An analysis released by the Energy Information Administration (EIA) on September 11, 2024, found that the change in average residential electricity prices in the US mirrored the rate of inflation over the past decade between 2013 to 2023. [1] The average retail price of electricity in the residential sector went from 12 cents per kilowatt hour kilowatt hour (kWh) to 16 cents per kWh in 2023 without adjusting for inflation. The proposed utility rates for utilities must be approved by the public utilities commissions, which often involves evaluating cost increases against increases in the Consumer Price Index (CPI) as a potential justification for the increasing revenue needs on behalf of the utility. This could be a potential cause for the rising rates. Other potential causes include growing investment in transmission and distribution, rapid changes in other commodities prices, and higher investment costs for new generation technologies. Price hikes occurred fastest in New England and California, and prices fell in the midcontinent, especially in Utah and Nebraska. Utah and Nebraska’s access to diverse local energy sources, such as natural gas, coal, wind, and solar, may have helped maintain their low prices despite the growing demand. The states also enjoy well-developed transmission infrastructure, sufficient excess capacity, and low population densities.
[USA] Entergy Mississippi begins building new natural gas power station
On September 3, 2024, Entergy Mississippi LLC, which provides electricity to roughly 459,000 customers in 45 counties across Mississippi, announced a project to build a new power station for the first time in 50 years. [1] The station is expected to be completed in 2028. Haley Fisackerly, president and CEO of Entergy Mississippi stated that the company is investing in clean and efficient power generation now to help lower future bills for customers. The facility will be the first advanced combined-cycle combustion turbine power station that the company has built from start to finish. It is a dual-fuel technology facility, where it is designed to support blended hydrogen to produce reliable energy. The new power station will replace the Gerald Andrus Steam Electric Station in Greenville, which will be retired. The replacement of older power plants with more efficient technology indicates that more electricity will be produced from the same amount of fuel while reducing carbon emissions.
[USA] NM receives $87 million of federal funding for home energy efficiency
On September 4, 2024, $87 million of federal funding is going to New Mexico to lower the barrier for low and moderate-income households to access rebates for home energy efficiency, money that originates from the $9 billion set aside by the Inflation Reduction Act for a rebate program. [1] The New Mexico Energy, Minerals, and Natural Resources Department Secretary Melanie Kendarine said that New Mexico is the third state to launch the Home Electrification and Appliances Rebate program and the first to include a retail rebate. She said that people can apply for a rebate online before going to the store, after which the rebate will allow them to pay less at the cash register. Governor Michelle Grisham lauded this as an effective tool in ensuring that no one is left behind during the energy transition. These rebates can be used for heat pumps and other devices to help lower utility bills. Eligible households can access up to $14,000 in rebates to buy clean and efficient home appliances.
[USA] DPU approves plans to modernize the electric sector to accelerate clean energy transition
On August 30, 2024, the Massachusetts Department of Public Utilities (DPU) issued an order approving the Electric Sector Modernization Plans (ESMPs) from the state’s electric distribution companies (EDCs) as strategic methods to enable a cost-effective clean energy transition in Massachusetts. [1] Massachusetts is among the first states in the country to encourage plans to modernize the grid and increase the state’s ability to decarbonize efficiently. The plans were filed due to the 2022 Climate Law and build on the DPU’s ongoing efforts to support the clean energy transition in Massachusetts and achieve net zero emissions by 2050. The Grid Modernization Advisory Council (GMAC) was established to engage with utilities and stakeholders to shape the final ESMPS, which resulted in the ESMP filings with the DPU in late January 2024. The proposed investments in these strategic plans aim to improve grid reliability and resiliency in anticipation of more frequent extreme weather events. They also prepare the grid to rapidly deploy renewable energy, energy storage, and emerging electrification technologies to reduce carbon emissions.
[USA] Biden-Harris administration invests $31 million to reduce costs and expand clean, renewable geothermal energy
On August 26, 2024, the Department of Energy (DOE) announced that the six projects selected from the Biden-Harris administration’s Investing in America agenda, will receive $31 million to advance geothermal energy nationwide. [1] The projects will improve the construction of enhanced geothermal systems and demonstrate how reservoir thermal energy can mitigate the energy needs for industry. This supports the DOE’s Enhanced Geothermal Shot goal to reduce the costs of enhanced geothermal systems (EGS) by 90% by 2035. It also supports the DOE’s Industrial Heat Shot goal to develop cost-competitive industrial heat decarbonization technologies with at least 85% of lower emissions by 2035. Currently, geothermal resources generate approximately 4 gigawatts of electricity in the US, but a recent DOE analysis illustrates that advancing EGS could provide at least 90 gigawatts of firm, flexible power to the national grid by 2050. This is enough energy to power more than 65 million US households. Many locations lack enough water or conditions that facilitate fluid flow needed to recover underground heat, in which case EGS can be harnessed to create a humanmade underground reservoir to access that heat for energy. This would require drilling into the subsurface and using wells to draw hot water to the surface, a method that can be costly to construct. However, improving those methods can mitigate costs for EGS, making geothermal an optimal choice for clean, cost-effective electricity.
[USA] SD Governor Noem rejects more than $70 million in federal funds for energy and environmental programs
On August 23, 2024, a top budget official stated that South Dakota Governor Kristi Noem’s (R) administration turned down more than $70 million of federal funding from energy efficiency and environmental programs. [1] The Home Energy Rebates program was intended to provide the state with $69 million to give South Dakotans rebates for energy-efficient home retrofits as well as highly efficient electric appliances. The deadline, which has now passed, was last week. Earlier this year, the state also passed up $1.8 million to help set up the program. Noem’s Bureau of Finance and Management Commissioner Jim Terwilliger explained the decisions, referencing administrative burden, staff limitations, and policy disagreements. The funding, which originates from the 2022 Inflation Reduction Act, was a source of controversy on the legislative budget committee as some lawmakers disagreed with the decision to pass up on the money. The state also passed up its share of $1 billion for states to adopt the latest building energy codes. According to the Department of Energy, the program would have reduced South Dakota’s carbon dioxide emissions by about 42 million metric tons over the course of 30 years, with estimated cost savings of $9,027 per South Dakota home.
[USA] Energy Department’s advisers call for agency’s own AI data center testbed
On July 30, 2024, the Department of Energy (DOE)’s advisory board proposed the establishment of its own AI data center to study how to lessen energy usage, according to a recent report. [1] This is relevant because the rapid growth of energy requirements from AI data centers, as well as the threat they present to climate goals, has landed on the department’s main agenda. The advisory board calls on the DOE to create a “data-center-scale AI testbed” in the agency for two reasons: it would allow scientists from academia, the DOE, and the industry, to help make these data centers more energy efficient and flexible in taxation, and it would be separate from the agency’s pre-existing computing facilities. The report focuses on hyperscale facilities that require between 300 to 1,000 megawatts of electricity or greater, which are being built with lead times of only 1-3 years. The board consulted with big technology firms, power suppliers, and other stakeholders, and concluded that there is an urgent need for a more flexible and firm electricity supply.
[USA] Archaea Energy, Waste Connections open RNG plant in Pennsylvania
On August 22, 2024, Archaea Energy, subsidiary of BP, and Texas- based Waste Connections Inc. have opened their first renewable energy gas (RNG) plant in Pennsylvania. [1] The plant is located next to the Bethlehem Landfill, which came online in July. The CEO of Archaea stated that the company has brought six plants online to date and intends to continue capturing landfill emissions. The Bethlehem Landfill plant can process almost 3,500 standard cubic feet of landfill gas per minute into RNG, which can heat up to 14,000 homes yearly. The partnership between Archaea and Waste Connections has lasted for years; Archaea also owns RNG plants next to Waste Connections landfills in Nebraska, New York, and Oklahoma. In Washington, Oregon, and Colorado, the companies have plants that convert landfill gas to electricity.
[1] https://www.bp.com/en_us/united-states/home/news/press-releases/archaea-energy-and-waste-connections-celebrate-opening-of-renewable-gas-plant-in-pennsylvania.html
[USA] Regulators say NorthWestern Energy failed to justify proposed rate hike
On August 22, 2024, regulators indicated that NorthWestern Energy, Montana’s largest electric and gas utility, failed to justify their proposed rate hike. [1] The utility says that the cost to generate power is increasing, which justifies the 8% rate hike. However, the decision is up to the regulators who found major discrepancies that undermine the company’s request. Earlier in August, the Public Service Commission emphasized that it needed more information prior to reviewing the request, but despite having done that, regulators are still dissatisfied. PSC explained that NorthWestern’s failure to explain their reasoning for a rate hike is unusual; this instance met a “higher threshold of deficiency”, so NorthWestern was granted one week to provide additional information.
[1] https://psc.mt.gov/News/Montana-Public-Service-Commission-Finds-NWE-Rate-Application-Again-Fails-to-Meet-Minimum-Filing-Standards
[USA] US wind generation hit record in April 2024, exceeding coal-fired generation
An analysis released by the Energy Information Administration (EIA) on August 13, 2024, found that wind-generated electricity established a new record in the US in April. [1] Wind generation exceeded coal-fired generation in both March and April. This was the first time that wind generation exceeded coal-fired generation for two months in a row. Usually wind power produces the most electricity during springtime. In March 2024, wind installations produced 45.9 GWh of electricity, while coal-fired plants produced 38.4 GWh. In April, coal-fired generation fell to 37.2 GWh, while wind increased to a record high of 47.7 GWh. For context, 20 years ago, coal-fired generation produced 154.3 GWh of electricity, while wind produced 1.3 GWh. Over the last 25 years, wind power generating capacity has grown significantly, from 2.4 GW in 2000 to 150.1 GW in April 2024. In contrast, a substantial number of coal plants have retired over the same period, with total capacity falling from 315.1 GW in 2000 to 177.1 GW in April 2024.
Other sources of electricity generation have also increased since then; since 2000, solar power generation increased by 99.1 GWh, and natural gas increased by 287.6 GWh. After the record wind capacity additions in 2021 and 2022, new wind facilities have declined in the last two years. 7.1 GW of wind capacity is expected to come online in 2024.
[USA] Outlook for US natural gas inventories at the end of injection season.
An analysis released by the Energy Information Administration (EIA) on August 7, 2024, forecasted that US working natural gas inventories will be 3,954 billion cubic feet (Bcf) by the end of October. [1] This is the highest amount of natural gas in US storage since November 2016. Less-than-average cumulative injections are predicted for the rest of the injection season because inventories were relatively well supplied in March, above-average natural gas consumption was anticipated, and there was relatively flat natural gas production this summer. The difference between US natural gas inventories and their previous five-year average will gradually decrease with the slower rate of inventory build. Injections into storage will be at or near the five-year minimums in every region of the US for the remainder of the season.
Natural gas storage is mainly used to balance seasonal fluctuations in natural gas demand because consumption peaks in the winter when natural gas use for heating is greatest. As natural gas-fired generation capacity has increased due to warm summers, consumption in the electric power sector has risen to meet air-conditioning demand. This leads to a second, smaller peak in the year, typically in July or August. Much of the increased US natural gas demand since 2012 had come from the South, including Texas and Louisiana. The second peak in consumption in the summer occurs in the inventory pattern in the South-Central region as another significant withdrawal period.
[USA] 59 GW in data center load seeking to connect to Oncor’s system
On August 8, 2024, Oncor, the Dallas-based electric utility, stated that almost three-fourths of new interconnection requests are from data centers. [1] Oncor has received 80GW worth of new service requests from large industrial and commercial customers, of which three-fourths, or 59GW, come from planned data centers. The Electric Reliability Council of Texas (ERCOT) projects that the load in the region could peak at 152 GW by 2030, and Oncor anticipates providing electricity to 40% of that future load.
In late July, a transmission plan released by ERCOT outlined billions in potential transmission projects to be built by 2038, with many falling within Oncor’s service region. Oncor has experienced a 13% jump in interconnection requests since Q2 of 2023, without about 25% coming from “large load customers,” according to CEO Allen Nye. Oncor will need a few months to process the new requests before it can draft a plan to serve the new load.
[1] https://investor.sempra.com/static-files/d4d3be75-4774-471f-8538-b21196541079
[USA] IAEA Completes International Physical Protection Advisory Service Mission in Japan
On August 2, 2024, an International Atomic Energy Agency (IAEA) team concluded a two-week International Physical Protection Advisory Service (IPPAS) mission in Japan. [1] The mission, conducted at the request of the Japanese government and hosted by the Nuclear Regulation Authority of Japan (NRA), involved a review of Japan’s nuclear security regime. The ten-person team visited the Mihama Nuclear Power Station in Fukui prefecture, operated by Kansai Electric Power Company (KEPCO). The mission was the third IPPAS mission to Japan, following the previous mission in 2018, during which the team visited the Kashiwazaki-Kariwa nuclear power station (KKNPS) in Niigata Prefecture. The latest mission agenda derives from the physical protection measures taken at KKNPS since the 2018 mission.
The team held discussions with officials from the NRA, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the National Police Agency (NPA), the Japan Coast Guard (JCG), the Ministry of Foreign Affairs of Japan (MOFA), KEPCO, and TEPCO. At the conclusion of the mission, the team commended Japan for its robust nuclear security regime, and provided recommendations to help Japan further advance its nuclear security protocol.
[USA] Researchers develop a state-of-the-art device to make AI more energy-efficient
On July 26, 2024, researchers at the University of Minnesota Twin Cities demonstrated a device that could reduce energy consumption in AI applications by a factor of 1000. [1] With the increasing demand for AI, it has become imperative for the technology to become more energy efficient. Conventionally, AI processes transfer data between logic and memory, thereby consuming a large amount of power; the team of researchers demonstrated a new model where the data never leaves the memory, known as computational random-access memory (CRAM). In March of 2024, the International Energy Agency (IEA) forecasted that AI energy consumption would likely double from 460 TWh in 2022 to 1000 TWh in 2026, a number roughly equal to the electricity consumption in all of Japan.
CRAM directly performs computations within memory cells, efficiently utilizing the array's structure and eliminating the need for slow, energy-consuming data transfers. The team plans to work with semiconductor industry leaders to provide large-scale demonstrations and produce the hardware.
[USA] Energy storage projects in 18 states get $2.2B from DOE
On August 6, 2024, the US Department of Energy (DOE) announced eight selections for the next round of the Grid Resilience and Innovation Partnerships (GRIP) Program to expand the power grid’s flexibility and resilience against the threats of extreme weather and climate change. [1] The funding was specifically allocated for the Grid Innovation Program, one of three branches of GRIP. The second round will support 8 projects from 18 states, composing a total of $2.2 billion in federal investment, potentially expanding grid capacity by almost 13GW. The projects include 600 miles of new transmission, 400 miles of reconductored wiring, grid-enhancing technology, long-term energy storage, solar energy, and microgrids. Project sponsors will provide approximately $7.8 billion in additional funding.
The awards are part of the Biden Administration’s effort to advance a modernized grid, energy security, reliability, and clean, affordable energy. Some of the winning projects include the North Plains Connector Interregional Innovation project, the California Harnessing Advanced Reliable Grid Enhancing Technologies for Transmission project, Power Up New England, Maine by Form Energy, and more.
[1] https://www.energy.gov/gdo/grid-resilience-and-innovation-partnerships-grip-program-projects
[USA] Natural gas electricity generation in the United States spiked with the July heatwave.
On July 25, 2024, the US Energy Information Administration (EIA) released a report explaining a recent spike in natural gas electricity generation in the United States. [1] Based on a graph spanning January 1, 2019, to July 16, 2024, daily natural gas electricity generation in the Lower 48 states peaked in July with the onset of the heatwave. US power plant operators have generated the most electricity from natural gas since 2019, at 6.9 million megawatt-hours (MWh). The spike, recorded on July 9, occurred due to high temperatures across most of the country as well as low wind generation. According to the National Weather Service, most of the US experienced temperatures well above average on July 9, 2024, especially in the East Coast and West Coast. Wind generation in the Lower 48 states totaled 0.3 million MWh on July 9, which was much lower than the 1.3 million MWh daily average in June of the same year.
[USA] BSEE issued a suspension order to halt construction at Vineyard Wind farm
On July 17, 2024, the US Bureau of Safety and Environmental Enforcement (BSEE) issued a suspension order to halt construction at the Vineyard Wind farm. [1] After a Vineyard Wind turbine blade suffered damage and scattered fiberglass debris in the ocean, the BSEE was forced to shut down operations for the foreseeable future. GE Vernova, the turbine and blade manufacturer and installer, was held responsible for determining the root cause of the incident. A GE Vernova spokesperson states that the initial investigation brings light to the issue of “insufficient bonding,” which the “quality assurance program should have identified,” but thus far, “there is no indication of an engineering design flaw in the blade.”
In a 10-Q filing with the US Securities and Exchange Commission, GE Vernova stated that the company does not have any indication of when the BSEE will lift the suspension order. Furthermore, it is unclear to them what impact the event or any potential claims would have on their financial position and cash flows. The BSEE’s official statement regarding the incident mandates that “The Suspension Order suspends power production on the lease area and suspends installation of new wind turbine generator construction” and that “Those operations will remain shut down until the suspension is lifted.” Until the Vineyard Wind can determine whether the blade failure affects any other turbines, all production will cease.
[1] https://www.bsee.gov/newsroom/latest-news/statements-and-releases/press-releases/bsee-statement-on-vineyard-wind
[USA] Launch of renewable hydrogen hub in California
On July 17, 2024, the US Department of Energy (DOE) awarded up to $1.2 billion to advance clean hydrogen projects in California. [1] The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the DOE announced the signing of a $12.6 billion agreement, with $1.2 billion from the DOE and $11.4 billion in public and private matching funds. The investment will directly reduce California’s reliance on fossil fuels and marks a significant step toward achieving a carbon-neutral economy by 2045. The California Hydrogen Hub is a network of clean hydrogen production sites that incorporate multiple facilities, to decarbonize public transport, heavy-duty trucking, and port operations by 2 million metric tons per year. The expansion of hydrogen fuel cell vehicles in heavy-duty transportation aims to not only drive improvements in air quality but also to facilitate greater connectivity of a West Coast freight network that connects to the Pacific Northwest Hydrogen Hub.
The ARCHES projects will cover the ports of Long Beach, Los Angeles, and Oakland, heavy-duty trucks and transit buses, clean power in power plants, and a marine research vessel known as the Scripps Marine Vessel. Over 10 sites will be used to fuel the aforementioned projects and kickstart the hydrogen ecosystem.
[1] https://www.energy.gov/oced/articles/award-wednesdays-july-17-2024
[USA] UW-Madison fusion energy research finds significant discovery of first plasma
On July 22, 2024, a fusion device designed by University of Wisconsin-Madison scientists generated plasma for the first time, a significant step towards creating a clean, reliable, and robust energy source. [1] Their achievement came four years in the making, after rigorous testing of a fusion energy device known as WHAM (Wisconsin HTS Axisymmetric Mirror) in UW’s Physical Sciences Lab. The researchers used a new kind of magnet, the rare earth barium copper oxide superconducting magnets, which enabled them to create the first plasma on July 15, the first step in a new age of fusion research. To achieve this, they made a powerful vacuum and added hydrogen, which they then superheated as it was held in place by the magnets. The result was a 50-millisecond burst of plasma. If the prototype passes the testing phase next year, the scientists will start building a device that can generate fusion energy to power homes and industries with no GHG emissions and minimal radiation within the decade.
[1] https://news.wisc.edu/first-plasma-marks-major-milestone-in-uw-madison-fusion-energy-research/
[USA] US Senators introduce bill to speed approvals of energy projects
On July 22, 2024, Senators Joe Manchin (I-WV) and John Barrasso (R-WY) on the Senate Energy Committee introduced long overdue legislation to speed up the process of permitting power transmission, mining, and liquefied natural gas exports. [1] They suggest that this bill would not only strengthen the power grid but also keep power prices low. Building transmission capacity would help cities access electricity that originates from renewable power projects that have received financial support from Biden’s 2022 Inflation Reduction Act. Almost 2,000 MW of clean energy is ready for grid connection. The bill would speed up the process to reach the Biden administration’s goal of decarbonizing the US power sector by 2035. It also creates more opportunities for companies to bid on oil and gas leasing after 2025. Furthermore, the legislation allows a 90-day period for a secretary of energy to approve or reject liquefied natural gas export applications and ends Biden’s pause on their approvals. It would help unlock mining for minerals such as copper, that are used in transmission, renewable energy, and energy storage. Despite these factors, the bill’s future is not guaranteed due to election-year uncertainty and potential opposition to measures that support fossil fuel.
Manchin referred to the bill as a “commonsense, bipartisan piece of legislation that will speed up permitting” and provide certainty for energy projects “without bypassing important protections for our environment and impacted communities.” Barrasso stated, "For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country" and “Congress must step in and fix this process."