[USA] NuScale Power announces plans to be the first advanced nuclear reactor company to go public

NuScale Power, a developer of advanced nuclear reactor technology, announced on December 14, 2021, that it plans to go public by merging with Spring Valley Acquisition, a publicly-traded special purpose acquisition company.[1] The move marks the first time an advanced reactor company has gone public. The NuScale Power Module (NPM) is the first and only small nuclear reactor (SMR) to receive Standard Design Approval from the U.S. Nuclear Regulatory Commission (NRC). The company is currently working with the Utah Associated Municipal Power Systems (UAMPS) to deploy a NuScale VOYGR power plant in 2029 and is working with several other companies. According to the press release, the company could deliver the first VOYGR power plant as soon as 2027, depending on customer needs.

The combined company, named NuScale Power Corporation, will have an estimated pro-forma enterprise value of approximately $1.9 billion.  NuScale expects the transaction to provide up to $413 million in gross cash proceeds to bolster and accelerate the commercialization of its SMR technology. Existing NuScale shareholders, including majority owner Fluor, will retain their equity in NuScale and roll it into the new company. Fluor projects that it will control about 60% of the combined company and will continue to provide NuScale with engineering services, project management, administrative, and supply chain support. The agreement is subject to approval by Spring Valley’s shareholders, as well as other closing conditions. NuScale expects to close the transaction in the first half of 2022.

[1] https://newsroom.nuscalepower.com/press-releases/news-details/2021/NuScale-Power-the-Industry-Leading-Provider-ofTransformational-Small-Modular-Nuclear-Reactor-Technology-Announces-Plans-to-Go-Public-via-Merger-with-Spring-Valley-Acquisition-Corp/default.aspx

[USA] FERC extends emergency certificate for Spire STL pipeline

On December 3, 2021, the Federal Energy Regulatory Commission (FERC) issued a temporary certificate allowing the Spire STL pipeline to continue operating through winter.[1] The 65-mile pipeline runs from Illinois to the St. Louis, Missouri area to serve Spire Missouri customers. Spire STL has been operational since 2019, but in June 2021, the D.C. Circuit vacated the pipeline’s certificate of public convenience and necessity. The court ruled that FERC had failed to adequately assess the need for the Spire pipeline. FERC issued a temporary certificate in September 2021, which was set to expire on December 13, 2021. Prior to FERC’s December decision, Spire had warned that shutting off the pipeline would lead to 400,000 St. Louis area customers experiencing extended loss of service this winter.  The new temporary certificate allows the pipeline to remain in service while FERC decides how to proceed. The temporary certificate bars the company from engaging in construction activities or expanding service but allows the pipeline to operate under the rates that are currently in effect.

FERC’s decision came right after Spire STL Pipeline LLC petitioned the Supreme Court to review the D.C. Circuit’s ruling.[2] In its appeal, the company argued that the D.C. Circuit should not have revoked the permit in light of the "dangerous, and potentially fatal, consequences" of the decision.

[1] https://www.ferc.gov/news-events/news/ferc-extends-temporary-operations-spire-stl-pipeline

[2] https://missouriindependent.com/2021/12/03/spire-stl-pipeline-appeals-to-u-s-supreme-court-to-overturn-self-dealing-ruling/

[USA] More than 50 utilities plan coast-to-coast EV charging network

The Edison Electric Institute (EEI) announced on December 7, 2021, the formation of the National Electric Highway Coalition (NEHC), which is committed to building a coast-to-coast fast-charging network for electric vehicles along major U.S. travel corridors by the end of 2023.[1] The coalition merges the Electric Highway Coalition and the Midwest Electric Vehicle Charging Infrastructure Collaboration and includes additional participating electric companies. NEHC consists of 51 investor-owned electric companies, Midwest Energy[2], and the Tennessee Valley Authority. NEHC’s member companies serve nearly 120 million U.S. electric customers across 47 states and the District of Columbia.

According to EEI, its member companies, which are all investor-owned electric utility (IOUs) in the U.S., have invested more than $3 billion in customer programs and projects to deploy EV charging infrastructure and accelerate electric transportation. EEI estimates that more than 100,000 EV fast-charging ports will be needed to support the projected 22 million EVs on U.S. roads in 2030. The press release also notes that EEI member companies are electrifying their own fleets and are on track to electrify more than one-third of all fleet vehicles by 2030. They are also involved with commercial fleet customers and are working together on electrification planning for medium- and heavy-duty vehicles.

[1]https://www.eei.org/resourcesandmedia/newsroom/Pages/Press%20Releases/Electric%20Companies%20Join%20Together%20to%20Form%20National%20Electric%20Highway%20Coalition.aspx

[2] Midwest Energy is a Kansas-based electric cooperative.

[Japan] Shizen Energy and Swancor Renewable Energy announce effort to jointly develop offshore wind in Japan

On December 8, 2021, Japan-based Shizen Energy and Taiwan-based Swancor Renewable Energy announced that they have agreed to co-develop offshore wind farms throughout the Kyushu region of Japan.[1] According to the press release, the joint venture will combine Swancor Renewable Energy’s technological strengths and experience in Taiwan, which has ocean areas geologically similar to Japan, and Shizen Energy’s  “developmental strengths in introducing renewable energy that embraces local conditions. The companies noted that Japan’s offshore wind market is gaining momentum. Among other things, in 2018, the Japanese government set a goal of increasing the share of renewables to 22-24% by 2030, and in 2021, the government increased this target to 36-38% by further strengthening measures. The new goal includes plans to introduce 10 GW of wind power, including both offshore and onshore wind power.

Both companies have a track record of developing renewable energy, with a focus on offshore wind. In 2012, Swancor Renewable Energy began developing the first offshore wind project in Taiwan. The company has been involved in the development of a cumulative total of approximately 5 GW of projects, including construction, operation, and maintenance. Swancor Renewable Energy’s Formosa 1 project, which went into operation in 2019, is the only offshore wind farm currently operating in Taiwan. Shizen Energy has developed approximately 1GW of renewable energy power plants in Japan, and its portfolio has expanded from solar to onshore and offshore wind, hydro, and biomass. The company has been involved in efforts to introduce offshore wind power in Japan, starting with its participation in a zoning project in 2016 and engaging in offshore wind power development off the coast of Chiba Prefecture.

[1] https://www.shizenenergy.net/en/2021/12/08/sre-se_partnership_eng/

[USA] Duke Energy files net metering agreement with NC regulators

Duke Energy announced that it filed a net energy metering agreement[1] with the North Carolina Utilities Commission (NCUC) on November 29, 2021.[2] The filing is an agreement that the utility reached with the North Carolina Sustainable Energy Association, the Southern Environmental Law Center (SELC) — on behalf of Vote Solar and the Southern Alliance for Clean Energy —, Sunrun Inc., and the Solar Energy Industries Association. Over the past three years, Duke has encouraged private solar ownership through its $62 million solar rebate program, which the utility expects to continue into 2023. According to the press release, 24,000 North Carolina customers have adopted private solar arrays compared to just 6,000 at the beginning of 2018. The North Carolina agreement also follows a similar net metering agreement filed in South Carolina in September 2020.

If the NCUC approves the filing, the agreement would allow for new net metering tariffs to go into effect for customers submitting applications on or after January 1, 2023. The agreement would also create new pricing and incentives for residential solar customers. Additionally, the filing features rate design mechanisms for collecting grid infrastructure costs needed to serve solar customers. It also includes innovative retail rates that vary based on the time of day and when the utility is experiencing peak demand.

[1] Net energy metering tariffs are a process that allows small customers that own rooftop solar arrays to gain credits for excess electricity they generate and provide to the utility (Duke Energy in this case) via the grid.

[2] https://news.duke-energy.com/releases/duke-energy-reaches-deal-with-renewable-organizations-to-modernize-rooftop-solar-policy-in-north-carolina

[USA] Department of the Interior releases report recommending changes to the federal oil and gas leasing programs

On November 26, 2021, the Department of the Interior (DOI) released its report on federal oil and gas leasing and permitting practices, following a review of onshore and offshore oil and gas programs.[1] President Biden ordered the review of the federal oil and gas program in Executive Order 14008, which was signed on January 27, 2021. The report identified several reforms that should be made to ensure the programs provide a fair return to taxpayers, discourage speculation, hold operators responsible for remediation, and more fully include stakeholders in decision-making.

The DOI’s report recommended that the Bureau of Land Management (BOEM) avoid offering lands with low production potential and instead focus on areas with moderate or high potential close to existing infrastructure. It also said that the Bureau of Ocean Energy Management (BOEM) should consider ending area-wide leasing, under which the entire planning area is offered with few exclusions for a smaller lease sale. According to the report, previous government reports have found that the practice has cost the agency billions of dollars and significantly reduces competition and the value of bids In addition, the report recommends raising royalty rates, which have not been raised in the last 100 years. The report also suggested raising the bonding rates as well. The report argued that bonding rates are 50 years old, and recent bankruptcies show the increasing risk of cleanup costs falling to taxpayers. The report notes that these recommendations are consistent with pending congressional proposals.

[1] https://www.doi.gov/pressreleases/interior-department-report-finds-significant-shortcomings-oil-and-gas-leasing-programs

[USA] Hydrostor announces filing for planned 4GWh long-duration storage facility in southern California

On December 1, 2021, Gem A-CAES LLC, a subsidiary of Toronto-based Hydrostor, filed an Application for Certification with the California Energy Commission (CEC) to develop a 500 MW (4,000 MWh) energy storage facility near Rosamond, Kern County in southern California.[1] The recent filing follows Hydrostor’s November 2021 announcement and filing for the Pecho Energy Storage Center, a 3.2 GWh A-CAES project located in San Luis Obispo County, California. The project, called the Gem Energy Storage Center, will use Hydrostor’s Advanced Compressed Air Energy Storage (“A-CAES”) solution, which is a long-duration energy storage technology that can deliver hundreds of megawatts and 4 to 24+ hours of storage. The project is expected to have a capital investment of $975 million, and the company expects to bring it online as early as 2026. During the four years of construction, the project is expected to provide a peak of 700 jobs. Once operational, Gem will create 30 to 40 full-time jobs.

The project is expected to interconnect at either the Whirlwind Substation in Kern County or the planned Rosamond Switching Station. According to the press release, Gem is “strategically located to provide enhanced utilization of both existing and future renewable energy resources serving California and the High Desert.” The project will also play a vital role in helping meet California’s future energy and reliability needs, significantly reducing the frequency of large-scale blackouts.

[1] https://www.hydrostor.ca/hydrostor-files-second-application-for-certification-for-500-mw-x-8-hour-4000-mwh-gem-energy-storage-center/

[USA] NERC releases winter reliability assessment report, warns of multiple risks to the grid

On November 18, 2021, the North American Electric Reliability Corporation (NERC) released its 2021-2022 Winter Reliability Assessment, which found that reliability risk is elevated in regions that are especially vulnerable to extreme weather, natural gas supply disruptions, and low hydro conditions.[1] The assessment advises the industry to manage shortfalls and to take proactive steps for generator readiness, fuel availability, and sustained operations in extreme conditions. This winter, regions at risk include the Central U.S., New England, California, the Western U.S., and Canada. NERC’s assessment found that generator owners are facing challenges in obtaining coal and oil fuels as supply chains are stressed. Additionally, generator resource availability could suffer as a result of equipment failure or lack of fuel under severe winter conditions.

To reduce risks of energy shortfalls this winter, NERC recommends that grid operators, generator owners, and generator operators review the NERC Level 2 Alert and NERC’s Generating Unit Winter Weather Readiness Guideline. NERC also suggests that balancing authorities should periodically poll their generating units in advance of approaching severe weather to understand their readiness for normal and extreme conditions. Moreover, balancing authorities and reliability coordinators should conduct drills on alert protocols to ensure they are prepared to signal a need for conservative operations or restrictive maintenance periods. Lastly, distribution providers and load-serving entities should review non-firm customer inventories and rolling blackout procedures to ensure that no critical infrastructure would be affected.

[1] https://www.nerc.com/news/Headlines%20DL/WRA_final%2018NOV21.pdf

https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_WRA_2021.pdf

[USA] Biden announces oil release from the Strategic Petroleum Reserve in effort to lower prices

On November 23, 2021, President Biden announced that the Department of Energy (DOE) will release 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) in an effort to lower prices and address the lack of supply around the world.[1] The decision is a response to the highest oil prices experienced in seven years, which the Biden administration attributed to the pandemic recovery. The announcement is in coordination with other major energy consuming nations, including Japan, China, India, the Republic of Korea, and the United Kingdom. According to the White House press release, the effort “culminates weeks of consultations with countries around the world” and has already affected oil prices, with oil prices dropping nearly 10% since reports of the change became public.

32 million barrels will be an exchange over the next several months, releasing oil that will eventually return to the SPR in the coming years. The exchange is a tool matched to the current economic environment, where markets expect future oil prices to be lower than they are today. The tool helps provide immediate relief and bridge the gap to a period of expected lower oil prices. The exchange also automatically provides for re-stocking of the SPR over time to meet future needs. The DOE said the exchange will be conducted with crude oil from all four SPR storage sites: approximately 10 million barrels from Big Hill, Texas; 10 million barrels from Bryan Mound, Texas; 7 million barrels from West Hackberry, Louisiana.; and 5 million barrels from Bayou Choctaw, Louisiana.  The other 18 million barrels will be an acceleration of a sale of oil that Congress had previously authorized.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/23/president-biden-announces-release-from-the-strategic-petroleum-reserve-as-part-of-ongoing-efforts-to-lower-prices-and-address-lack-of-supply-around-the-world/

[USA] California regulators approve $1.4 billion plan for zero-emission vehicle infrastructure and manufacturing

On November 15, 2021, the California Energy Commission (CEC) approved a three-year $1.4 billion plan to help the state achieve its 2025 electric vehicle (EV) charging and hydrogen refueling goals.[1] The plan will close the funding gap to support Governor Gavin Newsom’s, D, September 2020 executive order to phase out the sale of new gasoline-powered passenger vehicles by 2035. The funding in the new plan will become available over the next two years. It will be distributed to projects through a mix of competitive solicitations and direct agreements, according to the press release.

The new plan increases the budget of the Clean Transportation Program by six times, including $1.1 billion from the 2021–2022 state budget in addition to the remaining $238 million in program funds. The three-year plan includes $314 million for light-duty EV charging infrastructure, $690 million for medium- and heavy-duty zero-emission vehicle infrastructure, $77 million for hydrogen refueling infrastructure, and $25 million for zero-and near-zero-carbon fuel production and supply. In addition, the plan contains $244 million for ZEV manufacturing and $15 million for workforce training and development. In response to stakeholder engagement, the CEC intends to ensure that at least 50% of funds from the plan go to projects that benefit “priority populations,” including low-income and disadvantaged communities.

[1] https://www.energy.ca.gov/news/2021-11/cec-approves-14-billion-plan-zero-emission-transportation-infrastructure-and

[Japan] Enviva and J-Power sign agreement for biomass supply for coal-fired plants in Japan

On November 16, 2021, Enviva Partners LP, a U.S.-based global renewable energy company focused on sustainable wood bioenergy, and Tokyo-based utility Electric Power Development (J-Power) announced that they have signed a memorandum of understanding (MOU) for the long-term, large-scale supply of wood biomass from Enviva’s operations in the Southeast of the U.S. to J-Power’s coal-fired power plants in Japan.[1] Under the MOU, the two companies will work to develop a plan for Enviva to build new infrastructure to produce and deliver up to 5 million metric tons of sustainable wood pellets to permanently replace coal in J-Power’s existing coal-fired power plants. J-Power has a total of 8.4 GW of coal-fired power capacity. The companies will work to repurpose the facilities into both dedicated and co-fired biomass plants, resulting in over 80% greenhouse gas emission reductions for each site. Biomass provided by Enviva will be certified under the EU’s current sustainability criteria, which guarantees that the biomass is only sourced from sustainably managed forests.

The MOU is part of J-Power’s plan to meet its “Blue Mission” goal to be carbon-neutral by 2050. The company has also recently announced various plans, including a phase-out of aged thermal power plants, to be replaced with co-firing biomass or ammonia. Enviva also announced its own net-zero goal to reduce, eliminate, or offset all of its direct emissions by 2030.

[1] https://www.businesswire.com/news/home/20211116006425/en/Enviva-and-J-Power-Join-Efforts-to-Decarbonize-Power-Generation-in-Japan

[USA] U.S. Court of International Trade reinstates bifacial solar tariff exclusion

On November 16, 2021, the U.S. Court of International Trade (CIT) reinstated the exclusion of bifacial solar modules from the Section 201 tariffs.[1] As the name suggests, bifacial modules can produce solar power from both sides of the panel, and while they make up a modest percentage of the overall market, they are becoming more popular with developers due to their efficiency. In June 2019, former President Trump decided to exclude bifacial modules from import tariffs on solar panels due to their limited role in the market. However, in October 2020, Trump reversed this decision in Proclamation 10101, subjecting bifacial panels to the same tariff as other solar panels. The proclamation also raised the Section 201 tariff rate on solar panels from 15% to 18%. The Solar Energy Industries Association (SEIA) and three solar developers subsequently filed a lawsuit, which argued that President Trump’s actions were against trade laws. In its decision, the CIT agreed with the solar groups, writing that the president had acted “outside of the President’s delegated authority” in Proclamation 10101.[2] The court stated that the proclamation was a “misconstruction” of Section 204 of the Trade Act of 1974, which allows a sitting president to lift tariffs, but not enact new restrictions.  In addition to the exclusion, the CIT reduced the Section 201 tariff rate back down to 15%. Both actions will result in refunds of the tariffs collected under Proclamation 10101.

[1] https://www.cit.uscourts.gov/sites/cit/files/21-154.pdf

[2] Under the Constitution, Congress has the legal authority to set tariffs. However, in the last century, Congress has shifted some authority to the president, especially during wartime.

[USA] House passes $1.2 trillion bipartisan infrastructure bill, Biden expected to sign soon

The House of Representatives voted on November 5, 2021, to pass the $1.2 trillion Infrastructure Investment and Jobs Act, which will boost spending on highways, transit and rail, electric vehicles, climate resilience, energy, and other infrastructure priorities.[1] The Senate approved the bill in August 2021. With approval from the House, the bill now heads to President Biden, who is expected to sign the law. The bill is the result of bipartisan conversations in the Senate that worked to approve some of President Biden’s American Jobs Plan, which proposed $2.3 trillion spending on infrastructure and climate.

In total, the infrastructure bill includes $550 billion in new federal investment, as well as the establishment of a Grid Deployment Authority under the DOE to oversee the development of the power grid. Major energy-related funding in the bill includes $65 billion for energy and the electric grid, such as building thousands of miles of new power lines and expanding renewable energy; $7.5 bill to build a nationwide network of EV charging stations; and $7.5 billion for zero- and low-emission buses and ferries. The infrastructure bill also allocates $50 billion for cyber and climate resilience over five years.

[1] https://www.govinfo.gov/content/pkg/BILLS-117hr3684eas/pdf/BILLS-117hr3684eas.pdf

[USA] GE announces plans to split into three companies focused on Aviation, Healthcare, and Energy

General Electric (GE) announced on November 2, 2021, that it plans to split into three companies built around its major business units: aviation, healthcare, and energy.[1] According to the press release, GE Renewable Energy, GE Power, and GE Digital will combine and split off from the parent company in 2024, following the split of its healthcare unit company in 2023. The new energy company will encompass equipment and services for gas, coal, wind, hydropower, and nuclear power generation. It will also include renewables and digital software operations. Following the split-off of healthcare and energy, GE will be an aviation-focused company only. GE’s press release claims that the “businesses will be better positioned to deliver long-term growth and create value for customers, investors, and employees.” GE shares reached a 3-1/2 year high following the announcement, rising more than 2.6%.[2]

[1] https://www.ge.com/news/press-releases/ge-plans-to-form-three-public-companies-focused-on-growth-sectors-of-aviation

[2] https://www.reuters.com/business/sustainable-business/ge-energy-spinoff-aims-capture-interest-renewables-2021-11-09/

[USA] New York ISO reports ability to meet winter demand

On November 9, 2021, the New York Independent System Operator (NYISO) reported that electricity supplies in New York will likely be sufficient to meet peak demand this winter, with a total of 42,415 MW of power resources available.[1] NYISO forecasts that peak demand for winter 2021-2022 will reach 24,025 MW, about 6.6% higher than last winter. According to the grid operator’s extreme winter weather scenario, peak demand could increase to as much as 26,230 MW. The state’s all-time winter peak was set in January 2014 when a multi-day polar vortex pushed demand to 25,738 MW.

Although the 2014 polar vortex did not cause any reliability issues, NYISO has since made changes to its market designs to provide stronger incentives for generators to secure fuel and increase winter preparedness. The grid operator also took steps to improve situational awareness of natural gas conditions and enhance procedures for monitoring generator fuel inventories. NYISO says these actions have allowed it to meet demand during more recent severe cold weather. For winter 2021-2022, NYISO said that it is monitoring regional fuel supplies as there could be a limited supply. The grid operator also noted that seasonal and weekly fuel surveys indicate oil and dual-fuel generators have sufficient inventories to start the winter but are still lower than in past years.

[1] https://www.nyiso.com/-/press-release-%7C-new-york-s-electric-grid-prepared-to-meet-winter-demand

[USA] CPUC proposes demand response, other measures to reduce outages during extreme heat events

On October 29, 2021, California Public Utilities Commission (CPUC) issued a suite of proposals to address the risk of outages during extreme heat events similar to the ones the state experienced in 2020 and 2021.[1] The proposed decisions create new programs and modify existing programs to reduce energy demand and increase supply during critical times of the day. The proposals are part of the CPUC’s effort to respond to Governor Gavin Newsom’s July 30, 2021, Emergency Proclamation, which urged state energy agencies to ensure there is adequate electricity to meet demand. According to the CPUC, 2,000 to 3,000 MW of new supply- and demand-side resources will help address grid reliability in extreme heat events in 2022 and 2023.[2] 

One of the new proposals is the Demand Response Program for Residential Customers, which would pay residential customers $2 per kWh for reductions in energy use at critical times. Other proposals include doubling the compensation rate of the Emergency Load Reduction Program to $2 per kWh, implementing a $22.5 million smart thermostat incentive program to assist customers in reducing air conditioner use during critical times, and expanding other energy efficiency programs. On the supply side, the CPUC is proposing new energy efficiency programs, such as four new energy storage microgrid projects for San Diego Gas & Electric (SDG&E) to provide a total of 160 MWh of capacity and temporary generation for Pacific Gas and Electric Company (PG&E) to augment its temporary generation program.

[1] https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-proposals-ensure-electricity-reliability-during-extreme-weather-for-summers-2022-and-2023

[2] Peak demand managed by CAISO in 2020 was 47, 121 MW. The peak demand in 2021 is 43,982 MW as of October 2021.

[USA] EPA announces new rule to reduce methane emissions

On November 2, 2021, the Environmental Protection Agency (EPA) introduced a proposed new Clean Air Act rule to reduce methane emissions from the oil and natural gas industry, including, for the first time, reductions from existing sources.[1] The proposed rule is in response to Biden’s January 20, 2021, executive order, which, among other things, directed the EPA to propose new regulations to reduce methane and volatile organic compound (VOC) emissions from existing operations in the oil and gas sector. One-third of the warming from greenhouse gases comes from methane, which traps about 30 times as much heat as carbon dioxide over 100 years. In the U.S., the oil and natural gas industry is the largest industrial source of methane emissions. Oil and gas operations also emit VOCs and other air pollutants.

According to the EPA, the proposed rule would reduce 41 million tons of methane emissions from 2023 to 2035, the equivalent of 920 million metric tons of carbon dioxide. In 2030 alone, the rule would reduce methane emissions by 74% compared to 2005. It would accomplish this through updated and broadened emission reduction requirements for new, modified, and reconstructed oil and gas sources for the first time under the Clean Air Act; and requirements that states develop plans to limit methane emissions from existing sources nationwide, along with presumptive standards for existing sources to assist in the planning process.  

[1] https://www.epa.gov/newsreleases/us-sharply-cut-methane-pollution-threatens-climate-and-public-health

[USA] Maine voters reject planned $1 billion transmission line, developer files lawsuit

On November 2, 2021, 59% of Maine voters approved an initiative, known as Question 1, to prohibit the construction of the New England Clean Energy Connect (NECEC) project.[1] The NECEC is a proposed transmission line developed by Avangrid to bring 9.45 million MWh of hydroelectric power from Hydro-Québec in Canada through Maine and into Massachusetts, helping both states meet their clean energy targets. The line would account for about 8% of the electricity used in New England. While the NECEC has support from clean energy advocates and the Biden administration, it has received backlash from many stakeholders. Competing energy companies argue that the transmission line will reduce energy and capacity prices in ISO-NE. Conservation groups, Canadian First Nations, and some state legislators say it could harm wildlife, tourism, and views in Maine.

In response to the vote, NECEC Transmission and Avangrid Networks, subsidiaries of Avangrid, filed a lawsuit in the Maine Superior Court on November 3, 2021, challenging the ballot initiative.[2] The lawsuit argues that the measure was unconstitutional and violates state and federal laws because NECEC has already received all necessary permits, and construction began earlier in 2021. The lawsuit asks the Superior Court to declare that the initiative was unlawful and unenforceable. In addition to Avangrid’s lawsuit, a spokesperson from Hydro-Québec said it is also exploring legal options in response to the ballot initiative.[3]

[1] https://www.pressherald.com/2021/11/02/statewide-and-town-by-town-maine-results-for-election-2021/

[2] https://www.necleanenergyconnect.org/necec-milestones/2021/11/3/necec-files-suit-challenging-constitutionality-of-question-1

[3] https://subscriber.politicopro.com/article/eenews/2021/11/04/1b-northeast-transmission-line-isnt-dead-developers-say-282803

[Japan] Japan approves new energy plan, aims to double renewables by 2030

On October 22, 2021, Japan’s Cabinet approved the Sixth Strategic Energy Plan, which sets out a framework for achieving the country’s pledge of reaching carbon neutrality in 2050.[1] A draft of the plan was introduced in July 2021 under the government of former Prime Minister Yoshihide Suga, who announced the 2050 target. No major revision was made during the draft stage. The new plan, compiled by the Ministry of Economy, Trade and Industry (METI) every three years, says renewables should account for 36% to 38% of total power production by 2030, up from the 18% recorded in fiscal year 2019. For nuclear power, the plan keeps the target from the 2018 plan, which called for the energy source to account for 20% to 22% of power production in 2030. In 2019, nuclear power made up 6% of total power generation because many nuclear plants have remained closed due to stricter safety rules introduced after the 2011 Fukushima nuclear disaster. The energy policy plan also includes a target for ammonia and hydrogen to account for about 1% of the electricity mix in 2030. Notably, the plan reduces the share of fossil fuels compared to the 2018 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.meti.go.jp/english/press/2021/1022_002.html

[USA] BOEM releases draft EIS for oil lease sale in the Gulf of Alaska

On October 22, 2021, the Bureau of Ocean Energy Management (BOEM) released a draft environmental impact statement (EIS) that lays out the proposal and alternatives for a potential 2022 oil lease sale in the Gulf of Alaska south of Anchorage.[1] The sale would be among the first since the Biden administration paused new sales under the federal oil leasing program in January 2021. In June 2021, Louisiana U.S. District Judge Terry Doughty ordered the leasing program to temporarily restart while the court considers the legality of the moratorium. To comply with that ruling, the Department of the Interior (DOI) has proposed oil and gas lease sales in several states and in federal waters, including the Cook Inlet, Alaska sale. The administration has appealed the federal judge’s ruling but has still pledged to hold auctions.

The draft EIS is part of a federal process and will be used to decide whether to move forward with the sale. The document found that the proposal would have low to no effect on the habitats of nearby wildlife. The document does note that the sale could contribute to the release of 88.3 million metric tons of greenhouse gas emissions. Not holding the auction would result in slightly higher oil prices. BOEM will next hold three days of virtual hearings on the proposal from November 16-18, 2021, during a 45-day public comment period.

[1] https://www.boem.gov/sites/default/files/documents/oil-gas-energy/leasing/LS258-DEIS.pdf