[USA] Entrust Energy files for bankruptcy in Texas amid storm fallout

On March 31, 2021, E&E News reported that on March 30, 2021, Entrust Energy Inc., an electric utility based in Houston, Texas, filed for bankruptcy after the extreme cold weather event in Texas in February 2021 caused electricity prices to soar.[1][2] The company provides electricity to more than 170,000 customers across eight states, including Texas. According to the Chapter 11 petition Entrust Energy filed in the Southern District of Texas, the company has assets of $100 million to $500 million and liabilities of $50 million to $100 million. Entrust Energy claims that it has a $270 million disputed claim with the Electric Reliability Council of Texas (ERCOT), the state’s power grid operator, related to supply obligations. Other claims from the filing include $1.6 million from JPMorgan Chase & Co. for a Paycheck Protection Program loan[3]. In early March 2021, ERCOT barred Entrust Energy from the state’s power market after the company failed to make payments stemming from the February 2021 cold weather event.[4] ERCOT’s filing at the time said that Entrust Energy owed $234 million in payments to generators and others. Entrust Energy’s bankruptcy filing follows bankruptcy filings from Brazos Electric Power Cooperative Inc., Texas’s largest power generation and transmission cooperative, and Griddy Energy LLC, a power retailer.

[1] https://www.bkalerts.com/recent-bankruptcy-cases/texas-southern-bankruptcy-court/4:21-bk-31070/bankruptcy-case-entrust-energy-inc-and-entrust-treasury-management-services-inc

[2] https://www.eenews.net/energywire/2021/03/31/stories/1063728833

[3] The Paycheck Protection Program was established by the CARES Act of 2020 to aid small businesses. The program provides small businesses with loans to pay payroll costs including benefits. The loans can also be used to pay rent, utilities, and interest on mortgages.

[4] https://www.bloomberg.com/news/articles/2021-03-04/a-second-power-provider-defaults-after-texas-energy-crisis

[USA] Biden announces sweeping $2 trillion infrastructure plan

On March 31, 2021, President Joe Biden unveiled a $2 trillion, 8-year infrastructure plan, called the American Jobs Plan, which includes billions of dollars of investment in electric vehicles (EVs), transmission, and clean energy.[1] The plan is intended to create millions of new jobs, rebuild the country’s infrastructure, and position the U.S. as a global leader. According to the administration, the proposal would put the U.S. on the path to achieve 100% clean electricity by 2035 and a net-zero emissions economy by 2050. If signed into law, the plan would be one of the largest federal efforts to reduce greenhouse gas emissions.

Biden’s plan proposes investing $174 billion in EVs, $100 billion in the electric grid, $46 billion in clean energy manufacturing, and $35 billion in research and development to address the climate crisis. The proposal would also create a national Energy Efficiency and Clean Electricity Standard (EECES) to reduce electricity bills, increase market competition, encourage more efficient use of existing infrastructure, and boost carbon-free energy from existing sources like nuclear and hydropower. For tax credits, the administration proposes extending the tax credit phasedown by another decade and expanding tax credits to include a direct pay option for clean energy resources.[2] Biden’s plan also calls for the repeal of subsidies and foreign tax credits for fossil fuels.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/

[2] Expanding tax credits to include a direct pay option would allow tax credit holders to receive a direct cash payment from the U.S. Treasury instead of getting benefits through the tax equity market.

[USA] Report: Carbon tax could reduce emissions from federal fossil fuel leasing

In March 2021, the National Bureau of Economic Research (NBER) released a new working paper titled “Climate Royalty Surcharges.” The paper proposes potential carbon fees that could be added onto existing royalty rates to increase revenue from the federal fossil fuel leasing program and lower greenhouse gas emissions.[1] On January 27, 2021, President Biden issued Executive Order 14008, which paused new oil and gas leases on federal lands and waters while the administration reviews the environmental impacts of the federal leasing program. This review includes considering “whether to adjust royalties associated with coal, oil, and gas resources extracted from public lands and offshore waters, or take other appropriate action, to account for corresponding climate costs.”

Set in 1920 when the leasing program was established, the royalty rate on revenue generated from onshore oil and gas leases is 12.5% (18.75% offshore). Half of the revenues are allocated to the state the lease is in. According to the report, the program is projected to generate an average of $9.6 billion/year from 2020 to 2050 under the current rates, assuming the pause is lifted. However, a "climate surcharge" for fossil fuel leases of $22 per ton of CO2 equivalent would generate an estimated $14.2 billion/year on average from 2020 to 2050. It would also reduce emissions by about 32 million metric tons of CO2 equivalent. While $22 per ton of CO2 equivalent generated the most revenue, the report found that higher climate surcharges would further reduce emissions while still generating more revenue than current rates. In total, the paper’s proposed surcharges would bring royalties to approximately 39% to 51.5%.

[1] https://www.nber.org/system/files/working_papers/w28564/w28564.pdf

[USA] 13 states file lawsuit against Biden administration over oil and gas leasing plan

On March 24, 2021, 13 states[1], led by Louisiana Attorney General Jeff Landry (R), sued the Biden administration over its restrictions on new oil and gas leasing on federal lands and waters.[2] On the same day, Wyoming filed a separate challenge against the Biden administration in a different federal court.[3] On January 27, 2021, President Biden issued Executive Order 14008 which, among other initiatives, blocked new leasing while the administration conducts a review of the environmental impacts of the federal oil and gas program. The Louisiana-led lawsuit argues that the Biden administration violated requirements under the Outer Continental Shelf Lands Act (OCSLA) and the Mineral Leasing Act (MLA) to develop energy resources on federal lands and waters. According to the lawsuit, Biden’s policy could cause economic harm in fossil fuel-producing states like Louisiana and Texas. It could also cause energy prices to increase, which would indirectly harm the rest of the country. The lawsuit requested that the federal court block actions that relied on the executive order and allow the Bureau of Land Management (BLM) to restart quarterly oil and gas lease sales.

[1] Louisiana, Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah and West Virginia

[2] http://agjefflandry.com/Article/10878

[3] https://governor.wyo.gov/media/news-releases/2021-news-releases/wyoming-launches-lawsuit-challenging-biden-administrations-federal-leasing

[Japan] Kansai Electric Power, Keihan Bus and BYD Reached an Agreement on the Expansion of Electric Bus Fleets in the Kyoto Region

On February 24, 2021, Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.); Keihan Bus, which provides transportation services in the Kansai Region around Osaka and Kyoto (Headquarters: Kyoto); and electric automobile manufacturer BYD (Headquarters: Shenzhen, China) announced that they have reached an agreement on the expansion of electric bus fleets in the Kyoto region.

As part of the first step of the agreement, Keihan Bus, KEPCO, and BYD will deploy four electric buses on a circulating route that connects Kyoto Station, Keihan Railway Shichijo Station, and Umekoji/Hotel Emion Kyoto Station. Through this demonstration project, KEPCO will test and assess an energy management solution for the optimal charging and discharging process for electric buses. BYD will provide the electric buses and driving performance data to validate the optimal operation of the electric buses.

Keihan Bus will become the first Japanese bus company to electrify and operate all of the buses that serve a specific route. In the future, it plans to expand its electric bus fleets into other routes. Keihan Bus will also consider introducing autonomous electric buses, as well as developing a business continuity plan that will utilize electric buses’ storage batteries in an emergency situation. KEPCO, Keihan Bus and BYD will continue their efforts to promote the expansion of electric bus fleets and to contribute towards a decarbonized society.[1]

[1] https://www.kepco.co.jp/corporate/pr/2021/0224_1j.html

[Japan] Tohoku Electric Power Will Establish Tohoku Frontier to Strengthen the Monetization Strategies for Its Smart Society Businesses

Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced on February 25, 2021 that it has decided to establish a new subsidiary, Tohoku Electric Power Frontier (Tohoku Frontier), to strengthen the monetization of its smart society business development projects.

Tohoku’s smart society business activities are part of multiple goals laid out in the Tohoku Group’s Medium to Long-Term Vision. Tohoku plans to officially establish Tohoku Frontier in April 2021. The headquarters of the company will be located in Sendai City, Miyagi Prefecture.

Tohoku Frontier will leverage next-generation digital technologies and innovations to sell a wide variety of customer-oriented services that are integrated with electricity rate plans. Based on energy management technologies, the services will allow customers to save, generate, and store their energy. For instance, Tohoku Frontier will offer a bundle service to combine an electricity plan with a solar energy/storage battery installation service. The service will be exclusively provided by Tohoku Solar eCharge, which is scheduled to be established in April 2021, and will start business during the second half of FY 2021.

Tohoku Group plans to contribute to the move forward towards a smart and sustainable society by providing a wide range of innovative services that address social issues through Tohoku Frontier.[1] [2] [3]

[1] https://www.tohoku-epco.co.jp/news/normal/1219088_2558.html

[2] https://www.tohoku-epco.co.jp/news/normal/1219085_2558.html

[3] https://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/02/25/b1_1219085.pdf

[Japan] Kansai Electric Power, Chugoku Electric Power and J-Power Each Released 2050 Carbon Neutrality Roadmaps

On February 26, 2021, two Japanese electric utilities and one power producer-- Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), and J-Power (Headquarters: Tokyo)--each announced 2050 carbon-neutral realization roadmaps.

KEPCO’s Zero Carbon Vision 2050 envisions three key pillars to achieve its goal of carbon neutrality by 2050: demand-side carbon neutral strategies, supply-side zero emission management, and adjusting to a transition into a hydrogen society. It emphasizes the importance of accelerating the adoption of new technologies, including hydrogen, ammonia, and Carbon Capture Utilization and Storage (CCUS) which mainly focuses on carbon-recycling technologies. It plans to expand the deployment of ammonia mixed fuel combustion into its existing coal-fired power plants and will utilize CCUS to tackle the CO2 generated by existing plants. KEPCO will also increase the deployment of offshore wind power and distributed energy resources (DERs) as well as  develop next-generation advanced nuclear reactors.[1] [2]

EnerGia also aims to be carbon neutral by 2050 and has set a goal to increase its renewable energy output from 300MW to 700MW. Like KEPCO, EnerGia plans to reduce the CO2 emissions from its coal-fired power plants by utilizing CCUS technologies and an ammonia mixed fuel combustion method. In recent years, EnerGia has conducted a demonstration project for the method at Mizushima Power Station in Okayama Prefecture. Meanwhile, the company has been contributing to the development of hydrogen power through the Osaki CoolGen Project. The project, which has been operating since FY2012, aims to assess the feasibility of Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) and Integrated Coal Gasification Combined Cycle (IGCC).[3] [4] [5] [6] [7]

J-Power, Japan’s largest coal-fired power operator, aims to reduce its CO2 emissions by 40% by 2030, and be carbon neutral by 2050 by achieving the following goals:

·       Replace its old coal-fired power plants with hydrogen power plants

·       Accelerate the expansion of renewable energy, including onshore and offshore wind power and geothermal power, and increase their output from 9.5GW (FY2017) to 10.5GW by FY 2025

·       Promote the development of the Ohma Nuclear Power Plant Project

·       Improve power infrastructure for widespread introduction of renewable energy in the future[8] [9] [10]

[1] https://www.kepco.co.jp/corporate/pr/2021/0226_3j.html

[2] https://www.kepco.co.jp/corporate/pr/2021/pdf/0226_3j_01.pdf

[3] https://www.osaki-coolgen.jp/project/overview.html

[4] https://www.energia.co.jp/press/2021/13005.html

[5] https://www.energia.co.jp/assets/p20210226-1b.pdf

[6] https://www.energia.co.jp/assets/p20210226-1a.pdf

[7] https://sustainablejapan.jp/2021/02/27/j-power-kepco-carbon-neutral/59484

[8] https://www.jpower.co.jp/news_release/pdf/news210226_4-2.pdf

[9] https://www.jpower.co.jp/news_release/pdf/news210226_4-3.pdf

[10] https://www.jpower.co.jp/news_release/2021/02/news210226_4.html

[USA] Texas PUC Chair resigns amid blackout crisis fallout

The Texas Public Utility Commission (PUC) Chair Arthur D'Andrea resigned March 16, 2021 at the request of Texas Governor Greg Abbott (R).[1] The move was the latest in a string of events following an extreme cold weather event in February 2021 that caused widespread blackouts in the state. D’Andrea is the third PUC commissioner to resign in as many weeks which leaves the appointed panel empty. D’Andrea had been under pressure from Lt. Governor Dan Patrick (R) to follow the advice of Potomac Economics, the Electric Reliability Council of Texas’ (ERCOT) independent market monitor, to correct $16 billion of excessive charges from the power outage crisis. D’Andrea had declined to revise real-time wholesale energy prices. His resignation was announced after Texas Monthly published a leaked recording where D’Andrea promised out-of-state investors that he would support efforts to prevent repricing of the excessive charges.[2] On March 15, 2021, the Texas Senate passed a bill that would mandate ERCOT move ahead with pricing corrections. However, the Texas House speaker said he did not believe ERCOT’s decision was an error which may mean an uphill battle for the proposal.

[1] https://www.utilitydive.com/news/texas-puc-chair-resigns-following-pressure-from-governor-refusal-to-repri/596843/

[2] https://www.texasmonthly.com/news-politics/wall-street-profited-off-texas-blackouts/

[USA] New Mexico governor warns Biden about effects of oil and gas policies

On March 15, 2021, New Mexico’s governor, Michelle Lujan Grisham (D), sent a letter warning President Joe Biden that his policies limiting oil and gas production will have widespread adverse effects on New Mexico.[1][2] In January, the Biden administration halted federal oil and gas leases pending a review of the program. According to the letter, more than 60% of New Mexico’s oil and gas production happens on federal land and the state will be disproportionately impacted by Biden’s policies compared to states like Texas or Oklahoma which have more private land available for development.

Oil and gas revenues make up about 32% of general fund revenue in the state. These revenues fund a wide range of state priorities, including public schools, infrastructure projects, and environmental initiatives. A “relatively modest” 10% drop in oil and gas production would cost the state $709 million in revenues by the end of Biden’s first term which could hinder New Mexico’s ability to achieve major goals, the letter says. The letter also highlights New Mexico’s commitment to increasing environmental regulations on oil and gas development, such as methane standards. Gov. Grisham notes that other states like Texas do not have the same robust methane restrictions which could mean high emissions if drillers move due to Biden’s policies. In the letter, Gov. Grisham asks for a seat at the table regarding possible changes to federal fossil fuel programs.

[1] https://www.eenews.net/assets/2021/03/16/document_ew_03.pdf

[2]https://www.eenews.net/energywire/2021/03/16/stories/1063727539?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[USA] National Grid and PPL announce pair of multi-billion-dollar deals

On March 18, 2021, National Grid (Headquarters: London, U.K.) and PPL Corp. (Headquarters: Allentown, Pennsylvania) announced two agreements that the companies claim will help them better align their assets with their clean energy strategies.[1][2] PPL will sell its U.K. utility business, Western Power Distribution (WPD), to National Grid for $10.9 billion. WPD is comprised of four electricity distribution companies that serve 7.9 million customers in central and southwest England and south Wales. In a separate transaction, National Grid will sell its Rhode Island utility, Narragansett Electric Company, for an equity value of $3.8 billion. Narragansett Electric is the largest electricity transmission and distribution service in Rhode Island, serving roughly 780,000 customers. As a part of the announcement, National Grid says it will also initiate a sales process for a majority stake in its National Grid Gas Transmission business in the U.K. The transactions follow an August 2020 press release in which PPL announced that it planned to sell WPD in order to shift its focus to U.S. utility investments and clean energy investments to improve share value.[3] National Grid says the “increased exposure” to the U.K.’s electricity sector will allow that company to take “a more holistic approach” and help the UK’s net zero ambitions.[4]

[1] https://www.nationalgridus.com/News/2021/03/The-Narragansett-Electric-Company-to-join-PPL-Corporation-/

[2] https://pplweb.mediaroom.com/2021-03-18-PPL-Corporation-to-sell-U-K-utility-business-to-National-Grid-and-acquire-National-Grids-Rhode-Island-utility-strategically-repositioning-PPL-as-a-high-growth-U-S-focused-energy-company

[3] https://pplweb.mediaroom.com/2020-08-10-PPL-Corporation-Launches-Process-to-Sell-U-K-Business-Reposition-Itself-as-U-S-Focused-Utility-Company

[4] https://www.nationalgrid.com/repositioning-national-grids-portfolio

[World] Report: Japan needs steep emissions reductions to reach decarbonization goals

On March 4, 2021, the International Energy Agency (IEA) published its Japan 2021 Energy Policy Review, which provides energy policy recommendations to help Japan achieve its clean energy transition.[1] In October 2020, the Prime Minister of Japan announced that Japan will aim to achieve net-zero greenhouse gas (GHG) emissions by 2050. However, despite making substantial progress in the last decade, Japan remains reliant on imported fossil fuels. Japan’s energy supply carbon intensity is among the highest of IEA member countries, according to the report. The IEA report makes several recommendations for reaching Japan’s 2050 carbon neutrality goal. The IEA says that Japan should develop several scenarios for decarbonization to prepare for the case that some low-carbon technologies are not deployed as quickly as expected. Japan should also establish market-based methods to encourage investments in efficient and low-carbon technologies. The IEA recommends that the government encourage investments in the electricity network and system operations to facilitate the large-scale deployment of variable renewable electricity sources. In the light of the January 2021 energy crisis, the IEA recommends advances in electricity and gas market reforms, including making the Electricity and Gas Market Surveillance Commission a more independent regulator. For nuclear, the IEA report recommends investing human and financial resources to accelerate the Nuclear Regulatory Commission’s safety reviews of nuclear reactors.

[1] https://www.iea.org/reports/japan-2021

[USA] Texas governor declares billing errors an emergency matter

On March 9, 2021, Governor of Texas, Greg Abbott (R), announced that the correction of billing errors is an emergency matter to be considered immediately by the Texas legislature.[1] The announcement comes after regulators at the Texas Public Utility Commission (PUC) declined on March 8, 2021 to direct the Electricity Reliability Council of Texas (ERCOT) to retroactively reprice its artificially inflated prices during the February 2021 cold weather event.[2] The commissioners expressed concern that there was too much uncertainty in how customers might be impacted by directing ERCOT to reverse its pricing. The decision goes against the recommendation of Potomac Economics, the region’s independent market monitor (IMM). According to the IMM, ERCOT should have immediately lowered prices after load shed instructions ended on February 17, 2021, but prices remained high through February 19, 2021 which cost the market $16 billion over the course of 32 hours. On March 8, 2021, Texas Lt. Gov. Dan Patrick called on the PUC to retroactively change the prices from that time period. On the same day, Texas PUC Commissioner Shelly Botkin resigned effective immediately. Her departure comes just a week after the resignation of Chair DeAnn Walker and leaves the commission with just one member left, Chair Arthur D’Andrea.

[1] https://www.utilitydive.com/news/texas-puc-loses-2nd-commissioner-as-lt-gov-presses-ercot-to-correct-16b/596378/

[2] https://www.utilitydive.com/news/texas-regulators-decline-to-act-after-market-monitor-reports-16b-of-inapp/596252/

[USA] Ohio House votes to repeal $1 billion in nuclear subsidies

On March 10, 2021, the Ohio House of Representatives voted 86-7 to pass H.B. 128, which repeals many provisions in the Creates Ohio Clean Air Program (H.B. 6).[1] H.B. 6 was passed on July 23, 2019 and is a comprehensive energy bill that would provide subsidies to promote clean air. The bill created a customer-paid $1.1 billion subsidy for two nuclear power plants in northern Ohio which had been suffering economically. The bill On July 30, 2020, federal prosecutors indicted then-House Speaker Larry Householder (R) and four associates on charges of running a $61 million bribery scheme involving Energy Harbor, the FirstEnergy subsidiary that operates the two nuclear plants involved in H.B. 6. Householder and his associates are charged with receiving bribes from Energy Harbor in exchange for passing H.B. 6. Householder, who pled not guilty in court, was reelected in November 2020 and continues to serve in the Ohio House while he awaits trial. The former speaker was among those who voted to pass H.B. 128. In the wake of the scandal, there was a large push among Ohio representatives and government officials to repeal all or parts of H.B. 6. While H.B. 128 repealed many of the nuclear provisions in H.B. 6, it did not repeal H.B. 6’s subsidies for two of the Ohio Valley Electric Corp’s (OVEC) coal plants.

[1]https://www.eenews.net/energywire/2021/03/11/stories/1063727183?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[USA] ERCOT Board of Directors fires CEO after Texas power outages

The Electric Reliability Council of Texas' (ERCOT) Board of Directors voted on March 4, 2021 to issue a 60-day termination notice for CEO Bill Magness.[1] In a statement, the Board of Directors state that they will "begin an immediate search for a new President and CEO.” The vote comes just weeks after the state experienced widespread power outages during an extreme cold weather event in February 2021. In addition to this news, the Chair of the Public Utility Commission of Texas (PUCT), DeAnn Walker, resigned on March 1, 2021. In her resignation letter, Walker stated that she "accepted [her] role in the situation," but that others, including the Texas Railroad Commission, ERCOT, and the legislature, should accept blame as well.

On March 4, 2021, the chairman of the House Oversight and Reform Subcommittee on the Environment, Representative Ro Khanna (D-California), sent a letter to CEO Bill Magness that requested documents regarding ERCOT's lack of winter storm preparation.[2] In his letter he stated, "The Subcommittee is concerned that the loss of electric reliability, and the resulting human suffering, deaths, and economic costs, will happen again unless ERCOT and the State of Texas confront the predicted increase in extreme weather events with adequate preparation and appropriate infrastructure."

[1] https://www.utilitydive.com/news/texas-head-utility-regulator-deann-walker-resigns-authority-ercot-blackouts/595932/

[2] https://oversight.house.gov/sites/democrats.oversight.house.gov/files/2021-03-03.Khanna%20to%20ERCOT%20re%20Winter%20Storms%20in%20Texas.pdf

[USA] Coalition of utilities unveil plan for multi-regional EV charging network

On March 2, 2021, the Electric Highway Coalition, which was formed by six utilities in the Southeast and Midwest, announced a plan to enable long distance electric vehicle (EV) travel by creating a network of direct current fast charging (DCFC) stations connecting major highway systems in the Midwest, South, Gulf, and Central Plains regions.[1] According to the Edison Electric Institute (EEI), there will be 18 million EVs in the U.S. by 2030. Currently, one of the major concerns of drivers when it comes to EVs is the availability of charging stations during long road trips.

The Electric Highway Coalition includes Duke Energy, American Electric Power (AEP), Dominion Energy, Entergy Corporation, Southern Company and the Tennessee Valley Authority (TVA). Each of the utilities have committed to providing EV fast charging options within their service territories to facilitate interstate travel. Sites near major highways that have easy highway access and amenities are being considered. DCFC stations will allow drivers to get back on the road in about 20-30 minutes. The utilities will coordinate with one another to prevent overlap of charging infrastructure if two or more utilities are in the same state. All of the utilities in the coalition have made efforts in recent years to increase EV charging infrastructure. For example, TVA announced in February 2021 that it is partnering with the Tennessee Department of Environment and Conservation to develop and fund a fast-charging network across major roadways in the state.

[1] https://www.tva.com/newsroom/press-releases/electric-highway-coalition

[USA] Biden backs former-president Trump on solar tariff suit

On March 1, 2021, the Biden administration filed with the U.S. Court of International Trade and requested that the court dismiss a lawsuit from the Solar Energy Industries Association (SEIA) and other solar industry members that argued that former-president Trump’s tariffs on bifacial solar panels were unlawful.[1] [2] Bifacial solar was originally excluded from Trump’s 2018 tariffs on other solar products because they were a relatively small share of the market at the time. However, a 2020 midterm review of the 2018 solar tariffs by the U.S. International Trade Commission (ITC) found that bifacial solar would become more popular and that the exclusion of bifacial solar from tariffs would hurt U.S. producers. This study led Trump to issue a presidential proclamation in October 2020 that removed the exception for bifacial solar. In late December 2020, the SEIA, NextEra Energy, EDF Renewables, and Invenergy Renewables challenged the Trump proclamation, which they claimed had violated rulemaking procedure. According to the Biden administration’s recent filing, the solar industry’s complaint "fails to set forth a plausible showing that the President’s determination involves a clear misconstruction of the governing statute, a significant procedural violation or action outside delegated authority."

[1] https://www.greentechmedia.com/articles/read/biden-administration-backs-trump-on-solar-tariff-suit

[2] https://www.bloomberg.com/news/articles/2021-03-01/biden-doj-says-trump-lawfully-killed-solar-tariff-loophole

[Japan] Japan Ministry of Economy, Trade and Industry Released a Roadmap for Expanding the Use of Ammonia

The Public-Private Fuel Ammonia Promotion Council, led by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), released an interim report on its work after holding its third meeting on February 8, 2021. From now on, the council will be held about once every six months to review the progress made by the public and private sectors.

In December 2020, METI issued the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050 and identifies fourteen policy priority areas, one of which is increasing the use of ammonia. Based on the Action Plan and the third meeting, the committee’s interim report highlights challenges and issues in expanding the use of ammonia and the roles of the public and private sectors to be addressed.

The interim report elaborates on the four key priorities to work towards the expansion of ammonia use, as follows:

1)   Stabilize the supply of fuel ammonia

2)   Reduce costs of ammonia utilization in terms of procurement, production, transportation, and storage

3)   Tackle CO2 emissions by adopting an ammonia mixed fuel combustion; and

4)   Advance the overseas expansion of the use of ammonia.

The interim report also formulates a roadmap for introducing and expanding the use of ammonia. The report has estimated that Japan will need 3 million tons of ammonia per year in 2030 and 30 million tons per year in 2050. The current price of ammonia in Japan is in the low 20s Japanese yen ($0.21 USD[1]) per Nm3, and the council aims to reduce the price to the high 10s yen ($0.18USD) per Nm3 by 2030.

The report has set 2030 and 2050 goals to meet Japan’s needs for ammonia. By 2030, Japan aims to introduce and deploy 20% ammonia mixed fuel combustion into coal-fired power plants. By 2050, Japan aims to increase the mixed fuel combustion ratio to nearly 50%. In the long term, Japan aims to establish a supply chain that will ensure a stable ammonia supply in Japan and overseas.[2] [3]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of February 23, 2021.

[2] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/20200208_report.html

[3] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/pdf/20200208_1.pdf

[Japan] TEPCO Renewable Power Joined an Offshore Wind Demonstration Project

On February 4, 2021, TEPCO Renewable Power (TEPCO RP, Headquarters: Tokyo) announced that it has joined Denmark’s TetraSpar Demonstrator, a demonstration project for testing the TetraSpar floating offshore wind foundation. The project was jointly launched by RWE Renewables (RWE, Headquarters: Essen, Germany), a leading renewable energy solutions provider; Shell New Energies (Shell, Headquarters: The Hague, Netherlands); and Stiesdal Offshore Technologies (SOT, Headquarters: Odense C, Denmark), a Danish company that develops wind power technologies. TEPCO RP will own a 30% share of the TetraSpar Demonstrator.

The project has assembled the TetraSpar floating offshore wind turbine foundation at the port of Grenaa in Denmark. TEPCO RP will contribute its efforts to the project by providing its technical knowledge from the electric power business that Tokyo Electric Power (TEPCO, Headquarters: Tokyo) has developed over the years.

The wind turbine foundation is comprised of a tubular steel pipe and a floating keel. The tubular pipe was manufactured by Welcon (Headquarters: Give, Denmark). The pipe was delivered to the port of Grenaa, Denmark in the summer of 2020 and was assembled on the site in less than two months. It was assembled quickly because TetraSpar does not require specific processes such as welding at the time of assembly, and because the project has validated the assembling and manufacturing method. Compared to other floating wind turbines, it is likely that the TetraSpar design concept has an advantage in simplifying the manufacturing, assembly and installation processes and reducing costs.

The project plans to mount the wind turbine on the foundation and then test it at the Marine Energy Test Centre (Metcentre) near Stavanger, Norway, where it will be fixed to the seabed with three anchor lines and connected to the power grid. The turbine is expected to start its operations in the summer of 2021. It will have an output of 3600 kW. The four companies hope that the project will: provide them with experience and knowledge in offshore wind turbine construction, installation, and operation; that it will refine the TetraSpar technology; and that the project will help to expand the use of offshore wind power.[1]

[1] https://www.tepco.co.jp/rp/about/company/press-information/press/2021/1572776_19679.html

[Japan] Okinawa Electric Power Invested in NEXTEMS, a Japanese Energy Aggregator

Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.)[1] announced on February 4, 2021 that it has invested in NEXTEMS, a Japanese energy aggregator (Ginowan City, Okinawa Pref.), and will own 23.4% of the shares of the company. NEXTEMS will become an affiliate of OEPC.

NEXTEMS, established in April 2018, provides customers with energy products, including solar power generation systems, battery storage, and EcoCute.[2] The company has been conducting demonstration tests of distributed energy resources’ (DERs) remote monitoring and control with controllable loads. The demonstration tests have been primarily in the Miyakojima area. OEPC and NEXTEMS had previously cooperated to jointly promote renewable energy service providers’ businesses in Miyakojima, and their cooperation helped the area to receive the prestigious New Energy Award in the First Fiscal Year of Reiwa Era (FY 2019) from the New Energy Foundation (NEF, Headquarters: Tokyo)[3], a Japanese organization that promotes the development of renewable energy technologies.

Promoting renewable energy as a main power source is one of OEPC’s focus areas under its long-term Zero Emission Initiative to tackle climate change. Leveraging NEXTEMS’s knowledge and experience with installing DERs control systems, OEPC aims to develop the new solar power and storage battery service that was announced in January 2021.[4]

[1] https://www.nextems.co.jp/profile/

[2] EcoCute is an energy efficient electric heat pump, water heating and supply system.

[3] https://www.nef.or.jp/english/aboutnef.html

[4] https://www.okiden.co.jp/shared/pdf/news_release/2020/210204.pdf

[Japan] Japan to bolster transition to LNG in Asian countries

The Ministry of Economy, Trade and Industry (METI) held a meeting of experts on February 19, 2021 and indicated a policy that would support the introduction of liquefied natural gas (LNG) in Asian countries. [1] The Japanese government plans to encourage the introduction of LNG infrastructure not only at LNG thermal power plants but also at LNG receiving bases and liquefaction facilities. Additionally, the Japanese government plans to support the gradual decarbonization efforts of Asian countries.

Coal is a major source of energy for countries such as Indonesia and Vietnam due to its affordability. According to the METI, a shift from coal to LNG in seven Asian countries—India, Indonesia, Vietnam, the Philippines, Malaysia, Thailand, and Myanmar—would reduce carbon emissions by about 864 million tons and increase LNG demand by 16 million tons. According to the minister of METI, increased demand for LNG in other Asian countries will lead to higher levels of production by countries in the region and may lower procurement costs of the energy source. Japan is the world’s largest LNG consumer and relies on LNG for nearly 40% of total power production. The country’s main suppliers are Australia, Qatar and the United States, but Japan is hoping to expand production in Asian countries. The increased effort to reduce purchasing costs and guarantee LNG supply follows an unseasonably cold winter which coincided with depleted LNG stocks.

[1] https://www.japantimes.co.jp/news/2021/02/23/business/lng-coal-energy/