[USA] Ford announces it will build two new campuses in Tennessee and Kentucky; plans to invest $11.4 B

Ford Motor Company announced plans on September 27, 2021, to build two new environmentally and technologically advanced campuses in Tennessee and Kentucky to produce the next generation of electric F-Series trucks and batteries to power future Ford and Lincoln electric vehicles (EVs).[1] Ford and its partner SK Innovation, a South Korean energy developer, plan to invest $11.4 billion—the largest investment in EVs at one time by an automotive manufacturer in the U.S—and create nearly 11,000 new jobs at the Tennessee and Kentucky “mega-sites.”

The new $5.6 billion campus in Stanton, Tennessee, called Blue Oval City, will create approximately 6,000 new jobs and cover almost 6 square miles. The campus will build next-generation electric F-Series pickups and will include a BlueOvalSK battery plant, key suppliers, and recycling. The Tennessee plant will be carbon neutral with zero waste to landfills once fully operational. In Glendale, Kentucky, Ford will work with SK Innovation to build two battery plants, the $5.8 billion BlueOvalSK Battery Park. The plants will create 5,000 jobs and are intended to supply Ford’s North American assembly plants with locally assembled batteries. The three new battery plants will enable 129 GWh a year of U.S. production capacity for Ford. Investments in the new battery plants are planned to be made via BlueOvalSK, a new joint venture to be formed by Ford and SK Innovation.

[1] https://media.ford.com/content/fordmedia/fna/us/en/news/2021/09/27/ford-to-lead-americas-shift-to-electric-vehicles.html

[Japan] Japan’s largest power generator to invest $1.58 billion in Philippine’s Aboitiz Power

On September 27, 2021, JERA, Japan’s largest power generator, announced that it is acquiring approximately 27% of the outstanding shares of Aboitiz Power Corporation, the leading utility in the Philippines, for approximately $1.58 billion, which is the largest investment by JERA to date.[1] JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, has signed a share purchase agreement with Aboitiz Power’s parent company Aboitiz Equity Ventures and Aboitiz & Company. The Japanese power generator hopes to benefit from growing energy demand in the Philippines while also significantly advancing the expansion of clean and renewable energy in the country. Power demand in the Philippines is expected to grow at an annual average rate of 4.2% through 2030, making the development of electric power infrastructure an urgent priority. JERA’s statement noted that the Philippines, like Japan, has limited energy resources and is subsequently reliant on imports.

JERA and Aboitiz will explore many areas of collaboration, including operation and maintenance, development of power projects, fuel procurement, and the use of cleaner fuels such as ammonia and hydrogen. Aboitiz Power aims to increase power generation capacity from 4.6 GW (including facilities under construction) to 9.2 GW by 2030. The utility also hopes to achieve a 50:50 clean energy and thermal capacity mix by 2030. JERA also has goals to reduce its emissions and is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO2 Emissions 2050” objective.

[1] https://www.jera.co.jp/english/information/20210927_765

[USA] Dominion Energy Virginia proposes more than 1,000 MW of new solar and energy storage

In its second annual clean energy filing with the Virginia State Corporation Commission (SCC) on September 16, 2021, Dominion Energy Virginia proposed more than 1,000 MW of new solar and energy storage projects, the largest clean energy expansion from the utility to date.[1] Dominion proposed 15 projects in total, including 11 utility-scale solar projects ranging from 18 MW to 150 MW, two small-scale distributed solar projects at 2 MW and 1.6 MW, one solar plus storage project (100 MW plus 50 MW stored), and one 20 MW stand-alone energy storage project. In addition, the proposal includes 32 competitively selected solar and energy storage project power purchase agreements (PPAs) that third-party providers will operate. Together, these projects will provide more than 1,000 MW of electricity, enough power to run more than 250,000 homes at peak output.

The proposed utility-owned projects will require SCC approval as well as local and state permits before construction can begin. If approved, the proposed projects will add about $1.13 to the average residential customer’s bill. The distributed solar projects and the stand-alone storage project are expected to be completed in 2022. The remaining projects are set to be completed in 2023. The proposed projects would advance the goals of the Virginia Clean Economy Act (VCEA), which requires all electricity sales in-state to come from clean energy sources by 2045. According to the utility, the construction of the 15 utility-owned projects is also expected to generate more than $880 million in economic benefits across the state and support nearly 4,200 jobs.

[1] https://news.dominionenergy.com/2021-09-16-Dominion-Energy-Proposes-Largest-Expansion-of-Solar-and-Energy-Storage-for-Benefit-of-Customers

[USA] New York governor launches major green energy infrastructure projects

New York Governor Kathy Hochul, D, introduced two major green energy infrastructure projects on September 20, 2021, that will power New York City with wind, solar, and hydropower from upstate New York and Canada.[1] The two new projects, known as the Clean Path New York (CPNY) and Champlain Hudson Power Express (CHPE), were selected through a competitive process. The 174-mile CPNY will be developed jointly by Forward Power and the New York Power Authority and will primarily transfer wind and solar power generated in upstate New York into the downstate area. The 339-mile CHPE will be advanced by Transmission Developers, Inc., and Hydro-Quebec and will mostly move hydropower down from Quebec, Canada.

Together, the projects seek to produce roughly 18 million MWh of renewable energy annually. They will also both reduce greenhouse gas emissions by 77 million metric tons and reduce exposure to harmful pollutants resulting in $2.9 billion in public health benefits over the next 15 years. The projects will create approximately 10,000 jobs statewide and bring $8.2 billion in economic development investments, including developer-committed investment to support disadvantaged communities. Both projects will advance New York’s goal of achieving 70% renewable-sourced electricity by 2030. The projects will cost over $13 billion to build, according to developers. If approved, CHPE and CPNY are expected to begin providing power to New York City in 2025 and 2027, respectively.

[1] https://www.governor.ny.gov/news/during-climate-week-governor-hochul-announces-major-green-energy-infrastructure-projects-power

[USA] AMPLY Power and Volvo Trucks partner on charge management programs for electric trucks fleets

On September 22, 2021, AMPLY Power, an electric vehicle (EV) charging and energy management provider, announced that it is partnering with Volvo Trucks North America on customer programs to maximize uptime and cost savings for electric Class 8[1] heavy-duty electric trucks.[2] AMPLY Power joined the Volvo Group’s Connected Solutions Innovation Lab in Silicon Valley, CA, in 2019 as a founding member. The two companies collaborate on charging solutions to support the transition to electric power for fleets.  Through this partnership, the two companies are now working on projects on the West Coast and East Coast with two heavy-duty electric truck fleets. Notably, the companies are working with Manhattan Beer Distributors, a New York City-based company that is one of the largest beverage distributors in the country. The Manhattan Beer Distributors fleet includes five Class 8 Volvo VNR Electric models that have a range of 150 miles and a battery capacity of 264 kWh, needing approximately 70 minutes to reach an 80% charge. Other collaborations are in the works.

AMPLY uses its full-scale charge management system to help fleet operators like Manhattan Beer Distributors manage their energy infrastructure and charging needs for their operations. The company handles everything from site design to software and hardware to enable optimal energy charging. To manage charging operations, AMPLY uses its OMEGA software platform to charge vehicles based on the fleet’s priorities. The software also provides real-time alerts to help guarantee road time and deliver detailed emissions reporting.

[1] A Class 8 truck is a vehicle with a gross vehicle weight rating (GVWR) exceeding 33000 lb (14969 kg). This category include all semi-trailer trucks, single-unit dump trucks of a GVWR over 33,000, and non-commercial chassis fire trucks.

[2] https://amplypower.com/volvo-trucks-north-america-and-amply-power-collaborate-on-charge-management-programs-for-electric-truck-fleets/

[USA] PSEG and NJEDA sign lease for New Jersey Wind Port

On September 14, 2021, the New Jersey Economic Development Authority (NJEDA) and PSEG signed a lease for up to 78 years on land that will be the site of the New Jersey Wind Port in Salem County, New Jersey.[1] The Wind Port will provide a place for staging, assembly, and manufacturing activities related to offshore wind along the East Coast. The location of the port is adjacent to PSEG’s nuclear generating site, which currently provides more than 90% of the state’s carbon-free electricity. The site of the Wind Port itself is an artificial island on the eastern shores of the Delaware River, southwest of the City of Salem. Due to its large footprint, lack of height restrictions, and easy access to wind farm lease areas, the Wind Port is one of only a few ports on the East Coast that can house offshore wind turbine marshaling and manufacturing.

New Jersey and federal officials broke ground on the Wind Port on September 9, 2021.[2] Major construction is set to begin in December 2021, and the port should be completed by the end of 2023. The estimated cost of the project is between $300 million and $400 million. According to NJEDA, the Wind Port could potentially create more than 1,500 manufacturing, assembly, and operations jobs, as well as hundreds of construction jobs. Offshore wind is part of Governor Phil Murphy’s (D) Energy Master Plan to achieve 100% percent clean energy by 2050. Under the Energy Master Plan, the state has set a target to produce 7,500 MW of offshore wind energy by 2035.

[1] https://www.njeda.com/njeda-and-pseg-sign-78-year-lease-for-the-new-jersey-wind-port-establishing-new-jersey-as-a-hub-for-the-clean-energy-economy/

[2] https://subscriber.politicopro.com/article/eenews/2021/09/10/officials-break-ground-on-nj-wind-energy-construction-port-280415

[USA] Illinois passes landmark clean energy bill, Byron and Dresden nuclear plants to begin refueling

On September 13, 2021, the Illinois State Senate voted 37-17 to approve Senate Bill 2408, called the Climate and Equitable Jobs Act,[1] and Governor JB Pritzker (D) subsequently signed the bill into law on September 15, 2021.[2] The bill aims to prevent the premature closure of nuclear plants and will provide $700 million in subsidies for struggling nuclear power plants. In response to the provisions in S.B. 2408, on September 13, 2021, Exelon Generation said it plans to begin refueling its Byron and Dresden nuclear power plants.[3] The Byron and Dresden plants were previously set to shut down on September 13, 2021, and in November 2021, respectively.

In addition to the nuclear subsidies, the bill provides $340 million in subsidies for renewable energy and $180 million in subsidies for communities where fossil fuel plants will eventually be shutting down. S.B. 2408 also calls for the municipally-owned Prairie State coal plant, the largest carbon-emitting power plant in Illinois and one of the largest in the nation, CWLP Dallman, another municipally-owned coal-fired power plant, to cut carbon emissions 45% by 2038. In addition, the legislation raises Illinois’ renewable standard to 40% by 2030 and 50% by 2040, compared to its current renewable requirement of 25% of electricity by 2025.

[1]https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2408&GAID=16&DocTypeID=SB&LegId=135062&SessionID=110&GA=102#actions

[2] https://www.nbcchicago.com/news/local/pritzker-signs-transformative-energy-plan-aimed-at-bringing-state-to-100-clean-energy-by-2050/2612986/

[3] https://www.exeloncorp.com/newsroom/passage-of-illinois-energy-legislation-preserves-nuclear-plants-and-strengthens-states-clean-energy-leadership

[USA] Report: Solar energy prices increase across all markets in Q2 2021

According to a report released on September 14, 2021, by Wood Mackenzie and the Solar Energy Industries Association (SEIA), the price of solar energy increased in every market in the second quarter of 2021.[1] This is the first time solar prices have increased quarter-over-quarter and year-over-year since SEIA and Wood Mackenzie began tracking this data in 2014. Prices for utility-scale solar energy have increased the most, rising 6% in the second quarter of 2021 compared to the second quarter of 2020. The report found that major drivers of the increase include supply chain constraints, increased shipping costs, and rising prices for commodities like steel. The report said that recent enforcement actions on Xinjiang metallurgical grade silicon and two new tariff petitions could significantly exacerbate supply chain constraints and increase solar system prices. The report forecasts that prices will likely remain elevated throughout 2021 but should decrease sometime in 2022.

Despite rising prices, the solar industry accounted for 56% of all new U.S. electric capacity additions in the first half of 2021. The U.S. officially surpassed 3 million solar installations in the second quarter of 2021, which was driven by a strong recovery in the residential sector after it was impacted by the COVID-19 pandemic. Wood Mackenzie forecasts that the U.S. will average just over 29 GW of new annual solar capacity additions through 2026 but noted that this falls short of the pace necessary to reach President Biden’s 2035 clean energy targets.

[1] https://www.seia.org/news/solar-prices-increase-across-every-market-segment-first-time-seven-years

[USA] Duke Energy Florida proposes plan to offset rate increases by 33%

On September 3, 2021, Duke Energy Florida announced that it had developed a plan to reduce the impact of new rates that go into effect in January 2022 by 33%.[1] Under this plan, Duke Energy Florida will spread the recovery of roughly $247 million of unrecovered fuel costs over two years and forgo immediate recovery of costs from recent storms, as well as other actions. These proposed actions would reduce a residential 1,000 kWh customer bill by an average of $4.67 per month. Under the plan, the typical residential customer's 1,000 kWh bill will increase by $9.24 per month, on average, for 2022. Commercial and industrial customer bills will increase by 1% to 8%.

The utility also recently proposed modifications to demonstrate its commitment to implementing energy efficiency and demand-side management programs. Proposed actions include increasing the Neighborhood Energy Savers targeted customers by 5% and making temporary changes to the approved Florida Energy Efficiency and Conservation Act (FEECA) programs for lower-income customers. In addition, customers enrolled in the utility's approved Residential Demand Response Program will receive a $30 "assistance incentive" in the form of a gift card that can be used toward their energy bill. Further, a second modification to FEECA programs will offer 20,000 assistance kits to provide energy efficiency savings to customers in need.

[1] https://news.duke-energy.com/releases/duke-energy-florida-seeks-to-reduce-2022-bill-impacts-by-33

[USA] Vistra's 300 MW storage facility to remain offline after overheating incident

Vistra Corp announced on September 7, 2021, that it has begun a preliminary assessment of the Phase 1 300 MW/1,200 MWh lithium-ion battery storage system at its Moss Landing Energy Storage Facility in Monterey Bay, California, following an overheating issue on September 4, 2021.[1] Vistra's 300 MW storage system is the largest battery storage facility in the world and began operations in December 2020. Phase II of the project, which added an additional 100 MW/400 MWh, came online in August 2021. Moss Landing operates under a long-term agreement with Pacific Gas & Electric.

According to the statement, "a limited number of battery modules" at the facility overheated, resulting in the facility going offline. Experts from Vistra, engineering contractor Fluence, battery manufacturer LG Energy Solution, and others are conducting the initial investigation into the cause of the issue. The North County Fire Protection District of Monterey County is also helping with the investigation. In a statement, the California Public Utilities Commission said that it is also investigating the incident.[2] The 300 MW unit will remain offline for the duration of the investigation. Vistra's Phase II system, located in a separate standalone building, was unaffected by the incident and remains operational.

[1] https://investor.vistracorp.com/news?item=197

[2] https://investor.vistracorp.com/2021-01-06-Vistra-Brings-Worlds-Largest-Utility-Scale-Battery-Energy-Storage-System-Online

[USA] DOE Solar Futures Study provides a blueprint for solar to decarbonize the grid

On September 8, 2021, the Department of Energy (DOE) released its Solar Futures Study, which examines the role of solar in decarbonizing the power grid.[1] The study, produced by the U.S. Department of Energy Solar Energy Technologies Office (SETO) and the National Renewable Energy Laboratory (NREL), recommends "strong decarbonization policies coupled with a massive deployment of renewable energy sources, large-scale electrification, and grid modernization." According to the study, solar energy could account for as much as 40% of the nation's electricity supply by 2035 and 45% by 2050. To reach these levels, the U.S. must install an average of 30 GW of solar per year between now and 2025 and 60 GW per year from 2025-2030, which would total 1,000 GW of solar by 2035. By 2050, total solar capacity would need to reach 1,600 GW. Decarbonizing the entire energy system could require 3,000 GW of solar by 2050 due to increased electrification in the transportation, buildings, and industrial sectors. By comparison, in 2020, the U.S. installed 15 GW, bringing the total to 76 GW, or 3% of the current electricity supply.

According to the study, solar will employ 500,000 to 1.5 million people by 2035, and the clean energy transition will create about 3 million jobs across all technologies. The clean energy transition will also result in health and cost savings of $1.1 trillion to $1.7 trillion due to reduced carbon emissions and improved air quality.

[1] https://www.energy.gov/articles/doe-releases-solar-futures-study-providing-blueprint-zero-carbon-grid

[USA] Hurricane Ida knocks out all eight transmission lines into New Orleans

In a statement released on August 29, 2021, Entergy, a utility that serves customers in Arkansas, Louisiana, Mississippi, and Texas, said Hurricane Ida caused the utility to lose all eight transmission lines delivering power into New Orleans, Louisiana.[1] Hurricane Ida made landfall near Port Fourchon, Louisiana, as a Category 4 storm with 150 mph winds. In addition to the eight major transmission lines, 216 substations, over 200 smaller lines, and more than 2,000 miles of transmission lines were put out of service by the hurricane. Hurricane Ida also toppled a 400-foot tower that withstood Hurricane Katrina in 2005. The loss of transmission led to a load imbalance, ultimately resulting in generation dropping offline. According to the Edison Electric Institute (EEI), nearly 1.2 million electricity customers in Louisiana and Mississippi were left without power the morning of August 30, 2021. As of September 1, 2021, Entergy has restored power to more than 107,000 customers in Eastern New Orleans with generation supplied by the New Orleans Power Station, a 128 MW gas-fired power plant.[2] The utility noted that full restoration will take time due to the significant damage across the region.

[1] https://www.entergynewsroom.com/storm-center/article/entergy-system-hurricane-ida-update-8-30-21-10-m/?utm_source=twitter&utm_medium=entergy&utm_campaign=Power+Outages%2FRestoration&utm_content=5392617605

[2] https://www.entergynewsroom.com/news/entergy-restores-107-000-customers-in-mississippi-louisiana-new-orleans-service-areas/

[USA] New reports from DOE highlight record wind energy growth in 2020

On August 30, 2021, the Department of Energy (DOE) released the 2021 editions of three wind market reports: Land Based Wind Market Report[1], Offshore Wind Market Report[2], and Distributed Wind Market Report[3]. According to the reports, wind energy accounted for 42% of all new capacity additions in 2020, beating solar, which accounted for 38%. The Land Based Wind Market Report found that a record 16,836 MW of onshore wind was added in 2020. DOE analysts project that wind capacity will continue to grow rapidly in 2021, with expected additions of 13 GW-16GW. In 2022 and 2023, additions will slow before rebounding to 11−13 GW in 2024 and 2025 due to the scheduled expiration of the federal production tax credit (PTC) and anticipated growth in offshore wind in the mid-2020s.

The offshore wind project development and operational pipeline grew by 24% in 2020, from 28,521 MW in 2019 to 35,324 MW in 2020. This figure includes two operating projects—the 30 MW Block Island Wind Farm and the 12 MW Coastal Virginia Offshore Wind pilot project—as well as Vineyard Wind 1, an 800 MW project that has been fully approved and received all permits. The DOE report cites several factors as drivers of this growth, including increasing state-level procurement targets in the Northeast and mid-Atlantic, an increased number of projects clearing major permitting milestones, and growing vessel, port, and infrastructure investments needed to keep up with the pace of development.

[1] https://www.energy.gov/eere/wind/articles/land-based-wind-market-report-2021-edition-released

[2] https://www.energy.gov/eere/wind/articles/offshore-wind-market-report-2021-edition-released

[3] https://www.energy.gov/eere/wind/articles/distributed-wind-market-report-2021-edition-released

[USA] Illinois Senate passes clean energy bill, includes subsidies for nuclear plants

The Illinois Senate voted 39-16 on September 1, 2021, to pass Senate Bill (SB) 18, an energy bill that would decarbonize the state's electric grid by 2050.[1] Two Republicans joined with 37 Democrats to vote for the bill. SB18 aims to prevent the premature closure of nuclear plants, and to this end, the bill contains $694 million in taxpayer funds for Exelon's Byron, Dresden, and Braidwood power plants. Exelon has said that it will shut down its Byron plant in September 2021 and its Dresden plant in November 2021.[2] However, Exelon said that it has "established off-ramps" that will allow contingencies for continuing operations of the plants if legislation is passed. In addition to nuclear subsidies, the bill also provides more than $600 million in subsidies for renewable power-related initiatives.

The legislation still needs to pass the House, which has not set a date as to when it will return. Environmental groups and Governor J.B. Pritzker, D, have raised objections to the bill's plans for coal plants, saying that coal plants would not be phased out quickly or allowed to keep running with unproven carbon-capture equipment. Under SB18, the municipally-owned Prairie State coal-fired plant, the largest carbon-emitting power plant in Illinois and one of the largest in the nation, would shut down by 2045. Environmental groups and the governor say that this is not soon enough, and there need to be provisions to significantly reduce the plant’s emissions. In a statement, the governor said his "office looks forward to working with members of the House to finalize an energy package that puts consumers and climate first."

[1]https://www.ilga.gov/legislation/billstatus.asp?DocNum=18&GAID=16&GA=102&DocTypeID=SB&LegID=127591&SessionID=110

[2] https://www.reuters.com/legal/litigation/illinois-senate-passes-bill-save-nuclear-plants-sends-house-2021-09-01/

[USA] Minnesota Appeals Court upholds Minnesota Power’s proposed natural gas power plant

On August 23, 2021, the Minnesota Court of Appeals upheld a 2018 Minnesota Public Utilities Commission (PUC) approval of Minnesota Power’s plans to jointly build a $700 million natural gas plant in Superior, Wisconsin.[1] Minnesota Power and Dairyland Power Cooperative first proposed the 625 MW Nemadji Trail Energy Center (NTEC) project in 2017, with a planned construction date in 2025. The companies said they would jointly operate the plant to ensure reliability while transitioning away from coal towards renewables. However, environmental groups, including the Minnesota Center for Environmental Advocacy, Union of Concerned Scientists, and Sierra Club, have challenged the PUC’s approval of Minnesota Power’s plans to buy a stake in the project.  They argue that there is substantial evidence that does not support the commission’s determination that the power plan is necessary and in the public interest.

The appeals court, which reviewed the case on remand from the Minnesota Supreme Court, said the NTEC is a “more reliable and lower cost source” of energy than equivalent-sized wind or solar power projects. The court ruled that Minnesota Power and the MPUC “offered extensive evidence and analysis showing that the transition away from coal and toward intermittent renewable resources impairs reliability and could cause a reliance on more expensive energy markets.” The NTEC is facing another legal challenge in Wisconsin where two environmental groups, Clean Wisconsin and the Sierra Club, petitioned an administrative law judge to review a prior approval by the Wisconsin Public Service Commission.[2]

[1] https://dailyenergyinsider.com/news/31668-minnesota-powers-proposed-natural-gas-power-plant-wins-minn-appeals-court-approval/?amp

[2] https://www.sierraclub.org/press-releases/2020/03/clean-wisconsin-sierra-club-challenge-gas-plant-approval

[USA] PG&E has installed more than 200 new weather stations in 2021 to monitor severe weather events

On August 24, 2021, Pacific Gas and Electric Company (PG&E), a utility that serves more than 16 million people across Northern and Central California, announced that it had installed more than 200 new weather stations in 2021.[1] The utility said that it has installed more than 1,200 weather stations since 2018 and plans to have a total of 1,300 weather stations by the end of 2021. This plan would amount to one weather station for every 20-line miles of electric distribution circuits within Tier 2 and Tier 3 High Fire-Threat Districts. The new weather stations will help the utility better prepare for severe weather events and reduce the extent of Public Safety Power Shutoff (PSPS) events.

Data captured by the weather stations, such as temperature, wind speed, and humidity levels, will help the utility evaluate where severe weather may be headed and inform its operational planning. During a PSPS, PG&E turns off specific power lines based on severe weather conditions to prevent tree branches and other debris from contacting energized power lines. The 200 new weather stations are sending hyperlocal data to PG&E meteorologists as well as analysts and experts in PG&E's Wildfire Safety Operations Center (WSOC). The WSOC is where the utility detects, evaluates, monitors, and responds to wildfire threats. The utility noted that weather stations are just one part of its Community Wildfire Safety Program. The program also includes installing sectionalizing devices to split the grid into smaller pieces and hardening infrastructure to reduce wildfire risk and lessen the effects of PSPS events.

[1]https://www.pge.com/en/about/newsroom/newsdetails/index.page?title=20210824_improving_weather_forecasting_to_better_predict_and_respond_to_weather_threats_pge_has_installed_more_than_200_new_weather_stations_this_year

[Japan] TEPCO releases plan to discharge radioactive water from its Fukushima Plant

Tokyo Electric Power Company (TEPCO) released its plans on August 25, 2021, to construct a roughly 1 km-long undersea tunnel to release treated radioactive water from the Fukushima Daiichi Nuclear Power Station.[1] Since the accident in 2011, more than 1 million tons of treated water has accumulated at the complex. The water was contaminated when it was pumped into the ruined reactors to cool the melted fuel and is being treated using an advanced liquid processing system. While the process removes most radioactive materials, it leaves behind tritium, which is considered low risk at low concentrations. On August 24, 2021, the Japanese government announced that it will buy marine products to support the fishing industry in case the release of treated water from the plant hurts their sales.[2] Prior to this, in April 2021, the government decided to start discharging treated water in the spring of 2023. However, the plan has been opposed by fishermen, citizens, and nearby countries.

TEPCO will construct the undersea tunnel by hollowing out bedrock on the seabed near the plant’s No. 5 reactor. The tunnel will stretch 1 km east and release the water into an area where there are no fishing rights in place. The company will dilute the treated water with seawater to reduce the tritium concentration to less than 1,500 becquerels per liter. Because the seawater in the port in front of the Fukushima Daiichi Nuclear Power Plant contains radioactive materials, the seawater will be taken from elsewhere. TEPCO plans to apply to the Nuclear Regulation Authority for a review of the construction plans and begin preparatory work soon. The company hopes to start construction in early 2022 and begin operations in spring 2023 in line with government policy.

[1] https://www.tepco.co.jp/en/hd/newsroom/press/archives/2021/20210825_01.html

[2] https://www.japantimes.co.jp/news/2021/08/24/national/fukushima-water-tunnel/

[USA] D.C. Circuit orders FERC to reinvestigate alleged market manipulation in MISO

On August 6, 2021, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the Federal Energy Regulatory Commission (FERC) must reinvestigate alleged market manipulation in the 2015 capacity auction for the Midcontinent Independent System Operator (MISO).[1] MISO is the second largest regional transmission operator (RTO) in the U.S. and spans 15 states.[2] During the 2015 auction, capacity prices in the zone covering most of Illinois were 50 times higher than those across the rest of MISO. In their complaints to FERC, the state of Illinois, consumer advocacy group Public Citizen, and others allege that Dynegy Inc., which had just acquired four new power plants in the region, was responsible for the price spike. According to the state, the region in MISO was unable to meet its reliability requirements without purchasing capacity from Dynegy due to the company’s purchase of the power plants. Therefore, the clearing price was artificially inflated, costing the average residential customer an additional $131 in electricity costs in the 12 months that followed the capacity auction.

FERC dismissed the complaints in 2019 and dismissed the requests for rehearing in 2020, stating that the auction clearing price was just and reasonable. Then Commissioner and now-Chairman Richard Glick dissented in both orders, saying that the Commission did not adequately examine the complaints.[3] In response to FERC’s dismissal of the complaints, Public Citizen appealed FERC’s decisions to the D.C. Circuit. Similar to Chairman Glick’s previous findings, the three-judge panel found that the majority of commissioners failed to explain why the claims should be dismissed.

[1] https://www.cadc.uscourts.gov/internet/opinions.nsf/418CFCD8F8D7ED6F85258729004F14E5/$file/20-1156-1909243.pdf

[2] MISO covers all or a portion of Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin

[3] https://www.ferc.gov/news-events/news/appellate-court-remands-miso-2015-capacity-auction-order-ferc

[USA] Senate passes $1 trillion bipartisan infrastructure bill and $3.5 trillion reconciliation package

On August 10, 2021, the Senate passed a $1 trillion bipartisan infrastructure bill, called the Infrastructure Investment and Jobs Act, in a 69-30 vote with the support of 19 Republicans.[1] The bill includes $73 billion in grid modernization and $7.5 billion for electric vehicle charging infrastructure. The bill now needs to pass the House. Following the passage of the infrastructure bill, the Senate passed a $3.5 trillion budget reconciliation package early on August 11, 2021, in a 50-49 vote before the chamber adjourned for summer recess.[2] Budget reconciliation is a special process to make legislation easier to pass in the Senate.[3] Instead of 60 votes to pass, reconciliation bills only need a simple majority. According to a summary released by Senate Democrats, the reconciliation package includes a clean electricity payment program, a clean energy technology accelerator, consumer rebates for electrification, and clean energy tax credits.[4]

[1] https://www.npr.org/2021/08/10/1026081880/senate-passes-bipartisan-infrastructure-bill

[2] https://www.npr.org/2021/07/14/1016052307/democrats-budget-deal-would-invest-in-the-child-tax-credit-health-care-and-clima

[3] Budget reconciliation is set up to expedite the passage of certain budgetary legislation, specifically spending, revenue, and the federal debt limit. Only policies that change these categories can be included. In contrast to most other legislation, senators cannot use the filibuster to prevent consideration of a reconciliation bill. Once passed in the Senate, the bill goes to the House where typical rules still apply.

[4] https://www.democrats.senate.gov/imo/media/doc/MEMORANDUM%20for%20Democratic%20Senators%20-%20FY2022%20Budget%20Resolution.pdf

[USA] Report: Transmission for renewables and offshore wind in PJM may cost as much as $3 billion

According to a study published by PJM Interconnection on August 10, 2021, an estimated $627.3 billion to $3.2 billion of transmission upgrades will be necessary to help states in the region meet their offshore wind goals and renewable procurement standard (RPS) requirements over the next decade and a half.[1] The study is in response to a 2019 request by the Organization of PJM States, a group of regulators that represents the 13 states[2] within PJM’s footprint. The study aimed to identify the cost and location of the transmission upgrades needed to support the renewable energy buildouts required to meet states’ clean energy goals. The PJM study simulated the transmission investments required to meet state goals in 2027 and 2035, with six scenarios overall.

The study does not quantify the benefits of transmission upgrades, but it does mention that the transition to cleaner energy will reduce greenhouse gases and lead to consumer benefits through lower energy costs. PJM also noted that while the study includes the costs of onshore transmission, it does not include lead lines or other offshore facilities. PJM highlighted that transmission investments increase significantly between the 2027 and 2035 scenarios in line with state RPS requirements.

[1] https://www.pjm.com/-/media/committees-groups/committees/teac/2021/20210810/20210810-item-10-offshore-transmission-study-group-phase-1-results.ashx

[2] PJM is in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.