[USA] DC Circuit orders FERC to redo analysis for Texas LNG projects

On August 3, 2021, a panel of U.S. Court of Appeals for the D.C. Circuit judges unanimously ruled that the Federal Energy Regulatory Commission (FERC) did not go far enough in considering environmental justice and climate impacts in its 2019 approval of the Rio Grande and Texas liquified natural gas (LNG) projects.[1] When the commission did its environmental review of the projects, it found that it could not determine the impacts the projects would have on the climate crisis because there is no universal methodology for calculating the impacts. However, petitioners said that FERC could use the social cost of carbon or another generally accepted metric to evaluate the impacts of the projects. In his dissent of FERC 2019 approval, Chairman Richard Glick, who was a commissioner at the time, argued that under federal law, the commission was not allowed to "assume away" the impacts of these projects and that the commission's assessment was inadequate.

The judges found that FERC's analyses of the projects' impacts on climate change and low-income or minority communities in Cameron County, Texas, were "deficient" under the National Environmental Policy Act, the Natural Gas Act, and the Administrative Procedure Act. The panel did not vacate FERC's approval of the projects, though. Instead, the court's decision remands the decision back to the commission to review again.

[1] https://www.cadc.uscourts.gov/internet/opinions.nsf/1F97B59429C7D4F6852587260052CC71/$file/20-1045-1908759.pdf

[USA] ADNOC sells first blue ammonia cargo to Japan's Itochu

On August 3, 2021, Abu Dubai National Oil Company (ADNOC), the state-owned oil company of the UAE, announced that, in partnership with Fertiglobe, it had sold its first blue ammonia cargo to Itochu in Japan to be used in fertilizer production.[1] The agreement builds upon the Japanese Ministry of Economy, Trade and Industry's (METI) first fuel ammonia deal in cooperation with ADNOC in January 2021 to support the development of new UAE-Japan blue ammonia supply chains. Blue ammonia can be used as a low-carbon fuel in many different industrial applications, including transportation, power generation, and steel production, among other things. As a carrier fuel for hydrogen, which is hard to transport in its natural state, blue ammonia is expected to play an important part in Japan’s ongoing efforts to decarbonize its industrial sector.

In a statement, Masaya Tanaka, Executive Officer of Itochu Corp, said, "Starting with this trial of blue ammonia for fertilizer applications, we aim to create a wide range of ammonia value chains for existing industrial applications as well as future energy use. By collaborating with ADNOC and Fertiglobe, we expect to initiate and enhance our industrial portfolio in the fertilizer sector while achieving our commitments towards decarbonization activities in other industries."

Fertiglobe, a 58:42 partnership between Dutch chemicals company OCI and ADNOC, will produce blue ammonia at its Fertil plant in the Ruwais Industrial Complex in Abu Dhabi for delivery to ADNOC's customers in Japan. The Fertil plant has a production capacity of 1.2 million mt/year of ammonia and 2.1 million mt/year of urea. While the plant produces ammonia that is usually defined as “grey” ammonia, it will be fitted with CO2 liquefaction units. CO2 will then be transferred to and reinjected into underground reservoirs by the ADNOC Al Reyadah carbon capture and storage (CCUS) plant to enable the production of blue ammonia.

[1] https://www.adnoc.ae/en/news-and-media/press-releases/2021/adnoc-and-fertiglobe-partner-to-sell-uaes-first-blue-ammonia

[USA] Exelon subsidiary announces goal to achieve net-zero emissions by 2050

Exelon Utilities, a subsidiary of Exelon Corporation, announced its "Path to Clean" goal on August 4, 2021, which includes reducing its operations-driven emissions by 50% by 2030 compared to 2015 levels, and reach net-zero by 2050 as part of its efforts to address climate change.[1] Exelon Utilities is comprised of six utilities: Atlantic City Electric, Baltimore Gas & Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power, PECO, and Potomac Electric Power Company (PEPCO). Together, the utilities deliver electricity and gas to more than 10 million customers across five states and the District of Columbia. Exelon Corporation has previously met or exceeded three other emissions reduction goals spanning both its generation company and utilities.

Exelon Utilities' plans to meet the new goal include electrifying 30% of its vehicle fleet by 2025 and 50% by 2030, concentration technology and infrastructure investments on increasing energy efficiency and utilizing clean electricity for operations, and modernizing natural gas infrastructure to reduce methane leaks and increase safety and reliability. In addition, Exelon Utilities will aim to reduce emissions beyond its company by continuing to advocate for climate policies, partnering with state and local leaders to achieve community emissions goals, and piloting new grid technologies. The company will also continue to prioritize energy efficiency programs, which it says helped customers save money on their energy bills and reduced usage by 22.3 million MWh in 2020.

[1] https://www.exeloncorp.com/newsroom/exelon-utilities-announces-goal-to-achieve-net-zero-emissions-by-2050

[USA] FirstEnergy agrees to pay $230 million fine for bribing Ohio officials

On July 22, 2021, FirstEnergy Corporation announced that it had reached a settlement agreement with the U.S. Attorney’s Office for the Southern District of Ohio to pay a $230 million penalty for bribing Ohio officials to guarantee the passage of Creates Ohio Clean Air Program (HB-6).[1][2] Passed on July 23, 2019, HB-6 created a ratepayer-funded $1.5 billion subsidy for two northern Ohio nuclear power plants previously owned by FirstEnergy and two coal-fired plants on the Ohio River jointly owned by the state's utilities. When the bill was being considered, FirstEnergy strongly lobbied for the passage of HB-6 and said that it would otherwise have to prematurely close the two nuclear plants. According to the federal disclosure, FirstEnergy cooperated with federal investigators to disclose bribing state officials through dark money groups to get HB-6 passed. FirstEnergy and its subsidiaries donated $59 million between 2017 and 2020 to Generation Now, a group controlled by then-Speaker of the Ohio House of Representatives Larry Householder (R). The company set up a group called Partners for Progress in February 2017 as a 501(c)(4), which are registered lobbying entities, through which it directed $25 million "to entities associated with public officials" over two years.

The U.S. Attorney's Office for the Southern District of Ohio charged FirstEnergy for conspiring to commit honest services wire fraud. The charge will be dismissed so long as FirstEnergy cooperates with the government for the three-year period of the settlement agreement. FirstEnergy must disclose all political donations, including those made to dark money groups, during the three-year period of the agreement. In addition, the agreement requires the company to take other steps such as establishing an executive director role for the Board of Directors and hiring a new chief legal officer.

[1] https://www.firstenergycorp.com/newsroom/news_articles/firstenergy-reaches-agreement-to-resolve-department-of-justice-i.html

[2] https://www.justice.gov/usao-sdoh/pr/firstenergy-charged-federally-agrees-terms-deferred-prosecution-settlement

[USA] Electric Highway Coalition doubles membership

On July 26, 2021, the Electric Highway Coalition (EHC) announced that its membership has more than doubled since its founding and now includes 14 companies.[1] The EHC is a partnership committed to creating a network of DC fast charging stations along U.S. highway routes to enable long-distance electric vehicle (EV) travel. The original members of the EHC were American Electric Power, Dominion Energy, Duke Energy, Entergy Corporation, Southern Co., and the Tennessee Valley Authority. The new members are AVANGRID, Consolidated Edison, DTE Energy, Eversource Energy, Exelon, FirstEnergy Corp., ITC Holdings Corp., and National Grid. Together, the coalition members represent 29 states and the District of Columbia and serve more than 60 million customers.

The EHC initially announced plans to create a network of DC fast charging stations in March 2021. The recent announcement included further defining the coalition’s goals and objectives. Coalition members have agreed to cooperate to ensure reliable fast charging deployment plants that will allow for long-distance EV travel, avoid duplicating charging infrastructure between member utilities, and complement existing corridor fast charging sites. One goal is to set up sites that are easily accessible and located less than 100 miles apart, with at least two charging stations with universal vehicle compatibility in each area. Member companies will also consider additional features such as real-time status reporting for drivers and convenient payment collection. The EHC noted that effective EV charging buildout will vary from area to area, and its members are working closely with stakeholders in their service territories to determine the best approaches. Each member will determine its own specific pricing models and choose its own charging equipment providers.

[1] https://www.aep.com/news/releases/read/7190/Electric-Highway-Coalition-Grows-to-14-Members-More-Than-Doubling-Participation

[USA] Biden issues National Security Memorandum on critical infrastructure cybersecurity

On July 28, 2021, President Joe Biden signed a National Security Memorandum on improving critical infrastructure cybersecurity.[1] The memorandum aims to encourage critical infrastructure owners and operators to voluntarily adopt better cybersecurity standards. The memorandum specifically focuses on industrial control systems (ICS), which monitor, regulate, and automate operational technologies (OT). Compromised ICS and OT can enable attackers to cause physical damage to systems and even widespread outages.

The memorandum formalizes the ICS Cybersecurity Initiative, which was launched in April 2021 and included a pilot program for the electricity sector. The pilot program is a voluntary, collaborative effort between the federal government and the electricity sector to improve the cybersecurity of these systems. So far, more than 150 utility companies have joined the pilot. A separate pilot is being developed for natural gas pipelines later in 2021, followed by plans for the chemical industry and waste-water treatment plants. The memorandum also directs the Departments of Commerce and Homeland Security (DHS), in coordination with the Secretary of Commerce (through the Director of the National Institute of Standards and Technology) and other agencies, to develop and issue cybersecurity performance goals to help critical infrastructure owners and operators improve their individual capabilities.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/28/national-security-memorandum-on-improving-cybersecurity-for-critical-infrastructure-control-systems/

[USA] Coalition sues Alaska governor to return money rural energy program

On July 19, 2021, a coalition that includes the Alaska Federation of Natives, electric cooperatives, and several local governments[1] filed a lawsuit against Alaska Governor Mike Dunleavy (R) to demand that his administration release money intended to subsidize power bills in rural Alaska.[2] The Power Cost Equalization Endowment Fund is a program that reduces rural customers' electric rates to levels comparable to those paid in urban areas of Alaska. The program reimburses utilities for credits they extend to customers. The Power Cost Equalization Endowment Fund serves more than 80,000 citizens who are largely reliant on diesel for power generation. According to the Department of Revenue, the fund was valued at about $1.2 billion as of June 30, 2021.

The lawsuit claims that in 2019 the Dunleavy administration identified without "any legal explanation or justification" a larger list of accounts, including the Power Cost Equalization Endowment Fund, to be swept into the budget reserve compared to previous administrations. A budget reserve is a fund set aside to meet short-term deficits. The sweep happens automatically, and actions to reverse it and return funds to the accounts require three-quarters of legislators to pass. The legislature did not meet the three-quarter vote requirement in June 2021 amid a budget dispute. The attorney for the plaintiffs said that issue isn't with the failed vote but with the administration's decision to sweep money from the endowment fund into the budget reserve.

[1] Alaska Federation of Natives, First Alaskans Institute, Association of Village Council Presidents, Aleutians East Borough, Organized Village of Kake, City of Saint Paul, City of Adak, City and Borough of Yakutat, City of Sand Point, Alaska Village Electric Cooperative, Inn Electric Cooperative, Inside Passage Electric Cooperative, Kotzebue

Electric Association, Naknek Electric Association, Nushagak Electric & Telephone Cooperative, Unalakleet Valley Electric Cooperative, Cordova Electric Cooperative, and Tanalian Electric Cooperative

[2] https://public.courts.alaska.gov/web/media/MRCF/3AN-21-06737CI/complaint.pdf

[USA] House Democrat launches "Hot FERC Summer" campaign, introduces new legislation for FERC

On July 20, 2021, Representative Sean Casten (D-IL) launched the "Hot FERC Summer" campaign aimed at boosting the Federal Energy Regulatory Commission's (FERC) visibility in Congress.[1] Hot FERC Summer is a play on rapper Megan Thee Stallion's 2019 song "Hot Girl Summer." The campaign is also intended to highlight the need for President Biden to name a Democratic commissioner to FERC to give Democrats a majority on the commission for the first time in years.

The campaign was launched alongside the Energy PRICE Act, a policy that clarifies that FERC has the responsibility to consider the cost of greenhouse gas (GHG) emissions in ratemaking decisions. The legislation is co-sponsored by Representatives Jared Huffman (D-CA), Mike Levin (D-CA), and Suzanne Bonamici (D-OR). It points out that under the Federal Power Act (FPA), Congress granted FERC the authority and responsibility to include GHG emissions and other external factors when considering what rates are just and reasonable. Under this policy, FERC could conclude that it has the authority to implement a carbon price in U.S. wholesale power markets. In addition to the Energy Price Act, Rep. Casten has plans to introduce or has introduced two other FERC-related bills. The congressman plans to reintroduce the Right to Timely Rehearings at FERC Act, intended to expedite the rehearing process. Additionally, in April 2021, Rep. Casten and Sen. Martin Heinrich (D-NM) introduced the Interregional Transmission Planning Improvement Act to improve regional transmission planning.[2]

[1] https://casten.house.gov/media/press-releases/congressman-casten-kicks-hot-ferc-summer-introduction-energy-price-act-and

[2] https://casten.house.gov/media/press-releases/casten-heinrich-announce-bicameral-bill-recharge-electric-transmission-planning

[Japan] Japan sets new 2030 target for renewables

Japan's Ministry of Economy, Trade and Industry (METI) released a draft of its latest energy policy on July 21, 2021, which includes raising the share of non-fossil fuels for electricity generation to about 60% of total production by fiscal 2030—2.5 times the current level.[1] The first revision of the energy policy comes after Japan nearly doubled its 2030 target in April 2021 to 46% from 26% from 2013 levels. Mitsuhiro Nishida, METI’s director of energy strategy office, said that the revised 2030 energy plan is an "ambitious outlook on what needs to be done to fulfill the 46% reduction target.”[2] The policy draft says renewables should account for 36% to 38% of total power production by 2030, up from 22% to 24% in the previous plan. The draft plan keeps the target for nuclear power at 20% to 22% in 2030. Renewables and nuclear power made up 18% and 6% of total power generation in fiscal 2019, respectively. The draft basic energy policy also projects that ammonia and hydrogen will account for about 1% of the electricity mix in 2030. The new draft also reduces the share of fossil fuels compared to the previous plan. Under the new plan, the share of coal in the country's portfolio will be 19% in 2030, down from 32% in 2019. Similarly, the draft reduces natural gas and oil targets to 20% and 2%, respectively, down from 37% and 7% in 2019.

[1] https://www.reuters.com/business/energy/japan-boosts-renewable-energy-target-2030-energy-mix-2021-07-21/

[2] https://www.spglobal.com/platts/en/market-insights/topics/hydrogen

[USA] Keystone XL developer launches $15B NAFTA challenge

On July 2, 2021, TC Energy Corporation, the Canadian developer of the Keystone XL pipeline, announced that it had filed a Notice of Intent to initiate a legacy North American Free Trade Agreement (NAFTA) claim under the United-States-Mexico-Canada Agreement to recover damages resulting from the revocation of the pipeline’s presidential permit.[1] The 1,210-mile pipeline project, located in central North America and running north to south, was slated to carry 830,000 barrels of heavy crude per day from Alberta, Canada, to Nebraska, U.S. However, in January 2021, President Biden issued an executive order rescinding the pipeline’s border crossing permit amid concerns that burning oil sands crude would worsen climate change.[2] As a result, TC Energy announced in June 2021 that it was canceling the project.  The developer is seeking to recover more than $15 billion in damages that it has suffered as a result of the Biden administration’s decision.

This is not the first time TC Energy has challenged the U.S. government under NAFTA. In 2016, TC Energy, then known as TransCanada Corp., filed a notice of NAFTA arbitration after President Obama denied the pipeline a border-crossing permit.[3] The company dropped its $15 billion claim when President Trump signed an executive order approving the pipeline and granting TC Energy the border-crossing permit in 2017.

[1] https://www.tcenergy.com/announcements/2021-07-02-tc-energy-commences-nafta-claim-following-revocation-of-keystone-xl-presidential-permit/

[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-protecting-public-health-and-environment-and-restoring-science-to-tackle-climate-crisis/

[3] https://www.tcenergy.com/announcements/2016/2016-01-06transcanada-commences-legal-actions-following-keystone-xl-denial/

[USA] DOE announces $52.5 million to advance clean hydrogen technologies

On July 7, 2021, the Department of Energy (DOE) announced $52.5 million to advance cutting-edge clean hydrogen technologies.[1] The funding will support the DOE’s Hydrogen Energy Earthshot initiative, which aims to reduce the cost and accelerate innovation in the clean hydrogen sector. The 31 projects will focus on bridging technical gaps in hydrogen production, storage, distribution, and utilization technologies to help the U.S. reach the Biden administration’s goal of a decarbonized electricity sector by 2035.

The funding includes $36 million from the Office of Energy Efficiency and Renewable Energy (EERE) and $16.5 million from the Office of Fossil Energy and Carbon Management (FECM). The EERE will support 19 projects focused on five topics: 1) electrolysis with improved manufacturing and streamlined assembly to reduce costs; 2) clean hydrogen, including biological and electrochemical approaches; 3) fuel cell subsystems and components that are more efficient and durable and are designed for heavy-duty applications; 4) domestic hydrogen supply chain components and refueling technologies; and 5) cost and performance analyses of fuel cell systems, hydrogen production pathways, and hydrogen storage technologies. The FECM will support 12 projects on six topics: 1) degradation mechanisms and pathways in high temperature reversible solid oxide cells (SOC) materials that help assess metrics such as cost; 2) performance, reliability, and durability for hydrogen production using reversible solid oxide cells (R-SOC) systems; 3) cost reductions via improvements in materials, manufacturing and microstructure improvements in R-SOC technologies; 4) design of a commercial-scale advanced carbon capture, utilization, and storage (CCUS) system from steam methane reforming plants; 5) design of a commercial-scale advanced CCUS system from autothermal methane reforming plants; and 6) development of a gas turbine combustion system for both hydrogen and hydrogen plus natural gas.

[1] https://www.energy.gov/articles/doe-announces-525-million-accelerate-progress-clean-hydrogen

[USA] Coalition asks Congress for cost analysis of RTOs

A coalition of consumer advocates, pro-market groups, and others sent a letter on July 8, 2021, requesting that Congress direct the Government Accountability Office (GAO) or other independent oversight organization to conduct a first-of-its-kind cost analysis of organized power markets.[1] The coalition is spearheaded by the Electricity Consumers Resource Council (ELCON) and includes groups such as Public Citizen, Energy Choice Coalition, and R Street Institute. In 1999, the Federal Energy Regulatory Commission (FERC) encouraged participation in organized markets under Order 1000. As a result, about two-thirds of the U.S. by area is now served by Regional Transmission Organizations and Independent System Operators (collectively RTOs). In their letter, coalition members expressed concern that while FERC has promoted RTOs based on the idea that they benefit customers, the commission has not initiated a full-scale, independent study to ensure that RTOs provide reliable and affordable electricity. The coalition is requesting an analysis of the cost impacts of federal policy on market structure, particularly the net benefits to retail consumers of forming RTOs. The study should examine how existing RTO markets have impacted the cost of electricity for retail consumers. The coalition also asked that the study explore the impacts of wholesale market structures on reliability and develop a set of best practices for RTO expansion.

[1] https://elcon.org/independent-study-of-the-cost-of-electricity/

[USA] Senate Democrats introduce bill to extend the production tax credit to existing nuclear plants

On June 24, 2021, U.S. Senators Tom Carper (D-DE), Ben Cardin (D-MD), Joe Manchin (D-WV), Sheldon Whitehouse (D-RI), and Cory Booker (D-NJ) introduced the Zero-Emission Nuclear Power Production Credit Act of 2021 (S. 2291). The bill would make existing merchant nuclear power owners/operators eligible for the same $0.015/kWh ($15/MWh) tax credit proposed for wind operators.[1] Nuclear reactors provide one-fifth of the U.S.’s electricity and represent 55% of total emission-free energy across the nation. However, the current production tax credit for eligible nuclear power facilities only applies to nuclear plants for the first eight years of operations. Older nuclear power plants, many of which are retiring early due to low energy prices, are not eligible for any tax credits. The proposed production tax credit would phase out if market revenues reach $0.025/kWh ($25/MWh), if greenhouse gas emissions (GHG) drop 50% from 2020 levels, or after ten years. Several labor groups and other organizations support a nuclear production tax credit, including the American Nuclear Society, the Bipartisan Policy Center Action, GE Hitachi, North America’s Building Trade Unions, Nuclear Energy Institute, and Sensible Energy Matters to America.

[1] https://www.energy.senate.gov/2021/6/manchin-cardin-carper-whitehouse-booker-introduce-bill-to-extend-production-tax-credit-for-zero-emission-energy-sources-to-existing-nuclear-plants

[USA] AEP subsidiary issues RFPs for purchase of wind, solar, and short-term generation

On June 28, 2021, Southwestern Electric Power Company (SWEPCO), a subsidiary of American Electric Power (AEP), announced three Requests for Proposals (RFP) for renewable and short-term generating capacity to supply the needs of its customers.[1] The RFPs seek bids for the purchase of up to 3,000 MW of wind resources, up to 300 MW of solar resources, and up to 250 MW of short-term accredited deliverable capacity. Wind resources must be at least 100 MW, interconnect to the Southwest Power Pool (SPP), and be located in Arkansas, Louisiana, Texas, Oklahoma, Kansas, or Missouri. Solar resources must be at least 50 MW, be located with SWEPCO’s service territory, and interconnect to SWEPCO’s transmission system within SPP. Proposals for short-term capacity must be at least 50 MW from SPP resources. The wind and solar projects must be operational by December 15, 2024, or December 15, 2025, which would allow the projects to take advantage of the federal production and investment tax credits before they expire. Proposals are due by August 12, 2021, and will be subject to regulatory approval from regulators in Arkansas, Louisiana, and Texas and the Federal Energy Regulatory Commission (FERC).

[1] https://www.aep.com/news/releases/read/6155/SWEPCO-Issues-Requests-for-Proposals-for-Purchase-of-Wind-Solar-and-Shortterm-Generation

[Japan] Vestas announces 113 MW wind order in Japan

Vestas, a Danish wind turbine company, announced on June 30, 2021, that it had secured an order to supply turbines for Green Power Investment Corporation’s (GPI) 113 MW Sumita Tono Wind Farm in Japan.[1] The order will be the first project between Vestas and GPI, a Japanese partner of U.S.-based Pattern Energy Group LP. Since 2004, GPI has focused on developing, constructing, and operating renewable projects in Japan. The site is located in complex mountainous terrain in the cities of Sumita and Tono in Iwate prefecture, which the company says demonstrates how the company can leverage its expertise to deliver site-specific solutions in all conditions. The company has developed a customized tower solution to accommodate the site’s unique transport, wind, and seismic load conditions. As a result, the project will feature the tallest hub heights for any wind turbines above a 4 MW rating in Japan, allowing the project to harness new wind resources at higher and more consistent wind speeds.

The order will include supply and supervision of the installation of 27 Vestas V117-4.2 MW turbines. Twenty-three of these turbines will be installed on 114-meter towers, while the other four will be installed on 94-meter towers. In addition, Vestas will also deliver a multi-year Active Output Management 5000 (AOM 5000) service agreement for the wind farm. The AOM 5000 service agreement will provide an energy-based availability guarantee to ensure optimized performance and long-term business case certainty for the customer. Delivery of the turbines will start in the first quarter of 2022, while commissioning is scheduled for the fourth quarter of 2022.

[1] https://www.vestas.com/en/media/company-news?l=22&n=4013797#!NewsView

[USA] South Carolina regulators reject Duke IRPs

On June 17, 2021, the South Carolina Public Service Commission (PSC) voted 4-2 to reject the integrated resource plans (IRP) submitted by two Duke Energy subsidiaries, Duke Energy Carolinas and Duke Energy Progress.[1] The decision comes ten months after Duke filed its IRPs with regulators in North and South Carolina. The IRPs outlined six pathways for its electricity mix under different carbon policy scenarios. Duke favors the base case without strict carbon regulations. Under this pathway, Duke would add about 8.6 GW of solar and more than 1 GW of storage by 2035. The utility would also add 9.6 GW of new natural gas and close its remaining coal plants.

According to the PSC, Duke’s IRPs failed to meet the standards set in the state’s 2019 Energy Freedom Act, which aims to boost clean energy technologies by requiring utilities to consider procuring all sources of electricity generation. The commission questioned the modeling Duke used to project future natural gas prices as well as its estimation of the ability of solar to meet the state’s energy needs. The PSC’s directive asks the utility to make several changes to its plan related to modeling and energy price forecasts. The PSC requests that Duke’s assessments include 20-year Purchase Power Agreements for third-party solar priced at $38/MWh as a selectable resource, with additional PPA pricing at $36/MWh and $40/MWh. These prices are roughly on par with other 20-year PPAs in the region. A more detailed order is expected in the coming weeks. Once the order is out, Duke will have 60 days to file its modified IRP, followed by a 60-day comment and review period. The PSC then has 60 days to approve or reject the modified IRP.

[1] https://dms.psc.sc.gov/Attachments/Matter/f30b83c7-3382-4d64-b0b6-b59712378b3d

[USA] ERCOT asks residents to use less energy during heatwave

A high number of outages in Texas combined with potential record electricity usage caused the Electric Reliability Council of Texas (ERCOT) on June 14, 2021, to request that residents reduce electric use during peak hours through June 18, 2021.[1] On June 14, 2021, generator owners reported that about 11,000 MW of generation is on forced outage for repairs. Of that generation, 8,000 MW is thermal energy, and the rest is intermittent resources. Typically, the average for thermal generation outages on hot summer days is about 3,600 MW. Roughly 1,200 MW of power was regained overnight on June 14, 2021, when some repairs were done.[2]

According to ERCOT, the peak load reached a new record. On June 15, 2021, the peak load was 69,943 MW, which exceeds the previous June record of 69,123 MW set on June 27, 2018. ERCOT has requested that residents set their thermostat to 78 degrees or higher. The grid operator has also asked that residents turn off lights and pool pumps and avoid using large appliances like ovens, washing machines, and dryers. In addition, residents have been asked to turn off and unplug all unnecessary devices.

[1] http://www.ercot.com/news/releases/show/233037

[2] http://www.ercot.com/news/releases/show/233159

[USA] Federal judge reverses Biden administration pause on new oil and gas leasing on federal lands

On June 15, 2021, Judge Terry Doughty, a federal judge in the U.S. District Court for the Western District of Louisiana, ordered new oil and gas leasing to restart in public lands and waters.[1] The move reverses President Biden’s January 2021 executive order that paused new lease sales during a review of the federal oil and gas program.[2] The review would likely include an assessment of the climate impacts of drilling for federal resources, which could lead to new restrictions on drilling in sensitive areas or higher royalty rates.

Judge Doughty’s preliminary injunction reverses Biden’s leasing pause until the court decides on the arguments in the case, allowing leasing to resume nationwide. The judge said the Department of the Interior had overstepped its authority by halting new oil and gas leasing and cited the legal requirements to offer leasing under the Mineral Leasing Act and the Outer Continental Shelf Lands Act. According to Judge Doughty, federal agencies could cancel or suspend specific leases if they had identified problems but could not suspend leases for a review of the leasing program. He also rejected the Biden administration’s argument that the Department of Interior’s pause on new leases is not a final agency action that could be reviewed under the Administrative Procedure Act[3]. Judge Doughty’s decision is a win for Louisiana Attorney General Jeff Landry (R), who is leading a coalition of 13 attorneys in the case against the Biden administration’s leasing pause. The attorneys argue that the leasing pause could lead to economic harm in their states. The Biden administration cannot move forward until the case is resolved or there are further orders from Doughty, the 5th U.S. Circuit Court of Appeals, or the Supreme Court.

[1]https://naturalresources.house.gov/imo/media/doc/Terry%20Doughty%20June%2015%20Lease%20Sales%20Opinion.pdf

[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

[3] The Administrative Procedure Act governs the way in which administrative agencies of the federal government may propose and establish regulations. The legislation gives U.S. federal courts oversight over all agency actions. Under the Administrative Procedure Act, a court can decide that a final agency action is unlawful and set aside the action if it does not fulfill the legislation’s reasoned decision-making requirement.

[Japan] JERA announces carbon-free synthetic methane use study in the U.S.

On June 16, 2021, JERA, a joint venture between TEPCO Fuel and Power and Chubu Electric Power, announced that it had secured a grant from the New Energy and Industrial Technology Development Organization (NEDO), state-controlled research and development institute, to conduct a feasibility study on CO2 capture and methanation in the U.S.[1] The purpose of the study is to investigate the potential business case of producing carbon-free methane gas from hydrogen. The hydrogen would be generated from renewable energy and carbon captured from existing thermal sources in the U.S. Methanation enables the production of carbon-free LNG from carbon-free methane gas, allowing countries to utilize existing infrastructure to achieve low-cost decarbonization. The company’s subsidiary, JERA Americas, will conduct the feasibility study from June 2021 to February 2022. Under its “JERA Zero CO2 Emissions 2050” objective, the company is committed to cutting carbon emissions from its domestic and overseas businesses by 2050, promoting the adoption of greener fuels, and pursuing non-emitting thermal power.

[1] https://www.jera.co.jp/english/information/20210616_697

[USA] Report: Energy storage deployment could reach 125 GW by 2050

According to a report released on June 1, 2021, by the National Renewable Energy Laboratory (NREL), energy storage deployment could reach over 125 GW of installed capacity by 2050 under modest assumptions—a more than five-fold increase.[1] Depending on cost and other variables, the report, “Storage Future Study (SFS), Economic Potential of Diurnal Storage in the U.S. Power Sector,” estimates that deployment could total as much as 680 GW by 2050. Currently, there is 23 GW of storage capacity in the U.S., most of which is pumped hydropower.

The report’s authors concluded that new storage deployment would primarily start with shorter durations of about four hours, and as costs drop, durations would gradually increase to 12 hours. By 2030, annual battery storage deployment could range from one to 30 GW. By 2050, deployments could range between seven to 77 GW. According to the authors, energy storage will provide the most considerable value when deployed together with solar and given the ability to provide grid services. In the study, researchers added new capabilities to the NREL’s Regional Energy Deployment System (ReEDS) to model the value of diurnal battery energy storage and its offerings to grid services. They modeled two sets of scenarios: one with storage providing multiple grid services and one that restricted the services that storage can provide. The NREL found that not allowing storage to provide grid services like firm capacity and time-shifting would hinder deployment.

[1] https://www.nrel.gov/news/program/2021/grid-scale-storage-us-storage-capacity-could-grow-five-fold-by-2050.html