As of October 25, 2024, the Federal Energy Regulatory Commission (FERC) issued a rule that bars payments to power plant owners for reactive power within the standard power factor range (deadband). [1] The reform is intended to ensure that transmission providers do not pass unjust charges onto customers that do not yield a commensurate benefit for ratepayers. The decision, opposed by generators, means that interconnection customers will only be paid for reactive power when the transmission provider asks the interconnection customer to operate its facility outside the “deadband” range. According to FERC, generating facilities must either produce or absorb reactive power for the transmission system to maintain the required voltage levels. Reactive power outside the range – within 0.95 leading to 0.95 lagging – is considered an ancillary service. Only PJM Interconnection, ISO New England, and the New York Independent System Operator pay generators for reactive power within their deadband ranges. Opponents of FERC’s proposal include the American Council on Renewable Energy, the Solar Energy Industries Association, the American Clean Power Association, the North American Generator Forum, and Public Service Enterprise Group companies, along with NYISO and ISO-NE. Supporters of the rule include PJM, ratepayer advocates in New England, and American Electric Power.
[USA] Biden-Harris administration invests in clean, more affordable energy for seven rural electric cooperatives from South Carolina to Colorado as part of Investing in America agenda
As of October 25, 2024, Agriculture Secretary Tom Vilsack announced more than $3 billion of funding through the US Department of Agriculture (USDA)’s Empowering Rural America (ERA) program to lower electricity costs as part of the Biden-Harris administration’s Investing in America agenda. [1] The USDA is awarding about $2.5 billion in financing for the Tri-State Generation and Transmission Association, having selected 6 rural electric co-operatives to progress to the next round in the awards process. They award nearly $1 billion in New ERA funds. The Tri-State’s award is expected to lower electricity rates by 10 percent for cooperative members by 2034, amounting to $430 million in rural consumer benefits over a decade. New ERA funds, meanwhile, will finance the purchase of 1,040 MW of renewable energy and over 200 MW of energy storage. They will also aid the Tri-State to refinance the retirement of 1,100 MW of previously and newly announced coal-fired energy generation.
The 6 electric cooperatives announced to move forward in the New ERA process are Connexus energy in Minnesota and South Dakota, Central Electric Power Cooperative Inc in South Carolina, Poudre Valley Rural Electric Association Inc., in Colorado, Nebraska Electric Generation in Nebraska, Rayburn Country Electric Cooperative in Texas, and Yampa Valley Electric Association in Colorado. This will leverage investments of $6.4 billion for 1.75 GW of clean energy for rural communities across the country.
[USA] MISO, TVA to sell ‘emergency energy’ under proposed agreement
As of October 25, 2024, the Midcontinent Independent System Operator (MISO) and the Tennessee Valley Authority (TVA) will be able to send “emergency energy” to each other under an unprecedented agreement filed at FERC on October 24. [1] Because of TVA Act restrictions, the TVA is unable to supply emergency energy directly to MISO. The restrictions limit exports only to neighboring electric systems that the agency had power arrangements with as of July 1957. As a result, MISO members Ameren and Entergy will be able to buy electricity from the TVA during emergencies on behalf of MISO, since they meet the requirements of the TVA Act. During Winter Storm Elliot in December 2022, about 7,000 MW flowed to TVA’s region from MISO, according to FERC and NERC. The TVA instituted 8 hours of rolling blackouts at their peak during the winter storm. The agreement makes it so emergency energy can only be requested when an Energy Emergency Alert Level 2 or higher has been declared. The agreement is similar to those that MISO has with other balancing authorities.
[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20241024-5041&optimized=false
[USA] Biden-Harris administration announces nearly $200 million to replace aging gas pipes, lower household energy bills, and cut methane emissions
As of October 22, 2024, the US Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) announced $196 million in grants, funded by the Biden-Harris administration’s Bipartisan Infrastructure Law, to repair aging natural gas pipes. [1] This round of funding will support 60 modernization projects for gas pipelines across 20 states. The awards are funded through the Natural Gas Distribution Infrastructure Safety and Modernization grant program created by the Bipartisan Infrastructure Law. The law authorized almost $1 billion in investment over 5 years to modernize community-owned gas distribution pipes, lowering energy costs for rate-payers, reducing methane pollution, and avoiding the dangers of pipeline failure. The announcement brings the total amount awarded under the grant program to almost $800 million distributed among 227 projects in underserved rural and urban communities in 29 states since the start of the program in 2022. Some of the grants awarded include: $40 million to Philadelphia Gas Works to replace high-risk cast-iron pipe, $15.7 million to City of Richmond, Virginia, to upgrade natural gas mains in its service system, $6.4 million to Toccoa Natural Gas to replace outdated gas service lines, $6.4 million to Tallahassee, Florida, to make major upgrades to the city’s high-density polyethylene pipe, and $3 million to Sterling City, Texas, to replace high-risk bare steel pipe.
[USA] General Motors to contribute a combined $625 million in cash and letters of credit to new joint venture with Lithium Americas
As of October 16, 2024, Lithium Americas announced a new investment agreement to establish a joint venture to fund, develop, construct, and operate the Thacker Pass mine in Humboldt County, Nevada. [1] The “JV Transaction” will deliver $625 million of cash and letters of credit from GM to Thacker Pass, in addition to a conditional commitment of a $2.3 billion US Department of Energy loan announced earlier in the year. GM will acquire a 38% asset-level ownership stake in Thacker Pass for $625 million, making it the largest ever publicly announced investment by a US OEM in a lithium carbonate project. This highlights the significance of Thacker Pass in the domestic supply chain for critical minerals. GM is committed to purchasing up to 100% of production volumes during the mine’s initial phase for up to 20 years, with another 38% accounting for another 20 years during phase two of the mine. 40% of the engineering design is complete, with plans for concrete placement in mid-2025. Production is expected to commence in late 2027, with the goal of producing 40,000 tons of battery-grade lithium carbonate per year during phase one of production.
[USA] Biden-Harris administration announces nearly $430 million to accelerate domestic clean energy manufacturing in former coal communities
As of October 22, 2024, the US Department of Energy announced $428 million in funding for 14 projects to accelerate domestic clean energy manufacturing in 15 coal communities across the US. [1] The projects, led by small to mid-size businesses in communities with decommissioned coal facilities, were chosen by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC) to address key energy supply chain vulnerabilities. Each project will include a community benefits plan to maximize economic, health, and environmental benefits, and five projects will be in disadvantaged communities. The projects aim to strengthen national security by building supply chains for existing and emerging technologies using domestic resources. The project selections will address five key supply chains, including grid components, batteries, low-carbon materials, clean power generation, and energy efficiency products. They will leverage over $500 million in private sector investment into small and medium manufacturers and create approximately 1,900 jobs.
[USA] Supreme Court rejects calls to put a hold on EPA power plant carbon rule
As of October 17, 2024, the US Supreme Court rejected “emergency applications” by utilities, independent power producers, and others seeking to put a hold on an Environmental Protection Agency rule that limits carbon emissions from power plants. [1] While Justice Clarence Thomas said that he would have granted the stay while litigation is still underway in the lower court, Justice Brett Kavanaugh and Justice Neil Gorsuch agreed with dismissing the requests to stay the rule. They mentioned, however, that applications have a strong probability of success on the merits to at least some of their challenges arising from the EPA’s rule. Because the US Court of Appeals for the DC Circuit is expected to make a decision before June, the applicants seeking the stay are unlikely to suffer irreparable harm without it. The EPA’s rule issued in April made it so that owners of coal-fired and new gas-fired power plants set to operate past 2039 would be required to meet a carbon dioxide emission standard equal to installing a carbon capture and storage system and running it at 90% efficiency. Compliance would begin in 2032. According to ClearView Energy Partners, the outcome of the presidential election in November will likely affect the litigation over the EPA’s rule. The Harris-Walz administration would likely continue defending the rule if they were to prevail. Under a Trump administration, the EPA could ask the appeals court to remand the rule so that the agency could redesign it. Various groups have requested the Supreme Court to put the rule on hold while litigation plays out after the DC circuit rejected their stay requests in July. The groups include Oklahoma Gas and Electric, Idaho Power, the National Rural Electric Cooperative Association, and the Edison Electric Institute.
[1] https://www.supremecourt.gov/opinions/24pdf/24a95_n7ip.pdf
[USA] Amazon invests in X-energy to support advanced small nuclear reactors and expand carbon-free power
As of October 16, 2024, X-energy announced a Series C-1 financing round of $500 million, anchored by Amazon. [1] The investment will help meet growing energy demand by funding the completion of X-energy’s reactor design and licensing, as well as part of its fuel fabrication facility in Tennessee. The funding will also support future carbon-free projects that will use X-energy’s advanced small modular nuclear reactors (SMRs). Amazon and X-energy are also collaborating to bring over 5 GW of new power projects online across the US by 2039, the largest commercial deployment target of SMRs to date. This will help meet growing energy demand in key locations through direct project investments and long-term power purchase agreements to help power Amazon operations. X-energy and Amazon plan to establish and standardize a deployment and financing model to develop projects together with infrastructure and utility partners.
[USA] Transmission Interconnection Roadmap offers a plan to clear queues for clean energy projects
As of October 17, 2024, researchers at the US Department of Energy (DOE) and Lawrence Berkeley National Laboratory (LBNL) found a potential solution to the issue of the growing backlog in the interconnection queue, publishing their findings in the Transmission Interconnection Roadmap. [1] Over the last decade, the number of interconnection requests increased between 300%-500%, indicating progress towards climate goals but forming a huge backlog in the process. As a result, over 2,500 GW of zero-carbon generation and storage capacity are awaiting access to the electric grid. The Transmission Interconnection Roadmap sets aggressive success targets for interconnection improvement by 2030 and outlines the steps to meet those goals. This first-ever roadmap was developed through the DOE’s Interconnection Innovation e-Xchange, a program co-led by DOE’s Wind Energy Technologies Office (WETO) and Solar Energy Technologies Office (SETO) with support from several national laboratories. The roadmap targets four main goals: increasing data access, transparency, and security for interconnection, improving the interconnection process and timeline, promoting economic efficiency in interconnection, and maintaining a reliable, resilient, and secure grid.
[USA] Omitting Talen Energy RMR units from PJM's next capacity auction could cost $14.5B: OPSI
As of October 9, 2024, the Organization of PJM States Inc. (OPSI), which represents state utility regulators, is backing a complaint at the Federal Energy Regulatory Commission (FERC) over reliability must-run (RMR) power plants. [1] OPSI informed federal regulators that the PJM Interconnection’s failure to include power plants with RMR contracts in its capacity auctions could result in higher costs in PJM’s upcoming capacity auction by roughly $14.5 billion. In July 2024, the capacity auction totaled $14.7 billion, which was to be paid by power consumers in the Mid-Atlantic and Midwest. The omission of Talen Energy’s RMR resources in Maryland accounted for $4.3 billion in capacity costs, according to market monitor Monitoring Analytics.
When a power plant owner wants to retire a unit, PJM investigates how it would affect the grid; if PJM finds that it would cause reliability issues, they can enter into an RMR contract with the owner to keep it operating. OPSI supports a complaint at FERC that suggests that this practice of PJM should be banned. OPSI believes that FERC should find that PJM’s capacity market rules are unreasonable because they create price signals that are inconsistent with market fundamentals.
[USA] Utah Governor Cox unveils "Operation Gigawatt"
On October 8, 2024, Utah Republican Governor Spencer Cox shared Operation Gigawatt, an initiative to double the state’s power production within the next decade, at the One Utah Summit. [1] The governor believes that the plan will place Utah in a position to lead the country in energy development while remaining a net energy exporter and diversifying energy resources. Utah is facing the same energy crisis that the world is experiencing due to a growing population, emerging industries like artificial intelligence, increased electrification of vehicles, and retirement of baseload capacity for reliable electricity. The initiative aims to close the gap between energy supply and demand while protecting Utah’s natural resources. Department of Natural Resources Executive Director Joel Ferry also views the plan as an opportunity to lead the country in energy development, starting with investment in current resources while pursuing new ones. Operation Gigawatt is composed of four main goals: increasing transmission capacity, expanding and developing more energy production, enhancing Utah’s policies, and investing in Utah innovation and research.
[1] https://naturalresources.utah.gov/dnr-newsfeed/gov-cox-unveils-operation-gigawatt/
[USA] Energy Secretary Granholm and Deputy Secretary Turk joined electricity sector leaders to discuss Hurricane Helene response
On October 4, 2024, U.S. Energy Secretary Jennifer M. Granholm and Deputy Secretary David M. Turk joined electricity sector leaders to assess the response and restoration effort for Hurricane Helene, which devastated the Southeast and Appalachia. [1] The Electricity Subsector Coordinating Council and Energy Government Coordinating Council leaders have met regularly since September 25 before the storm’s arrival, to facilitate coordination and restoration efforts. The extent of damage from Helene required a massive recovery effort that has drawn resources from across the country, with at least 50,000 personnel from 41 states, the District of Columbia, and Canada. Their intervention has enabled 4 million customers to regain power since the storm’s peak.
Throughout the week of September 30, President Biden and Vice President Harris have repeatedly called on Federal departments and agencies to do as much as they can to assist communities affected by the hurricane. The President also reaffirmed the Federal government’s commitment to the region by visiting the affected states. The devastation brought about by the hurricane emphasizes the growing threat of extreme weather events and the importance of boosting energy resilience. The Department of Energy (DOE) intends to continue leveraging resources to support preparation and responses to all threats, including the upcoming Hurricane Milton.
[USA] Duke Energy continues rebuilding power grid in the Carolinas following Hurricane Helene
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.