[USA] Uber commits to being a zero emissions platform by 2040

On September 8, 2020, Uber, a ride-share company, announced that it is committed to becoming a zero emissions company by 2040. Uber is striving for 100% of its rides to take place in zero-emission vehicles, public transit, and micromobility—small, lightweight vehicles operating at speeds typically below 15 mph (25 km/h).[1] Uber CEO Dara Khosrowshahi detailed four key actions the company will take to meet this goal. First, Uber plans on expanding its Uber Green program, which enables riders to request an EV or hybrid vehicle for an extra $1 per ride, to 15 U.S. and Canadian cities, bringing the total to 52 globally. By the end of 2020, Uber plans on expanding the program to more than 65 cities. Second, the company will commit $800 million in resources to help drivers in the U.S., Canada and Europe transition to electric vehicles (EVs) or hybrid vehicles by 2025. Drivers who transition to EVs or hybrid vehicles will receive up to $1.50 in extra cash per ride. Third, Uber will increase its investments in micromobility and public transit solutions. And lastly, Uber launched its Climate Assessment and Performance Report which analyzes data collected from 4 billion rides between 2017 and 2019 to detail the company’s carbon intensity, the efficiency of its platform compared to personal vehicles or taxis, and the barriers to electrification.

[1] https://www.uber.com/newsroom/driving-a-green-recovery/

[USA] DOE issues order to ramp up generation from gas plants in light of increased demand in California

In light of increased demand due to a massive heatwave, the Department of Energy (DOE) issued an order on September 6, 2020 allowing the California Independent System Operator (CAISO) to dispatch up to 100 MW of additional generation from three plants in the Los Angeles region, if needed, to meet demand through September 13, 2020 between 2 p.m. and 10 p.m. each day.[1] On September 5, 2020, the CAISO issued a Stage 2 emergency[2] after fires took out around 1,600 MW of resources. Another emergency was declared on September 6, 2020 after 260 MW of generation tripped offline and an additional 900 MW of capacity was lost.

The rising demand prompted CAISO to instruct all the generators in its footprint to ramp up to maximum production capacity during specific times of the day. However, the operator of the three natural gas facilities — the El Segundo Energy Center, Walnut Creek Energy Park and Long Beach Generating Station — informed CAISO that it could not hit maximum capability without going above federal air quality. In light of this, CAISO requested that the DOE allow for leeway on environmental and air quality permit limitations for the plants. While the DOE granted this in its order on September 6, 2020, CAISO will have to submit a report to the DOE detailing when the facilities were operated and the estimated emissions that resulted.

[1] https://www.energy.gov/sites/prod/files/2020/09/f78/CAISO%20202c%20Order_1.pdf

[2] Requires ISO intervention in the market, such as ordering power plants online

[Japan] TEPCO Power Grid and Kansai Transmission and Distribution Jointly Launched the Smart Resilience Network

On August 5, 2020, TEPCO Power Grid (Headquarters: Tokyo) and Kansai Transmission and Distribution (Headquarters: Osaka Prefecture) announced that they have jointly launched the Smart Resilience Network, which aims to accelerate the implementation of Distributed Energy Resource (DER) systems to build more a sustainable and resilient energy infrastructure in Japan.

There has been increased pressure in recent years for companies to develop their infrastructure’s resilience to natural disasters, and to reduce their CO2 emissions as a part of their climate change mitigation activities. The Smart Resilience Network will invite partners from industry and academia to participate in data and information exchanges to explore ways to expand the use and applications of DER systems. The Network hopes that DER systems will facilitate the implementation of renewable energy and electrification activities such as the use of EVs in the mobility sector to reduce CO2 emissions. The network will also explore opportunities to use digital technologies, such as IoT and 5G, to integrate DER systems with local infrastructure for improved disaster resiliency and recovery.

TEPCO Power Grid and Kansai Transmission and Distribution see DER systems as potential solutions for accelerating the transition towards a low-carbon society, as well as supporting communities in their efforts to improve their disaster resilience.[1] [2]

[1] https://www.tepco.co.jp/pg/company/press-information/press/2020/1548526_8615.html

[2] https://www.tepco.co.jp/pg/company/press-information/press/2020/pdf/200805j0101.pdf

[Japan] Tokyo Gas America Established a Subsidiary in the U.S. and Acquired the Aktina Solar Project in Texas State

On July 29, 2020, Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas headquartered in Houston City, Texas, announced that it had established the TG Aktina Holdings and its subsidiaries in Delaware, and will purchase the Aktina Solar Project (Aktina Solar) through the TG Aktina Holdings. The acquisition of Aktina Solar was completed on August 5, 2020.

Aktina Solar was developed by a renewable energy development company, Hecate Energy (Headquarters: Chicago, Illinois). The project is located in Wharton County, Texas State. The current installed solar capacity is relatively low in Texas, but it is expected to grow in the future as the state has seen one of the highest GDP growth rate and population growth rates in the U.S., and is suitable for solar energy generation. Atkina Solar marks the first time for Tokyo Gas Group to participate in an overseas solar power generation business from construction to operation. Aktina Solar will start construction in 2020 and will begin commercial operations in 2021. The expected maximum capacity is 630MW.

With the addition of the Aktina Solar Project, Tokyo Gas’ total renewable energy capacity will be over 1,200MW. Based on Tokyo Gas’ Management Vision Compass 2030, Tokyo Gas aims to achieve net-zero CO2 emissions and reach 5GW of renewable power generation capacity by 2030.[1]

[1] https://www.tokyo-gas.co.jp/Press/20200729-03.html

[Japan] JERA unveils 520MW offshore wind project in Japan

On August 24, 2020, JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), announced its plans to construct a 520 MW offshore wind farm in Hokkaido, Japan’s northernmost island.[1] The facility, called the Ishikari Bay Offshore Wind Farm Construction Project, will consist of up to 65 wind turbines and be located at least 2.5 km offshore from the cities of Ishikari and Otaru. The number of turbines may be lower if the power producers choose to go with a more powerful wind turbine. The project will also include the installation of an energy storage system. Once construction begins, the project will take 36 months to complete. According to JERA, the project location presents ideal conditions for bottom-fixed offshore wind power generation because of the favorable wind conditions, shallow seabed, and close connection to the power grid. JERA submitted a Planning Phase Environmental Impact Statement for the project to the Minister of Economy, Trade and Industry (METI). A public review process for the Environmental Impact Statement is now open and will end on September 24, 2020.

[1] https://www.jera.co.jp/english/information/20200824_524

[USA] ESA announces vision for 100 GW of new energy storage

On August 24, 2020, the Energy Storage Association (ESA), the national trade association dedicated to energy storage, announced an expanded vision for energy storage called 100×30: Enabling the Clean Power Transformation which charts a path for the storage industry to deploy 100 GW of new storage by 2030.[1] [2] The vision is informed by market developments and draws inspiration from ESA’s 2017 vision document (35×25: A Vision for Energy Storage). The 100 GW of new energy storage will include technologies like batteries, thermal, mechanical, and pumped storage hydropower. According to the ESA, 100 GW of storage deployment by 2030 would produce 200,000 jobs which is approximately three times current levels. This figure assumes that 100 GW of new storage will lead to 15 GW to 20 GW of annual installations for 2030, at a rate of 10 jobs per MW installed. The 100 GW will also reduce operating costs of the grid and lower customer cost. It will also significantly reduce emissions by enabling greater amounts of clean generation to reliably displace fossil generation

In order to reach the new goal, the ESA says that policy support is key. At the federal level, ESA points to a combination of increased policy support like investment tax credits (ITCs) for standalone storage facilities and the continuation of emerging policies that remove barriers to market participation. At the state level, ESA says energy storage targets corresponding with renewable portfolio standards will be important tools to ready the grid for increased renewable penetrations.

[1] https://energystorage.org/the-u-s-energy-storage-association-reveals-100x30-vision-for-the-industry/

[2] https://energystorage.org/about-esa/our-plan/100x30-a-vision-for-energy-storage/

[USA] Report: Southeast RTO could generate $384 billion in savings by 2040

According to a new report released by Vibrant Clean Energy on behalf of Energy Innovation on August 25, 2020, establishing a regional transmission organization (RTO), an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid, in the Southeast would generate a cumulative $384 billion in savings by 2040 compared to a business-as-usual scenario.[1] [2] The analysis follows confirmation by utilities like Southern Company and Duke Energy that there are ongoing discussions about forming a Southeast Energy Exchange Market (SEEM). The report did not model a SEEM-based scenario due to a lack of details. Instead, the study presents a scenario where an RTO is established in 2025 to cover seven states that are currently not covered by an RTO or independent system operator (ISO): Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee. The report maps the effects of a Southeastern RTO from 2025 through 2040.

Under this scenario, an RTO would save customers $17.4 billion a year and lead to the retirement of most coal plants and gas peakers in the region by 2040. The report also found that competitive pricing through an RTO would lead to decarbonization without state policies like carbon pricing and renewable energy mandates. On its current course, the region will about 21 GW of new renewables and storage by 2040. However, competitive pricing from a wholesale market could add 131 GW of clean energy: 52 GW solar, 42 GW wind and 37 GW storage.

[1] https://energyinnovation.org/wp-content/uploads/2020/08/Economic-And-Clean-Energy-Benefits-Of-Establishing-A-Southeast-U.S.-Competitive-Wholesale-Electricity-Market_FINAL.pdf

[2] https://energyinnovation.org/publication/economic-and-clean-energy-benefits-of-establishing-a-southeast-u-s-competitive-wholesale-electricity-market/

[USA] California experiences rolling blackouts as heatwave continues

On August 19, 2020, officials from California Independent System Operator (CAISO), the California Public Utilities Commission (CPUC), and the California Energy Commission (CEC) sent a letter to California Governor Gavin Newsom regarding the power outages of August 14 and 15 that were triggered due to insufficient resources.[1] According to the letter, CAISO anticipated high loads and temperatures beginning on August 14, so it issued an order restricting maintenance operations on August 12, an alert identifying a possible system reserve deficiency on August 13, and a Flex Alert[2] for August 14.  However, on the afternoon of August 14, the situation deteriorated due to a developing, historic west-wide heatwave. The imbalance in supply and demand forced utilities to turn off power to their customers during the evening of August 14. On August 15, CAISO experienced similar conditions which led to further shutoffs. In the near term, CAISO expects that energy demand will remain high as the heatwave persists.

CAISO recognized that although the specific situation could not have been predicted, better communications and advance warnings should have been implemented. In their letter, the regulators pointed to capacity shortfalls and California's heavy reliance on importing resources to meet its energy demand in the summer as key factors in the blackouts. The regulators stated that they will need to perform a deep dive into the issue to make sure reliability resources can be available to address unexpected grid conditions.

[1]https://www.cpuc.ca.gov/uploadedFiles/CPUCWebsite/Content/News_Room/NewsUpdates/2020/Joint%20Response%20to%20Governor%20Newsom%20Letter%20August192020.pdf

[2] A Flex Alert is a call for consumers to voluntarily conserve electricity when there is a predicted shortage of energy supply

[USA] Indiana regulators release report on state energy policies and market conditions

The Indiana Utility Regulatory Commission (IURC) delivered a 338-page study to the governor and a legislative task force on August 14, 2020, analyzing a variety of state energy policies and market conditions.[1] The House Enrolled Act 1278 of 2019 directed the IURC to conduct a comprehensive study of the statewide impacts of transitions in the fuel sources and other resources used to generate electricity by electric utilities and new and emerging technologies for the generation of electricity. While the report was overseen by the IURC, the analysis was done by the State Utility Forecasting Group (SUFG), the Lawrence Berkley National Laboratory (LBNL) and a team of Indiana University (IU) researchers.

Among the scenarios analyzed in the report, two considered the cost impact of a moratorium on coal plant retirements. In one, coal plant retirements would be postponed until at least 2025 and in the other, coal plants would run until 2030. In both scenarios, the analysis showed that postponed coal retirements would lead to slightly higher electricity prices. The IURC study also examined the roles of regional transmission organizations (RTOs), utility-integrated resource plans, and how emerging technologies like rooftop solar and electric vehicles (EVs) would affect Indiana's grid. While the report does not make any specific recommendations, it supports the need for flexibility in planning and the continued reliance on utility integrated resource plans (IRPs) that outline how utilities plan to meet energy demand. IRPs are submitted to the IURC every three years and while they are nonbinding, IRPs help guide power plant investment decisions.

[1]https://www.in.gov/iurc/files/2020%20Report%20to%20the%2021st%20Century%20Energy%20Policy%20Development%20Task%20Force.pdf

[USA] Interior Secretary signs a record of decision authorizing ANWR oil and gas leasing program

On August 17, 2020, Interior Secretary David L. Bernhardt signed a Record of Decision (ROD) approving the Coastal Plain Oil and Gas Leasing Program in the Arctic National Wildlife Refuge (ANWR) in Alaska.[1][2] The Tax Cuts and Jobs Act of 2017 (Public Law 115-97), passed by Congress and signed into law in late 2017, directs the Secretary of the Interior, through the Bureau of Land Management (BLM), to establish and administer a leasing program in the 1.46 million-acre Coastal Plain, a section within the 19.3 million-acre ANWR. Secretary Bernhardt’s August decision determines where and under what terms and conditions leasing will occur in the designated area.

The ROD makes the entire Coastal Plain program area available for oil and gas leasing, and for potential future exploration, development and transportation. The program adopted in the ROD also offers protections for surface resources and other uses through an array of lease stipulations that will apply to future oil and gas activities. Approximately 359,400 acres (23% of available lands) will be subject to No Surface Occupancy (NSO)[3] stipulations within barrier islands and important aquatic habitats, and that approximately 721,200 acres (46% of available lands) will be subject to operational timing limitations in the primary calving habitat area for the Porcupine caribou herd.

[1] https://www.doi.gov/pressreleases/secretary-bernhardt-signs-decision-implement-coastal-plain-oil-and-gas-leasing-program

[2]https://eplanning.blm.gov/public_projects/102555/200241580/20024135/250030339/Coastal%20Plain%20Record%20of%20Decision.pdf

[3] NSO prevents surface disturbing activities from occurring in specific areas

[Japan] J-Power Concluded a New Share Subscription Agreement with Australian Renewable Energy Company Genex Power

Tokyo-based Japanese power producer J-Power announced on August 3, 2020 that it had concluded a new share subscription agreement with Genex Power, a renewable energy development company in Sidney City, Australia. Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia.

J-Power’s decision to invest in Genex Power is aligned with its business strategy to expand its renewable energy investments in both Japan and abroad. Australia has abundant renewable energy resources and the share of renewable energy in Australia is expected to increase in the future. The need for services and energy storage technologies is also expected to increase to accommodate higher levels of intermittent renewable energy sources.

J-Power has also signed a Technical Services Agreement with Genex Power to provide technical advice for the construction and operation of the Kidston Pumped Storage Hydro Project (K2-Hydro), located in northern Queensland. J-power will leverage the technical expertise that it has gained from Genex’s experience with pumped storage hydro power plant projects in Japan. Once completed, K2-Hydro is expected to have a capacity of 250MW.[1] [2]

[1] https://www.jpower.co.jp/news_release/2020/08/news200803.html

[2] https://www.jpower.co.jp/english/news_release/pdf/news200803.pdf

[Japan] METI and MLIT Held the First Meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation

On July 17, 2020, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly held the first meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation. In the meeting, the Council members discussed the state of wind power generation utilization in Japan and the potential challenges for expanding offshore wind power generation in the mid- to long-term.

Japan aims to increase the total share of wind energy generation from the current level of approximately 0.7% to 1.7% by 2030 as part of Japan’s 5th Strategic Energy Plan.[1] Under the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, which was enacted in April 2019, METI and MLIT have been making progress in designating sea areas for wind energy projects to achieve this goal.[2]

METI and MLIT established the council to collaborate with industry members to advance the systematic and continuous introduction of offshore wind power generation. The council also seeks to enhance Japan’s industrial competitiveness, build up domestic industrial clusters, and develop the infrastructure environment for the wind power generation industry. The council members consist of Japanese utility companies, including Kyuden Mirai Energy (Headquarters: Fukuoka Prefecture), TEPCO Renewable Power (Headquarters: Tokyo), and other major companies in the manufacturing, construction, and financial sectors.

During the first meeting, the council underscored the importance of enhancing the industrial competitiveness of the offshore wind power sector and reducing costs in order to make offshore wind power one of the main energy sources in Japan. The key measure discussed at the council meeting was to increase the investment in wind power generation. Currently, the lack of certainty in the wind generation market outlook is prohibiting investors from actively engaging in the sector. The council is committed to continue the dialogue with industry members to identify areas for public private collaboration to reduce investment obstacles, and to strengthen infrastructure, R&D, human resources, and public engagement.[3]

[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] Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources aims to promote the utilization of wind power generation through measures such as the formulation of basic policies, designating maritime areas as targets of promotion projects, creating a certification system for plans related to the licensed use of such designated maritime areas.

[3] https://www.meti.go.jp/shingikai/energy_environment/yojo_furyoku/001.html

[USA] EPRI and GTI launch Low-Carbon Resources Initiative

On August 10, 2020, some of the nation’s largest utilities and energy firms launched the Low-Carbon Resources Initiative (LCRI), a $100 million initiative to bring early-stage technologies like clean energy and bioenergy to large-scale deployment in the 2030 to 2050 timeframe.[1][2] This five-year initiative will identify and accelerate development of promising technologies from around the world. Additionally, it will demonstrate and assess the performance of key technologies and identify possible improvements. Lastly, it will inform key stakeholders and the public about technology options and potential pathways to a low-carbon future.

The initiative was organized by the Electric Power Research Institute (EPRI) and the Gas Technology Institute (GTI). EPRI will provide $10 million in seed funding. The initiative's 18 members are American Electric Power; Con Edison; Dominion Energy; Duke Energy; Exelon Corporation; Lincoln Electric System; Los Angeles Department of Water & Power; Missouri River Energy Services; Mitsubishi Hitachi Power Systems, Americas; National Fuel; New York Power Authority; Portland General Electric; PPL Corporation; Salt River Project; SoCalGas; Southern California Edison; Southern Company; and the Tennessee Valley Authority.

[1] https://www.epri.com/lcri

[2] https://www.greencarcongress.com/2020/08/20200811-lcri.html

[USA] Xcel Energy announces vision to serve 1.5M EVs by 2030

On August 12, 2020, Xcel Energy announced a vision to serve 1.5 million electric vehicles (EVs) by 2030, which is a 30-fold increase in EVs across the utility’s eight-state service territory.[1] Xcel energy is planning to deliver 100% carbon-free electricity by 2050. According to the utility, the cleaner mix of generation paired with expanded EV adoption will result in significant customer savings and carbon reductions. If the new vision is realized, Xcel Energy expects 20% of all vehicles in its territories to be replaced by EVs by 2030. These EVs will operate at the equivalent of $1/gallon of gasoline when charged with the utility’s low, off-peak electricity prices. In total, customers will pay $700 less per year to drive an EV than to fuel a gas-powered car, resulting in $1 billion in savings overall. The increase in EVs will reduce carbon emissions by nearly 5 million tons annually by 2030.

The utility has already proposed $300 million in investments in smart charging pilot, fleet infrastructure programs, initiatives to boost public charging and residential subscription plans across Colorado, Minnesota, New Mexico and Wisconsin. However, Xcel Energy has said that it will need the support of policymakers and other stakeholders to make its vision real.

[1] https://www.xcelenergy.com/staticfiles/xe-responsive/Marketing/EV%20Vision%20Brochure.pdf

[USA] FERC report: HV transmission is essential for renewable deployment

On August 7, 2020, the Federal Energy Regulatory Commission (FERC) sent a report, "Report on Barriers and Opportunities for High Voltage Transmission", to Congress addressing strategies for building more high-voltage (HV) transmission lines.[1]  According to the report, HV transmission can improve the reliability and resilience of the transmission system “by allowing utilities to share generating resources, enhance the stability of the existing transmission system, aid with restoration and recovery after an event, and improve frequency response and ancillary services throughout the existing system.” HV voltage transmission also provides greater access to resources that are constrained by location such as wind turbines and offers opportunities to meet policy goals.

However, Commission staff found that while these opportunities exist, there are also barriers to HV transmission development. An example of a challenge pointed to in the report is that the siting of HV transmission requires navigating each state process. Many other authorizations and reviews are required at multiple government levels. It can take over a decade to develop a HV transmission facility that meets mandatory Reliability Standards, maximizes system benefits, and strikes a balance among interested stakeholders. To remedy this, the report suggests that FERC may need to amend its Order 1000, which revised rules on transmission planning, allocating transmission costs, and competitive bidding but has not worked as intended and led to planning paralysis. Amending the order would help overcome hurtles to HV transmission development.

[1] https://cleanenergygrid.org/wp-content/uploads/2020/08/Report-to-Congress-on-High-Voltage-Transmission_17June2020-002.pdf

[Japan] Kansai Electric Power Acquired Shares of a Wind Farm Project in Texas, U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced on July 10, 2020, that KPIC USA, its wholly owned subsidiary, has concluded an agreement with Ares Infrastructure and Power (Headquarters: New York City, New York State, U.S.), an infrastructure and energy investment management company, to acquire 48.5 percent of the shares of Aviator Wind, an onshore wind farm project located in Coke County, Texas State, U.S.

The commercial operation of the Aviator Wind Farm Project (Aviator) is expected to begin in August 2020. Aviator is expected to be equipped with 191 wind turbines and will have a total capacity of 525MW. When it begins its commercial operations, Aviator will be the largest wind project in the U.S. This deal will be the first renewable energy investment by KEPCO in the U.S., and marks KEPCO’s fifth overseas wind power project investment, following two onshore projects and two offshore projects in Europe. Counting Aviator, KEPCO’s total capacity of its overseas renewable energy projects will be 949MW, and its overseas projects will reach a total of 2,861MW.

Based on KEPCO’s Medium-Term Management Plan, KEPCO seeks to expand its overseas business and renewable energy portfolio. With the addition of approximately 255MW of output equivalent equity portions from Aviator, KEPCO’s total renewable energy capacity will reach 4,720MW. KEPCO will continue to invest in renewable energy in order to reach a total of 6,000 MW in the 2030s.[1] [2]

[1] https://www.kepco.co.jp/corporate/pr/2020/0710_2j.html

[2] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/july10_2.pdf

[Japan] Hokkaido Electric Power Network Selects Sumitomo Electric Industries’ Redox Flow Battery for Wind Power Generation

On July 14, 2020, Sumitomo Electric Industries (Headquarters: Osaka City, Sumitomo Electric) announced that its redox flow battery was selected for Hokkaido Electric Power Network’s (Headquarters: Sapporo City, Hokkaido Prefecture) wind energy grid interconnection expansion project. The project aims to connect fifteen wind power generation facilities, reaching a total capacity of 162MW.

In this project, Sumitomo Electric will install and maintain a redox flow battery with an installed capacity of 51MWh at Hokkaido Electric Power Network’s Minami-Hayakita Substation which is located in Yufutsu District, Hokkaido Prefecture. A redox flow battery is a type of battery storage that charges and discharges via the oxidation-reduction reactions (redox reactions) of metal ions in the electrolyte. Sumitomo Electric’s redox flow battery features a long life, high reliability, and durability to fire hazards.

The installation of Sumitomo Electric’s redox flow battery will begin in FY 2020 and is expected to be completed by the end of March 2022. The operational period is scheduled from April 2022 to March 2043. Prior to this installation, Hokkaido Electric Power Network has been conducting a large-scale demonstration project since 2015 using Sumitomo Electric’s redox flow battery at Minami-Hayakita Substation to test its operational reliability and safety. [1]

[1] https://sei.co.jp/company/press/2020/07/prs078.html

[World] BP targets 50GW of renewables by 2030

On August 4, 2020, BP announced a new long-term strategy to pivot away from fossil fuels and achieve its goal of being net-zero by 2050.[1] BP first announced its intention to become net-zero by 2050 in February 2020 following the appointment of Bernard Looney as BP’s new CEO.[2] Under the new strategy, BP set a target of 50 GW of renewable by 2030 and an interim goal of 20GW by 2025, up from 2.5GW in 2020. BP will also ramp up its spending on low-carbon energy resources to about $3-4 billion per year by 2025 and $5 billion annually by 2030. As of 2020, BP spends about $500 million annually on low-carbon energy. It also plans to cut its oil and gas production by 40% by 2030. BP also stated that it will not launch new oil and gas exploration efforts in countries where it does not already have a presence. However, the company is not ruling out new wells in countries where it already operates.

[1] https://www.bp.com/en/global/corporate/news-and-insights/press-releases/from-international-oil-company-to-integrated-energy-company-bp-sets-out-strategy-for-decade-of-delivery-towards-net-zero-ambition.html

[2] https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bernard-looney-announces-new-ambition-for-bp.html

[USA] PSEG to explore strategic alternatives for its non-nuclear fleet

During its second quarter earnings conference call on July 31, 2020, New Jersey utility Public Service Enterprise Group (PSEG) announced that it is “exploring strategic alternatives” to PSEG Power’s, a subsidiary of PSEG, non-nuclear generating fleet.[1] This includes 6,750 MW of fossil generation located in New Jersey, Connecticut, New York and Maryland and its 467 MW Solar Source portfolio spread across 14 states. According to CEO Ralph Izzo, PSEG expects the sale of its fossil fuel portfolio to begin in late 2020 and be completed in 2021. PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet. Izzo said the move to exit merchant generation while retaining nuclear power “could reduce overall business risk and earnings volatility, improve our credit profile and enhance an already compelling [environmental, social and governance] position driven by pending clean energy investments, methane reduction and zero-carbon generation.” In addition to keeping its existing nuclear fleet, PSEG says that it is evaluating potential investments in offshore wind and considering participation in upcoming offshore wind solicitations in New Jersey and other Mid-Atlantic states. The utility expects to decide on whether to invest in Ørsted's Ocean Wind project by the end of 2020.

[1] https://www.prnewswire.com/news-releases/pseg-to-explore-strategic-alternatives-for-pseg-powers-non-nuclear-fleet-301103791.html

[USA] WoodMac forecasts $1.7B in revenue from BOEM auctions by 2022

On August 4, 2020, Wood Mackenzie (WoodMac), global energy, chemicals, renewables, metals and mining research and consultancy group, released a report that studies the economic impact of offshore wind activities as a result of potential Bureau of Ocean Energy Management (BOEM) lease auctions from 2020 to 2022.[1] The report was commissioned by the American Wind Energy Association (AWEA), National Ocean Industries Association (NOIA), New York Offshore Wind Alliance (NYOWA) and the Special Initiative on Offshore Wind at the University of Delaware. The analysis found that the U.S. could generate $1.7 billion in U.S. Treasury revenue by 2022 by leasing out offshore wind areas already under study by BOEM. Through these leasing auctions, BOEM would unlock the potential for 4 GW of offshore wind energy by 2025, 25 GW by 2030, and 37 GW by 2035. The new offshore wind would lead to $17 billion of capital investment by 2025, $108 billion by 2030, and $166 billion by 2035. If these auctions take place, total full-time equivalent job creation from the resulting offshore wind activities (including development, construction and operation) could support approximately 80,000 jobs per year from 2025 to 2035 and 16,000 per year after 2035.

[1] https://www.awea.org/resources/publications-and-reports/white-papers/offshore_lease_economic_impacts