[USA] Biden administration sets a goal of 50% emissions reduction by 2030

On April 22, 2021, President Joe Biden announced that the U.S. will reduce greenhouse gas (GHG) emissions 50-52% below 2005 levels by 2030.[1] The goal was decided through a government process that included the National Climate Task Force, which was formed when the U.S. re-entered the Paris Accord. The 2030 goal advances previous targets set by former President Barack Obama to reduce emissions up to 28% below 2005 levels by 2025. While many details on the new 2030 emissions target have not been released, the plan is consistent with the administration’s efforts to reach net-zero emissions in the power sector by 2035. The announcement was made on the first day of the Leaders Summit on Climate, a two-day virtual summit hosted by President Biden that is expected to include 40 foreign leaders. The event also included executives from financial institutions like the World Bank, union officials, green energy companies, and entrepreneurs.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/

[USA] Biden’s budget proposal includes major increases in overall clean energy spending

On April 9, 2021, President Joe Biden sent a preliminary outline of his budget request for Fiscal Year 2022 to Congress.[1] The $1.52 trillion budget request included new climate change investments, totaling more than $14 billion more compared to FY2021, across nearly all agencies. This is the first time that a budget request has detailed funding of specific climate programs. The administration is requesting a 10.2% increase to $46.1 billion for the Department of Energy (DOE), a 21.3% increase to $11.2 billion for the Environmental Protection Agency (EPA), and a 16.3% increase to $17.4 billion for the Department of the Interior (DOI). At the DOE, funding for clean energy programs includes $1.9 billion to support the development of a new energy efficiency and clean electricity standard, provide local grants to incentivize clean energy workforce support, and support the development of streamlined transmission. For the EPA, funding requested by the administration includes $110 million to restore EPA staff capacity to pre-Trump administration levels and $1.8 billion in programs to reduce greenhouse gas emissions. Biden’s budget request for the DOI includes $450 million to remediate orphaned oil and gas wells, remediate mining sites, and develop new jobs.

Proposed clean energy spending in other agencies includes $6.5 billion to the Department of Agriculture to spur rural clean energy projects and $300 million to the General Services Administration to electrify its vehicle fleet. The budget request follows the April 2021 release of the administration’s $2 trillion infrastructure plan, which proposed a federal clean electricity standard[2] and expanding clean energy tax credits. Both the budget request and the infrastructure plan are intended to put the U.S. on a path to achieve net-zero emissions by 2050.

[1] https://www.whitehouse.gov/wp-content/uploads/2021/04/FY2022-Discretionary-Request.pdf

[2] A clean electricity standard requires a percentage of retail electricity sales to come from low- and zero-carbon electricity sources. The share of clean electricity typically increases with time. Clean electricity standards are similar to renewable portfolio standards, which require that a certain percentage comes from renewable sources.

[USA] California Energy Commission announces $50 million project for zero-emission trucks and bus infrastructure

During a virtual event held on April 13, 2021, the California Energy Commission (CEC), the state’s primary energy planning and policy agency, announced the approval of a $50 million multi-year project to add sites for recharging or refueling zero-emission buses and big trucks.[1] The Energy Infrastructure Incentives for Zero-Emission Commercial Vehicles (EnergIIZE) project will use a “concierge-like model” to work directly with private companies and local transit agencies to help plan and fund charging and hydrogen fueling infrastructure additions. CALSTART, a nonprofit consortium focused on the clean transportation industry, will administer the first-of-its-kind project. CALSTART will receive an initial $17 million to design and launch the project, with additional funds subject to annual approval from the state budget and the CEC. Tetra Tech Inc., CALSTART’s long-term incentive program administrator, and GRID Alternatives, a non-profit that manages clean energy programs in low-income communities, will be a part of the project team.

The EnergIIZE project is funded by the CEC’s Clean Transportation Program, which invests more than $100 million annually to support research, development, and deployment of advanced transportation and fuel technologies. According to the CEC, the EnergIIZE project will benefit at-risk communities by meeting the infrastructure needs of companies and public agencies committed to adding clean battery-electric and hydrogen equipment. The project will also help advance Governor Gavin Newsom’s goal of 100% zero emissions from medium-duty and heavy-duty vehicles by 2045.

[1] https://www.energy.ca.gov/news/2021-04/energy-commission-announces-nations-first-incentive-project-zero-emission-truck

[USA] Marine energy industry sets deployment goal of 1GW by 2035

In a new report released on April 14, 2021, the National Hydropower Association (NHA) announced new industry deployment targets of 50 MW by 2025, 500 MW by 2030, and 1 GW by 2035.[1] The report, titled “Commercialization Strategy for Marine Energy,” considers the accelerated commercialization of marine energy technologies that generate electricity from waves, tides, and currents in oceans and rivers, as well as from the ocean's heat cycles. The NHA report follows the release of a Department of Energy (DOE) report on marine energy released in February 2021 that found that the total marine energy resource in the U.S. is roughly equivalent to 57% of U.S. electricity generation in 2019. The NHA report argues that marine energy could be essential for remote areas of the U.S. dependent on fossil fuels by providing zero-carbon power generation without the need for expensive new transmission lines. Marine technologies could also help produce green hydrogen and could be a strong complement to more intermittent renewable technologies.

The NHA report calls for the federal government to accelerate the commercialization of marine energy technologies by increasing financial support for research development, reducing market barriers, and creating financial incentives for marine energy deployment. Specifically, the NHA is looking for substantial new investments in the DOE’s Water Power Technologies Office and the Navy Energy Program, which will accelerate technology demonstration, reduce costs, and increase technology adoption.

[1] https://www.hydro.org/wp-content/uploads/2021/04/NHA_MEC_Commercialization_Strategy_Marine_Energy.pdf

[Japan] Japan and UAE sign agreement to cooperate on hydrogen technology and supply chain

On April 8, 2021, Japan’s Ministry of Economy, Trade and Industry (METI) signed a memorandum of cooperation (MOC) with the UAE’s Ministry of Energy & Infrastructure to work together on hydrogen production technology and to develop an international hydrogen supply chain.[1] [2] The UAE is an oil-producing country, but the country has abundant solar radiation and focuses on renewable energy such as solar power generation, so it has high production potential for "green hydrogen." Japan has signed the MOC with the UAE as the first step to strengthen its relationship with hydrogen resource countries. The hydrogen will most likely be produced from fossil fuels, but the emissions will be captured and used in industry. The countries will also work to boost hydrogen demand in the UAE. Currently, Japan’s hydrogen demand is 2 million tonnes per year. As a part of its green growth strategy to reach net-zero carbon emissions by 2050, Japan set a goal in December 2020 to boost demand to 3 million tonnes of hydrogen per year by 2030 and 20 million tonnes of hydrogen per year by 2050. Japan’s green growth strategy also includes plans for ammonia; in January 2021, Japan struck a deal with the UAE’s state-owned Abu Dhabi National Oil Co. (ADNOC) to cooperate on fuel ammonia production.

[1] https://www.reuters.com/article/us-japan-hydrogen-emirates/japan-uae-to-collaborate-on-hydrogen-technology-supply-chain-idUSKBN2BV1CJ

[2] https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/040821-japan-signs-first-hydrogen-cooperation-deal-with-uae-to-consider-supply-chain

[USA] FPL files 10-year plan that would expand emissions-free energy

Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, filed a Ten-Year Site Plan with the Florida Public Service Commission on April 1, 2021.[1] The plan includes opening a 409 MW solar-powered battery storage facility and seven new solar energy centers by the end of 2021. The solar-power battery storage facility, currently under construction in Manatee County, will be the largest facility of its kind in the world. According to FPL, zero-emissions sources will generate 40% of its power by the end of the decade, a more than 65% increase from 2020. Under the plan filed with the commission, FPL would install 30 million solar panels and have more than 11,000 MW of installed solar capacity by 2030. Currently, FPL is the state’s largest solar producer and has 40 solar energy centers in Florida. By 2030, FPL also plans to have 700 MW of battery storage, a 186% increase compared to 2021.

Regarding coal, FPL has shut down less efficient coal-fired units to save customers millions of dollars, and on January 1, 2021, the company closed its last remaining coal-fired plant in the state. FPL is also currently building the FPL Dania Beach Clean Energy Center, an ultra-efficient power plant in Fort Lauderdale. The company does not currently anticipate the need to build another new natural gas power plant through 2030. For nuclear, FPL plans to request that the Nuclear Regulatory Commission extend the licenses of St. Lucie Units 1 and 2, allowing for up to 20 additional years of operations.

[1] http://newsroom.fpl.com/news-releases?item=126215

[USA] ERCOT report finds weather-related issues were the primary cause of February outages

On April 6, 2021, the Electric Reliability Council of Texas (ERCOT) sent its preliminary report to the Texas Public Utility Commission (PUC) on the causes of generator outages and derates during the February 14-19, 2021 extreme cold weather event.[1] ERCOT’s report follows initial requests for information from generators about why so much generation went offline during the cold weather event. The report found that most of the outages during the event were weather-related outages, which ERCOT defined as outages “explicitly attributed to cold weather,” such as frozen or flooded equipment. During the February 14-19 time period, weather-related issues caused 54% of generator outages, equipment failures caused 14% of outages, and fuel limitations caused 12% of outages. ERCOT estimates that approximately 51,173 MW were forced offline during that period, which is slightly lower than the original estimate of 52,277 MW. ERCOT is still waiting on data for February 10-13, 2021. The grid operator anticipates completing a full report on the event by the end of August 2021.

[1]http://www.ercot.com/content/wcm/lists/226521/51878_ERCOT_Letter_re_Preliminary_Report_on_Outage_Causes.pdf

[Japan] Shikoku Electric Power Invests in a U.S. Startup, LO3 Energy

On March 12, 2021, Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.) announced that it has invested in LO3 Energy, a Portland, Oregon-based venture company that provides a next-generation electricity trading platform. This will be Yonden’s first investment in an international startup.

In recent years, the movement towards decentralization has accelerated various changes in the energy sector. Yonden sees this as a business opportunity, aiming to develop new services by leveraging DER (Distributed Energy Resources) technologies. LO3 Energy has had extensive experience in developing cloud-based trading platforms that enable electricity trading among DERs in the United States and Europe. Through this investment, Yonden hopes to gain new knowledge and expertise in digital trading platforms from LO3 Energy, and will expand its platform business in Japan to promote P2P electricity trading among consumers who own and operate renewable energy sources. Yonden will continue to seek and build the next growth engine for their business expansion by aggressively investing in venture companies that can be expected to take advantage of the synergistic benefits derived from the deal.[1]

[1] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2021/03/12/pr002.pdf

[Japan] Chugoku Electric Power and Chudenko Jointly Acquired Equity in a Taiwanese Independent Power Producer

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) and Chudenko Corporation (Headquarters: Hiroshima City, Hiroshima Pref.), EnerGia’s subsidiary that provides power facilities construction services, announced on March 9, 2021 that they have jointly acquired a 25 percent share of Feng Ping Power through their investment company, C&C Investment. Feng Ping Power is a Taiwanese independent power producer (IPP) that has been constructing the Feng Ping Xi hydropower station in Hualien County, Taiwan.

It is the second time EnerGia and Chudenko have jointly invested in an overseas IPP, and the first time for both firms to invest in an overseas hydroelectric power project[1]. The Feng Ping Xi hydropower station is scheduled to begin commercial operations in 2024 and its output is expected to 37.1MW. Taiwan Power (Headquarters: Taipei, Taiwan), a state-owned utility, will be a purchaser of the station’s power. The EnerGia Group will continue its efforts to advance the development of technologies that contribute towards carbon neutrality. [2]

[1] Meanwhile, this is the eight case for EnerGia to invest oversea power generation projects.

[2] https://www.energia.co.jp/press/2021/13019.html

[Japan] Six Regional Economic Federations in West Japan Jointly Released a Statement on Japan’s Energy Policy to Achieve Carbon Neutrality by 2050

On March 12, 2021, six regional economic organizations located in western Japan jointly released a statement on Japan’s current energy policy and the goal to achieve carbon neutrality by 2050. The eight economic federation organizations, each consisting of members from various enterprises and other entities, exist nationwide to support local development and business activities. This joint statement was released by the Kansai Economic Federation (Kankeiren, Headquarters: Osaka City, Osaka Pref.), Kyushu Economic Federation (Kyukeiren, Headquarters: Fukuoka City, Fukuoka Pref.), Shikoku Economic Federation (Yonkeiren, Headquarters: Takamatsu City, Kagawa Pref.), Chugoku Economic Federation (Chugokukeiren, Headquarters: Hiroshima City, Hiroshima Pref.), Central Japan Economic Federation (Chukeiren, Headquarters: Nagoya City, Aichi Pref.), and Hokuriku Economic Federation (Hokkeiren, Headquarters: Kanazawa City, Ishikawa Pref.).

This is the first time that the six organizations have jointly provided their recommendations on Japan’s energy policy. Their statement notes that the outbreak of COVID-19 has further underscored the importance of ensuring the stability of the energy supply in Japan. In order for Japan to achieve its short-term goals for its energy mix by 2030, the report highlighted the need for the following actions:

1)   Increase the use of nuclear energy by maintaining the nuclear energy supply chain and accelerating the development of next-generation nuclear energy technologies, such as Small Modular Reactors (SMRs)

2)   Accelerate the expansion of renewable energy sources, while enhancing public awareness and understanding on the social costs resulting from the deployment of renewable energy

3)   Phase out existing coal-fired power plants and promote advanced technologies such as efficiency improvement and carbon capture and utilization storage (CCUS)

Realizing that it will be extremely challenging for Japan to meet its carbon neutrality goal by 2050, the statement recommends that the Japanese government take the following measures:

1)   Develop a research & development (R&D) strategy that supports research activities led by the public and/or private sectors on technologies that will contribute to the reduction of CO2 emissions

2)   Increase the demand for relevant products/services which contribute to the reduction of carbon emissions in industrial, transportation and consumer sectors by accelerating revolutionary innovations

3)   Facilitate the process of low/zero carbonization by utilizing nuclear energy and renewable energy

4)   Establish a mechanism to promote open information disclosures which can lead to the appropriate evaluation of Japanese business’ activities

5)   Contribute to the reduction of CO2 emissions in the global community

6)   Carefully deal with carbon pricing

7)   Formulate the domestic and overseas Public Relation (PR) strategies [1]

[1] https://www.kyukeiren.or.jp/files/release/210310023539123.pdf

[USA] NYPA approves major transmission line rebuild

The New York Power Authority (NYPA), the largest state public power utility in the U.S., announced on March 30, 2021, that it had approved the Northern New York Priority Transmission Project (NNYPTP).[1] NYPA also announced that it had selected National Grid as a co-participant to help rebuild transmission lines in the northern part of New York. The NNYPTP is a significant transmission line rebuild that will improve New York’s power grid resiliency and help the state meet its aggressive clean energy goals. The project includes completion of NYPA’s Smart Path Moses-Adirondack project, rebuilding approximately 45 miles of transmission in a region known as the Northern Alignment, rebuilding approximately 55 miles of transmission in the Southern Alignment, and expanding several substations. According to NYPA, the NNYPTP will enable more than 1 GW of wind and hydropower deliveries from the northern region of New York to the central part of the state. It will also avoid more than 1.16 million tons of carbon emissions annually, save $447 million in annual transmission congestion costs, and create hundreds of jobs. NYPA’s approval of the project allows for engineering and planning work to begin in preparation for the New York State Public Service Commission’s environmental review and approval process. NYPA expects to begin construction on the NNYPTP in 2022 and plans to complete the project in about three years.

[1] https://nypa.gov/news/press-releases/2021/20210330-nny

[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