[USA] Environmental groups file lawsuit against Biden administration over Willow project in Alaska

On March 14, 2023, Trustees for Alaska filed a lawsuit against the Biden administration’s approval of ConocoPhillips’ Willow project in Alaska.[1] The $8 billion project, approved on March 13, opens three new drilling areas in Alaska’s North Slope and is expected to produce about 600 million barrels of oil over the next 30 years. The lawsuit, filed on behalf of a coalition of environmental and Indigenous groups, requested that the U.S. District Court for the District of Alaska reverse the administration’s approval because the federal government had not considered the project’s climate risks and harm to wildlife. The lawsuit claims that the Bureau of Land Management's (BLM) approval of the Willow project did not take the required "hard look" under the National Environmental Policy Act. They also claimed that BLM violated provisions of the Naval Petroleum Reserves Production Act, the Alaska National Interest Lands Conservation Act, procedural law, and other federal statutes. It also alleges that the Biden administration’s environmental review did not address all concerns raised by Judge Sharon Gleason when she blocked the project in 2021.

A similar lawsuit was filed by Earthjustice and the Natural Resources Defense Council on March 14, 2023, claiming that National Oceanic and Atmospheric Administration (NOAA) Fisheries had failed to consider the impact of greenhouse gas emissions on two different species of seal.[2]

[1] https://trustees.org/wp-content/uploads/2023/03/2023-03-Groups-take-Biden-administration-to-court-over-illegal-approval-of-massive-ConocoPhillips-Willow-proposal.pdf

[2] https://earthjustice.org/press/2023/conservation-groups-sue-to-stop-the-willow-oil-project-in-alaskas-western-arctic

[USA] DOT opens applications for first round of funding for EV charging in communities

On March 14, 2023, the Department of Transportation (DOT) opened applications for the Charging and Fueling Infrastructure Discretionary Grant Program, a $2.5 billion five-year program to support community and neighborhood electric vehicle (EV) charging infrastructure.[1] The program was created by the 2021 Infrastructure Investment and Jobs Act (IIJA). The first round of funding will make $700 million available from fiscal years 2022 and 2023 to cities, counties, local governments, and tribes. The funding is split into two grant funding categories: the Community Program and the Corridor Program. The Community Program provides $1.25 billion to deploy EV charging infrastructure and other alternative-vehicle fueling infrastructure in communities, while the Corridor Program provides $1.25 billion to deploy projects along designated alternative fuel corridors (AFCs). Hydrogen, propane, and natural gas fueling infrastructure are eligible under these programs.

The CFI grant program builds on the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program and would further the Biden Administration’s goal of building a national network of 500,000 public EV charging stations and reducing national greenhouse gas emissions by 50 to 52 percent by 2030. The Federal Highway Administration (FHWA) and the Joint Office of Energy and Transportation will offer webinars for potential grant recipients in March and April. Applications for the grant are due by May 30, 2023.

[1] https://www.fhwa.dot.gov/environment/cfi/

[USA] EPA releases new rule to reduce NOx emissions from powerplants, other sources in nearly a dozen states

On March 15, 2023, the Environmental Protection Agency (EPA) released its final Good Neighbor Plan to cut nitrogen oxide (NOx) pollution from power plants and other industrial facilities in 23 states.[1] [2] The Good Neighbor Plan ensures that these states meet the Clean Air Act’s “Good Neighbor” requirements by reducing pollution that significantly contributes to problems attaining and maintaining EPA’s health-based air quality standard for ground-level ozone, known as EPA’s 2015 Ozone National Ambient Air Quality Standards (NAAQS), in downwind states. The rule limits emissions of NOx during the summertime “ozone season” through a NOx allowance trading program for fossil fuel-fired power plants in 22 states and NOx emissions standards for certain sources within nine industry categories in 20 states.

Under the new rule, power plant owners in these states (except California), will face tighter NOx emissions requirements starting in the 2023 ozone season. Power plants without NOx emissions reduction equipment will have to install the equipment, and power plants with the equipment will be required to run it all the time during the ozone season to protect downwind areas. More reductions will be phased in starting in 2024 and reflect emissions levels that could be achieved through the installation of new emissions controls. In addition, beginning in the 2026 ozone season, the EPA is setting enforceable NOx emissions control requirements for certain sources at new and existing industrial facilities in 20 states. This plan will reduce ozone season NOx pollution by about 70,000 tons from power plants and industrial facilities in 2026.

[1] https://www.epa.gov/newsreleases/epa-announces-final-good-neighbor-plan-cut-harmful-smog-protecting-health-millions

[2] Alabama, Arkansas, California, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, New Jersey, Oklahoma, Ohio, Pennsylvania, Texas, Utah, Virginia, West Virginia, Wisconsin

[USA] Constellation Energy starts hydrogen production at 1-MW demonstration scale nuclear-powered clean hydrogen facility

On March 7, 2023, Constellation announced that hydrogen production has started at the nation’s first 1 MW demonstration scale, nuclear-powered clean hydrogen production facility at Mile Point Nuclear Plant in Oswego, New York.[1] In 2022, the Department of Energy (DOE) approved moving forward with the construction and installation of an electrolyzer system at Nine Mile Point with an award of $5.8 million. The clean Hydrogen Generation System uses 1.25 MW of zero-carbon energy per hour to produce 560 kilograms of clean hydrogen per day. Constellation said this is “more than enough to meet the plant’s operation hydrogen use.” The Hydrogen Generation System’s Proton Exchange Membrane electrolyzer was manufactured by Nel Hydrogen and utilizes electricity generated at Nine Mile Point Nuclear Station to separate hydrogen and oxygen atoms in water. According to the press release, the demonstration project helps set the stage for possible large-scale deployments at other clean energy centers in Constellation’s fleet.

As part of its broader decarbonization strategy, Constellation is currently working with public and private entities representing every phase in the hydrogen value chain to pursue development of regional hydrogen production and distribution hubs. The company plans to invest $900 million through 2025 to advance commercial clean hydrogen production and is participating in the Midwest Alliance for Clean Hydrogen (MachH2), Northeast Clean Hydrogen Hub, and Mid-Atlantic Hydrogen Hub, all of which are exploring projects to develop hydrogen infrastructure in collaboration with DOE.

[1] https://www.constellationenergy.com/newsroom/2023/Constellation-Starts-Production-at-Nations-First-One-Megawatt-Demonstration-Scale-Nuclear-Powered-Clean-Hydrogen-Facility.html

[USA] SEIA outlines plan to improve U.S. domestic solar supply chain

In a whitepaper released on March 8, 2023, the Solar Energy Industries Association (SEIA) outlines steps to secure a stronger domestic solar supply chain in the U.S. and reduce reliance on global imports, particularly from China.[1] The plan, titled “American Solar and Storage Manufacturing Renaissance: Managing the Transition Away from China”, lays out steps for reducing imports at a parallel pace with efforts to reshore manufacturing and scale domestic production in key parts of the supply chain. According to the whitepaper, the current policy environment is enough to meaningfully manufacture all elements of the solar supply chain in the U.S. in the medium and long term. However, the plan does not call for the U.S. to cut itself off fully from global markets, instead recommending reducing reliance on equipment and materials from China and other potential adversaries. SEIA stated that the U.S. could have the most competitive and collaborative solar and energy storage industry by 2030.

In addition to the report, SEIA released an interactive map that tracks new and existing solar and storage facilities in the U.S. The map includes new solar manufacturing investments, such as those made since the passage of the Inflation Reduction Act (IRA). It incorporates facilities across the solar and storage value chain, including facilities that produce raw materials, solar module assembly factories, and component facilities. According to SEIA analysis, the IRA is projected to grow the solar manufacturing workforce in the U.S. from about 34,000 jobs today to more than 115,000 jobs by 2030.

[1] https://www.seia.org/news/us-solar-and-storage-paper-outlines-plan-take-control-us-supply-chain

[USA] Duke to build fleet electrification center in NC with Electrada, Daimler

On February 21, 2023, Duke Energy announced that it will build a fleet electrification center at its Mount Holly Technology and Innovation Center in North Carolina to help develop, test, and deploy zero-emissions light-, medium-, and heavy-duty commercial electric vehicle (EV) fleets.[1] According to the press release, the fleet electrification center will provide a “commercial-grade charging experience for fleet customers evaluating or launching electrification strategies.” The depot is expected to be operational by the end of 2023. Duke’s center will be able to be connected either to the utility’s grid or powered by 100% carbon-free resources through the microgrid located onsite. It is the first electric fleet depot to offer a microgrid charging option.

Duke will partner with Electrada, an electronic fuel solutions company, to develop the fleet charging center. Electrada will invest all required capital behind the meter on behalf of fleet owners and deliver reliable charging to fleet EVs through a performance contract. Daimler Truck North America (DTNA), the largest heavy-duty truck manufacturer in North America and a producer of electric trucks, will be a founding participant in the fleet EV charging program. One of DTNA’s largest East Coast manufacturing facilities is located directly adjacent to the center.

[1] https://news.duke-energy.com/releases/duke-energy-to-mobilize-first-of-its-kind-microgrid-integrated-fleet-electrification-center

[USA] Report: Solar and wind growth slowed in 2022

According to a report released by the American Clean Power Association (ACP) on February 16, 2023, the U.S. wind, solar, and battery storage sectors installed a total of 9.6 GW of utility-scale capacity in Q4 2022.[1] The report, titled Clean Power Quarterly Market Report- Q4 2022, found that issues such as supply chain constraints, delays connecting projects to the grid, unclear trade restrictions, permitting obstacles, and uncertainty regarding the Inflation Reduction Act (IRA) slowed project development in 2022. Although Q4 was the best quarter of 2022, it was the lowest fourth quarter for utility-scale clean energy installations since 2019, down 21% from 2021. Annual installations were also below both 2021 and 2020 levels, down 16% and 12%, respectively.

The U.S. added more than 21 GW of wind and solar energy in 2022, below 2021 and 2020 levels. Battery storage had a record year, adding 4 GW of capacity in 2022, surpassing the 3 GW record set in 2021. Land-based wind saw the largest decrease in installations in 2022, with 37% less than in 2021. The report states that this decrease was expected, largely due to the declining value of the production tax credit for wind. The report highlighted that the clean power development pipeline had reached a new high, due in part to the IRA, with 13% more capacity in development queues since Q4 2021 and 135 GW of clean power projects in the late stages of development.  

[1] https://cleanpower.org/news/market-report-2022-q4/

[USA] Sunrun and PG&E announce new VPP to support California grid in the summer

On February 6, 2022, Sunrun, a solar and battery storage provider, announced plans to create a 30 MW virtual power plant (VPP) by enrolling up to 7,500 existing and new residential solar and battery systems in Pacific Gas & Electric’s (PG&E) service area.[1] Storage systems that enroll in the Energy Efficiency Summer Reliability Program will be directed to discharge power to the grid every day between 7 p.m. and 9 p.m. from August through October, a time when energy needs in California tend to be the highest. Customers will receive a $750 upfront payment and a free smart thermostat for participating. Batteries enrolled in the program will keep enough energy to meet customers’ needs in the event of a local power outage in their area. All Sunrun solar and battery customers in single-family homes in PG&E’s footprint who are not currently enrolled in other demand response programs are eligible to participate. In addition, the program will provide Sunrun with incremental revenue for managing and delivering VPP services to the grid for one year.

The new VPP is part of several programs and solutions that PG&E has implemented to ensure reliability during extreme heat events. The VPP was approved by the California Public Utilities Commission (CPUC) in January 2023, and the company plans to begin enrolling customers into the program and start dispatches on August 1, 2023.

[1] https://investors.sunrun.com/news-events/press-releases/detail/279/sunrun-and-pge-collaborate-on-residential-battery-powered

[USA] FBI thwarts plot to attack BGE substations

On February 6, 2023, the Department of Justice (DOJ) announced that two suspects had been charged with planning a firearms attack on five Baltimore Gas & Electric (BGE) substations.[1] According to the DOJ, Sarah Beth Clendaniel of Catonsville, Maryland, and Brandon Clint Russell of Orlando, Florida, were arrested on February 3, 2023,  and charged with conspiracy to destroy an energy facility. The two individuals planned to attack several substations across Baltimore, Maryland, to cripple the city’s electricity infrastructure. The planned attack was based on race, and at least one of the suspects is a member of a neo-Nazi group. BGE, an Exelon subsidiary, said it is working closely with the Federal Bureau of Investigation (FBI), state and local investigators.

“Attacks on multiple electrical substations in Maryland would have caused suffering to thousands of Americans going about their everyday lives, but the FBI and our partners put a stop to that threat,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “According to the criminal complaint, the defendants allegedly were taking specific steps to carry out their plans, including selecting targets and trying to illegally acquire a rifle. The FBI and our partners will hold accountable all those who commit criminal acts that threaten the safety of those in our communities, regardless of their motivations.”

[1] https://www.justice.gov/opa/pr/maryland-woman-and-florida-man-charged-federally-conspiring-destroy-energy-facilities

[USA] ACORE Report: More transmission would have prevented winter outages

According to a report released by the American Council on Renewable Energy (ACORE) on February 8, 2023, adding 1 GW of transmission capacity during Winter Storm Elliott could have saved electricity consumers nearly $100 million over the course of the five-day storm.[1] The report, titled The Value of Transmission During Winter Storm Elliott, analyses the benefits more transmission could have provided during Winter Storm Elliot, which caused record winter electricity demand and rolling blackouts across much of the Central and Eastern U.S. in December 2022. About 1.7 million service disruptions occurred during the peak of Winter Storm Elliott. The report found that congested power lines prevented the region from importing lower-cost electricity when energy use spiked during Winter Storm Elliott. The ACORE report also found that additional transmission into the Duke/Progress utility area in the Carolinas and the Tennessee Valley Authority (TVA) region would have yielded savings of $85 million and $95 million, respectively. In addition, a 1 GW transmission line between the Electric Reliability Council of Texas (ERCOT) and TVA would have also provided $1 billion in savings to Texans during Winter Storm Uri in February 2021.

[1] https://acore.org/wp-content/uploads/2023/02/ACORE-The-Value-of-Transmission-During-Winter-Storm-Elliott.pdf

[USA] ChargePoint and Stem to partner on EV charging and energy storage for DC fast charging

On January 31, 2023, ChargePoint Holdings, an electric vehicle (EV) charging network company, and Stem, a utility- and industrial-scale battery storage and software company, announced an agreement to accelerate EV charging and battery storage for highway corridor DC fast charging and other EV charging applications like fleet charging.[1] According to the press release, by combining EV charging with battery storage and AI-driven energy management, EV site operators can benefit from lower operating costs and added energy resiliency.

ChargePoint will analyze EV charging demand at sites looking to install DC chargers and assess their eligibility for incentive programs like the National Electric Vehicle Infrastructure (NEVI) Formula Program. ChargePoint will work with Stem to determine if a battery energy storage system may reduce the EV site’s operating costs. The companies say they will integrate ChargePoint’s Express Plus advanced fast charging platform with Stem’s on-site energy storage and its Athena platform, which integrates solar, storage, and EV charging management. The agreement has the potential to help reduce an EV site host’s utility bills by reducing demand charges, which can represent a significant portion of EV charging operating costs.[2] EV site hosts can reduce or avoid these costs by utilizing battery storage to mitigate demand peaks. Through energy storage-managed EV charging, customers can protect themselves against the risk of potential utility rate changes.

[1] https://www.chargepoint.com/about/news/chargepoint-and-stem-accelerate-deployment-ev-charging-and-battery-storage-solutions-dc

[2] Currently, public charging utilization is often too low to recover the cost of high-demand charges. A 2017 Rocky Mountain Institute study showed demand charges could be responsible for over 90% of a charging station’s electricity costs. Similarly, a 2019 Great Plains Institute study found that at low utilization rates, demand charges can be responsible for up to 90% of a site host’s monthly electricity bills.

[USA] PG&E projects 32% percent higher gas and electricity bills this winter

On January 31, 2023, Pacific Gas and Electric Company (PG&E) warned its customers that the colder-than-normal temperatures mixed with increased costs of natural gas could lead to much higher energy bills this winter.[1] The utility said that compared to the same time last year, residential combined-use gas and electricity bills will be about 32% higher until March. PG&E cited higher demand and tighter supplies in the region. Natural gas prices have been much higher on the West Coast than in the rest of the U.S. since November 2022. Between January 19 and 25, California's average daily prices were five times higher than the U.S. benchmark prices. Residents are using more natural gas for heating during colder weather—customers have used more natural gas this winter than the past five-year historic average. In addition, power plants are utilizing more natural gas to meet electricity demand. However, the company noted that bill increases could be less severe if prices fall and the weather warms unexpectedly.

The utility said it supports the proposal to issue the annual April Climate Credit earlier this year, which would provide residential customers with credits of $91.17. The California Public Utilities Commission is scheduled to vote on February 2, 2023, on the proposal. Separately, more than 300,000 customers who experienced financial hardships during the pandemic will receive an automatic one-time bill credit before February 3, 2023, under the California Arrearage Payment Program.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=57fb0682-a47e-4431-a678-7319d659e3ff&ts=1675355880012

[USA] Southern states without power due to ice storm

A combination of moisture from the Gulf of Mexico and Arctic air spilling south from Canada is resulting in a long-duration ice storm across at least eight states. At least seven people have been reported dead since January 30, 2023.[1] Ice storm warnings were in effect across large portions of Texas, western Tennessee, northern Mississippi, and much of Arkansas. Ice accumulated on power lines, utility poles, and tree limbs, leading to power outages. According to PowerOutage.us, more than 437,000 customers were without power in Texas as of the afternoon of February 2.[2] Arkansas had about 82,000 customers without power, followed by Mississippi with 23,000 and Tennessee with 17,000. More than a quarter of all households in Austin, Texas, had lost power as of the afternoon of February 2. Austin Energy said that its crews are working to restore weather-related power outages across the service area.[3] However, based on changing conditions, the utility said it is unable to provide estimates on system-wide restoration.

[1] https://thehill.com/policy/energy-environment/3840856-7-deaths-reported-from-texas-ice-storm-outages-top-400k/

[2] https://poweroutage.us/

[3] https://austinenergy.com/about/news/news-releases/2023/austin-energy-working-to-restore-widespread-local-power-outages

[USA] AlphaStruxure to build microgrid at JFK airport

On January 26, 2023, AlphaStruxure, a Carlyle Group and Schneider Electric joint venture, announced an agreement to design, construct, and operate integrated microgrid infrastructure at the New Terminal One (NTO) at the John F. Kennedy International Airport in New York.[1] The 11.34 MW microgrid will be built under an “energy-as-a-service” model, and will include about 7.7 MW of rooftop solar, 3.7 MW of fuel cells, and 2 MW/4 MWh of battery storage. It will utilize re-claimed heat to generate chilled water and heat hot water. The microgrid will consist of four power islands that include generation, storage, and automation and control systems. According to the press release, greenhouse gas emissions from the microgrid will be 38% less than grid-provided electricity.

The first gates of the 2.4 million square foot terminal are expected to be open in 2026, with full completion anticipated by 2030. NTO will rely on power from the grid, but if that is cut off, the terminal will still be able to operate through its microgrid, making it one of the first airport hubs in the region that can function off-grid. Carlyle, a private equity firm, is financing the microgrid, while Schneider Electric is providing the microgrid technology, software, and services. The terminal’s developers will pay for the project through an Energy as a Service (EaaS) contract, a long-term agreement ensuring predictable operating costs and guaranteed performance without upfront capital expenditures.

[1] https://www.prnewswire.com/news-releases/alphastruxure-to-design-construct-and-operate-jfks-new-terminal-one-microgrid-creating-the-largest-rooftop-terminal-solar-array-in-the-us-301731016.html

[USA] Tesla to invest $3.6 billion in Nevada Gigafactory

On January 24, 2023, Tesla Inc. unveiled plans for a $3.6 billion expansion of its Gigafactory in Nevada that would nearly triple the company’s U.S. production of battery cells and produce large numbers of electric combination trucks.[1] In 2014, Tesla said that it would invest $3.5 billion in building the world’s first Gigafactory to produce EV batteries near Reno, Nevada. The new expansion will add 3,000 permanent workers to the 11,000 it already hired there. Tesla will add two new factories: a battery cell factory and a high-volume truck factory. Tesla said its new factory would produce 100 GWh of battery cells annually, nearly triple the 37 GWh average annual production of its existing building. The cells will be Tesla’s proprietary 4680 cell, a larger-format battery produced in collaboration with Panasonic Holdings Corp.

[1] https://www.tesla.com/blog/continuing-our-investment-nevada

[USA] Report: Immediate transmission planning for offshore wind could save up to $20 billion

According to a Brattle Group report released on January 24, 2023, federal agencies, states, and grid operators must begin collaborative planning to identify cost-effective transmission solutions to bring offshore power online.[1] The report, titled The Benefit and Urgency of Planned Offshore Transmission, finds that starting a collaborative planning process immediately will reduce costs, reduce environmental and community impacts, increase grid reliability, and help achieve climate and clean energy goals. Leveraging existing studies in the United States and Europe, the study estimates that the benefits of proactive transmission planning for the potential 100 GW of U.S. offshore wind generation developments over the next 2-3 decades include at least $20 billion in transmission cost savings; 60-70% fewer shore crossings and necessary onshore transmissions upgrades; and 50% fewer miles of marine transmission cable installations. Proactive planning would also result in more competition, increased consumer savings, enhanced reliability and resilience, and more investments in the local clean energy economy.

The report comes as the Biden administration has set a 2030 goal of 30 GW of offshore wind deployment as a milestone to 110 GW by 2050. 11 coastal states have already set procurement targets, with figures exceeding 50 GW through 2035 and more than 75 GW by 2045. However, it can take at least a decade to plan and build major new transmission lines as a result of current processes. Because of this, the report urged working immediately to standardize offshore transmission technologies, improve existing planning processes, utilize federal support and funding, and coordinate cross-state. The report was commissioned by industry stakeholders, including the American Clean Power Association (ACP), American Council on Renewable Energy (ACORE), Clean Air Task Force (CATF), GridLab, and the Natural Resources Defense Council (NRDC).

[1] https://cleanpower.org/resources/the-benefit-and-urgency-of-planned-offshore-transmission/

[Japan] Yara Clean Ammonia to supply clean ammonia to JERA

According to a January 17, 2023, press release, Yara Clean Ammonia has been nominated as a potential supplier to supply up to 500 kilotons (kt) of clean ammonia to JERA’s Hekinan Thermal Power Plant Unit 4 in Hekinan City, Aichi Prefecture, Japan.[1] This is JERA’s first commercial-scale co-firing project. The sale and purchase of clean ammonia for 20% co-firing operations is expected to start in 2027. The expected required volume is up to 500,000 metric tonnes per year (mtpa). The two companies also plan to collaborate on blue ammonia production in the U.S. Gulf Coast and to produce more than 1 million mtpa.

Yara Clean Ammonia, headquartered in Oslo, Norway, works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production, and ammonia for industrial applications. The company operates the largest global ammonia network with 12 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. JERA is an equal joint venture of two major Japanese electric power companies, Tokyo Electric Power Company (TEPCO) Fuel & Power Incorporated and Chubu Electric Power Company. The company produces about 30% of Japan’s electricity and handles 35 million tons of LNG annually. JERA aims to achieve net zero carbon emissions by 2050.

[1] https://www.yara.com/news-and-media/news/archive/2023/yara-clean-ammonia-and-jera-announce-a-mou-for-joint-project-development-and-sales-purchase-of-clean-ammonia/

[USA] Report: PJM interconnection costs have grown rapidly

On January 19, 2023, the Lawrence Berkeley National Laboratory (LBNL) released a report analyzing interconnection costs in the PJM Interconnection[1] territory.[2] The report found that interconnection costs have substantially increased in parallel with the tremendous growth of PJM’s interconnection queue in recent years. At the end of 2021, PJM had 259 GW of generation and storage capacity actively seeking grid interconnection, nearly twice as large as PJM’s peak load in recent years (~155 GW). Capacity in the queue includes solar (116 GW), standalone battery storage (42 GW), solar-battery hybrids (32 GW), and wind (39 GW). 2021’s active queue increased by 240% compared to year-end 2019. PJM reformed its interconnection process in 2022 due to the substantial growth of interconnection requests, along with lengthy study timelines and high project withdrawal rates. The ISO adopted a “first-ready, first-served” cluster study approach.

LBNL found that PJM interconnection costs have grown across the board. For example, mean costs for active projects[3] have grown from $29/kW to $240/kW (2017-2019 vs. 2020-2022. The main driver behind these increases has been broader network upgrade costs, which have risen sharply since 2019. Notably, average interconnection costs have been significantly lower for natural gas ($24/kW) than for storage ($335/kW), solar ($253/kW), or wind ($136/kW for onshore, $385/kW for offshore). The PJM brief is the second in a series analyzing interconnection costs in wholesale electricity markets. LBNL released an October 2022 study about the Midcontinent Independent System Operator (MISO) containing similar findings. LBNL will publish analyses of New York ISO (NYISO), ISO New England (ISO-NE), and Southern Power Pool (SPP) in the coming months.

[1] PJM serves all or parts of serving 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://emp.lbl.gov/news/pjm-data-show-substantial-increases

[3] Active projects refers to projects working through the interconnection process.

[USA] RMI launches initiative to promote and support virtual power plants

On January 10, 2023, Rocky Mountain Institute (RMI), a nonprofit dedicated to accelerating the global energy transformation, announced the formation of the Virtual Power Plant Partnership (VP3).[1] VP3 includes founding members Ford, General Motors, Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin, and Virtual Peaker. Initial funding for the VP3 was provided by General Motors and Google Nest. VP3 aims to catalyze industry and transform policy to support scaling VPPs in ways that help advance affordable, reliable electric sector decarbonization by overcoming barriers to virtual power plant (VPP) market growth. VPPs coordinate distributed energy resources such as electric vehicles, batteries, and rooftop solar. Initial research by RMI indicates that virtual power plants could reduce peak demand in the U.S. by 60 GW as soon as 2030. VP3 will work to catalog, research, and communicate VPP benefits; develop industry-wide best practices, standards, and roadmaps; and inform and shape policy development.

[1] https://rmi.org/press-release/rmi-launches-virtual-power-plant-partnership-with-support-from-general-motors-google-nest/

[USA] Biden administration releases blueprint for decarbonizing transportation sector

As part of President Biden’s goal to cut greenhouse gas emissions, on January 10, 2023, the Biden administration released the U.S. National Blueprint for Transportation Decarbonization, which would bring together the Department of Energy (DOE), Department of Transportation (DOT), Department of Housing and Urban Development (HUD), and the Environmental Protection Agency (EPA) to eliminate greenhouse gas emissions from the transportation sector by 2050.[1] The blueprint follows a September memorandum of understanding between the four agencies to enable them to accelerate the nation’s affordable and equitable clean transportation future. The 2021 Infrastructure Investment and Jobs Act required the agencies to develop the plan by the end of 2022. The blueprint details how the agencies will work together to promote existing technology like battery power to cut emissions from light-duty cars and trucks, as well as research new fuel sources for hard-to-decarbonize sectors.

According to the White House, the plan is the first blueprint for the decarbonization of transportation and exemplifies the whole-of-government approach to addressing climate change. The Biden administration said that decarbonizing the transportation sector, which includes all modes of transportation in the country, would eliminate a third of all domestic greenhouse gases.

[1] https://www.energy.gov/eere/us-national-blueprint-transportation-decarbonization-joint-strategy-transform-transportation