[USA] New Jersey launches year three of EV incentive, unveils new residential charger program

On July 25, 2022, New Jersey Governor Phil Murphy (D) announced the launch of the third year of the state's Charge Up New Jersey electric vehicle (EV) incentive program and unveiled the state's new Residential EV Charger Incentive Program.[1] Over the last two years, the Charge Up New Jersey program provided incentives for more than 13,000 vehicles. Over the last two years of the program, over 13,000 EVs were purchased or leased with this incentive. In its third year, the program will provide up to $4,000 for vehicles with a Manufacturer's Suggested Retail Price (MSRP) under $45,000 and up to $2,000 for vehicles with an MSRP between $45,000 and $55,000. The new charger incentive program offers a $250 rebate for a residential charger and can be combined with existing utility programs, which may cover installation costs.

In the last two years, the New Jersey Board of Public Utilities (NJBPU) has approved EV charging incentive programs for Jersey Central Power and Light, Public Service Electric and Gas, and Atlantic City Electric. In addition, in fiscal year 2022, NJBPU launched three new programs, collectively providing over $12 million in incentives for the purchase of more than 900 Level Two chargers and over 60 Fast Chargers across the state. The NJBPU released the names of all the FY2022 EV grant recipients and will also open FY2023 applications for those programs – Clean Fleet, EV Tourism Charger, and the Multi-Unit Dwelling (MUD) Charger Program. The Clean Fleet program provides grants for government entities for the purchase of EVs and chargers. The MUD EV Charger Incentive Program was designed to encourage owners and operators of multi-unit dwellings to provide EV chargers for residents and guests. Finally, the EV Tourism program provides funding for chargers at tourist locations across the state.

[1] https://nj.gov/governor/news/news/562022/approved/20220725a.shtml          

[USA] Democrats unveil bill with $369 billion in energy and climate spending

On July 27, 2022, with Senator Joe Manchin's (D-WV) support, Senate Democrats unveiled a budget reconciliation bill that includes $369 billion in climate and clean energy policies.[1] The proposed bill, called the Inflation Reduction Act of 2022, follows months of negotiations between Democratic leadership and Senator Manchin, who had opposed the Build Back Better bill passed by the House last fall. It would be the country's largest climate change bill if it makes it through the Senate and House. According to Senate Majority Leader Chuck Schumer's (D-NY) office, the legislation would reduce greenhouse gas emissions by roughly 40% by 2030.

Under the bill, existing renewable tax credits would be extended, and after 2025, they would become technology neutral and based on greenhouse gas emissions reductions. Existing nuclear power plants would be eligible for a production tax credit. In addition, the 45Q credit for carbon capture and storage (CCS) would be expanded and extended. The bill will offer a $4,000 credit for used clean vehicles and up to $7,500 for new clean vehicles. The deal includes the Methane Emissions Reduction Program, which would put a fee on excess methane emissions and offer up to $850 million in grants to industry to monitor and reduce methane. It also contains $60 billion for environmental justice, $60 billion for clean energy manufacturing, and $27 billion for a new federal green bank.

[1] https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

[USA] DOE launches $2.6 billion in funding for carbon capture projects

On July 13, 2022, the Department of Energy (DOE) issued Notices of Intent to fund the Carbon Capture Demonstration Projects Program and the Carbon Dioxide Transport/Front-End Engineering Design (FEED) Program.[1] The programs will support carbon capture demonstration projects and expand regional pipeline networks to transport CO2 for storage or conversion into other uses. The two programs are funded by a more than $2.6 billion investment from the Bipartisan Infrastructure Law (BIL).

The $2.54 billion demonstration program will focus on integrated carbon capture, transport, and storage technologies and infrastructure that can be readily replicated and deployed at fossil energy power plants and major industrial sources of CO2, such as cement, pulp and paper, iron and steel, and certain types of chemical production facilities. Chosen projects will address technical, environmental, permitting, and financing challenges for commercial deployment. Proposed projects will need to show at least 95% carbon capture efficiency and verification of secure geologic carbon storage. In addition, the $100 million Carbon Dioxide Transport/Front-End Engineering Design program will design regional carbon dioxide pipeline systems to move CO2 from key sources to centralized locations.

[1] https://www.energy.gov/articles/biden-harris-administration-launches-26-billion-funding-programs-slash-carbon-emissions

[USA] TVA announces request for 5 GW of carbon-free energy

The Tennessee Valley Authority (TVA), a federally owned electric utility cooperation[1], issued a request on July 12, 2022, for up to 5 GW of carbon-free energy that must be operational by 2029, representing one of the largest clean energy procurement requests in the U.S.[2] TVA will consider solar, onshore or offshore wind, hydropower, geothermal, biomass, nuclear, renewable gas, battery energy storage systems, and hybrid combinations. While the power would serve TVA’s seven-state territory in the Southeast, clean energy power could come from outside the region. The deadline for proposals is October 19, 2022. TVA said it will announce selected projects in the spring of 2023. TVA aims to reduce carbon from 2005 levels by 70% by 2030, 80% by 2035, and net zero by 2050. To achieve this goal, the agency is planning to bring an additional 10,000 MW of solar energy capacity online by 2035. Currently, TVA has about 35 GW to 38 GW of capacity daily through its own generation and power purchases from other places. In 2021, TVA got more than half of its electricity from carbon-free resources like hydroelectric and nuclear.

[1]  TVA covers all of Tennessee, portions of Alabama, Mississippi, and Kentucky, and small areas of Georgia, North Carolina, and Virginia.

[2] https://www.tva.com/newsroom/press-releases/tva-issues-one-of-the-nation-s-largest-requests-for-carbon-free-energy

[USA] PG&E and Tesla announce pilot virtual power plant for 25,000 customers

On July 7, 2022, Pacific Gas and Electric Company (PG&E) and Tesla Inc. announced that they have launched a new virtual power plant (VPP) pilot program to help support electric grid reliability and save customers money.[1] Tesla invited approximately 25,000 PG&E customers with Powerwall home battery systems to join the VPP on June 22, 2022. Since then, more than 3,000 customers have expressed interest, and more than 1,500 customers have enrolled in the program. These 1,500 customers could provide between 8 and 10 MW of capacity. Enrollment will continue through October 2022. PG&E customers are eligible if they have an interconnection agreement with PG&E, a Tesla Powerwall, and are not enrolled in other demand response programs. Participating customers will receive $2 for every incremental kWh of electricity their Powerwall discharges during times of high demand.

Through this partnership, Tesla is participating in the utility’s Emergency Load Reduction Program (ELRP) by “enrolling and combining residential Powerwall home battery systems into a virtual power plant to discharge power back to the grid in California during times of high electricity demand.” The ELRP is a five-year pilot started in 2021 to pay consumers for reducing electricity consumption or boosting supply during grid emergencies. In 2021, the utility had about 150 MW of VPPs that could function as demand response in its overall portfolio.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=d9202eba-9562-4aea-9a76-382b0e4a3a30&ts=1657823764842

[USA] Report: Renewable costs temporarily higher due to inflationary pressures

According to a BloombergNEF analysis released on June 30, 2022, global supply chain issues, such as cost increases in materials, freight, fuel, and labor, caused price increases for onshore wind and solar power in the last year.[1] The research firm found that the cost of onshore wind has risen 7% year on year while fixed-axis solar has risen 14%. The global levelized cost of electricity (LCOE) has temporarily gone back to where it was in 2019. The firm estimates that the global LCOE for utility-scale PV and onshore wind rose to $45/MWh and $46/MWh, respectively, in the first half of 2022. Battery storage also saw a cost increase of 8.4% year on year due to surging lithium carbonate prices.

The Covid-19 pandemic and the Russian invasion of Ukraine have both affected costs. Although demand for low-carbon technologies bounced back in the second half of 2021, supply has struggled to keep up. Analysts found that despite the temporary cost increase, the gap between the cost of renewables and fossil energy continues to widen. New onshore wind and solar projects are about 40% lower than new-build coal- and gas-fired power.

[1] https://about.bnef.com/blog/cost-of-new-renewables-temporarily-rises-as-inflation-starts-to-bite/

[USA] PJM proposes “first-ready, first-served” approach to clear interconnection backlog

On June 14, 2022, PJM Interconnection[1] filed with the Federal Energy Regulatory Commission (FERC) to overhaul its interconnection study process to a “first-ready, first-served” approach that reviews proposals and assigns upgrade costs in clusters.[2]  According to PJM, the largest grid operator in the U.S., the proposed changes are a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW, as of May 10, 2022. The proposed reforms aim to speed up the interconnection process by allowing projects that are more commercial ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s proposal would conduct system impact studies and cost allocation for groups of projects or clusters rather than project-by-project. PJM’s proposal was widely supported in an 18-month stakeholder development process. If approved by FERC, PJM expects to review interconnection applications filed after October 1, 2021, starting in early 2026. PJM requested that FERC approve the proposal by October 3, 2022.

[1] PJM serves 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.

[2] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=f3f74b1d-7352-c120-9c75-81631eb00000

[USA] NextEra Energy announces Real Zero plan to eliminate its carbon emissions by 2045

On June 14, 2022, NextEra Energy announced its Real Zero plan, which would eliminate carbon emissions from its operations no later than 2045 while leveraging low-cost renewables to increase energy affordability for its customers.[1] NextEra said the plan is the most ambitious carbon-emissions reduction goal by an energy producer and is the sector’s only goal not to require carbon offsets for success. The goal would transform the company’s generation fleet by eliminating all scope 1 and scope 2 carbon emissions across its operations while enhancing reliability, resiliency, affordability, and cost certainty for its customers.

To achieve its plan, NextEra has created a Zero Carbon blueprint, a carbon-emissions reduction plan. NextEra intends to help decarbonize the U.S. economy, a more than $4 trillion market opportunity, by increasing low-cost renewable energy deployment. The plan would generate only carbon-emissions-free energy from a mix of wind, solar, battery storage, nuclear, green hydrogen, and other renewable sources. The company has set interim milestones to reach carbon emissions reduction of 70% by 2025, 82% by 2030, 87% by 2035, and 94% by 2040, relative to 2005. A large portion of the company’s plan to decarbonize will happen within its subsidiary Florida Power & Light Company (FPL). As part of Real Zero, FPL's goal is to reach 36% decarbonized by 2025, 52% by 2030, 62% by 2035, 83% by 2040, and 100% by no later than 2045.

[1] https://www.investor.nexteraenergy.com/news-and-events/news-releases/2022/06-14-2022-130240303

[USA] DOT releases proposed standards for national EV charging program

On June 9, 2022, the Department of Transportation (DOT) issued a notice of proposed rulemaking outlining minimum standards and requirements for projects funded under the National Electric Vehicle Infrastructure (NEVI) Formula Program.[1] The 2021 Infrastructure Investment and Jobs Act (IIJA) allocated $5 billion over the next five years for the NEVI Formula Program. States must submit charging infrastructure plans to the newly created Joint Office of Energy and Transportation by August 1, 2022, to access the $615 million available to states in fiscal year (FY) 2022. The proposed standards would set requirements for states to receive these funds.

The proposed standards aim to ensure the electric vehicle (EV) charging network provides a reliable and accessible customer experience and establish the groundwork for greater EV adoption. DOT’s proposal would require all stations in the network to communicate and operate on the same software platforms. The standards also include network connectivity requirements to allow secure remote monitoring, control, and updates. In addition, charging ports must have an average annual uptime of greater than 97%. Other requirements include standard plugs, American-made EV chargers, and the ability for direct current (DC) fast charging stations to simultaneously charge at least four vehicles at a minimum power of 150 kW. The DOT said there will be a 60-day comment period on the proposal following publication in the Federal Register.

[1] https://www.transportation.gov/briefing-room/biden-harris-administration-takes-key-step-forward-building-national-network-user

[USA] Xcel Energy to be the first energy company in U.S. to incorporate all-electric bucket trucks

On June 6, 2022, Xcel Energy announced that it will be the first energy company in the U.S. to add all-electric bucket trucks to its fleet.[1] Xcel Energy has a plan to electrify all its light-duty vehicles and 30% of its medium and heavy-duty fleet by 2030. Terex Utilities and Navistar, manufacturer of International trucks, will deliver the trucks two years ahead of industry projections. The new trucks feature two electric sources, one for the drive train and one for the lift mechanism. They have a range of 135 miles and are able to operate the bucket for a full workday on a single charge. The energy company plans to test these trucks in real working conditions over a six to 12-month pilot. Currently, the company operates 1,000 aerial bucket trucks in its fleet. The new trucks will be quieter and zero emissions. Feedback provided during the pilot will ensure the trucks are dependable and help the industry better prepare for the electric vehicle transition. Xcel Energy will introduce the first truck in the Minneapolis, Minnesota region in late June 2022. The second truck will be delivered to its Denver, Colorado fleet at the end of 2022.

[1] https://co.my.xcelenergy.com/s/about/newsroom/press-release/xcel-energy-is-first-in-the-nation-to-add-all-electric-bucket-trucks-to-fleet-MCFAQNJJTNLFCKJIV3QX6NCGLTWU

[USA] Biden administration announces 2-year pause on solar tariffs from four Southeast Asian countries

On June 6, 2022, the Department of Commerce announced a 24-month suspension of tariffs on solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam to avoid disruptions to the electric power system. The move follows growing concerns from legislators, industry leaders, and administration officials about the negative impacts of the Commerce Department’s investigation into whether imports of solar panels from those countries are circumventing tariffs on goods made in China. According to the American Clean Power Association, nearly 80% of panels used in U.S. projects come from those four countries. The Commerce Department said the preliminary investigation could lead to tariffs of 50% or more on panels from these countries.

On the same day, President Biden authorized the Department of Energy (DOE) to invoke the Defense Production Act (DPA)[1] to help strengthen domestic production of solar panels, electric transformers, heat pumps, insulation, and hydrogen-related equipment.[2] The DPA allows the president to coordinate with industry to encourage the manufacturing of products that are in the interest of national defense. The president has previously invoked the DPA to spur COVID-19 vaccine and electric battery production.

[1] https://www.commerce.gov/news/press-releases/2022/06/department-commerce-statement-president-bidens-proclamation-solar-cells

[2] https://www.energy.gov/articles/president-biden-invokes-defense-production-act-accelerate-domestic-manufacturing-clean

[USA] Texas LNG export processing plant to shut down for at least three weeks following explosion

On June 8, 2022, Freeport LNG, the operator of one of the largest U.S. export plants producing LNG, announced that it will shut down its Texas Gulf Coast facility for at least three weeks following an explosion earlier that day.[1] Representatives of Freeport LNG have said that an investigation into the explosion has begun. A fire in the facility’s delivery system led to emissions of carbon monoxide, nitrous oxides, particulate matter, sulfur dioxide, and volatile organic compounds, according to an incident report filed with the state Commission on Environmental Quality on June 9, 2022. There were no injuries at the terminal, located roughly 70 miles from Houston, Texas. According to a representative for the U.S. Coast Guard, a security zone has been set up two miles east and west of the facility, closing that portion of the waterway to vessel traffic.

Freeport LNG provides about 20% of U.S. LNG processing. The company ships about four cargoes per week, and a three-week shutdown will take at least 1 million tonnes of LNG off the market. The facility processes gas for companies including BP, JERA, Kansai Electric, Osaka Gas, SK E&S, and TotalEnergies. The shutdown has had an impact on both domestic and international natural gas markets. Traders expect lower domestic demand due to more natural gas in the market, resulting in falling prices domestically. European gas prices were up to a fifth higher as traders feared that lower U.S. exports combined with reduced Russian supplies would further stress the market.

[1] https://www.reuters.com/business/energy/explosion-hits-freeport-lng-plant-us-natgas-prices-plunge-2022-06-08/

[USA] EIA Report: California drought could halve summer hydropower generation

According to a study released by the U.S. Energy Information Administration (EIA) in May 2022, California’s extended drought could nearly halve its summer hydroelectric generation from 15% to 8%.[1] The study, titled “Short-Term Energy Outlook Supplement: Drought Effects on California Electricity Generation and Western Power Markets,” found that lower hydropower generation will bump up the state’s natural gas generation, leading to a 6% increase in carbon dioxide emissions from the state’s energy sector, and an average 5% increase in wholesale electricity prices across the region.

The state is currently in its third year of drought, and these conditions have impacted its hydropower resources, which is usually the state’s third largest source of electricity. Many of California’s reservoirs have low levels of storage at the moment; the two largest — Lake Shasta and Lake Oroville — were at 48% and 67% of historical storage averages, respectively, as of April 1, 2022. The EIA stated that hydroelectric generation in 2021 was 48% lower than the state’s 10-year average. These drought conditions come as the state transitions toward more clean sources of energy. The study notes that about 6.5 GW of natural gas units have been retired since 2015, while solar capacity has increased by 8.8 GW in that same period. Even accounting for added battery storage capacity, California’s total share of dispatchable resources is lower in 2022 than it was in 2015.

[1] https://www.eia.gov/outlooks/steo/special/supplements/2022/2022_sp_02.pdf

[USA] BLM approves transmission line for renewables in the West

On May 26, 2022, the Bureau of Land Management (BLM) announced that it had issued the final approval for construction of the 416-mile Energy Gateway South Transmission line that will start near Medicine Bow in southeastern Wyoming, travel through northwest Colorado, and end outside of Mona, Utah.[1] The project is a step toward the Biden administration’s efforts to modernize power infrastructure in the West and permit at least 25 GW of solar, wind, and geothermal production on public lands by 2025. The Energy Gateway South Transmission line will support about 1,325 construction jobs and help integrate 2,000 MW of new renewable energy into the grid.

The approval, issued by the BLM Wyoming State Office in partnership with BLM’s Colorado and Utah offices, authorizes PacifiCorp to begin construction of the 500kV line. PacifiCorp said construction on the line should begin in June 2022, and the line is expected to be in service by late 2024.[2] The project is part of the utility’s larger Energy Gateway Transmission Expansion, a multi-year plan to add approximately 2,000 miles of new transmission lines across the western U.S. According to the press release, BLM worked with PacifiCorp, the National Fish and Wildlife Foundation, the Wyoming Wildlife and Natural Resource Trust, federal partners, and the states of Wyoming, Colorado, and Utah to mitigate the environmental impacts caused by the construction of the line. In particular, the approach will offset impacts to the endangered Greater Sage-Grouse, lands with wilderness characteristics, and other natural resource values across all three states.

[1] https://www.blm.gov/press-release/biden-harris-administration-approves-construction-energy-gateway-south-transmission

[2] https://www.pacificorp.com/about/newsroom/news-releases/utility-regulators-grant-certificates.html

[USA] FERC approves ISO-NE plan to end MOPR

On May 27, 2022, in a 4-1[1] vote, the Federal Energy Regulatory Commission approved ISO New England’s (ISO-NE) plan to phase out its minimum offer price rule (MOPR) over two years.[2] A MOPR sets a floor price for bids in a capacity market to prevent resources from bidding artificially low prices. ISO-NE, which oversees grid operations in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, submitted the proposal to end its MOPR on March 31, 2022. ISO-NE proposed ending the MOPR in 2025. The transition will exempt up to 700 MW of qualified state-supported capacity (about 2,000 MW of nameplate capacity) from the MOPR over the next two capacity auctions. According to ISO-NE, adopting a two-year transition will help maintain reliability. The grid operator said that an immediate elimination of the MOPR could cause the retirement of existing capacity resources before state-sponsored resources are commercially available and able to replace the retiring resources.

FERC said the proposal “strikes a reasonable balance among the different considerations raised here, including efforts to ensure resource adequacy, minimize potential adverse effects on reliability that could result from an immediate change to the market rules, promote market certainty, and limit the costs associated with over-mitigation.” In his concurring statement, FERC Chairman Richard Glick said he wished the grid operator had proposed ending the MOPR immediately but stated that he understood that the New England states did not oppose ISO-NE’s proposal. He also urged ISO-NE to quickly develop “a capacity accreditation proposal to ensure that the [forward capacity market] is accurately valuing the capacity contribution of all resources.”

[1] Chairman Richard Glick (D), Commissioner Allison Clements (D), Commissioner Willie Phillips (D), and Commissioner Mark Christie (R) voted for the proposal. Commissioner James Danly (R) dissented.

[2] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=8af6af9e-2c5f-c7bf-92cd-81084af00000

[USA] Sempra Infrastructure, TotalEnergies, Mitsui, Mitsubishi plan large CCS project in Louisiana

On May 23, 2022, Sempra Infrastructure, a subsidiary of Sempra, announced that it had signed a participation agreement with TotalEnergies, Mitsui, and Mitsubishi for the development of the proposed Hackberry Carbon Sequestration (HCS) project in southwest Louisiana.[1] The HCS project aims to capture and store carbon dioxide from the Cameron LNG facility near Hackberry, Louisiana. Last year, the project filed an application with the Environmental Protection Agency for permanent storage of up to 2 million tons of carbon dioxide per year, either from the Cameron LNG facility as the “anchor source” or potentially from other industrial facilities in the area. According to the announcement, the development of the project is subject to a number of risks and uncertainties, such as securing all necessary permits. “We are excited to welcome new investment from Sempra Infrastructure and its partners in support of our state’s emissions reduction plans,” said Louisiana Governor John Bel Edwards (D).

[1] https://semprainfrastructure.com/news-and-events/news-releases/sempra-infrastructure-signs-participation-agreement-with-totalenergies-mitsui-mitsubishi-for-carbon-sequestration-project-in-louisiana

[USA] Venture Global announces $13.2 billion in financing for first U.S. LNG project in 3 years

On May 25, 2022, Venture Global LNG announced that it had secured $13.2 billion in financing for the initial phase of its Plaquemines LNG facility in Louisiana and the associated Gator Express Pipeline.[1] The transaction is the first financial close[2] of a U.S. LNG export project since Venture Global’s Calcasieu Pass facility in August 2019. It is also the largest project financing in the world closed to date in 2022. The first phase of Plaquemines is expected to export up to 13.33 million metric tons of LNG per year. The LNG facility has received all necessary permits, including authorization from the Federal Energy Regulatory Commission (FERC) and non-free trade agreement export authorization from the Department of Energy (DOE). Additionally, Venture Global has executed 20-year agreements for 80% of the full project. Phase one customers include PGNiG, Sinopec, CNOOC, Shell, and EDF, and phase two customers announced to date include ExxonMobil, PETRONAS, and New Fortress Energy. Lenders included Bank of America, Goldman Sachs Bank, and JPMorgan Chase Bank.

[1] https://venturegloballng.com/press/venture-global-announces-final-investment-decision-and-financial-close-for-plaquemines-lng/

[2] “Financial close” occurs when all the project and financing agreements have been signed, all conditions on those agreements have been met, and work can start on the project.

[USA] MISO proposes assigning incumbent utilities certain transmission projects

Under a proposal filed with the Federal Energy Regulatory Commission (FERC) on May 25, 2022, by the Midcontinent Independent System Operator (MISO), incumbent utilities in the grid operator’s footprint could build certain transmission projects without a competitive bidding process.[1] The grid operator proposes that if at least 80% of a project’s costs come from upgrades to the existing system, MISO will assign the transmission project to incumbent utilities. According to MISO. FERC approved a similar proposal from Southwest Power Pool (SPP) in 2014 that included an 80% cost threshold.

MISO claims that the revision would facilitate its Long Range Transmission Plan (LRTP) initiative. The MISO board is expected to approve the first of the LRTP projects (LRTP Tranche 1) on July 25, 2022. LRTP Tranche 1 is a set of transmission lines that could support about 53 GW of wind, solar, hybrid, and stand-alone battery projects. MISO said that the LRTP plan could be delayed if projects that involve upgrading existing facilities are subject to a competitive bidding process. Challenges include designing, permitting, and maintaining the facilities. According to the grid operator, the proposal still allows “significant opportunity” for competitive transmission development in the pending buildout. Based on a preliminary review, some “short segments” and conductor-only projects would likely be open to competitive bidding. In the proposal, MISO requested that the commission approve the proposal by July 25, 2022.

[1] https://elibrary.ferc.gov/eLibrary/filedownload?fileid=2dc38a07-70f0-cb85-9c76-80fcc3900000

[USA] Pennsylvania to apply for federal funding to establish a hydrogen hub

On May 17, 2022, Pennsylvania Governor Tom Wolf (D) announced that the state is working to establish a Regional Clean Hydrogen Hub funded under the 2021 Infrastructure Investment and Jobs Act (IIJA).[1] The IIJA allocates $8 billion for four hydrogen hubs in the U.S. to expand the use of clean hydrogen in the industrial sector. The law requires that at least two of these hubs are located in regions with the highest natural gas resources, such as Pennsylvania. According to the Energy Information Administration (EIA), Pennsylvania is the second-largest producer of natural gas and the third-largest producer of coal in the U.S.[2] The state also has sizeable industrial and manufacturing industries, which could help it succeed as a hydrogen hub. The clean hydrogen hub could bring more jobs to the state, as well as help it reduce its emissions. Pennsylvania currently ranks fourth in carbon dioxide emissions from the energy sector, according to the EIA. The Department of Energy (DOE) expects that applications for the hydrogen hub funding will open later this summer.

[1] https://dced.pa.gov/newsroom/gov-wolf-announces-aggressive-push-to-secure-clean-hydrogen-hub-in-pennsylvania/

[2] https://www.eia.gov/state/?sid=PA

[USA] Report: Drought and capacity shortfalls pose summer energy grid reliability risks

According to the North American Electric Reliability Corp.’s (NERC) 2022 Summer Reliability Assessment, released on May 18, 2022, the central and Western U.S. face an increased risk of energy shortfalls this summer due to predicted extreme heat and drought conditions.[1] The Midcontinent Independent System Operator (MISO), the grid operator in the central Midwest, faces the highest risk and could face a resource shortfall during normal conditions due to higher peak demand and declining resource commitments. The Electric Reliability Council of Texas (ERCOT), the Southwest Power Pool (SPP), the California Independent System Operator (CAISO), and the rest of the Western U.S. are also at elevated risk of outages during above-normal conditions. In Texas, for example, extreme peak demand, low wind, and high rates of outages from thermal generators may require emergency procedures. California and parts of the West are also at risk due to drought and extreme heat.

Aside from extreme heat and drought conditions, grid operators must also contend with cyber threats, a shortage of fuel and non-fuel coal generation inputs, and wildfire. The reliability assessment also highlighted the major risks associated with the unexpected tripping of wind and solar farm power inverters during normal grid disturbances, such as a lightning strike. NERC cited incidents of losses of solar generation between May and August 2021 in California and Texas. NERC is currently developing new rules to address this issue.

[1] https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_SRA_2022.pdf