[Japan] Japan’s Agency for Natural Resources and Energy Held a Discussion About Phasing Out Inefficient Coal-Fired Power Plants

On July 3, 2020, the Ministry of Economy, Trade, and Industry (METI) announced its plan to develop specific measures for phasing out inefficient coal-fired power plants by 2030. The announcement was made by Hiroshi Kajiyama, the minister of METI, in a press conference.

Japan’s decision to phase out inefficient coal-fired power plants is described in the 5th Strategic Energy Plan[1] issued in 2018; however, no detailed implementation plans were developed thus far. Minister Kajiyama described the need to develop concrete steps towards phasing out inefficient coal-fired power plants and accelerating the implementation of renewable energy to achieve a decarbonized society while carefully balancing Japan’s energy mix with consideration of limited energy resources to ensure a stable energy supply. The minister said that he had ordered METI’s officials to start discussion to develop the phase out plans by the end of July 2020.

Following this announcement, on July 13, 2020, the Agency for Natural Resources and Energy’s Electricity and Gas Industry Committee held a meeting to discuss specific measures to phase out coal-fired power plants.  The discussion focused on addressing the following topics:

1)   Introduce new regulatory measures in order to phase out inefficient coal-fired power plants

2)   Create new mechanisms to promote the early retirement of inefficient coal-fired power plants while ensuring a stable energy supply

3)   Review the current utilization rules on transmission lines to implement measures to accelerate the expansion of renewable energy, while considering various specific regional conditions.

Currently, coal-fired power generation accounts for 32 percent of Japan’s energy mix and inefficient coal-fired generation accounts for 16 percent of the total. Japan plans to reduce the share of coal-fired power generation to 26 percent by FY 2030. Japan plans to continue supporting the long-term use of coal generation by promoting innovative technologies to enhance the efficiency of coal-fired power plants, including Integrated Coal Gasification Combined Cycle (IGCC), Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC), and Carbon Capture Utilization and Storage (CCUS). [2] [3] [4]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.

The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] https://www.meti.go.jp/speeches/kaiken/2020/20200703001.html

[3] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/pdf/026_03_00.pdf

[4] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/026.html

[Japan] J-Power Consolidates its Thermal Power Generation and Service under J-POWER Generation Service

Tokyo-based Japanese power producer J-Power announced on June 25, 2020, that it will transfer the operation of its thermal power generation plants to JPEC (Headquarters: Tokyo).[1] JPEC is J-Power’s wholly owned subsidiary that provides construction and maintenance services for power generation equipment.[2] JEPC will be renamed J-POWER Generation Service to reflect this change.

Since 2004, J-Power and JPEC have shared responsibility of operations and maintenance (O&M) of thermal power plants. However, in response to the rising competition introduced by the deregulation of the electricity market, J-Power plans to streamline its businesses to improve efficiency and reduce the cost of O&M by consolidating O&M under J-POWER Generation Service. In the long term, J-Power plans to strengthen its investment in renewable energy and overseas business development.

Starting in August 2020, the O&M for seven of J-Power’s Thermal Power Plants will be managed by J-POWER Generation Service. J-Power will integrate its Thermal Power Generation Department and Thermal Power Construction Department into the Thermal Energy Department, which will be responsible for developing the company’s strategy for thermal generation and maintaining and improving the thermal generation technology. J-Power will continue to be responsible for fuel supply and electricity sales. [3]

[1] https://www.jpec.co.jp/company/index.html

[2] https://www.jpec.co.jp/service/index.html

[3] https://www.jpower.co.jp/news_release/2020/06/news200625_4.html

[USA] Report: U.S. grid needs updates to handle projected EV growth

In a new report released on July 29, 2020, the Pacific Northwest National Laboratory (PNNL) in Washington state found that the U.S. energy grid will be able to handle growth in electric vehicle (EV) charging demand until 2028, but after that, the grid will need costly updates or smarter charging to maintain reliability.[1] The report based its analysis on information from the Western Electricity Coordinating Council (WECC), the grid authority west of the Rocky Mountains, because it has commonly agreed-upon data set for a future grid scenario called the WECC 2028. The study is the first to consider medium- and heavy-duty trucks in addition to light-duty trucks. The report’s authors concluded that the current grid could support up to 24 million EVs (including 200,000 medium-duty trucks and 150,000 heavy-duty trucks), which the report predicted the U.S. would reach in 2028. Currently, there are about 1.5 million EVs.

The study looked at two scenarios for how to handle the effect of EVs surpassing this milestone. The first is based on current actions and assumes that most charging sessions will continue to begin at the end of the day, with drivers plugging in and drawing electrons at the same time in the evening. Under this scenario, utilities would need to build new transmission lines and power plants fueled by natural gas to meet demand and keep reliability. The other scenario imagines a system where the battery-filling schedule is coordinated with the needs of the electric grid. This scenario relies on technologies that are in development but have not been tested at scale. Under this scenario, the number of vehicles that the grid can handle more than doubles to 65 million vehicles.

[1] https://www.pnnl.gov/sites/default/files/media/file/EV-AT-SCALE_1_IMPACTS_final.pdf

[USA] Report: APS declares thermal runaway event caused 2019 battery explosion

According to a report released on July 27, 2020, an explosion on April 19, 2019 at Arizona Public Service’s (APS) McMicken Battery Energy Storage System (BESS) facility in Surprise, Arizona was caused by an internal cell failure in a single battery which led to a cascading thermal runaway event[1].[2] The report was written for APS by Davion Hill, a U.S. energy storage leader DNV GL, a Norway-based company that provides advisory and analytics services to the energy industry. The report found that abnormal lithium metal deposits likely led to the internal failure. Contributing factors to the explosion include: a lack of thermal barriers between battery cells, a fire suppression system ill equipped to stop the thermal runaway, a concentration of flammable off-gassing, and a lack of coordination with emergency responders.

The APS report concluded that four issues must be addressed in future BESS installations: barriers to limit cell-to-cell and module-to-module cascading; ventilation and cooling; a combined strategy of fire suppression followed by ventilation and cooling strategies; and response procedures that incorporate system monitoring, the detection of gases, ventilation practices, extinguishing methods, and critical information.

[1] A thermal Runaway occurs in situations where an increase in temperature changes the conditions in a way that causes a further increase in temperature.

[2] https://www.aps.com/en/About/Our-Company/Newsroom/Articles/Equipment-failure-at-McMicken-Battery-Facility

[USA] President Trump to nominate a pair of Democrat and Republican appointees to FERC

On July 27, 2020, the White House announced President Donald Trump’s intention to nominate Democrat Allison Clements and Republican Mark Christie to the Federal Energy Regulatory Commission (FERC).[1] According to the White House, Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004.

The commission is composed of five commissioners who are nominated by the U.S. President and confirmed by the U.S. Senate. No more than three commissioners of one political party may serve on the commission at any given time. As of July 2020, FERC is one commissioner short and has a 3-1 Republican majority. The current members are Chairman Neil Chatterjee (R), Commissioner Bernard McNamee (R), Commissioner James Danly (R), and Commissioner Richard Glick (D). McNamee’s term ended on June 30, 2020, but he has stayed on until a replacement is confirmed. If confirmed by the Senate, Christie will take McNamee’s seat on the commission.

In March 2020, Senate Energy and Natural Resources (ENR) Chair Senator Lisa Murkowski (R-Alaska), and Ranking Member Joe Manchin (D-W. Virginia) expressed frustration with the White House's lack of movement on bringing forward a Democratic nominee along with the nomination of Danly, as is the tradition of nominations to the agency.[2]

[1] https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-appoint-following-individuals-key-administration-posts-072720/

[2] https://www.utilitydive.com/news/senate-confirms-danly-but-manchin-pledges-to-hold-out-for-democratic-ferc/573430/

[Japan] JERA, ADEME Investment SAS, and IDEOL Agreed to Jointly Invest in the Development of Commercial Scale Floating Offshore Wind Projects

JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo)  and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), 100% French state-owned infrastructure investment company ADEME Investment SAS (Headquarters: Angers City, France)[1], and the leading French floating offshore wind technology company IDEOL (Headquarters: La Ciotat, France) announced on June 22, 2020, that they have agreed to establish an investment vehicle that will finance the development and construction phase of several commercial-scale floating offshore wind projects around the world. This includes two upcoming wind farms in Scotland and France, which will use IDEOL’s patented Damping Pool technology. The three parties are in discussion to determine the details of the partnership, including the investment amount.

Offshore wind power generation technologies can generally be divided into  two types: fixed structures connected to the offshore foundations called “bottom-mounted foundations” and “floating-type” structures where the foundation is floating on the sea.[2] Floating-type offshore wind turbines, which can be installed even in deep water, have significant potential to help expand the use of renewable energy in the future. The three companies are therefore trying to better understand floating-type offshore wind power and accelerate its global development through this partnership.[3] [4]

[1] https://www.ademe.fr/en/about-ademe

[2] https://www.nedo.go.jp/news/press/AA5_100970.html

[3] https://www.jera.co.jp/information/20200622_508

[4] https://www.jera.co.jp/english/information/20200622_508

[USA] FERC finalizes updates to PURPA

On July 16, 2020, the Federal Energy Regulatory Commission (FERC) issued a final order in a 3-1 vote to finalize its updates to the Public Utility Regulatory Policies Act (PURPA), a 1978 law to reduce demand and promote greater use of domestic energy and renewable energy.[1] FERC stated that the updates are an effort to preserve competition and give states more flexibility in executing PURPA. One of the biggest changes allows states to set the rates paid to qualifying facilities at a variable wholesale rate rather than a fixed cost, meaning that the price will vary with the markets. Utilities and state regulators have expressed frustrations in the past with paying fixed rates to qualifying facilities, arguing that it prevents more efficient and cost-effective renewable facilities from competing.

FERC also changed how proposed projects qualify for PURPA financing rules, reducing the upper limit for facilities from 20 MW to 5 MW. This essentially means that utilities are no longer obligated to purchase from qualifying renewable facilities above that threshold. Another modification FERC made was to change the one-mile rule to prevent facilities 10 or more miles apart from aggregating as a single project. Facilities under 10 miles apart can still choose whether to aggregate. The change to the one-mile rule is one that Commissioner Richard Glick, who dissented to the other changes, sees as reasonable.

[1] https://www.ferc.gov/news-events/news/ferc-modernizes-purpa-rules-ensure-compliance-reflect-todays-markets

[USA] Microsoft announces first investment from $1 billion climate fund

On July 21, 2020, Microsoft announced its first investment from a $1 billion climate fund aimed at investing in early-stage clean energy technology.[1] Microsoft announced the climate fund in January 2020 to support low-carbon technologies and achieve its goal of becoming “carbon negative”[2] by 2030.[3] The $50 million investment will go to Energy Impact Partners’ (EIP) global platform for innovation of new technologies. EIP is a New York-based investment firm that has served as a link between renewable energy startups and several of the U.S.’s largest utilities, including Southern Company and Xcel Energy. EIP manages about $1.2 billion in assets and has invested in a wide array of technologies such as smart home thermostats and software services for solar and gas pipeline projects. One of its notable investments was Greenlots, an electric vehicle charging software provider that was later sold to Royal Dutch Shell PLC. According to spokespeople for the Microsoft, the company will not take a direct stake in any startups as part of this investment, though it may take advantage of debt or equity if a startup was successful.

[1] https://www.bloomberg.com/news/articles/2020-07-21/microsoft-nike-unilever-announce-global-carbon-neutral-group

[2] “carbon negative” here means that Microsoft plans to reduce their carbon footprint to less than neutral (i.e. removing carbon from the atmosphere)

[3] https://www.microsoft.com/en-us/corporate-responsibility/sustainability/climate-innovation-fund

[USA] Enel Green Power begins construction on 146 MW PV and battery facility

Enel Green Power, an Italian multinational renewable energy corporation with roughly 100 renewable power plants in North America, announced on July 21, 2020 that it began constructing a 146 MW photovoltaic (PV) facility co-located with a 50 MW/75 MWh battery in Texas, its first utility-scale hybrid project in North America.[1] The project is scheduled to be operation by summer 2021. In the press release, CEO of Enel Green Power, Antonio Cammisecra, said, “The Lily solar plus storage project highlights the huge potential of renewable energy growth and represents the future of power generation, which will increasingly be made up by sustainable, flexible plants that provide zero-carbon electricity while boosting grid stability.”

Enel also announced that it plans to deploy an additional 1 GW of battery storage capacity across its renewable projects in the U.S. over the next two years. To achieve this, Enel plans to set up 1 GW of utility-scale wind and solar projects in the U.S. and Canada annually through 2022 and evaluate the potential for co-located storage for each project. According to the company, that storage could provide benefits like bolstering grid reliability and further monetizing energy production.

[1] https://www.enelgreenpower.com/media/press/2020/07/enel-green-power-starts-construction-of-its-first-renewables-storage-project-in-north-america

[Japan] NEDO and the Advanced Hydrogen Energy Chain Association for Technology Development Jointly Conducted the World’s First Global Hydrogen Supply Chain Demonstration Project

On June 25, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) and the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD, Headquarters: Yokohama City, Kanagawa Prefecture)[1] announced that they have conducted the world's first global hydrogen supply chain demonstration project, which transports hydrogen from Brunei Darussalam to Japan. NEDO is Japan’s largest public R&D funding organization specialized in innovative energy technologies. AHEAD was established in 2017 by four Japanese companies: global chemical engineering company Chiyoda (Headquarters: Yokomaha City, Kanagawa Prefecture)[2], Japanese shipping company Nippon Yusen (Headquarters: Tokyo)[3], and two Japanese trading companies, Mitsui & Co (Headquarters: Tokyo)[4] and Mitsubishi (Headquarters: Tokyo).[5] AHEAD is an association that supports hydrogen research in order to accelerate the development of hydrogen supply chains.

The project uses the "organic chemical hydride method" to build the hydrogen supply chain. Methylcyclohexane (MCH) generated in Brunei is transported by sea to Japan. The MCH is then separated into hydrogen and toluene at a dehydrogenation plant located in Kawasaki City, Kanagawa Prefecture. The toluene is then sent back to Brunei’s hydrogeneration plant and processed to re-bond with hydrogen.

The first MCH transportation process was carried out in December 2019. The dehydrogenation plant in Kawasaki City began extracting hydrogen from MCH in April 2020 and has been supplying hydrogen to the gas turbine of the Mizue power plant owned by Toa Oil (Headquarters: Kawasaki City, Kanagawa Prefecture) since May 2020.[6] In June 2020, the project began transporting the toluene processed by the Kawasaki dehydrogenation plant to Brunei. NEDO and the AHEAD will operate the demonstration test until the end of 2020 to evaluate the performance of the hydrogenation/dehydrogenation plant equipment and identify any issues.

NEDO has contributed to the development of hydrogen technology since FY2015. Through this project, NEDO intends to establish a large-scale hydrogen utilization system that can transport hydrogen from overseas and use it for Japan’s hydrogen power generation.[7]

[1] https://www.ahead.or.jp/jp/organization.html

[2] https://www.chiyodacorp.com/jp/about/profile/

[3] https://www.nyk.com/profile/profile/

[4] https://www.mitsui.com/jp/ja/company/outline/profile/index.html

[5] https://www.mitsubishicorp.com/jp/ja/about/profile/

[6] https://www.toaoil.co.jp/company/location.html

[7] https://www.nedo.go.jp/news/press/AA5_101322.html

[USA] D.C. Circuit upholds FERC energy storage order

On July 10, 2020, the U.S. Court of Appeals for the District of Columbia Circuit upheld a 2018 Federal Energy Regulatory Commission (FERC) order, Order No. 841, promoting the participation of energy storage technologies like batteries on the electric grid.[1] The court ruled that the order does not infringe upon states’ authority over distribution systems. Order No. 841 is intended to reduce barriers for energy storage resources (ESR) to access the federal wholesale electricity market. While the order is broadly seen by the storage and clean energy advocates as key to furthering the deployment of energy storage, groups like the National Association of Regulatory Utility Commissioners (NARUC), a national association representing State Public Service Commissioners, argued that the order is an attempt to curtail state authority over the distribution system. Specifically, NARUC argued that certain parts of the order, such as blocking states from making rules to “broadly prohibit” energy storage from participating in federally regulated wholesale markets, are violating states’ authority. The three-judge panel of the court found that FERC is within its legal authority under the Federal Power Act (FPA) to ensure storage rules and practices involving wholesale rates are just and reasonable because the order only regulates matters concerning federal transactions.

[1] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/dc-circuit-upholds-landmark-ferc-order-aimed-at-boosting-energy-storage-59391742

[USA] Biden outlines $2 trillion climate plan

In a speech on July 14, 2020, presidential candidate Joe Biden outlined his climate plan which seeks to invest nearly $2 trillion to boost renewable energy and rebuild infrastructure with the goal of achieving net-zero carbon emissions by 2050.[1] [2] The plan is the second piece of Biden’s new economic agenda (called "Build Back Better") which he first detailed on July 9, 2020.[3] Biden has described the plan as a “one-time” opportunity to reestablish the U.S. as an economic and political leader.

The plan calls for major investments in infrastructure, the auto-industry, transit, buildings, the power sector, housing, innovation, agriculture and conservation, and environmental justice. These investments would include electrifying government-owned vehicle fleets, creating a nationwide network of 500,000 electric vehicle (EV) charging stations, building 1.5 million energy efficient homes, retrofitting 4 million buildings, and decarbonizing electrical generation. Biden’s plan also emphasizes the importance keeping existing carbon-free energy provided by nuclear and hydropower while investing in new technologies like renewable hydrogen and advanced nuclear. According to Biden, the sweeping investments proposed in his plan would spur millions of jobs and would end carbon-based electrical generation by 2035.

[1] https://joebiden.com/clean-energy/

[2] https://www.npr.org/2020/07/14/890814007/biden-outlines-2-trillion-climate-plan

[3] https://joebiden.com/build-back-better/

[USA] 15 states and D.C. announce joint MOU to accelerate bus and truck electrification

In a press release on July 14, 2020 by the Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit association of air quality agencies in the Northeast, governors from 15 states and the mayor of Washington, D.C.[1] announced a memorandum of understanding (MOU) committing to zero-emissions vehicles (ZEV) in 100% of medium- and heavy-duty sales by 2050 and interim target of 30% electric vehicle (EV) sales by 2030.[2][3] Collectively, these states account for nearly 50% of the U.S. economy and about 40% of goods moved by truck (by value).[4] To meet the targets of the MOU, key policies, including the Advanced Clean Truck Rule (California’s  zero-emission commercial truck requirement) and investments in electric vehicle charging infrastructure, are identified in the MOU.

The participating locations will work through NESCAUM’s Multi-State ZEV Task Force to develop a roadmap to increase electric vehicle supply, encourage zero-emission vehicle purchases, and establish a supportive ecosystem comprised of a trained workforce, charging infrastructure, and financing tools. The Multi-State ZEV Task Force’s 2018 action plan focused on light-duty vehicles. Under the MOU, the task force will focus on developing a plan for heavy duty vehicles like trucks and buses in the next six months.

[1] Participating locations: California, Colorado, Connecticut, Washington D.C., Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Vermont

[2] https://www.nescaum.org/about-us/newsroom/#

[3]http://d31hzlhk6di2h5.cloudfront.net/20200714/dc/3a/2b/58/794e750e808dd4a82ae402dd/MHDV_ZEV_MOU_7-14-20.pdf

[4] https://www.nrdc.org/experts/patricio-portillo/15-states-take-historic-action-transportation-pollution

[Japan] Hokuriku Electric Power and JFE Engineering Seeks to Expand the Use of AI-based WinmuSe System to Optimize Dam Operation

On June 12, 2020, Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture) and JFE Engineering, an engineering company headquartered in Tokyo, announced that they had jointly developed an optimal operating system for dams using AI (Artificial Intelligence) technology, which will help increase hydroelectricity power plants’ generation. The system mainly utilizes the WinmuSe, an AI-based water inflow forecasting application developed by JFE Engineering.

The two companies have jointly demonstrated WinmuSe at Rikuden’s Asaida Dam, located in Takayama City, Gifu Prefecture, since FY 2017. Its forecasting function was successfully improved through advanced analysis of large amounts of data related to Asaida Dam’s amount of rainfall and water inflow in past years. The results of the demonstration project showed excellent performance, with a high level of accuracy in forecasting water inflow. The project also confirmed that the system could be expected to increase the generation of hydroelectricity power plants by approximately 5 GWh per year.

Based on the results, Rikuden and JFE Engineering plan to apply the AI-based optimal operating system to other dams in the entire Jinzu River Water System, aiming to maximize their power generation.[1]

[1] http://www.rikuden.co.jp/press/attach/20061201.pdf

[USA] Department of Homeland Security announces plan for securing critical infrastructure against cyberattacks

On July 7, 2020, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), the federal civilian agency responsible for advising critical infrastructure (CI) partners on how to manage industrial control systems (ICS) risk, revealed a five-year plan titled Securing Industrial Control Systems: A Unified Initiative FY 2019–2023 to address the challenges posed by protecting critical infrastructure networks from hackers.[1] ICS is a term used to describe different types of control systems which include the devices, systems, networks, and controls used to operate or automate industrial processes. ICS underpin everything from power grids to oil and gas pipelines. According to CISA, cyberattacks on ICS can "result in significant physical consequences, including loss of life, property damage, and disruption of the essential services and critical functions upon which society relies.” CISA’s plan lays out a four-part initiative to secure ICS against cyber threats. The four parts are: (1) deepen existing partnerships while expanding the scope of activities with the broader ICS community; (2) develop and use technology to mature ICS cyber defense; (3) build “deep data” capabilities to analyze and deliver information the can be used to disrupt cyberattacks; and (4) enable informed and proactive security investments by understanding and anticipating ICS risk.

[1] https://www.cisa.gov/publication/securing-industrial-control-systems

[USA] Sunrun strikes deal to acquire Vivint Solar for $1.46 billion

Sunrun, the largest residential solar company in the U.S., announced on July 6, 2020 that it has struck a deal to acquire residential energy competitor Vivint Solar, the second largest residential solar company in the U.S., for about $1.46 billion in an all-stock deal, a type acquisition where shareholders of the acquired company receive shares in the acquiring company as payment rather than cash.[1] Sunrun offers energy storage and grid services, working directly with utilities and grid operators. Vivint targets customers through direct-to-home sales which eases customer access to services and drives product purchases. Sunrun shareholders will hold about 64% of the combined company. The deal is expected to deliver about $90 million in annual cost savings between the companies. Based on Sunrun’s stock price on July 6, 2020, the combined entity will be valued at approximately $9.2 billion. In a statement regarding the acquisition, Sunrun said, "We expect to benefit from efficiencies in large scale project finance capital raising activities and are excited about the opportunity to build an even stronger and more recognizable consumer brand in residential energy services.”

[1] https://investors.sunrun.com/news-events/press-releases/detail/207/sunrun-announces-definitive-agreement-to-acquire-vivint

[USA] Duke and Dominion cancel Atlantic Coast Pipeline amid ongoing legal battles

On July 5, 2020, Duke Energy and Dominion Energy announced that they are cancelling the Atlantic Coast Pipeline—originally slated to run 600 miles from West Virginia to eastern North Carolina to provide additional natural gas capacity in the region—due to ongoing delays and cost uncertainty.[1][2] The Atlantic Coast Pipeline project has run into several legal challenges which has increased cost estimates from $4.5 billion to $8 billion. In June 2020, the Supreme Court ruled 7-2 overturning a lower court’s decision to block the pipeline from crossing beneath the Appalachian Trail, a protected national scenic trail overseen by the U.S. Forest Service. Despite this win, Duke and Dominion pointed to other legal battles as barriers to the project. In particular, the U.S. District Court for the District of Montana decision to overturn federal permit authority for waterbody and wetland crossings and a Ninth Circuit ruling on May 28, 2020 are stated as major concerns.

In addition to the announcement regarding the Atlantic Coast Pipeline, Dominion announced the sale of its natural gas transmission and storage assets to a Berkshire Hathaway affiliate for $9.7 billion.[3] However, this sale does not include Dominion's interest in the Atlantic Coast Pipeline.

[1] https://news.duke-energy.com/releases/dominion-energy-and-duke-energy-cancel-the-atlantic-coast-pipeline

[2] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-and-Duke-Energy-Cancel-the-Atlantic-Coast-Pipeline

[3] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-Agrees-to-Sell-Gas-Transmission-Storage-Assets-to-Berkshire-Hathaway-Energy-Strategic-Repositioning-Toward-Pure-Play-State-Regulated-Sustainability-Focused-Utility-Operations

[Japan] Japan Business Federation Launched the Challenge Zero Project

Amid concerns about climate change, the Japan Business Federation, also known as Keidanren, announced on June 8, 2020 that it had launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Keidanren is an economic organization that represents a membership comprised of 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).

The Challenge Zero Project has been endorsed by over 130 participating companies and groups, ranging from energy companies and utilities to manufacturers, financial institutions, and retailers. Among them, some Japanese utilities and energy producers are part of the project: Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Prefecture), and Electric Power Development Company (J-POWER, Headquarters: Tokyo).[1]

Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges. Challenges are different for each member, such as developing CO2 utilization technology, improving the efficiency of reusing Electric Vehicles’ (EV) batteries, etc.[2] Keidaren and participating entities aim to contribute to CO2 emission reductions by addressing these challenges.[3] [4]

[1] https://www.challenge-zero.jp/jp/member/

[2] https://www.challenge-zero.jp/jp/casestudy/

[3] https://www.keidanren.or.jp/policy/2020/052.html

[4] https://www.challenge-zero.jp/jp/about/

[Japan] The Japanese Cabinet Approved the FY 2019 Annual Report on Energy (Japan’s Energy White Paper 2020)

On June 5, 2020, the Japanese Cabinet approved the Fiscal Year 2019 Annual Report on Energy, known as “Japan’s Energy White Paper 2020”, which was created by the Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI). In accordance with Article 11 of the Basic Act on Energy Policy (Act No. 71 of 2002), ANRE publishes and submits the white paper to the National Diet on an annual basis. It highlights the current energy trends in domestic and global markets, and provides a general overview of the major initiatives that were implemented in the previous fiscal year.

The FY 2019 Japan’s Energy White Paper emphasizes the following areas:

· The progress of the recovery and reconstruction in Fukushima Prefecture, such as supporting the victims of the nuclear accident, cleaning up contaminated water, and decommissioning of the Fukushima Daiichi Nuclear Power Plant

· Japan’s measures to strengthen the resilience of the energy infrastructure to the potential risks of damage by natural disasters, such as improving regional power networks

· Japan’s implementation of global warming countermeasures in accordance with the Paris Agreement

The White Paper also discusses the impact of COVID-19 on the global oil market and highlights the importance of ensuring a stable international crude oil market. In addition, it compares the current progress and situation of Japan’s CO2 emission reduction efforts to meet greenhouse gas reduction targets with the progress made by the European Union (EU) and other major countries, including the United Kingdom, the United States, France, and Germany. It notes that Japan ranked No. 1 in the G7 reduction rate of demand-based CO2 emissions from 2013 to 2015.[1] [2] [3] [4]

[1] https://www.meti.go.jp/press/2020/06/20200605002/20200605002-2.pdf

[2] https://www.oecd.org/sti/ind/carbondioxideemissionsembodiedininternationaltrade.htm

[3] https://www.meti.go.jp/press/2020/06/20200605002/20200605002.html

[4] https://www.meti.go.jp/english/press/2020/0605_001.html

[USA] House Democrats release new proposal to address climate crisis

On June 20, 2020, Democrats in the House Select Committee on the Climate Crisis released a comprehensive proposal called the Climate Crisis Action Plan which establishes a goal of reaching net-zero greenhouse gas (GHG) emissions in the United States by 2050; directs the president to set ambitious interim targets to meet or exceed that goal; and calls for achieving net-negative GHG emissions after 2050.[1] The report recommends investments in infrastructure; investments in clean energy and decarbonization technologies; and decarbonization of the transportation and electricity sectors. The report does not directly recommend an end to natural gas fracking or coal-fired power. It also leaves the door open for carbon capture technology and nuclear power to play a role in a net zero-carbon grid.

The majority staff for the Select Committee previewed its draft policy recommendations with Energy Innovation: Policy and Technology LLC (Energy Innovation), a nonpartisan think tank. Energy Innovation modelled the emissions reductions and co-benefits from implementing a subset of the Select Committee’s recommendations. According to Energy Innovation, the Select Committee majority staff’s policy recommendations will set the country on a path to achieving net-zero greenhouse gas emissions by 2050.

[1] https://climatecrisis.house.gov/sites/climatecrisis.house.gov/files/Climate%20Crisis%20Action%20Plan.pdf