[USA] QCells to invest $2.5 billion to build out U.S. solar supply chain

Qcells announced on January 11, 2023, that it will invest more than $2.5 billion to build a solar supply chain in the U.S., creating 2,500 jobs in Georgia.[1] The announcement, y Qcells’ parent company Hanwha Solutions, an energy services, petrochemical, and real estate development company headquartered in Seoul, marks the largest such investment in U.S. history. In the first quarter of 2023, Qcells will begin building a facility in Bartow County, Georgia that will manufacture 3.3 GW of solar components and panels a year. The company also plans to assemble an additional 2 GW of solar panels at its Dalton, Georgia facility, bringing total solar panel production to 4.1 GW per year by 2023. The company’s Dalton factory was producing 1.7 GW of solar modules each year and is being overhauled to increase output to 3.1 GW. The investment is expected to bring Qcells’ total solar panel production capacity in Georgia to 8.4-gigawatt by 2024.

[1] https://qcells.com/us/stay-in-the-loop/trending-news-detail?newsId=NEW230109100829007

[USA] DOE proposes new energy efficiency standards for distribution transformers

On December 28, 2022, the U.S. Department of Energy (DOE) proposed new energy-efficiency standards for three categories of distribution transformers to improve the resiliency of the power grid, lower utility bills, and reduce CO2 emissions.[1] Current efficiency standards apply to liquid-immersed, low-voltage dry-type, and medium-voltage dry-type distribution transformers. The proposed rule would amend the energy conservation standards for all three categories. Under the new standards, almost all transformers produced would feature amorphous steel cores, which are more energy efficient than those made of traditional, grain-oriented electrical steel.

According to the DOE, the proposed standards would reduce CO2 emissions in the U.S. by 340 million metric tons over the next 30 years. The DOE also expects the proposed rule to generate over 10 quads of energy savings and approximately $15 billion in savings to the nation from 30 years of shipments. If adopted within DOE’s proposed timeframe, the new rule will come into effect in 2027. The agency will host a public meeting to solicit stakeholders' feedback on the proposed rulemaking on February 16, 2023.

[1] https://www.energy.gov/articles/doe-proposes-new-efficiency-standards-distribution-transformers

[USA] White House names Willie Phillips as acting chairman of FERC

On January 3, 2023, the White House named Willie Phillips (D) as acting chairman of the Federal Energy Regulatory Commission (FERC). Phillips has been a FERC commissioner since December 2021.[1] Phillips is the first black person to lead FERC and the first former state utility regulator to lead the agency since Pat Wood III’s tenure ended in mid-2005. Phillips was chairman of the Public Service Commission of the District of Columbia before he joined FERC. He replaces Richard Glick (D), whose tenure ended at the end of 2022 after Senate Energy and Natural Resources Committee Chairman Joe Manchin (D-WV) declined to hold a nomination hearing for his second term. As a result, FERC now has only four sitting commissioners, two Democratic commissioners, Allison Clements and Willie Phillips, and two Republicans, James Danly and Mark Christie. Commissioner Danly’s term will end on June 30, 2023.

[1] https://www.ferc.gov/news-events/news/president-biden-names-willie-phillips-acting-chairman

[USA] CPUC lowers net metering rate for rooftop solar

On December 15, 2022, the California Public Utilities Commission (CPUC) unanimously approved revised net metering rules that will reduce the rates paid to new rooftop solar customers.[1] California first adopted net energy metering (NEM) incentives more than 20 years ago, allowing 1.5 million customers to install solar panels. The CPUC first proposed revisions in December 2021 but shelved them based on stakeholder criticisms. Regulators said the newly approved net metering rules, which were initially released in November 2022, were designed to adapt the solar market to the changing grid. “[T]he electric grid is now powered largely by renewable systems, both large and small, and there are even moments when we need to curtail, meaning shut down, clean renewable generation because we have too much on the grid at once,” CPUC President Alice Reynolds said. According to the commission, the aim of the new rules is to shift the use of solar-generated power to the evening hours when demand rises, but solar generation ceases.

The previous NEM framework gave customers a credit at the retail rate for energy that they provide to the grid. The new framework, called net billing, includes a retail export compensation rate that is based on the value that behind-the-meter generation provides to the grid and electrification retail import rates that have high differentials between winter off-peak and summer on-peak rates. The intention is to encourage more customers to install solar paired with storage, which will draw energy during the day and dispatch it at night. Customers installing solar with storage will save about $136 a month on their electricity bill, compared to about only $100 for households with only solar panels. Current net metering customers will not be affected by the new rules.

[1] https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M499/K921/499921246.PDF

[USA] PJM to request a mid-auction capacity market rule change

During a presentation on the status of PJM’s 2024/2025 Base Residual Auction on December 21, 2022, Stu Bresler, Sr. Vice President of Market Services, stated that the grid operator plans to ask the Federal Energy Regulatory Commission (FERC) to approve a rule that would allow it to change a capacity auction parameter that led to anomalous results in its auction.[1] In the case of a small locational deliverability area (LDA) like Delmarva Power South, additions of large and/or intermittent units can lead to an increase in the area’s reliability requirement because capacity transfers are needed to account for times when the resources are not available. According to Bresler, when PJM determined how much capacity it would need, it assumed a mix of generators would offer about 1,000 MW in the Delmarva Power South area[2] because they had signed interconnection agreements. However, those generators didn’t bid into the auction, resulting in the LDA being short and the market clearing at an unjustly high price because of the increased reliability requirement.

Through a Section 205 filing[3], PJM plans to ask FERC to approve a rule change that would allow it to lower an area’s reliability requirement during the auction process if generators don’t bid into the auction as expected. PJM intends to ask FERC to make a decision on the proposal within 60 days. The grid operator expects to issue two sets of auction results on January 3, 2022. One set will show the results under existing rules, while the other will show results under the proposed rule. PJM will wait for FERC approval before clearing the auction. Joseph Bowring, President of Monitoring Analytics, PJM’s Independent Market Monitor, expressed his support for PJM’s actions.

[1] https://insidelines.pjm.com/pjm-updates-members-on-2024-2025-capacity-auction-results/

[2] Delmarva Power South covers part of Delaware, Maryland, and Virginia.

[3] In a Section 205 filing, the gird operator submits a new document containing or affecting a rate, term or condition of a FERC-jurisdictional service or charge with FERC for approval.

[USA] New report finds clean energy investments totaled $40 billion since the IRA passed

According to a new report released by the American Clean Power Association (ACP) on December 14, 2022, over $40 billion of new grid-scale clean energy investments have been announced over the last three months, equal to the entire amount invested in 2021.[1] The Clean Energy Investing in America report covers a period of growth between August 16, 2022, the day the Inflation Reduction Act (IRA) was signed, and November 30, 2022. The report found that 20 new grid-scale clean energy manufacturing facilities have been announced in the U.S., which are expected to add 7,000 jobs. Twelve of these facilities are solar manufacturing facilities, a more than a 300% increase in solar module manufacturing capacity in the U.S. In total, 13 GW of clean energy project capacity has been announced.

The ACP report also found that utility companies expect consumer savings of over $2.5 billion. These utilities attributed these savings to federal incentives that make new project investments less expensive. In the press release, ACP interim CEO and Chief Advocacy Officer JC Sandberg urged “the administration and Congress to continue improving trade policies, enacting common sense permitting reform and finalizing effective tax implementation” to ensure the investments reach their full potential.

[1] https://cleanpower.org/news/new-report-clean-energy-industry-sees-massive-investments-since-august/

[USA] DOE announces fusion breakthrough at LLNL

On December 13, 2022, the Department of Energy (DOE) and the DOE’s National Nuclear Security Administration (NNSA) announced the achievement of fusion ignition at the Lawrence Livermore National Laboratory (LLNL) in California.[1] On December 5, 2022, a team at LLNL’s National Ignition Facility (NIF) conducted the first controlled fusion experiment in history to produce more energy from fusion than the laser energy used to drive it. The experiment surpassed the fusion threshold by delivering 2.05 megajoules (MJ) of energy to the target, resulting in 3.15 MJ of fusion energy output. The LLNL’s NIF is the world’s largest and most energetic laser system—roughly the size of a sports stadium. The successful experiment is an essential step toward commercial fusion power. However, in the press release, the DOE acknowledged that many advanced science and technology developments are still needed to achieve simple, affordable fusion energy. The DOE is currently restarting a broad-based, coordinated program in the U.S.

[1] https://www.energy.gov/articles/doe-national-laboratory-makes-history-achieving-fusion-ignition

[USA] Energy stakeholders back initiative to map 'clean' hydrogen

On December 13, 2022, GTI Energy and S&P Global Commodity Insights announced that new stakeholders have joined the Open Hydrogen Initiative (OHI).[1] OHI, led by GTI Energy, S&P Global Commodity Insights, and the National Energy Technology Laboratory (NETL), is a collaboration that aims to further transparency into the environmental impact of hydrogen production and help unlock its full potential as a fuel alternative and driver of the energy transition. OHI will build measurement protocols and a tool for calculating emissions of a given kilogram of hydrogen at the facility level. In September 2022, the initiative began looking into the blind spots and gaps in current models for emissions accounting. OHI’s conveners hope to have a beta version of the measurement tool completed by the fourth quarter of 2023 so it can be demonstrated on hydrogen production facilities in the U.S.

Industry members of the initiative now include EQT, National Grid, Shell, ExxonMobil, Dominion Energy, LanzaTech, Equinor, Duke Energy, DTE, and Southwest Gas Corporation. Other members include the Clean Air Task Force, The University of Newcastle Australia, Queen Mary University of London, Columbia University, Stanford University’s Hydrogen Initiative, Bipartisan Policy Center, Center for Houston’s Future, Government of Alberta, Clean Hydrogen Future Coalition, and Hydrogen Forward.

[1] https://www.gti.energy/global-energy-leaders-join-open-hydrogen-initiative/

[USA] North Carolina substation attack leaves thousands without power

Approximately 45,000 customers in Moore County, North Carolina, were without power after two substations in the county were attacked and vandalized via gunfire on December 3, 2022.[1] According to Moore County Sheriff Ronnie Fields, the attack on the substations wasn’t random, and federal, state and local authorities are currently investigating the incident. The state of North Carolina, Moore County, and Duke Energy are each offering rewards of up to $25,000, a total of up to $75,000, for information leading to an arrest and conviction in the attacks. Duke said in a statement that several large and vital pieces of equipment were damaged during the attack and needed to be repaired or replaced. The utility restored power to all customers in Moore County and the surrounding counties affected by the attack on December 8, 2022, a day earlier than expected.

The utility has made an initial commitment of $100,000 to support the local community’s needs due to the attack. The Red Cross, Sandhills-Moore Coalition for Human Care, Boys and Girls Club of Sandhills-Moore, United Way of Moore County, and Northern Moore Family Resource Center will each receive $20,000.

[1] https://doi.gov/pressreleases/biden-harris-administration-announces-winners-california-offshore-wind-energy-auction

[USA] American Battery Factory Inc. plans to build new battery gigafactory and headquarters in Tucson, AZ

On December 6, 2022, Arizona Governor Doug Ducey (R) and Paul Charles, President and CEO of American Battery Factory (ABF), announced that Tucson, Arizona, will be the site for the first in a planned series of battery cell gigafactories.[1] The site will also serve as ABF’s official headquarters. The $1.2 billion manufacturing facility will be the largest gigafactory for the production of lithium iron phosphate (LFP) battery cells in U.S. According to the press release, the first phase of the factory’s opening will provide approximately 300 good jobs, with up to 1,000 cumulative jobs in the future. ABF plans to have its headquarters, research and development center, and initial factory module built within the next 18 to 24 months. Project partners include Governor Doug Ducey, Arizona Commerce Authority, Sun Corridor Inc., Pima County, City of Tucson, Pima Community College, and Tucson Electric Power. The company has partnered with Celgard (along with their parent company Asahi Kasei) for innovation and key cell components and Anovion for synthetic graphite. ABF also plans to work with Honeywell to provide automation, cybersecurity, and optimization products and services.

[1] https://americanbatteryfactory.com/press/2022-12-06/abf-selects-tuscon-az

[USA] First offshore wind lease auction on West Coast generates $757 million

According to the Bureau of Ocean Energy Management (BOEM), the first offshore wind lease auction on the West Coast drew bids from 5 companies totaling $757.1 million.[1] The lease sale, announced in October 2022 and held over two days in December 2022, offered five lease areas covering 373,268 total acres off central and northern California. The leased areas have the potential to produce over 4.6 GW of floating offshore wind energy. The provisional winners include RWE Offshore Wind Holdings, California North Floating, Equinor Wind US, Central California Offshore Wind, and Invenergy California Offshore.

The sale included a 20% bidding credit for bidders who committed to funding workforce training or supporting the development of a domestic supply chain for the floating wind energy industry. This credit is expected to result in over $117 million in investments for these critical programs or initiatives. The auction included 5% credits for bidders who committed to entering community benefit agreements (CBAs). Under the lease stipulations, leaseholders are required to engage with local stakeholders that may be affected by their lease activities.

[1] https://doi.gov/pressreleases/biden-harris-administration-announces-winners-california-offshore-wind-energy-auction

[USA] SPP releases details of a proposed Western energy market

On November 30, 2022, Southwest Power Pool (SPP), which serves all or parts of 14 states in the central U.S., published details of its proposed Markets+ service.[1] SPP has been working with Western stakeholders since December 2021 to sketch out a day-ahead and real-time market. The proposed bundle of services would centralize day-ahead and real-time unit commitment and dispatch, utilize hurdle-free transmission service across its footprint, and allow for the reliable integration of renewable generation. This set of services would build on SPP’s Western Energy Imbalance Services market, which began operating in 2021. The market will provide a voluntary, incremental opportunity for utilities that see value in these services but are not ready to be a member in a regional transmission organization (RTO).

SPP’s plan includes a two-phase development process for the Western market. During phase one, potential participants and stakeholders will commit to the market. SPP plans to begin reaching out to interested parties in December 2022, and any parties interested in joining must sign up by April 2023. Upon approval from the Federal Energy Regulatory Commission (FERC), SPP will launch the second phase, during which SPP will acquire necessary software and hardware while participating entities fully commit to fund and are integrated into the system.

[1] https://www.spp.org/newsroom/press-releases/southwest-power-pool-releases-detailed-proposal-for-western-energy-market/

[USA] FERC approves PJM’s first-ready, first-served plan to address transmission queue

On November 29, 2022, the Federal Energy Regulatory Commission (FERC) approved PJM Interconnection’s plan to move to a “first-ready, first-served” interconnection review process that groups proposals and assigns upgrade costs in clusters.[1] According to PJM, the largest grid operator in the U.S., the plan is 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. The proposed reforms aim to speed up the interconnection process by allowing projects that are more 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 plan was widely supported in an 18-month stakeholder development process.

In its decision, FERC said the reforms should provide PJM the ability to reduce its interconnection backlog more quickly than possible under its current rules and will speed the review of new interconnection requests. Under the new plan, PJM won’t review new interconnection requests until early 2026 while it addresses its pending backlog of interconnection requests. The plan also includes a transition phase that will prioritize about half the pending projects, including a “fast-lane” process for projects to help clear the existing backlog. PJM expects to start the transition phase in early 2023.

[1] https://insidelines.pjm.com/ferc-approves-interconnection-process-reform-plan/

[USA] FERC orders reliability standards and registration requirements for IBRs to ensure grid reliability

On November 17, 2022, the Federal Energy Regulatory Commission (FERC) ordered mandatory reliability standards for inverter-based resources (IBRs) to help ensure wind, solar, and battery storage don’t threaten grid reliability.[1] FERC also directed the North American Reliability Electric Reliability Corporation (NERC) to develop a plan within 90 days to identify and register the owners and operators of IBRs connected to the bulk-power system that are not currently required to register with the organization.

NERC estimates that roughly 860 GW of wind, solar, and storage, which use inverters to convert direct current electricity to alternating current electricity, could come online over the next decade. Compared to synchronous generators like natural gas-fired power plants, IBRs must be programmed to ride through grid disturbances. Most FERC-approved Reliability Standards to date were developed with synchronous generation in mind. To address this, FERC’s proposed rule directs NERC to develop new or modified standards to eliminate four reliability gaps related to IBRs: data sharing, model validation, planning and operational studies, and performance requirements.

[1] https://www.ferc.gov/news-events/news/joint-presentation-items-e-1-registration-inverter-based-resources-and-e-2

[USA] DOE conditionally awards Diablo Canyon nuclear plant $1.1B to prevent shutdown

On November 21, 2022, the Department of Energy (DOE) announced the conditional selection of the 2,240 MW Diablo Canyon Power Plant, California’s only nuclear power plant, to receive the first round of funding from the Civil Nuclear Credit (CNC) program.[1] Funded by the Bipartisan Infrastructure Law (BIL), the $6 billion CNC program aims to support nuclear energy facilities at risk of retiring due to economic factors. Owned and operated by Pacific Gas and Electric Company (PG&E), Diablo Canyon Power Plant produces approximately 16 TWh of electricity annually, about 15% of California’s clean energy.  Units 1 and 2 of the power plant were scheduled to be decommissioned in 2024 and 2025, respectively, but the conditional award, valued at about $1.1 billion, could allow the units to remain open. According to the DOE, keeping the power plant open longer will save 1,500 jobs. Final terms are subject to negotiation and finalization by the DOE.

The first CNC award cycle prioritized reactors facing the most imminent threat of closure and limited applications to reactors that had already announced that they would close due to economic factors. The second award cycle will prioritize reactors that are projected to shut down due to economic factors within the next four years. The DOE expects to begin accepting applications for the second cycle of CNC funding in January 2023.

[1] https://www.energy.gov/articles/biden-harris-administration-announces-major-investment-preserve-americas-clean-nuclear

[USA] National laboratories launch consortium to accelerate the growth of energy storage for buildings

On November 15, 2022, the Department of Energy’s (DOE’s) National Renewable Energy Laboratory (NREL), Lawrence Berkeley National Laboratory (Berkeley Lab), and Oak Ridge National Laboratory (ORNL) announced that they will co-lead a new consortium, called Stor4Build, on energy storage for buildings that will accelerate the growth, optimization, and deployment of storage technologies.[1] Energy storage is necessary for the large-scale deployment of renewable electricity, electrification, and decarbonization. As much as 50% of electricity consumption in buildings in the U..S. currently goes toward meeting thermal loads. Thermal energy storage (TES) solutions could be a cost-effective energy storage alternative. TES is energy that can be stored in a material as a heat source or cold sink instead of as electrical energy and can be reserved for use at a different time. TES solutions can increase load flexibility, promote the use of renewable energy sources, and allow heat pumps to function more effectively and in more extreme climates.

The goal is for TES systems to reach installed capital costs of less than $15 per kWh of stored thermal energy. Stor4Build plans to develop metrics for identifying optimal performance targets for power and energy density, working temperature, materials and systems costs, round-trip efficiency, lifetime and durability, installation and operation, and maintenance costs. The consortium plans to complete a community-scale demonstration of technologies to showcase its initial achievements. The demonstration project will serve as a foundation for large-scale deployments of TES, along with electrochemical battery energy storage and systems capable of satisfying both the heating and cooling needs in buildings. Stor4Build will focus resources and efforts on developing zero-carbon, equitable, and affordable building TES technologies. The consortium will also release a road map report targeting technical and market gaps to be addressed to allow the market adoption and transformation needed for energy storage technologies in buildings.

[1] https://www.nrel.gov/news/press/2022/national-laboratories-launch-buildings-consortium-leveraging-benefits-thermal-electrochemical-energy-storage-americans.html

[USA] BOEM announces 8 new offshore wind areas

On November 16, 2022, the Bureau of Ocean Energy Management (BOEM) announced eight draft Wind Energy Areas (WEAs) off the Atlantic coast as part of the Biden administration’s goal of deploying 20 GW of offshore wind energy capacity by 2030.[1] The draft WEAs would cover about 1.7 million acres offshore Delaware, Maryland, Virginia, and North Carolina. BOEM identified these WEAs through a process that considers possible impacts on local resources and ocean users. The proposed areas represent a subset of the original 3.9 million acres of the Call Area that the Department of the Interior announced for public comment in April 2022. The agency is now seeking comments on potential conflicts with the draft areas, such as commercial fishing and marine habitat areas. Comments will be accepted through December 16, 2022. The draft WEAs may be reduced after the BOEM considers input from the Defense Department, the Coast Guard, NOAA Fisheries, and private ocean users like commercial fishers and environmental groups.

[1] https://www.boem.gov/newsroom/press-releases/boem-identifies-draft-wind-energy-areas-central-atlantic-public-review-and

[USA] NERC finds large portions of North America at risk for outages this winter

The North American Electric Reliability Corporation (NERC) released its Winter Reliability Assessment (WRA) for the upcoming winter period (December-February) on November 17, 2022.[1] The report reviews how prepared regions are to withstand extreme winter weather. The report noted that almost all areas are well prepared for normal conditions and highlighted the actions taken to strengthen parts of the nation's high voltage systems and gas fuel supplies since Winter Storm Uri in February 2021.

However, the WRA found that a large portion of North America, including the Electricity Reliability Council of Texas (ERCOT), the Midcontinent Independent System Operator (MISO), and ISO New England (ISO-NE), is at risk of insufficient electricity supplies during peak winter conditions. For example, MISO’s reserve margins have fallen more than 5% since last year, as 4.2 GW of nuclear and coal-fired generation have been retired. The WRA also found that a shortage of distribution transformers could slow restoration efforts during winter storms. As part of its recommendations, NERC suggested that power plant owners line up their fuel supplies for this winter to ensure that they have an adequate supply.

[1] https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_WRA_2022.pdf

[USA] Minnesota Power increases renewable energy targets for next 15 years

Based on an agreement reached with stakeholder groups as part of its latest Integrated Resource Plan (IRP) proceedings, Minnesota Power announced on November 7, 2022, that it will add up to 400 MW of wind energy and 300 MW of solar energy over the next 15 years as part of its EnergyForward plan.[1] The announcement is nearly double what the utility had initially proposed. The EnergyForward plan aims to help Minnesota Power achieve a full carbon-free energy system by 2050. According to the press release, over the next two weeks, the Minnesota Public Utilities Commission (PUC) will review the proposal negotiated with stakeholder groups, which included clean energy organizations, labor, and host communities. The PUC is expected to vote on the IRP on November 22, 2022. If approved, the utility will advance storage projects that support investment in its renewable portfolio and continue to evaluate the transition of its Boswell Energy Center, a coal-fired power plant. Other resource considerations, such as electric grid strengthening proposals and a previously approved natural gas power plant, have been deferred until future regulatory filings.

[1]https://minnesotapower.blob.core.windows.net/content/Content/Documents/Company/PressReleases/2022/PressRelease11072022.pdf

[USA] EIA: U.S. power use to hit record in 2022

According to the Energy Information Administration’s (EIA) Short-Term Energy Outlook (STEO), released on November 8, 2022, U.S. power consumption will rise to a record high in 2022 due to increasing economic activity and hotter summer weather.[1] The EIA projects that power demand increase from 3,930 billion kWh in 2021 to 4,036 billion kWh in 2022 before decreasing to 3,989 billion kWh in 2023 as temperatures moderate. Compared to 2021, in 2022, the EIA projects that power sales will rise to 1,509 billion kWh for residential consumers, 1,371 billion kWh for commercial customers, and 1,014 billion kWh for the industrial sector. Historically, record highs for power sales were 1,477 billion kWh for residential consumers set in 2021, 1,382 billion kWh for commercial customers set in 2018, and 1,064 billion kWh for industrial customers set in 2000. The EIA attributed the power sale increase for commercial customers to more people returning to the office.

The EIA expects that renewable sources will provide 22% of U.S. electricity generation in 2022 and 24% in 2023, largely coming from solar and wind capacity additions. Generation from natural gas will decline from 38% in 2022 to 36% in 2023.Coal's share will drop from 20% in 2022 and 19% in 2023.

[1] https://www.eia.gov/outlooks/steo/