov/accelerators/corrections-infrastructure

[5] https://betterbuildingssolutioncenter.energy.gov/alliance/technology-campaigns/integrated-lighting-campaign

[6] https://betterbuildingssolutioncenter.energy.gov/alliance/technology-campaigns/building-envelope-campaign

[USA] Alabama regulators approve Southern Company’s request for nearly 2 GW of natural gas

On June 9, 2020, the Alabama Public Service Commission (PSC) unanimously voted to authorize Southern Company to buy, build, or contract for nearly 2 GW of natural gas resources to guarantee system resilience.[1] Previously, Alabama Power, a Southern Company subsidiary, had announced that it is switching from a summer-peaking to a winter-peaking system, and proposed several expansions in solar, energy efficiency, and natural gas for a total of about $1.1 billion. According to Alabama Power, the additions are part of a nearly 20% fleet capacity increase necessary for resilience. In addition to the approval of natural gas, about 200 MW of energy efficiency programs were approved. However, regulators did not approve the five proposed solar-plus-storage projects, stating that those resource additions should be considered on a separate docket not focused on resiliency.

The decision not to include solar-plus-storage has received backlash from environmental groups who claim that the solar-plus-storage projects would have saved customers more. According to Docket participants from Energy Alabama and the Southern Environmental Law Center, an environmental advocacy group and an environmental public interest law firm, respectively, Alabama Power’s analysis showed solar-plus-storage options were the least costly solution.[2]

[1] https://www.youtube.com/watch?v=XNRjWy1IgJo

[2] https://www.southernenvironment.org/news-and-press/press-releases/psc-approves-alabama-powers-1-billion-gas-expansion

[USA] FERC prohibits pipeline construction until legal issues are resolved

On June 10, 2020, the Federal Energy Regulatory Commission (FERC) issued an order prohibiting natural gas pipeline developers from beginning construction on a project until regulators act on rehearing requests.[1] The order partly addresses the issues raised during the D.C. Circuit Court of Appeals’ April 2020 en banc hearing, a hearing held in front all the judges in court, in Allegheny Defense Project v. FERC, which regards the Atlantic Sunrise Pipeline project to expand existing pipelines.[2] Under the Natural Gas Act (NGA), litigation is prevented until FERC makes a ruling on requests for rehearing, but FERC is capable of delaying those requests through tolling orders. Petitioners argued that the commission has been delaying requests for rehearing indefinitely while also allowing construction on pipeline projects to proceed. Critics say this practice has led to a legal purgatory of opposition to critical orders on wholesale markets which favors pipeline developers. FERC Commissioner Richard Glick dissented in part to the order, stating that although the order is a good first move, it does not address concerns that pipeline developers can still begin to condemn private land through eminent domain before the landowner is able to challenge the developer's ability to do so.[3]

[1] https://www.ferc.gov/CalendarFiles/20200609181333-RM20-15-000.pdf

[2] https://www.ferc.gov/legal/court-cases/briefs/2020/DC17-1098etalAlleghenyDefenseProject.pdf

[3] https://www.ferc.gov/media/statements-speeches/glick/2020/06-09-20-glick.asp#.XuKfvjpKg2y

[Japan] Toshiba Energy Systems & Solutions and Chubu Electric Power Announced the Construction of the Double-Flash Geothermal Power Plant in Gifu Prefecture

On May 13, 2020, Toshiba Energy Systems & Solutions (Headquarters: Kawasaki City, Kanagawa Prefecture) announced that Nakao Geothermal Power Generation Corporation (Nakao Geothermal, Headquarters: Takayama City, Gifu Prefecture) will build a double-flash geothermal power plant in Takayama City, Gifu Prefecture.[1] Nakao Geothermal was jointly established in 2013 by Toshiba Energy Systems & Solutions, a subsidiary of Toshiba (Headquarters: Tokyo)[2] that offers energy business products and services [3], and Cenergy, a subsidiary of Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture). Toshiba Energy Systems & Solutions owns 55 percent of shares of Nakao Geothermal, and Chuden owns 45 percent of share of it.

The construction of the Nakao Geothermal Power Plant is scheduled to begin in September 2020, and it is expected to begin commercial operations in late 2021. It is the first time for Toshiba and Chuden to cooperate to build a geothermal power plant. The maximum capacity of the power plant is expected to be 1,998 kW, and all of the generated electricity will be sold to Chubu Electric Power Grid (Chuden Power Grid, Headquarters: Nagoya City, Aichi Prefecture)[4] to supply approximately 4,000 households.

The plant will adopt the double-flash method, which is about 20% more efficient than the general single flash method. It will be the world’s smallest geothermal power plant using this method. The Okuhida Onsengo Nakao district where the plant will be constructed is famous for its hot springs and the hot temperature of its steam, which makes it suitable for geothermal generation.[5]

[1] https://www.toshiba-energy.com/info/info2020_0513.htm

[2] https://www.toshiba.co.jp/about/profi_j.htm

[3] https://www.toshiba-energy.com/company/about.htm

[4] https://powergrid.chuden.co.jp/corporate/company/com_outline/

[5] https://www.toshiba-energy.com/info/info2020_0513.htm

[Japan] Tokyo Electric Power Company Holdings, NTT, Hitachi, and Ricoh Established a Consortium to Promote the Utilization of Electric Vehicles

On May 11, 2020, Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo)[1], Hitachi (Headquarters: Tokyo)[2], and Ricoh (Headquarters: Tokyo) announced that they have established the “Electric Vehicle Utilization Consortium” to promote the use of Electric Vehicles (EV) in the commercial sector.

TEPCO’s partners come from a wide range of industries: NTT is a Japanese telecommunication company, Hitachi is an electric manufacturing company that offers a range of electronics and industrial equipment, and Ricoh is an imaging and electronics company that produces and distributes printing equipment. The consortium is endorsed by a total of forty companies, ranging from the automotive industry to electric utilities, such as Toyota Motor (Toyota, Headquarters: Toyota City), Toshiba (Headquarters: Tokyo)[3], and Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[4]).[5]

Amid concerns about climate change, companies and organizations are required to take actions to realize a decarbonized society. In Japan, the transportation sector accounts for approximately 20% of Japan’s CO2 emissions, however, EVs are expected to contribute to CO2 emission reductions. EVs can also be utilized to strengthen the resilience of electricity infrastructure during a disaster, when they are used for battery storage.

With the launch of the Electric Vehicle Utilization Consortium, the forty members will work together to promote the implementation of EVs in the commercial sector through standardization, information sharing, and resolving implementation barriers, in order to achieve the United Nations’ (UN) Sustainable Development Goals (SDGs).[6]

[1] https://www.ntt.co.jp/about/gaiyou.html

[2] https://www.hitachi.com/corporate/about/hitachi/index.html

[3] https://www.toshiba.co.jp/about/profi_j.htm

[4] https://www.kyuden.co.jp/english_company_outline_index.html

[5] https://www.tepco.co.jp/press/release/2020/pdf2/200511j0101.pdf

[6] https://www.tepco.co.jp/press/release/2020/1541025_8710.html

[USA] Businesses, lawmakers urge federal investment and support of the clean energy sector

On June 2, 2020, two unrelated groups sent letters to Congressional leaders and lawmakers urging the government to increase support for the clean energy industry in the wake of the COVID-19 pandemic. In the first letter, 57 Democratic Senators and Representatives, led by Sen. Martin Heinrich, D-N.M., called for “additional flexibility” for energy tax credits in order to support the clean energy sector and work force.[1] According to the letter, the clean energy sector has seen a 17.4% decline in employment—nearly 600,000 jobs—compared to the April 2020 national unemployment rate of 14.7%.

The second letter included about 80 companies and organizations and proposed federal appropriations of $22 billion over five years to retrofit critical public facilities.[2] The group has also proposed $18 billion for state and local public buildings through the federal State Energy Program over five years, $2.5 billion for improvements to federal buildings through the Federal Energy Efficiency Fund, and $1.5 billion for energy efficiency improvements in public housing. The funding would go toward a range of efficiency and resilience measures. The letter claims that the federal funding could help leverage an estimated private investment of $88 billion to deliver a total of $110 billion in economic activity. Organizations signed on to the letter include: ConEdison Solutions, Constellation, DuPont Specialty Products USA, FPL Energy Services, Greentech Energy, Schneider Electric, Siemens Corporation USA, and the Sheet Metal and Air Conditioning Contractors National Association.

[1] https://www.heinrich.senate.gov/press-releases/heinrich-tonko-lead-bicameral-call-for-inclusion-of-clean-energy-workforce-support-in-covid-19-economic-recovery-packages

[2] https://www.documentcloud.org/documents/6935575-Mission-Critical-Facility-Renewal-Letter-to.html

[USA] DOE to provide $30 million to develop small-scale solid oxide fuel cell systems and hybrid energy systems

On May 29, 2020, the U.S. Department of Energy’s (DOE’s) Office of Fossil Energy (FE) announced up to $30 million in funding for cost-shared research and development projects for Small-Scale Solid Oxide Fuel Cell Systems and Hybrid Energy Systems.[1] The new funding supports the development of technologies that can advance the present state of small-scale solid oxide fuel cells (SOFC) hybrid systems, which produce electricity directly from oxidizing a fuel, using solid oxide electrolyzer cell (SOEC) technologies. The development of advanced technologies will increase the commercial readiness of hydrogen production and power generation. The funding will solicit applications for multiple areas of interest, corresponding to the research outline in DOE’s 2019 Congress report, Report on the Status of the Solid Oxide Fuel Cell Program.[2] The three primary areas of interest are small-scale distributed power generation SOFC systems, hybrid systems using solid oxide systems for hydrogen and electricity production, and cleaning process for coal-derived syngas to be used as SOFC fuel.

[1] https://www.energy.gov/articles/doe-provide-30-million-develop-small-scale-solid-oxide-fuel-cell-systems-and-hybrid-energy

[2] https://www.energy.gov/fe/report-congress-status-solid-oxide-fuel-cell-program

[USA] Energy efficiency continues to be cheaper than natural gas

According to new research released by the U.S. Department of Energy’s (DOE) Lawrence Berkley National Laboratory on May 13, 2020, natural gas energy efficiency programs through utilities saved energy at a cost of about $0.40/therm (1 therm is equal to 100,000 Btu) from 2012 to 2017.[1] [2] Compared to natural gas—which averaged about $1/therm—energy efficiency programs are significantly cheaper. Researchers also found that commercial and industrial (C&I) programs had the lowest savings-weighted average cost of gas savings ($0.18/therm) during the study period. However, C&I programs represented only about 20% of overall efficiency program spending. For residential and low-income program savings costs were $0.43/therm and $1.47/therm, respectively. Savings costs varied widely by geographic region. For instance, savings in the Midwest averaged $0.29/therm while in the West saving averaged $0.59/therm. The study says this is likely due to higher spending on low-income programs in the West, as well as differences in savings opportunities between cold and temperate regions.

In response to the study, many efficiency advocates claim there are even more savings to be had through the electrification of end-uses, but the study did not consider this in their analysis. Additionally, efficiency advocates say the natural gas industry may be building unnecessary infrastructure; the Natural Resources Defense Council says around 90% of proposed gas power plants and their respective pipelines will likely be unnecessary by 2035.[3]

[1] https://emp.lbl.gov/news/energy-efficiency-continues-be-cheaper

[2] https://eta-publications.lbl.gov/sites/default/files/cose_natural_gas_final_report_20200513.pdf

[3] https://www.nrdc.org/experts/sheryl-carter/energy-efficiency-still-abundant-and-cheaper-gas

[Japan] Kansai Electric Power Began Commercial Operation of Hickory Run Thermal Power Plant in the U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced on May 18, 2020, that the Hickory Run Thermal Power Plant, located in Pennsylvania State, U.S., has begun its commercial operations. KEPCO, Tyr Energy, and Siemens Financial Services (Headquarters: Munich, Germany)[1] jointly participated in the Hickory Run Thermal Power Plant Project in 2017, carrying out the investment and construction. KEPCO owns a 30 percent of share of the project.[2] Tyr Energy (Headquarters: Overland Park, Kansas) is a subsidiary of ITOCHU (Headquarters: Tokyo), one of the largest Japanese general trading companies[3], and invests in and develops independent power projects.[4]

The Hickory Run Power Plant has adopted a combined cycle gas turbine generation with a capacity of 1,000MW. This is KEPCO’s first green field power project in North America. KEPCO dispatched experienced thermal engineers to the site during the construction stage to ensure the quality and efficiency of the process. The power plant will supply electricity to PJM (Pennsylvania-New Jersey-Maryland), which is the largest wholesale electricity market in North America. Now that the Hickory Run Power Plant is operating, the total capacity of KEPCO’s overseas power projects adds up to 2,606 GW.

Based on its Medium-Term Management Plan, overseas business is one of the important earnings pillars for KEPCO. KEPCO views North America as one of its most important markets, and aims to expand its businesses in the region.[5]

Overview of the Hickory Run Thermal Power Project[6]

(1)    Site: North Beaver Township, Lawrence County, PA, U.S.A.

(2)    Type: Combined Cycle

(3)    Output: 1,000 MW

(4)    Start of Construction: August, 2017

(5)    Commercial Operation: May, 2020

(6)    Project Company: Hickory Run Holdings, LLC

(7)    Project Partners:

-            Kansai Electric Power Group (Kansai):30%

-            ITOCHU Corporation Group (Itochu):50%

-            Siemens Group (Siemens):20%

◇ The Kansai Electric Power Co., Inc.

Establishment: 1951 President and Director: Takashi Morimoto Headquarters: 3-6-16, Nakanoshima, Kita-ku, Osaka, Japan Main Business: Energy generation, heat supply, telecommunications, gas supply, etc.

◇ ITOCHU Corporation

Establishment:1949 Chairman and CEO: Masahiro Okafuji Headquarters: 5-1 Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan Main Business: General trading company dealing in textiles, machinery, metals & minerals, energy & chemicals, food, general products & realty, ICT & financial business, etc.

◇ Siemens AG

Establishment: 1847 President and Chief Executive Officer: Joe Kaeser Headquarters: Munich, Germany Main Business: Building technology, digital factories, energy management, financial services, transportation, etc.

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<Profiles of Project Partners>

<Profiles of Project Partners>

Table 1   KEPCO’s Operating Plants in the U.S.

Table 1 KEPCO’s Operating Plants in the U.S.