As of April 29, 2025, the Ministry of Economy, Trade, and Industry of Japan (METI) and the Ministry of Industry and Trade of the Socialist Republic of Vietnam signed a Memorandum of Cooperation (MOC) on the promotion of bilateral cooperation projects for energy transitions. [1] Both sides signed it, reaffirming the Asia Zero Emission Community (AZEC) principles, especially since it involves pursuing a common goal of net-zero or carbon-neutrality. This pathway addresses economic growth, energy security, and decarbonization simultaneously. Based on this, Japan and Vietnam will proceed with discussions that aim to promote the implementation of the projects for offshore wind, power grid development, decarbonization of industrial zones, and more.
[USA] PJM and utilities want FERC to dismiss the call for colocation settlement discussion
According to a May 5, 2025, filing, PJM transmission owners think that the national interest would be best served by a quick dismissal of the proceeding of a 90-day pause in deliberations over the PJM Interconnection’s rules for colocating data centers at power plants. [1] They urge the Federal Energy Regulatory Commission (FERC) to dismiss a call for stakeholder settlement talks to instead encourage parties to focus on obtaining service under the rules currently in place. [2] The transmission owners include American Electric Power, Dominion Energy, Duke Energy, Exelon, FirstEnergy, and PPL Electric. The outcome of FERC’s review could set a precedent for colocated load in the power markets the agency oversees, arriving during a surge in data center development in the US.
[USA] Energy Department slashes 47 costly regulations in mass deregulatory effort
As of May 12, 2025, the US Department of Energy announced the first step in its largest deregulatory effort, proposing the elimination or reduction of 47 regulations. [1] These actions include elimination or modification to consumer appliance standards, regulations limiting building and energy production, and Diversity, Equity, and Inclusion (DEI) requirements for grant recipients. [2] The list of regulations targets many longstanding energy efficiency standards for appliances. Trump also signed a series of bills eliminating regulations that were enacted at the end of the Biden administration, making them subject to the Congressional Review Act. This means that Congress and the president can undo rules passed at the end of a previous administration more easily. The rules covered tankless natural gas water heaters, commercial refrigerators, freezers, and walk-in coolers.
[2] https://clyde.house.gov/news/documentsingle.aspx?DocumentID=3143
[Japan] Marubeni and ExxonMobil’s low-carbon ammonia deal marks major step in unleashing new energy supply
As of May 7, 2025, Marubeni Corporation and Exxon Mobil Corporation have signed a long-term offtake agreement for approximately 250,000 tonnes of low-carbon ammonia per year from ExxonMobil’s facility in Texas. [1] The facility is expected to produce carbon-free hydrogen with approximately 98% of CO2 removed and low-carbon ammonia. The ammonia will be supplied by Marubeni to Kobe Power Plant, a fully owned subsidiary of Kobe Steel. Marubeni also agree to acquire an equity stake in ExxonMobil’s low-carbon hydrogen and ammonia facility. The facility is expected to be the world’s largest of its kind, capable of producing up to 1 billion cubic feet (bcf) daily of low-carbon hydrogen, and more than 1 million tons of low-carbon ammonia per year. By Japan’s fiscal year 2030, Kobe Power Plant aims to co-fire low-carbon ammonia with existing fuel, reducing CO2 emissions.
[USA] DOE halts fossil fuel ban for federal buildings
As of May 5, 2025, the Department of Energy (DOE) announced that it has delayed the compliance date for new provisions regarding Clean Energy for New Federal Buildings and Major Renovations of Federal Buildings (CER). [1] The action delays the standards from the previous administration to limit the use of energy sources such as coal and natural gas, to power federal buildings. The original regulations, issued on May 1, 2024, required certain new federal buildings and federal buildings undergoing major renovations to reduce their fossil fuel-generated energy consumption. The delay will be implemented as DOE reviews recently released implementation guidance and a template for petitions for downward adjustments. This review is being undertaken to ensure alignment with the current administration's new energy policies relating to energy security and reliability. As a result of the action, the compliance date will be delayed for one year. During this time, federal agencies are not required to comply with the energy performance standards outlined in the regulations.
[1] https://www.energy.gov/articles/doe-halts-fossil-fuel-ban-federal-buildings
[USA] Michigan joins 17 states and DC to sue Trump administration over wind energy halt
As of May 5, 2025, Michigan joined attorneys general (AGs) from 17 Democratic-led states and the District of Columbia in filing a lawsuit against the Trump administration for halting wind energy projects. [1] The plaintiffs, which included New York, California, Massachusetts, New Jersey, Illinois, and Delaware, filed the suit against President Trump, the Department of the Interior, the Department of Energy, the Environmental Protection Agency (EPA), Interior Secretary Doug Burgum, and the Department of Commerce, among others. The AGs allege that their states are being harmed by Trump’s executive order that halted federal approvals for onshore and offshore wind energy projects. In a press release, the Massachusetts Office of the Attorney General said that the directive threatens to thwart states’ significant investments in wind industry infrastructure, supply chains, and workforce development, investments that already total billions of dollars. The lawsuit states that “the Wind Directive has stopped most wind-energy development in its tracks, despite the fact that wind energy is a homegrown source of reliable, affordable energy that supports hundreds of thousands of jobs, creates billions of dollars in economic activity and tax payments, and supplies more than 10% of the country’s electricity.”
[1] https://www.mass.gov/doc/offshore-wind-complaint/download
[Japan] Bison Energy: Three BESS projects win bid in long-term decarbonization auction in Japan
As of April 30, 2025, Bison energy announced that three of its battery energy storage system (BESS) projects of total installed capacity 195,753 kW have successfully won the bid in the Long-Term Decarbonization Auction. [1] The auction is a bidding system that was introduced in 2023 by the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO). Successful bidders are to supply electricity for 20 years while receiving subsidies for the initial construction and operating costs of the power plants. This enables long-term profit forecasting and supports the achievement of carbon neutrality by 2050. The three winning bids are located in Fukushima, Niigata, and Fukui prefectures with the Fukushima project having the highest capacity.
[USA] Summer capacity prices jump to $666.50/MW-day for MISO
As of April 29, 2025, MISO’s capacity prices for the upcoming summer season jumped to $666.50/MW-day from $30/MW-day last year across the operator’s footprint, partially driven by declining surplus capacity, according to the results of its latest planning resource auction. [1] MISO used a reliability-based demand curve for the first time, which introduced a reliability-focused pricing structure that reflects the increasing value of accredited capacity as the system approaches minimum resource adequacy targets. [2] In a press release, MISO’s vice president of system planning and competitive transmission stated that the operator’s market reforms continue to assist in providing pricing signals that improve market efficiency and enhance reliability across the footprint. The auction results leave MISO’s northern and central regions with a 10.1% reserve margin for the summer and its southern region with an 8.7% margin for the same period. Most of MISO’s Load Serving Entities (LSEs) either self-supply or secure the capacity they need prior to the auction. Those that enter the auction to procure capacity must pay the Auction Clearing Price and those holding excess sell it at that price. The impact on consumer costs would vary, depending on the size of capacity shortfalls and the terms of wholesale power purchase agreements or state-regulated retail rates.
[1] https://cdn.misoenergy.org/2025%20PRA%20Results%20Posting%2020250428694160.pdf
[Japan] Press conference regarding response to US tariff measures
As of April 22, 2025, Japan Prime Minister Ishiba Shigeru announced fixed price cuts on gasoline starting in May 2025. Prices will be lowered by 10 yen, or about 7 cents per liter starting in May. [1] The decision follows a proposal made by the Liberal Democratic Party and the Komeito Party on how to respond to the US tariff measures. In response, the government intends to take immediate action by restructuring the current fuel oil price drastic change mitigation measures and implementing the fixed price reduction measures to address the “old provisional tax rate.” Prime Minister Ishiba stated that diesel oil will be cut by 10 yen per liter, heavy oil and kerosene by 5 yen, and aviation fuel by 4 yen. These measures will be implemented from May 22nd onwards. Additionally, he announced that steps will be taken to support consumers’ electricity and gas bill for 3 months of summer in July, August, and September, when electricity demand usually rises.
[1] https://www.kantei.go.jp/jp/103/statement/2025/0422kaiken.html
[USA] EIA Annual Energy Outlook 2025
Published as of April 15, 2025, the Energy Information Administration’s Annual Energy Outlook 2025 (AEO2025) explores potential long-term energy trends in the US, including projections of energy consumption and supply. [1] The report can help stakeholders examine the ways in which the US energy system could change through 2050. [2] According to AEO2025, total energy consumption in the US will decline through 2040 before increasing again, due to efficiency and the report’s methodology. The report also indicates significant growth in renewable electricity production through 2050, alongside a decline in coal generation. It forecasts growth from 2.57 quads of wind and solar in 2024 to 13.92 quads in 2050. Coal production will decline from 10.26 quads in 2024 to 2.78 quads in 2050. Meanwhile, natural gas production is expected to rise modestly to 43.5 quads in 2050 up from 40 quads in 2024. In a statement, Department of Energy spokesperson Andrea Woods stated that the report reflects the “disastrous path for American energy production under the Biden Administration.”
[1] https://www.eia.gov/outlooks/aeo/pdf/2025/AEO2025-narrative.pdf
[2] https://www.energy.gov/articles/doe-statement-eia-annual-energy-outlook
[USA] FERC approves the PJM capacity auction price cap and floor
As of April 21, 2025, the Federal Energy Regulatory Commission approved the PJM Interconnection’s proposal to set a price cap and price floor for its next two capacity auctions. [1] This is despite facing opposition from the grid operator’s market monitor LS Power and others. In a 4-0 decision, FERC stated that current market conditions in PJM support a time-limited collar on the capacity market price for two delivery years. [2] The proposal of a $325/MW-day price cap and $175/MW-day floor for its 2026/27 and 2027/28 delivery year base capacity auctions came out of settlement discussions with Pennsylvania Gov. Josh Shapiro. [3] Shapiro filed a complaint at FERC in December seeking to lower the auction’s price cap. Without the collar, the price cap for the next capacity auction in July would have been $500/MW-day and the floor would have been zero dollars. FERC said the proposal represents a balanced approach that addresses past issues with delays by improving short-term cost certainty for electricity consumers and revenue certainty for capacity resource owners. In the meantime, PJM plans to revise key inputs into its capacity price settling process eventually and implement interconnection queue process reforms according to FERC.
[3] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250421-3069&optimized=false
[Japan] JERA supplies electricity to BPO sites through solar power PPA
As of April 16, 2025, JERA Co., Inc. began supplying electricity from offsite solar power facilities to PI’s Iwate BPO Fortress last year in June, as part of an effort to move toward zero-CO2 emissions power consumption at all business process outsourcing (BPO) sites run by Prestige International (PI). [1] JERA now announces that it has newly begun supplying it to facilities at six BPO sites in Japan, through an off-site corporate power purchase agreement (PPA) using solar power. Of six sites, one is in the Hokuriku area and the remaining five are in the Tohoku area. As a result, approximately 30% of the electricity used in Tohoku will be sourced from renewable energy derived from the solar power plants. The remaining electricity will be sourced from solar plants in the Chubu area or procured from the market. Eventually, JERA will gradually introduce 24/7 carbon-free electricity at all of PI’s BPO sites, through its subsidiary JERA Cross.
[1] https://www.jera.co.jp/en/news/information/20250416_2156
[USA] Trump administration orders Empire Wind offshore wind project construction to cease
As of April 16, 2025, the US Department of the Interior has directed the Bureau of Ocean Energy Management (BOEM) to order the 810 megawatt (MW) Empire Wind 1 project to cease all construction pending further review, announced Interior Secretary Doug Burgum. [1] Burgum alleged that the project was rushed through by the previous administration without sufficient analysis, in a letter to BOEM. [2] The letter states that there was insufficient consultation among relevant agencies as relates to the potential effects from the project, and that construction will remain halted until the deficiencies are addressed. [3] Equinor, the project developer, stated that all offshore construction for the project would be safely halted, but they would engage with relevant authorities to clarify the matter and consider legal remedies. [4] According to a statement by New York Governor Kathy Hochul, D, the New York project is a fully federally permitted one which had already “put shovels in the ground” prior to the President’s executive orders. BOEM had approved Empire Wind 1’s construction and operations plan in February – a final step in the process of authorizing an offshore wind project. The only steps remaining are the lessee’s submission of a facility design report and fabrication and installation report, according to the agency.
[3] https://www.governor.ny.gov/news/statement-governor-kathy-hochul-74
[USA] Trump administration ordered by court to reinstate IRA funding
On April 15, 2025, a federal judge ordered the Trump administration to take immediate action to reinstate the funding from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) that had already been awarded, after the president had frozen it on his first day in office. [1] Judge Mary McElroy of the US District court for Rhode Island ordered the Environmental Protection Agency and the Departments of Energy, Housing and Urban Development, and Interior and Agriculture to release the awards that were previously withheld, after the ruling. [2] The ruling applies to all awardees across the nation and will remain in effect until McElroy rules on the merits of the lawsuit. The ruling impedes President Trump’s plans to block the Biden administration’s climate funding law, which provides billions of dollars and tax credits for domestic manufacturers. The IIJA provides billions of dollars in clean energy funding. After the funding freeze, six nonprofits sued the agencies in March in an attempt to access their funding, after the other court orders had failed. McElroy’s grant of a preliminary injunction requires agencies to turn the funding back on while the case is pending.
[1] https://storage.courtlistener.com/recap/gov.uscourts.rid.59116/gov.uscourts.rid.59116.45.0.pdf
[2] https://storage.courtlistener.com/recap/gov.uscourts.rid.59116/gov.uscourts.rid.59116.1.0.pdf
[Japan] CF Industries Announces joint venture with JERA Co., Inc., and Mitsui & Co., Ltd.
As of April 8, 2025, CF Industries Holdings, Inc. (NYSE: CF), the world’s largest producer of ammonia, announced today that it has formed a joint venture with JERA Co., Ltd. (JERA), Japan’s largest energy company, and Mitsui & Co., Inc (Mitsui), a global investment and trading company, for the construction, production, and offtake of low-carbon ammonia. [1] Upon formation, CF Industries will hold 40% ownership, JERA 35% ownership, and Mitsui 25% ownership in the joint venture. The venture will construct at CF Industries’ autothermal reforming (ATR) ammonia production facility in Louisiana, with a carbon dioxide (CO2) dehydration and compression unit at the site to prepare captured CO2 for transportation and sequestration. The facility will have an annual nameplate capacity of approximately 1.4 million metric tons, which is the largest by nameplate capacity in the world. Production of low-carbon ammonia is expected to begin in 2029. The companies estimate that the cost of the low-carbon ATR ammonia production facility with CCS technologies will be around $4 billion.
[1] https://www.cfindustries.com/newsroom/2025/blue-point-joint-venture
[USA] FERC and proposed ROE for Valley Link transmission project
As of April 4, 2025, filings submitted by stakeholders to the Federal Energy Regulatory Commission (FERC) suggest that the agency should reduce the proposed return on equity (ROE) and deny various incentives for a $3 billion transmission project planned by Transource Energy, Dominion Energy, and FirstEnergy. [1] The Valley Link transmission, which includes two 765-kV backbone transmission lines, is part of the PJM Interconnection’s latest Regional Transmission Expansion Plan, which was approved by their board in February. [2] The project is set to be built by Valley Link Transmission, a joint venture between Transource, which is owned by American Electric Power and Evergy, FirstEnergy, and Dominion. [3] In mid-March, Valley Link asked FERC to approve formula rates and transmission incentives for the project, which the company said will ensure reliability and collaboration at a time when cost-effective regional transmission development is essential. According to the Maryland Office of People’s Counsel, the incentive package results in an impermissible transfer of risk onto residential ratepayers. According to the OPC, the proposed base ROE of 10.9% is too high, which is why they urged FERC to reject Valley Link’s application.
[2] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250404-5218&optimized=false
[3] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250314-5309&optimized=false
[USA] Regulatory relief for certain stationary sources to promote American energy
As of April 8, 2025, the White House issued an executive order to amend a prior EPA rule titled National Emissions Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review, 89 FR 38508, which reformed the existing Mercury and Air Toxics Standards (MATS) rule to make it more stringent. [1] The order states that coal-fired generation is necessary as an affordable means to promote energy security and the prior EPA rule represents an “unattainable” emissions control standard that jeopardizes the use of coal. The order goes on to discuss how the rule places severe burdens on coal-fired power plants by requiring compliance with standards for emissions-control technologies that do not yet exist in a “commercially viable form.” The order suggests that the current compliance timeline of the rule raises the risk of the shutdown of many coal-fired power plants, which threatens economic and energy security. It also states that certain stationary sources subject to the rule are exempt from compliance for 2 years beyond the compliance date.
[Japan] Japan’s largest onshore wind farm begins commercial operations in Abukuma Area, Fukushima Prefecture
As of April 2, 2025, Sumitomo Corporation and several other companies have been advancing the construction of the Abukuma Wind Power Plants wind farm since April 2022, through Fukushima Fukko Furyoku. [1] Construction was completed on March 31, 2025, with commercial operations starting on April 2, 2025. The renewable energy generated at the wind farm will be supplied to multiple companies and municipalities with business operations in Fukushima Prefecture through Corporate Power Purchase Agreements. A portion of the revenue from energy sales is expected to be utilized for funding reconstruction projects in local municipalities where the wind farm is located through the Fukushima Prefecture Renewable Energy Reconstruction Promotion Council. The Abukuma Wind Power Project is part of Fukushima Prefecture’s initiative to generate more than 100% of its energy demand from renewable energy sources by 2040. The wind farm is Japan’s largest onshore wind farm, comprising 46 wind turbines with a capacity of 3,200 kW each, spanning the municipalities of Tamura, Okuma, Namie, and Katsurao. The total generation capacity of the wind farm is 147,000 kW.
[1] https://www.sumitomocorp.com/en/mideast-africa/news/release/2025/group/19910
[USA] PJM fast-track interconnection process draws 26.6 GW in proposals
As of March 21, 2025, the PJM Interconnection’s Reliability Resource Initiative (RRI), a fast-track interconnection process, attracted 94 applications totaling 26.6 GW. [1] The projects include new and uprated nuclear and natural gas-fired power plants, as well as new battery storage. [2] Half of the proposals are new projects and the other half increase capacity at existing power plants. The Federal Energy Regulatory Commission approved PJM’s one-time RRI in mid-February on a 3-1 vote. PJM will consider adding up to 50 shovel-ready projects that meet certain reliability and commercial operation date criteria to the recently-started interconnection Transition Cycle 2. The RRI proposal is in response to PJM’s concerns that its power supply margins are declining in the face of power plant retirements and growing demand. PJM estimates that its initiative could bring about 10 GW online 18 months earlier than if the projects followed the normal interconnection process.
[1] https://insidelines.pjm.com/reliability-resource-initiative-draws-94-applications/
[2] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20250211-3120&optimized=false
[USA] DOE identifies 16 federal sites across the country for data center and AI infrastructure development
As of April 3, 2025, the US Department of Energy (DOE) announced plans to continue promoting artificial intelligence (AI) while lowering energy costs by co-locating data centers and new energy infrastructure on DOE lands. [1] DOE has released a Request for Information (RFI) to inform the potential use of DOE land for AI infrastructure development to support the growing demand for data centers. The DOE has identified 16 possible sites for rapid data center construction, including those with in-place energy infrastructure that can facilitate fast-track permitting for new energy generation, such as nuclear. The Department is seeking input from data center developers, energy developers, and the broader public to advance the partnership further. This information will be used to inform development, encourage private-public partnerships, and enable the construction of AI infrastructure at select DOE sites with a target of commencing operation by the end of 2027.