[Japan] Kansai Electric Power, Kanden Power-Tech, and PT Medco Power Indonesia Formed a Strategic Partnership

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and Kanden Power-Tech (KPT, Headquarters: Osaka Prefecture) announced on September 7, 2020, that they reached an agreement with PT Medco Power Indonesia (MPI, Headquarters: Jakarta, Indonesia), an Indonesian power generation company, to establish a joint venture that will accelerate the development of gas-fired power plants and operations and maintenance (O&M) businesses in Indonesia. KEPCO’s investment amount for the joint venture has not been disclosed, but according to Japanese media it is estimated to be a small amount of money.

Kanden Power-Tech is a wholly owned subsidiary of KEPCO which offers O&M services for power generation facilities.[1] MPI was established in 2004[2] as a group company for the power generation business unit of PT Medco Energi Internasional, the largest Indonesian energy company. MPI is actively developing power plants and is responsible for O&M services for 18 generation facilities in Indonesia, with a total capacity of over 3.3GW.

It is the first time that the KEPCO Group has entered into a strategic alliance with an overseas electric power developer. Based on its Medium-Term Management Plan, KEPCO views the development of its overseas business as an important earnings pillar and will continue to expand its overseas investments.[3][4]

[1] https://www.kepco.co.jp/corporate/pr/2020/pdf/0907_2j_01.pdf

[2] https://medcopower.co.id/about_us

[3] https://www.kepco.co.jp/corporate/pr/2020/0907_2j.html

[4] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/sep07_1.pdf

[Japan] JERA announces retirement of its inefficient coal plants by 2030; goal of achieving net zero emissions by 2050

On October 13, 2020, JERA, On October 13, 2020, JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), announced that it will shut down all of its inefficient coal-fired power plants in Japan by 2030.[1] Shuttering inefficient coal plants is in line with the Japanese government’s policy, but this is the first time that a power company has announced that it will match that policy. The Japanese government has not set a definition of an inefficient coal-fired plant, but JERA said it sees inefficient plants as power plants that use “supercritical or less” technology. The company declined to say how many coal plants it will be closing due to competitive concerns.

JERA also announced that it aims to achieve net zero carbon emissions by 2050 to tackle climate change. To achieve this target, JERA plans to expand renewable energy through offshore wind farms while also using greener fuels like ammonia and hydrogen at its thermal power plants. The company intends to start a pilot program to use ammonia as a fuel with coal in mixed combustion at its Hekinan thermal power station in central Japan by 2030 and hopes to achieve 20% use of ammonia at its coal-fired power plants by 2035. Other measures of the plan include improving efficiency of gas-fired power plants and burning hydrogen in mixed combustion at gas-fired power stations.

[1] https://www.japantimes.co.jp/news/2020/10/13/national/power-firm-jera-shut-inefficient-coal-fired-plants-2030/

[USA] FERC approves Mountain Valley Pipeline construction

In a 2-1 decision on October 9, 2020, the Federal Energy Regulatory Commission (FERC) granted developers of the Mountain Valley Pipeline, which runs from West Virginia to southern Virginia and aims to be in service in 2021, permission to resume construction on the 303-mile natural gas project.[1] In a separate order filed the same day, FERC lifted an October 2019 stop-work order which allows construction to move forward on all but a 25-mile exclusion zone that includes the Jefferson National Forest. The project lacks the necessary authorizations to pass through the national forest, although two permits that were set aside by legal challenges have since been reissued. In its decision, FERC found that a supplemental environmental impact statement (EIS) is not required for construction to move forward. In his dissent, Glick said FERC’s responsibility is to balance all stakeholder interests “not just the desire to complete the pipeline in the shortest time possible." Additionally, Glick argued that the order does not address “the uncertainty created by the outstanding permits, not to mention the litigation that is likely to follow, and instead rushes to recommence construction."

[1] https://www.eenews.net/assets/2020/10/12/document_ew_03.pdf

[USA] Report: YUMA Energy contract may prevent Puerto Rico from building a safe, reliable and resilient grid

The Institute for Energy Economics and Financial Analysis (IEEFA), a non-profit focused on energy markets and policies, released a report on October 12, 2020 that concluded that the service contract LUMA Energy, a consortium of Houston-based Quanta Services and Calgary-based ATCO, signed to operate Puerto Rico's electricity grid will likely result in electricity prices that fail to meet legislative goals and could keep Puerto Rice from reaching its 100% renewable energy target by 2050.[1][2] In June 2020, LUMA was awarded the Puerto Rico grid contract to manage the Puerto Rico Electric Power Authority’s (PREPA) energy transmission and distribution.

The report found that the LUMA contract will create electricity prices of around $0.30/kWh compared with the island's goal of $0.20/kWh. The IEEFA report cites several other issues with the contract including potential financial problems with the two companies, encouragement of natural gas, lower transparency, sidelining of union collective bargaining agreements, and lower accountability to the public. The report argues that the contract will essentially privatize the functions of PREPA. IEEFA concluded that the contract should be canceled because it will not benefit the island.

[1] https://ieefa.org/ieefa-luma-energy-deal-paves-way-for-puerto-rico-regulators-to-repeat-past-mistakes/

[2] https://ieefa.org/wp-content/uploads/2020/10/Contract-with-LUMA-Energy-Sets-up-Full-Privatization_Higher-Rates_October-2020.pdf

[Japan] TEPCO Power Grid Announced a Partnership Agreement on the Joint Development of New Digital Products and Services

On September 8, 2020, TEPCO Power Grid (Headquarters: Tokyo), in partnership with several Japanese companies, announced an agreement on the joint development and demonstration of new digital products and services in support of Japan’s Society 5.0 initiative. The Society 5.0 initiative, proposed by the Japanese Cabinet Office’s 5th Science and Technology Basic Plan in 2015, aims to achieve economic growth and address social challenges through a system that highly integrates cyberspace and physical space[1].[2] TEPCO Power Grid’s partners are Mitsui Sumitomo Insurance Group, a Japanese insurance company owned by MS&AD Insurance Group (Headquarters: Tokyo); NTT DoCoMo (Headquarters: Tokyo), a major Japanese telecommunication company; and Energy Gateway (Headquarters: Tokyo), an Internet of Things (IoT) platform solutions provider established by Tokyo Electric Power (TEPCO, Headquarters: Tokyo) in 2018.[3]

The partnership will collaboratively develop a variety of new digital products and services to tackle social challenges--including natural disasters, carbon emissions, and an aging population--by leveraging the four companies’ knowledge and expertise. By the end of FY2020, they will launch a demonstration test of new digital services to support disaster prevention and mitigation, energy savings, and remote monitoring to improve home-based senior and child care by collecting and analyzing residential energy consumption data to identify user behavior patterns and detect any anomalies. The test will be conducted through the DoCoMo IoT Managed Service, which provides customers with turnkey services, ranging from deployment to operations.

In the project, TEPCO Power Grid and Energy Gateway will be responsible for collecting power usage data and providing an application to control the sensors that collect data. NTT DoCoMo will support customers with the installation of IoT products at home and will provide post-installation monitoring services.[4] Mitsui Sumitomo Insurance will analyze power usage data and accident data to better understand fire risk, so that the firm can expand its insurance coverage and offer customers better discounts.[5]

[1] https://www8.cao.go.jp/cstp/english/society5_0/index.html

[2] https://onuglobal.files.wordpress.com/2018/05/japon_5basicplan_en.pdf

[3] https://www.energy-gateway.co.jp/company/summary.html

[4] https://www.nttdocomo.co.jp/biz/service/managed_services/

[5] https://www.tepco.co.jp/pg/company/press-information/press/2020/1552478_8615.html

[Japan] Hokkaido Electric Power Enters the City-Gas Retail Business in Hokkaido Prefecture

On August 18, 2018, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that it will enter the city-gas retail business[2] in Hokkaido Prefecture. It has registered HEPCO as a Gas Retailer based on the Gas Business Act, along with “Hokuden Gas” as a business trademark. Starting from October 1, 2020, HEPCO will supply gas to its customers in six cities in Hokkaido Prefecture, including Sapporo City, Otaru City, Ishikari City, Kitahiroshima City, Chitose City, and Eniwa City.

HEPCO is working on the creation of a secure system to ensure customer safety with affordable gas rate plans. For business customers, HEPCO will offer value-added energy related services, including energy audit service using the city-gas, in addition to delivering Liquefied Natural Gas (LNG).

HEPCO has become the seventh major utility company to register as a gas retailer after Japan’s deregulation of the city-gas retail business in April 2017, after Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), and Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture).[3]

[1] http://www.hepco.co.jp/english/company/corporateprofile.html

[2] The city-gas retail business is equivalent to the natural gas retail business specializing in selling and supplying the gas to residential and commercial & industrial customers in the U.S.

[3] http://www.hepco.co.jp/info/2020/1250975_1844.html

[USA] House passes four bipartisan bills to bolster DOE’s cybersecurity fight

On September 29, 2020, the U.S. House of Representatives passed four bipartisan bills yesterday to boost the Department of Energy's (DOE) capabilities to help maintain cybersecurity. All four bills were passed by voice vote under suspension of the rules, a means of fast-tracking noncontroversial bills. Bills passed by voice vote have to pass with supermajorities (two-thirds of the House) and without floor amendments. The bills passed by voice vote are:

·   H.R. 360, the Cyber Sense Act of 2020, which would direct the DOE to launch a voluntary Cyber Sense program to identify products secure enough for the bulk power system.[1] The bill was introduced by Representative Robert Latta (R-Ohio) and cosponsored by Representatives Jerry McNerney (D-California), Ralph Norman (R-South Carolina), and Josh Harder (D-California).

·   H.R. 5760, the Grid Security Research and Development Act, which would support DOE research into cybersecurity and physical protections of the grid.[2] The bill is from Representatives Ami Bera (D-California) and Randy Weber (R-Texas).

·   H.R. 359, the Enhancing Grid Security through Public-Private Partnerships Act, which would create a DOE program to enhance cybersecurity at utilities through increased collaboration and public-private partnerships.[3] The bill is from Representatives Jerry McNerney (D-California) and Robert Latta (R-Ohio).

·    H.R. 362, the Energy Emergency Leadership Act, which would codify the new DOE assistant secretary position related to cybersecurity.[4] The bill was introduced by Energy Subcommittee Chairman Bobby Rush (D-Illinois) and cosponsored by Representatives Tim Walberg (R-Michigan), Jefferson Van Drew (D-New Jersey), and Brian Fitzpatrick (R-Pennsylvania).

[1] https://www.congress.gov/bill/116th-congress/house-bill/360

[2] https://www.congress.gov/bill/116th-congress/house-bill/5760

[3] https://www.congress.gov/bill/116th-congress/house-bill/359

[4] https://www.congress.gov/bill/116th-congress/house-bill/362

[USA] Ameren announces commitment to net-zero carbon emissions by 2050

On September 28, 2020, Ameren Missouri announced a new commitment to net-zero carbon dioxide emissions by 2050, with interim goals of 50% emissions reduction in 2030 compared to 2005 levels and 85% emissions reduction by 2040 compared to 2005 levels.[1] The commitment is an update to the targets it set in 2017— 35% reduction by 2030, 50% reduction by 2040, and 80% reduction by 2050. According to the utility, the move is primarily guided by investors and customers. Ameren’s new plan allocates approximately $4.5 billion over the next decade to add 3.1 GW of new wind and solar to its portfolio. By 2040, the utility expects to have 5.4 GW of renewables in its portfolio. Under this plan, the utility will retire its 5 GW og coal-fired generation by 2042: Meramec Energy Center by the end of 2022, the Sioux Energy Center by the end of 2028, two units at the Labadie Energy Center by the end of 2036, both units at the Rush Island Energy Center by the end of 2039, and the remaining two units at the Labadie Energy Center by the end of 2042. The plan also assumes that the operating license for Ameren’s Callaway nuclear facility is extended beyond 2050.

[1] https://www.ameren.com/-/media/missouri-site/files/environment/irp/2020/ch1-executive-summary.pdf?la=en-us-mo&hash=67ECB83304090AE189E1528AABDD2211E5A091BC

[USA] Vistra announces plan to retirement of its Midwest coal fleet by 2027

Vistra, a competitive energy supplier headquartered in Irving, Texas, announced on September 29, 2020 that it would retire its entire Midwest coal fleet, about 6.8 GW of energy, by 2027.[1] The company currently owns seven coal-fired power plants across the Midwest and would retire the majority of its plants through 2025-2027, though the company commented that the retirements could be sooner if it is more economic to do so. According to Vistra, the coal plants, especially the one operating in the “irreparably dysfunctional” Midcontinent Independent System Operator (MISO) market, are economically challenged. Additionally, upcoming Environmental Protection Agency (EPA) filing deadlines would require either significant capital expenditures for compliance or retirement declarations.

Vistra also announced the launch of Vistra Zero, a portfolio of zero-carbon power generation facilities. Under Vistra Zero, the company is breaking ground on six new solar projects and one battery energy storage project, which total nearly 1,000 MW. These projects will be online by 2022 and are all located in the Electric Reliability Council of Texas (ERCOT) market. Additionally, the company announced new greenhouse gas emissions reduction targets. Vistra is now setting out to achieve a 60% reduction, up from 50%, in carbon emissions by 2030, and a long-term objective to achieve net-zero carbon emissions, up from an 80% reduction target, by 2050.

[1] https://investor.vistracorp.com/investor-relations/news/press-release-details/2020/Vistra-Accelerates-Pivot-to-Invest-in-Clean-Energy-and-Combat-Climate-Change/default.aspx

[USA] Maine regulators approve state's largest renewables solicitation

On September 22, 2020, the Maine Public Utilities Commission (PUC) approved the terms for 546 MW of renewable energy projects, the largest renewable energy procurement in the state's history.[1] During its 2019 session, the Maine Legislature enacted An Act To Reform Maines Renewable Portfolio Standard which directed the PUC to conduct two competitive solicitation processes to procure renewable energy equal to 14% of retail electricity sales in the State during calendar year 2018. This first round of solicitations included 482.5 MW of new solar, 20 MW of new wind, 39 MW of existing biomass, and 4.5 MW of existing hydropower.[2] The selected bidders will enter into 20-year contracts with both or either of Maine's investor-owned utilities, Central Maine Power and Emera Maine.

The projects are expected to provide substantial benefits to Maine’s environment and economy. Based on estimates from project bidders, the projects would reduce greenhouse gas emissions by roughly 500,000 tons per year. Bidders also committed to providing more than 450 full-time equivalent jobs during the construction phase and more than 30 full-time equivalent jobs in each year of the operations phase. Additionally, according to Commission Chairman Philip L. Bartlett, the first-year prices for energy from the new projects will be competitive, ranging between $0.029-$0.042 per kWh.

[1] https://www.maine.gov/tools/whatsnew/index.php?topic=puc-pressreleases&id=3329595&v=article08

[2] https://www.maine.gov/mpuc/electricity/rfps/class1a2020/

[USA] Trump Administration authorizes $9.6B to rebuild Puerto Rico's grid

The Trump Administration announced on September 18, 2020 that the Federal Emergency Management Agency (FEMA) authorized $9.6 billion to rebuild Puerto Rico's power infrastructure.[1] Puerto Rico’s electric grid was destroyed in 2017 when Hurricane Maria made landfall, bringing a large storm surge, very heavy rains, and wind gusts over 100 mph. The island’s power system remains fragile, but more of the island does have power. In response to the disaster, the Bipartisan Budget Act of 2018 included funding for FEMA to support Hurricane Maria response and recovery. The critical infrastructure projects are funded under FEMA’s Public Assistance Alternative Procedures, pursuant to Section 428 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Under this funding method, Puerto Rican officials will work directly with FEMA to determine how to best meet the island’s recovery needs. The funding will go to the Puerto Rico Electrical Power Authority (PREPAP) to repair and replace transmission and distribution lines, electrical substations, power generation systems, office buildings, and make other grid improvements. It is unclear when Puerto Rico will have access to the aid. PREPA must first produce a plan showing how the money will be used.

[1] https://www.whitehouse.gov/briefings-statements/statement-press-secretary-largest-fema-infrastructure-grants-awarded-puerto-rico/

[Japan] PXiSE and Toshiba sign agreement to microgrid projects in Japan

On September 22, 2020, PXiSE Energy Solutions (PXiSE) and Toshiba Energy Systems & Solutions (Toshiba ESS, Headquarters: Kanagawa Prefecture) announced that they have signed a Memorandum of Understanding (MOU) that provides a framework for collaboration on developing new project opportunities for microgrids with an initial focus on Japan and plans to expand to the global market.[1] Mitsui & Co., a Japanese company and PXiSE investor, will also participate in the venture. PXiSE, a Sempra Energy subsidiary based in California, produces a software-based microgrid control platform that can remotely and locally manage interconnected distributed energy resources (DER) and loads. The control platform works in real time, can be grid-connected or standalone, and is designed to efficiently dispatch resources to increase resilience of the system.

The companies believe that by combining Toshiba ESS’s energy system products and expertise in operating virtual power plants with PXiSE software they will be able to capitalize on the growing global need for more flexible and resilient energy systems. According to Guidehouse, a consulting firm formerly known as Navigant Research, the global microgrid market is expected to reach $40 billion by 2028 and total global microgrid capacity is expected to increase from 3.5 GW to 20 GW by 2028. Latin America represents the fastest growing market, but the Asia-Pacific region remains the largest overall market for microgrids and is expected to grow to 7.5 GW by 2028.[2]

[1] https://www.globenewswire.com/news-release/2020/09/22/2097286/0/en/PXiSE-Energy-Solutions-and-Toshiba-Sign-Agreement-to-Develop-Renewable-Energy-and-Microgrid-Projects.html

[2] https://microgridknowledge.com/microgrids-navigant/

[Japan] Osaka Gas Participates in the Three Rivers Natural Gas-Fired Power Plant Project in Illinois, U.S.

On August 25, 2020, Osaka Gas (Headquarters: Osaka) announced that it will participate in the Three Rivers Natural Gas-Fired Power Plant Project, which is in development in Illinois, U.S., through its wholly-owned subsidiary. On August 21, 2020, Osaka Gas signed an agreement to acquire 15% of the equity of Three Rivers from a subsidiary of Competitive Power Ventures (CPV), an Independent Power Producer headquartered in Silver Spring, Maryland, U.S. The transaction amount has not been disclosed, but according to Japanese media it is estimated to be worth several billion Japanese yen.

The facility is a 1,250MW natural gas-fired combined-cycle power plant with about 61% generation efficiency. The plant is expected to begin commercial operations in May 2023 and will produce and sell electricity in the PJM wholesale market, located in the eastern U.S.

Based on its long-term management vision and medium-term plan, “Going Forward Beyond Borders 2030”, Osaka Gas’s parent company, Daigas Group, will continue to explore overseas energy business opportunities and create a strong position in the U.S. as a priority market.[1] [2]

[1] https://www.osakagas.co.jp/en/whatsnew/__icsFiles/afieldfile/2020/08/24/20200825.pdf

[2] https://www.osakagas.co.jp/company/press/pr2020/1289500_43661.html

[Japan] Kansai Electric Power Developed an AI-based Self-Driving Robot for Thermal Power Plant Inspections

On August 25, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced that it had developed an AI-based self-driving robot for inspecting thermal power plants. KEPCO partnered with K4 Digital (Headquarters: Osaka) and Kanden Systems (Headquarters: Osaka) to develop the robot. K4 Digital is a digital technology solution company jointly established by KEPCO and Accenture Japan (Headquarters: Tokyo) in 2018.[1] Kanden Systems is KEPCO’s wholly owned subsidiary that provides energy IT solutions.

Field workers need to conduct on-site inspections of thermal power plants on a regular basis, which requires substantial time and effort. Since Japan expects to face a labor shortage due to the future retirement of a large number of older workers, utility companies are concerned that they will face a shortage of skilled workers to conduct regular inspections. KEPCO’s robot design aims to address this expected labor shortage.

KEPCO, K4 Digital and Kanden Systems have worked together to develop the robot since December 2018. A demonstration testing for the robot that began in Sakaiko Power Station, Osaka, in December 2019, had successful results. The robot is expected to be introduced in KEPCO’s power plants and offered to other utilities in 2021.[2] [3]

[1] https://www.kepco.co.jp/corporate/pr/2018/0801_1j.html

[2] https://www.kepco.co.jp/corporate/pr/2020/0825_1j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/0825_1j_01.pdf

[USA] DOE Announces $24 Million in funding for commercialization of battery and methane detection technologies

On September 16, 2020, the Department of Energy (DOE) announced $24 million in funding for two projects as part of the first stage of the Advanced Research Projects Agency-Energy’s (ARPA-E) Seeding Critical Advances for Leading Energy technologies with Untapped Potential (SCALEUP) program.[1][2] The two SCALEUP “Fast-Track” teams are Natron Energy and Bridger Photonics. Natron Energy will receive $19 million in funding to scale up production of Natron Energy’s (Natron) Prussian blue electrode sodium-ion batteries by 30-fold to 18,000 trays per year. Natron’s primary product is an 8-kilowatt, 50-volt battery tray to be used in data centers to manage peak computer load and provide backup power. Bridger Photonics will receive $5 million in funding to commercialize its Gas Mapping LiDAR (GML) which scans oil and gas infrastructure to detect and quantify leak magnitude using an aerial platform. The technology eliminates the need for costly ground crews.

The SCALEUP program is a first-of-its-kind initiative that builds on ARPA-E’s primary focus of supporting the scaling up and commercialization of high-risk and potentially disruptive new technologies. The program works to take promising energy technologies to the pre-pilot stage of the path to market and ultimately lead to commercialization. ARPA-E developed the “Fast-Track” in response to disruptions caused by COVID-19.

[1] https://www.energy.gov/articles/doe-announces-24-million-commercial-scaling-battery-and-methane-detection-technologies

[2] https://arpa-e.energy.gov/?q=scaleup-launch-pad

[USA] Frontier Energy announces hydrogen pilot to tap Texas wind

On September 15, 2020, California-based Frontier Energy, Inc., in close collaboration with the Gas Technology Institute (GTI) and the University of Texas at Austin, announced the launch of a Department of Energy (DOE) pilot project, Demonstration and Framework for H2@Scale in Texas and Beyond, which aims to fast track development of a hydrogen fuel that is both low-carbon and low-cost.[1] The project leaders hope to deploy a "dual-pathway" to the fuel by combining electrolysis, in which energy from wind or solar is used to split hydrogen from water molecules, with a production process that involves capturing landfill methane emissions. The project will be conducted at the University of Texas at Austin and the Port of Houston. The hydrogen produced at the University of Texas site will power a stationary fuel cell to provide power for the Texas Advanced Computing Center and supply a hydrogen station with fuel to fill a fleet of Toyota Mirai fuel cell electric vehicles.

The project is backed by $10.8 million in startup funding. Half of this funding comes from the Department of Energy (DOE). Other partners include Shell and the utility Southern California Gas Co. which have taken an interest in developing carbon-free alternatives to natural gas.  OneH2, Texas Gas Service, Toyota Motor North America, Mitsubishi Heavy Industries, Air Liquide and PowerCell Sweden AB are also involved in the project. The project started on July 1, 2020 and will continue for three years.

[1] https://app.greenrope.com/users/myteam46356/Media214.pdf

[USA] MISO and SPP launch joint study to address interconnection challenges

On September 14, 2020, two regional transmission organizations (RTOs), the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP), announced a year-long transmission study to address historical challenges facing customers in areas where the RTO boundaries connect, known as seams, by identifying comprehensive, cost effective, and efficient upgrades.[1] Seams are the invisible boundaries between two RTO control areas, systems, and markets. The primary issue with seams is that there are inherent differences in how the RTOs create market rules or designs which leads to inefficiencies at the seams that prevent the economic transfer of capacity and energy between neighboring RTOs. One of the biggest issues this study seeks to address is the large amount of renewable energy that cannot be developed due to the issues inherent at seams.

The study will focus on solutions that MISO and SPP believe will offer benefits to both their transmission customers and end use consumers of RTO member companies. While the RTOs’ have a Joint Operating Agreement, which allows them to work through reliability issues, current processes do not include coordinated evaluation of benefits, or allocation of cost, to both load and interconnection customers. The study is expected to formally begin in December 2020 and will include several joint stakeholder meetings to provide updates on the findings. Any projects identified by the joint study will need to be approved by each RTOs’ respective Board of Directors before moving ahead.

[1] https://www.misoenergy.org/about/media-center/miso-and-spp-to-conduct-joint-study-targeting-interconnection-challenges/

[Japan] NEDO will Establish a Demonstration Research Site for Carbon Recycling Technology at Osaki Power Station

On August 5, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) announced that it will establish a demonstration research site to promote the commercialization of carbon recycling technologies. The facility will be built within Osaki Power Station, a coal-fired power plant owned by Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), located in Osakikamijima, Hiroshima Prefecture.

Osaki Coolgen[1], a clean coal technology subsidiary funded by EnerGia and Tokyo-based Japanese power producer J-Power, is currently demonstrating the feasibility of Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) and CO2 separation and capture technologies at the station with the support from NEDO. The decision to establish the new demonstration research site for carbon recycling technologies at the station is part of NEDO’s plans to aggregate multiple R&D capabilities at Osaki Power Station to accelerate the commercialization of carbon reduction technologies. NEDO will lead the establishment of the site in partnership with Osaki Coolgen.

NEDO will also fund the following additional projects to support the R&D and demonstration of CO2 utilization technologies.

·  Research and demonstration for producing concrete utilizing CO2 / EnerGia, Kajima, and Mitsubishi

·  Research and demonstration of synthesis technology for chemical products using carbon recycling / Kawasaki Heavy Industries, Osaka University

·  Development of Gas-to-Lipids Bioprocess / Hiroshima University, EnerGia

NEDO has provided total funding of approximately $5.7 million from FY2020 to FY2024 to support the creation of the demonstration research site and the three R&D projects.

NEDO’s funding for the site is part of a broader Japanese governmental effort to mitigate climate change through promoting carbon recycling technologies. In June 2019, the Ministry of Economy, Trade, and Industry (METI) issued a Roadmap for Carbon Recycling Technologies, which identified challenges and opportunities for the use of CO2 as fuel or raw materials.[2] In September 2019, METI established the Carbon Recycling 3C initiative, which identifies concrete activities that the Japanese government can carry out to accelerate the technological development of carbon recycling and utilization.[3] In January 2020, the Government of Japan issued the Innovative Environmental Innovation Strategy, which aims to develop technologies that will enhance global carbon neutrality and reduce CO2 emissions by 2050.[4][5]

[1] https://www.osaki-coolgen.jp/

[2] https://www.meti.go.jp/press/2019/06/20190607002/20190607002.html

[3] https://www.meti.go.jp/press/2019/09/20190925005/20190925005.html

[4] https://www.meti.go.jp/shingikai/energy_environment/kankyo_innovation/index.html

[5] https://www.nedo.go.jp/news/press/AA5_101342.html

[Japan] Kansai Electric Power Developed a Drone to Conduct Chimney Inspections for Thermal Power Plants

On August 6, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced that it has developed a drone that can be used to inspect the interiors of chimneys installed at thermal power plants.

Traditionally, workers had to set up a scaffold inside the chimney to inspect the interior to identify any deterioration. This work posed some significant risks for worker safety because the height of chimneys installed at thermal power plants can reach approximately 200m.

The use of drones was previously considered to be too difficult since Global Positioning System (GPS) is not available inside the chimney. However, the drone developed by KEPCO is equipped with Visual Simultaneous Localization and Mapping (SLAM), a mapping technology that can determine the position and orientation of the drone, as well as LiDAR, a method for measuring distances, in order to enable autonomous drone operation without GPS. It is the first time that Japan has developed a drone technology that can determine the position of a drone in a cylindrical space where GPS is not available.

In addition to improving worker safety, the drone is expected to reduce the time necessary to conduct inspections by approximately 90% and the inspection costs by more than 50%.

KEPCO partnered with Kanso (Headquarters: Osaka), a civil engineering consulting company, and Autonomous Control Systems Laboratory (Headquarters: Tokyo), an autonomous control solutions company, to consider marketing the drone to utilities and local governments.[1] [2]

[1] https://www.kepco.co.jp/corporate/pr/2020/0806_1j.html

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/0806_1j_01.pdf

[Japan] Japan and U.S. to conduct a study on methane hydrate extraction in Alaska

On September 9, 2020, a Japanese government source said Japan and the U.S. will conduct a year-long joint study in northern Alaska starting in April 2021 to produce gas from methane hydrate in permafrost.[1] Methane hydrate, an ice-like substance in which a large amount of methane is trapped within a crystal structure of water, is seen as a potential alternative source of energy to traditional fossil fuels. Reserves of methane hydrate have been confirmed to be in the seabed of Japan’s coastal water.

The joint study will be conducted by Japan Oil, Gas and Metals National Corporation and the U.S. National Renewable Energy Laboratory. They plan to conduct another test to manufacture methane gas in the Pacific in fiscal 2023 or later. According to the source, the Ministry of Economy, Trade and Industry (METI) is set to allocate funds in its request for the fiscal 2021 budget. The study comes as Japan plans a project aimed at commercializing the use of methane hydrate from Japan’s coastal waters by March 2028. Tokyo is trying to strengthen the development of its domestic energy resources while also promoting the use of wind power and other renewable sources. Tokyo is seeking to strengthen the development of domestic energy resources such as methane hydrate, while promoting the use of wind power and other renewable resources.

[1] https://www.japantimes.co.jp/news/2020/09/10/national/japan-methane-hydrate-alaska/