On October 1, 2024, Duke Energy’s power restoration efforts are ongoing following the damage inflicted by Hurricane Helene in the Carolinas. [1] The widespread destruction from the hurricane is the first of its kind in the region. As of 4 pm on October 1, Duke Energy restored 566,000 customer outages in South Carolina but 363,000 remain without power upstate. In North Carolina, 1 million outages were restored, while 284,000 in the mountain region remain without power. Duke Energy expects to restore most of the remaining 648,000 customer outages by October 4. Following Helene, 1.6 million customer outages were restored but power restoration may take longer in areas that are inaccessible due to destroyed infrastructure or inability to receive service.
[USA] Biden-Harris Administration bringing back clean nuclear energy, creating clean energy Union jobs across the Midwest
On September 30, 2024, the Biden-Harris Administration, through the Department of Energy (DOE) and the US Department of Agriculture (USDA), announced more than $2.8 billion to support reliable, affordable, and clean power in the Midwest. [1] The DOE announced the closing of a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment (EIR) program to Holtec Palisades to finance the restoration of service of an 800 MW nuclear-generating station in Michigan. This is the first incidence of an effort by the DOE to restart an American nuclear power plant. The USDA also announced over $1.3 billion in funding in Empower Rural America (ERA) program awards for two rural electric cooperatives, Wolverine Power Cooperative and Hoosier Energy. The intention is to reduce the cost of electricity passed on to their members for clean power from Holtec Palisades and other clean energy sources. These awards reinforce the Administration’s effort to achieve widespread deployment of advanced nuclear. The Palisades Nuclear Plant, which ceased operations in May 2022, will be brought back online and upgraded to produce clean baseload power until 2051, subject to the US Nuclear Regulatory Commission (NRC) licensing approvals.
[USA] Data center owners turn to nuclear as potential electricity source
As of October 1, 2024, nuclear power plants have increasingly been signing agreements to power data centers, according to the EIA. [1] In September 2024, Constellation Energy announced a 20-year power purchase agreement (PPA) to power a Microsoft data center in the mid-Atlantic from the Three Mile Island nuclear power plant in Pennsylvania. This is the second occurrence this year of a nuclear power plant owner agreeing to supply a data center with dedicated power as data centers begin to search for large sources of electricity supply. In March 2024, Amazon Web Services (AWS) signed a contract for 960 megawatts (MW) of capacity from Talen Energy’s Susquehanna nuclear power plant in Pennsylvania. Both plants belong to PJM transmission. These recent power purchase agreements indicate that data center operators are in search of large sources of emissions-free electricity, yet it is still uncertain how much capacity they will require, how long it will take to reach peak demand, and how energy efficiency will improve over time. This is reflected in the PPA between Talen and AWS because AWS intends to increase its share of capacity in increments over time rather than taking on the full 960 MW immediately.
[USA] G.M. electric vehicles gain access to Tesla chargers
On September 18, 2024, General Motors (G.M.) said owners of its battery-powered models would now be able to use Tesla charging stations with adapters. [1] This could potentially boost the slowing electric vehicle sales by alleviating fears about finding reliable places to charge them. G.M. will open up access to over 17,800 Tesla Superchargers for its customers, with the use of a NACS DC adapter, which will prove to be convenient for EV drivers. With the addition of the Tesla Supercharger network, GM customers will have access to more than 231,800 public Level 2 and DC fast chargers in North America. However, a shortage of adapters has limited the number of drivers who can use the system; which is why G.M. stated that it would buy adapters from several suppliers rather than just Tesla. In addition, Tesla installed 617 new fast-charging ports in August 2024, more than all other charging companies combined, according to research firm EVAdoption. This will improve access for G.M. customers even more since Tesla has the largest charging network in North America.
[1] https://news.gm.com/newsroom.detail.html/Pages/news/us/en/2024/sep/0918-nacs.html
[USA] Hurricane Francine has taken energy infrastructure offline
On September 12, 2024, the Energy Information Administration (EIA) stated that Hurricane Francine made landfall on Wednesday, September 11, and caused energy infrastructure along the US Gulf Coast to come offline. [1] Over 450,000 customers remained without power, mostly in southwestern Louisiana, with the rest of Louisiana, Mississippi, and Alabama also facing power outages. Although generator operations were not shut down at the time, Entergy nuclear plants followed severe weather procedures. As the storm approached, offshore oil and natural gas operators shut down production, putting 42% of crude oil and 53% of natural gas production in the Gulf of Mexico offline. Refineries around Baton Rouge, Lake Charles, and New Orleans, with a total capacity of 3 million barrels per day, were running at reduced rates. Several ports responsible for 95% of the US crude oil exports, were either closed or restricted.
[USA] US electric power sector explores hydrogen cofiring at natural gas-fired plants
On September 12, 2024, the Energy Information Administration (EIA) published an analysis of hydrogen plans at US power plants, describing how natural gas plant operators have taken steps to integrate hydrogen into their fuel streams. [1] The operators took or announced plans to take certain steps, such as testing cofiring hydrogen at existing facilities, upgrading existing turbines to use a blend of natural gas and hydrogen, and incorporating the capability to use a blend of natural gas and hydrogen to build new natural gas power plants. Natural gas composed 43% of electricity generation in the US in 2023, but hydrogen is not yet prevalent or regularly used in plants where it has been tested. The process of burning a blend of hydrogen with natural gas to create electricity is known as cofiring. As the percentage of hydrogen by volume in the blend increases, carbon dioxide emissions decrease. Several policies at the federal level aimed at lowering GHG emissions have garnered interest in hydrogen; the US Environmental Protection Agency recently updated the power plant rule, the US Department of Energy released its Hydrogen Hubs program, and the Inflation Reduction Act provides production tax credits, all of which support the emerging hydrogen sector.
[USA] PJM seeks OK from FERC to end energy efficiency capacity payments
On September 6, 2024, PJM Interconnection asked federal regulators for permission to stop including energy efficiency resources in its capacity auctions, hoping that the plan would take effect before a December auction. [1] PJM asserted that there is no evidence that capacity market payments for energy efficiency resources directly spur efficiency projects and that the plan to remove such resources from its auctions was approved last month in a stakeholder process. Consumers who install energy efficiency measures also already benefit from reduced capacity costs through a lower peak load obligation. PJM includes the effects of energy efficiency in its peak load forecasts, which helps determine how much capacity it buys. They suggest that additional compensation to energy efficiency resource sellers through capacity auctions for the same underlying energy efficiency is duplicative, causing energy efficiency to participate in both the supply and demand side. PJM is set to pay $144 million in capacity payments for energy efficiency resources in 2025-2026, up from the previous year’s $128 million. If FERC approves the proposal, it would resolve pending complaints at the agency by the market monitor and a group of state ratepayer advocates, which operates the grid and wholesale power markets in 13 states and the District of Columbia.
[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20240906-5122
[USA] Biden-Harris administration invests $430 million to upgrade America’s hydropower infrastructure
On September 5, 2024, the Department of Energy (DOE) announced the selection of 293 hydroelectric improvement projects in 33 states, which will receive up to $430 million in incentive payments to upgrade hydropower facilities. [1] These facilities have to have been in operation for at least 79 years. The Maintaining and Enhancing Hydroelectricity Incentives program will enhance dam safety, improve grid resilience, and protect 6000 existing jobs at hydropower facilities. Currently, hydropower accounts for 27% of renewable electricity generation in the US and 93% of all utility-scale energy storage. However, many of these facilities are in need of repair and upgrades. The projects will strengthen grid resilience at hydropower dams by replacing or upgrading turbines and generators, upgrading control systems, upgrading cables and transformers, and upgrading penstocks that transport water to the turbines.
[USA] Retail electricity prices closely tracked inflation over the last 10 years
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