[USA] Dominion Energy Virginia set to quadruple renewable energy in new integrated resource plan

On May 1, 2020, Dominion Energy filed its 15-year, long-term integrated resource plan (IRP) for Virginia which includes three separate models to increase solar, wind, and energy storage capacity.[1][2] According to the IRP, the utility has already begun to transition its generation fleet away from fossil fuels; over the past decade more than 2.2 GW of coal, oil, and gas-fired generation has been retired. Currently the utility has 396 MW of solar, 1.8 GW of energy storage, and 12 MW of offshore wind under construction or in operation. Its latest IRP would add between 6.7 GW and 18.8 GW of solar, up to 2.7 GW of storage and up to 5.1 GW of offshore wind in the next 15 years. It would also add natural gas resources and potentially keep more gas-fired generation on the system to address system reliability.

In April 2020, Virginia passed the Virginia Clean Economy Act (VCEA) which set a goal of 100% clean energy resources by 2045 and requires the addition of up to 5.2 GW of offshore wind.[3] Three of the four scenarios Dominion proposed take into account the VCEA and other legislation passed in spring 2020, while one presents a “low cost” plan.

[1] https://news.dominionenergy.com/2020-05-01-Dominion-Energy-Virginia-Quadruples-Renewable-Energy-and-Energy-Storage-in-Long-Term-Integrated-Resource-Plan

[2] https://www.dominionenergy.com/library/domcom/media/about-us/making-energy/2020-va-integrated-resource-plan.pdf?modified=20200501191108

[3] https://www.governor.virginia.gov/newsroom/all-releases/2020/april/headline-856056-en.html

[USA] Duke Energy sets goal to double renewable capacity by 2025

On April 28, 2020, Duke Energy released two new documents, a 2019 Sustainability Report and a 2020 Climate Report, and announced plans to add 8,000 MW of wind, solar and biomass by 2025, which would double its total renewable energy.[1] [2] [3] The announcement is a part of Duke’s larger plan to achieve 50% lower CO2 emissions by 2030 and net-zero carbon emissions by 2050. Currently, Duke's regulated electric utility generation is 31% natural gas, 31% nuclear, 24% coal and 5% renewables. By 2030, Duke predicts its mix will be 42% natural gas, 30% nuclear, 11% coal, and 14% renewables. Duke says by 2050 renewables will make up the largest share at 36% while natural gas will drop to 6%.

Fossil fuels will still account for more than half of its generation, but the utility says it remains on track to achieve its 2030 goal. Although it has received criticism for relying on natural gas when it could use energy storage, Duke has asserted that adding new natural gas is necessary. According to Duke’s climate report, a “no new gas” scenario would create installation and operational challenges because current energy storage technology would not be able to handle the capacity and energy gap created by coal retirement. Duke also noted that the incremental costs of achieving net zero emissions under a no new gas scenario "would increase by three to four times" compared to adding gas resources.

[1] https://news.duke-energy.com/releases/new-duke-energy-reports-show-progress-toward-ambitious-climate-and-sustainability-goals?_ga=2.46264229.348135488.1588192929-1661836963.1588192929

[2] https://www.duke-energy.com/_/media/PDFs/our-company/Climate-Report-2020.pdf

[3] https://sustainabilityreport.duke-energy.com/

[USA] Chicago requires new residential, commercial construction include EV charging capabilities

On April 24, 2020, the Chicago City Council approved an ordinance that requires new construction of residential and commercial buildings to guarantee at least 20% of parking spaces are ready for electric vehicle (EV) charging equipment to be installed.[1] . The ordinance also requires at least one of the EV-ready spaces be disability accessible and new buildings must have charging infrastructure in place or actual charging stations installed during construction. The new rules only apply to residential buildings with five or more units and commercial buildings with 30 or more parking spaces.

Chicago is committed to reaching 100% renewable energy for all its municipal buildings by 2025 and all city buildings by 2035. In addition, the Chicago Transit Authority plans to electrify its fleet of over 1,850 buses by 2040. According to Chicago officials, the new ordinance is in response to growing EV adoption across the United States; by 2040 more than half of all new car sales will be electric. Consumer advocates like Citizens Utility Board (CUB) say the new ordinance makes Chicago a national leader in its efforts to increase adoption of EVs, and called for similar policies to be adopted more widely.[2]

[1]https://www.chicago.gov/city/en/depts/cdot/provdrs/conservation_outreachgreenprograms/news/2020/april/chicago-city-council--approves-ordinance-to-increase-chicago-s-e.html

[2] https://www.prnewswire.com/news-releases/new-electric-vehicle-ordinance-makes-chicago-national-leader-301047088.html

[USA] Rooftop solar applications up 40% despite COVID-19

According to a filing with the Hawaiian Public Utilities Commission (PUC) released on April 22, 2020, Hawaiian Electric (HECO) has not seen a drop in applications for rooftop solar system interconnections despite the shelter-in-place order; between March 5 and April 15, 2020, the company received 40% more applications than the same period in 2019.[1] The filing was in response to a letter submitted to the PUC by Hawaiian distributed energy resource (DER) groups on April 3, 2020, which outlines various measures to expedite interconnection processes and support the DER sector during the COVID-19 pandemic.[2] According to the groups, which include the Distributed Energy Resources Council, Hawaii PV Coalition, and Hawaii Solar Energy Association, streamlining HECO’s interconnection processes could help customers complete installations and shrink their electric bills. The groups recommended that distributed systems below 25 kW be allowed to operate once they are installed as well as other provisions to help the distributed solar sector.

In its response, the HECO remarked that solar contractors are continuing to work and building inspections are still progressing so the pandemic should not significantly hamper the installation of DER in the near term. The utility also listed some of the measures it is taking to ensure interconnection processes are smooth such as remotely reviewing applications and loosening deadlines for installations to be completed, but noted that some of the group’s suggestions would lead to safety risks.

[1] https://dms.puc.hawaii.gov/dms/DocumentViewer?pid=A1001001A20D22B62259D00190

[2] https://dms.puc.hawaii.gov/dms/DocumentViewer?pid=A1001001A20D03B54540J00106

[USA] DOE announces $28 million to develop ultrahigh temperature materials for gas turbine applications

On April 21, 2020, the U.S. Department of Energy (DOE) announced up to $28 million in funding for a new Advanced Research Projects Agency-Energy (ARPA-E) program called ULtrahigh Temperature Impervious Materials Advancing Turbine Efficiency (ULTIMATE).[1][2] The goal of the ULTIMATE program is to improve the efficiency of gas turbines by increasing the temperature capability of the materials used in parts such as the turbine blade. Blade material temperature capability has improved steadily over the last few decades to 1100 ºC, the DOE believes there are opportunities to discover, develop, and implement novel materials that work at temperatures significantly higher than industry standard superalloys. ULTIMATE projects will develop and demonstrate ultrahigh temperature materials that can operate in high temperature and high stress environments of a gas-turbine blade. The ULTIMATE program will target enabling gas-turbines blades to operate continuously at 1300 ºC in a material test environment—or with coatings, with turbine inlet gas temperatures of 1800 ºC or higher. According to the DOE, improving gas turbine efficiency will create opportunities to generate more energy savings, lower carbon emissions, and benefit the economy.

[1] https://www.energy.gov/articles/department-energy-announces-28-million-develop-ultrahigh-temperature-materials-gas-turbine

[2] https://arpa-e.energy.gov/?q=arpa-e-programs/ultimate

[USA] Trump administration to reinstate tariff on two-sided solar modules

According to a notice published in the Federal Register on April 17, 2020, the U.S. Trade Representative will withdraw its exclusion of two-sided solar panel imports from the Section 201 tariffs established in 2018 following a review of the exclusion.[1] The two-sided solar panel exemption will be lifted as early as May 18, 2020 and the tariffs will end in 2022. Two-sided solar modules, a newer technology not widely manufactured in the U.S., are projected to grow in popularity due to power-generation advantages and relative cost-competitiveness, but a big part of their price advantage over one-sided panels is the tariff exemption.

In December 2019, when the U.S. International Trade Commission (ITC) first reviewed the effectiveness of the 2018 tariffs, several U.S. solar panel manufacturers argued for applying the tariffs to two-sided solar modules. Other members of the solar industry like the Solar Energy Industries Association (SEIA) and solar developers oppose the Trade Representative’s decision and are considering opportunities for a legal challenge.[2] [3] According to SEIA and other solar analysts, China's manufacturing and production, and the global solar module market, are starting to recover after the worldwide response to COVID-19. For developers, regaining supply of solar modules is critical for projects that have not already purchased and stocked up on panels. For solar manufacturers, though, the 2018 tariffs have spurred growth; five module manufacturing utilities have opened in the U.S. since 2018.

[1] https://www.federalregister.gov/documents/2020/04/17/2020-08189/determination-on-the-exclusion-of-bifacial-solar-panels-from-the-safeguard-measure-on-solar-products

[2] https://www.seia.org/news/seia-statement-ustr-calling-remove-tariff-exclusions-bifacial-solar-modules

[3] https://www.seia.org/initiatives/international-trade

[USA] FERC approves NERC’s request for delay on reliability standards

On April 17, 2020, the Federal Energy Regulatory Commission (FERC) approved the North American Electric Reliability Corporation’s (NERC) request to delay the implementation of seven reliability standards by three to six months (October 2020-January 2021), citing the substantial impacts of the pandemic on registered entities.[1] NERC stated that registered entities "would need to expend significant effort and resources in the coming months" in order to document compliance; the pandemic would make gathering these resources substantially harder.[2]

The delayed reliability standards include four other requirements focused on bulk electric system personnel and protection control standards, and three cybersecurity Critical Infrastructure Protection (CIP) rules. CIP rules are standards for preparedness and response to serious incidents that involve critical infrastructure. Protect Our Power, a non-profit focused on grid security, advocated for FERC to approve a shorter 30-day delay to the CIP standards, arguing that cybersecurity vulnerabilities in the electric sector supply chain need to be eliminated quickly. However, NERC says the three-month delay for the cybersecurity rules is unlikely to leave the grid vulnerable and is appropriate given the current crisis.

[1]https://www.nerc.com/FilingsOrders/us/FERCOrdersRules/order%20granting%20motion%20to%20defer%20the%20implementation%20dates.pdf

[2]https://www.nerc.com/news/Headlines%20DL/Motion%20to%20Defer%20Implementation%20of%20Reliability%20Standards.pdf

[USA] DOE Announces Crude Oil Storage Contracts to Help Alleviate U.S. Oil Industry Storage Crunch

The U.S. Department of Energy (DOE) announced on April 14, 2020 that it is discussing contract awards with nine U.S. companies with the intention to storing their U.S. produced crude oil in the U.S.’s Strategic Petroleum Reserve (SPR).[1] The U.S. oil industry is currently faced with storage demand exceeding availability which stems from the combined effects of a sharp decline in demand due to COVID-19 and an excess of supply. In a response to this, President Trump directed the DOE to fill the SPR to capacity in mid-March 2020, though Democrats were strongly critical of the move, stating that it is a waste of resources to save the oil industry.[2] [3] On April 2, 2020, the DOE issued a Request for Proposals to use available storage capacity at the SPR for temporary storage to alleviate the strain on oil companies.[4] The awards under negotiation are for approximately 23 million barrels of crude oil storage, to be distributed across all four SPR sites. Many of the deliveries will be received in May and June 2020, but there is a possibility of early deliveries in April 2020. Companies can schedule the return of their oil through March 2021, minus a small amount of oil to cover the cost of storage.

[1] https://www.energy.gov/articles/doe-announces-crude-oil-storage-contracts-help-alleviate-us-oil-industry-storage-crunch

[2] https://www.energy.gov/articles/doe-applauds-swift-action-president-trump-initiates-process-purchase-oil-strategic

[3]https://www.markey.senate.gov/imo/media/doc/2020_03_12%20COVID%2019%20Oil%20Tax%20Break%20Trump%20signed%20copy.pdf

[4] https://www.energy.gov/articles/us-department-energy-make-strategic-petroleum-reserve-storage-capacity-available-struggling

[USA] Environmental groups sue DOE over revised appliance standards process

On April 14, 2020 the Natural Resources Defense Council (NRDC) sued the U.S. Department of Energy (DOE) in the 9th U.S. Circuit Court of Appeals in San Francisco over the DOE’s revised process for setting appliance standards.[1] Along with NRDC, parties to the suit include Earthjustice, representing the Sierra Club, Consumer Federation of America, and Massachusetts Union of Public Housing Tenants; the U.S. Public Interest Research Group; and Environment America. According to the NRDC, this lawsuit is the 107th legal challenge to the administration’s rulings on environmental issues, and the third time in five months that groups have filed suit over the appliance standards program. DOE’s revised process requires a new standard to save 0.3 quadrillion BTUs of energy consumed by appliances on site over 30 years. However, the lawsuit argues that the new process sets an arbitrary baseline for “significant savings” to establish a new standard.

The DOE, however, argues that the current rules require too much investment for savings that are not always significant. The DOE is now taking public comment on how to prioritize its review of appliance standards under the revised process.[2] Environmental advocates say they will be following it closely and believe the move is unnecessary.

[1] https://www.nrdc.org/sites/default/files/energy-efficiency-standards-20200414.pdf

[2] https://www.federalregister.gov/documents/2020/04/15/2020-07721/energy-conservation-program-procedures-for-use-in-new-or-revised-energy-conservation-standards-and

[USA] EPA rule change to save 4 coal plants across Pennsylvania and West Virginia

On April 9, 2020, the U.S. Environmental Protection Agency (EPA) updated its Mercury and Air Toxics Standards (MATS) to assist four struggling coal plants in Pennsylvania and West Virginia.[1] The coal plants burn low-quality coal refuse—waste abandoned from mining and burning coal. Under Obama-era MATS standards these plants did not meet acid gas hazardous air pollutant emissions standards, but the new rule creates a subcategory for these plants. This particular change to MATS is not likely to have a major environmental impact because of its limited scope.

According to the Anthracite Region Independent Power Producers Association (ARIPPA), a group that represents the coal refuse-to-energy industry across West Virginia and Pennsylvania, there are more than 5,000 abandoned mines across Pennsylvania that were never reclaimed, totaling between 200 million and 8 million cubic yards of waste.[2] One remediation solution for the problem, burning waste into energy, became viable in the late 1970s through the Public Utility Regulatory Policies Act (PURPA), which sought to diversify the country’s electric resource profile. Since 1987, more than 212 million tons of coal refuse have been removed in Pennsylvania alone, but the coal plants are now struggling as their economic viability has declined. Without the rule change, two of the four plants affected would have likely closed by the end of May.

[1] https://www.epa.gov/mats/regulatory-actions-final-mercury-and-air-toxics-standards-mats-power-plants

[2] https://arippa.org/wp-content/uploads/2018/12/ARIPPA-Coal-Refuse-Whitepaper-with-Photos-10_05_15.pdf

[USA] EIA April STEO—Coronavirus to cut coal use, CO2, electricity demand

In April 2020, the U.S. Energy Information Association (EIA) released its April Short-Term Energy Outlook (STEO) which documents the broad impacts of the coronavirus pandemic on the energy sector, including annual plunges in energy-related carbon emissions, electricity demand, and production of U.S. crude oil and natural gas.[1] According to the report, total U.S. power-sector generation will drop 3% in 2020 compared to an increase of 6% in 2019, leading “to an expected decline in fossil-fuel generation, especially at coal-fired power plants;”. U.S. coal production in 2020 will decrease 22% from 2019. The economic slowdown and restrictions on business and travel activity from COVID-19 will also cut energy-related carbon emissions by 7.5% in 2020. However, the agency expects emissions will increase by 3.6% in 2021.

Renewable energy is still expected to be the fastest-growing source of electricity generation and is projected to grow by 11% in 2020, but COVID-19 is "likely to have an impact" on new generating capacity buildouts. The April STEO projects that the energy sector will add more than 19 GW of wind capacity and more than 12 GW of utility-scale solar capacity in 2020. These additions are 5% and 10% lower, respectively, than in previous STEOs from the EIA.

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

[USA] S&P Global Ratings revises its utility outlook to “negative”

In a report released on April 2, 2020, S&P Global Ratings revised its outlook for North American regulated utilities from "stable" to "negative" due to the risks posed by COVID-19 which will deplete many utilities’ “financial cushions.” [1] Despite this new vulnerability, S&P Global stated that regulated utilities are still in a better position to access credit than most other corporate industries because they sell necessities and receive a rate of return set by regulators, rather than the market. Certain utilities may be more precarious position than others, though, such as those that disproportionately depend upon commercial and industrial (C&I) customers for their revenue.

Beyond the current disaster, according to the report, circumstances like natural disasters and acquisitions had led some utilities to take on even more debt which has negatively affected the utilities’ ability to withstand current events. Some examples include PG&E, Edison International, and Sempra Energy’s issues with wildfires; NiSource Inc., which had to sell Columbia Gas of Massachusetts to Eversource Energy following charges regarding violations of federal pipeline safety laws; and Southern Co., SCANA Corp., Eversource, Duke Energy Corp., and Dominion Energy Inc., which have all been engaged in large capital projects.

[1] https://www.spglobal.com/ratings/en/research/articles/200402-covid-19-the-outlook-for-north-american-regulated-utilities-turns-negative-11415155

[USA] Dominion prepares to file Virginia IRP without natural gas buildout

On April 2, 2020, Dominion Energy asked Virginia regulators for permission to avoid certain requirements, including comprehensive analysis of new natural gas or nuclear power buildouts, for its 2020 Integrated Resource Plan (IRP) filing that it says will no longer apply. [1] Specifically, Dominion wants to stop incorporating some modeling and analysis that were required under the Clean Power Plan of 2014, which has since been replaced by the U.S. Environmental Protection Agency with the Affordable Clean Energy rule of 2019. According to the utility, a natural gas buildout would not be viable due to the 100% clean energy mandate by 2045 instituted by the Virginia Clean Economy Act (VCEA) passed on March 6, 2020.

The request marks a big shift for Dominion which has included scenarios with up to 10 new combined-cycle or combustion turbine facilities in its previous IRPs. Environmental groups believe that the lack of need for new gas infrastructure could also extend to the development of the Atlantic Coast Pipeline which is slated to run 600 miles from West Virginia, through Virginia, to eastern North Carolina.[2] However, Dominion has stated that it has no plans to make changes to the Atlantic Coast Pipeline project. Dominion will own 53% of the gas project, alongside Duke Energy, after buying Southern Company's 5% stake.

[1] http://www.scc.virginia.gov/docketsearch/DOCS/4m0c01!.PDF

[2] https://chesapeakeclimate.org/dominion-energy-abandons-gas-infrastructure-plans-due-to-passage-of-virginia-clean-economy-act/

[USA] Nuclear regulators ease some power reactor regulations in response to COVID-19

On March 28, 2020, the United States Nuclear Regulatory Commission (NRC) released a letter stating that in the face of the COVID-19 pandemic, it is allowing power reactor operators to apply for temporary exemptions from regulations limiting the amount of hours workers can stay on the job.[1] Additionally, the NRC staff is working on a separate memorandum that will guide nuclear plants as to which labor and time-intensive tasks they can temporarily waive. During normal situations, the NRC has several rules about the maximum length of employee shifts and requirements for breaks workers must take between long shifts.  However, the strains created by the COVID-19 pandemic have created a need to ensure that these regulations "do not unduly limit licensee flexibility in using personnel resources to most effectively manage the impacts" of the pandemic.

Nuclear reactors have already been enacting contingency plans designed to limit the number of workers onsite in order to avoid potential exposure to the coronavirus. It is unknown how long nuclear reactors will need operate with these reductions in staff and maintenance tasks, and whether they can stay running as often as they do in normal times, but the NRC measures to loosen restrictions are intended to ease the strain.

[1] https://adamswebsearch2.nrc.gov/webSearch2/main.jsp?AccessionNumber=ML20087P237

[USA] New Jersey looks to exit PJM capacity market, worried the MOPR will impede its 100% carbon-free goals

In response to the Federal Energy Regulatory Commission’s (FERC) December 2019 decision to expand the Minimum Offer Price Rule (MOPR) in the PJM capacity market, the New Jersey Board of Public Utilities (BPU) launched an investigation on March 27, 2020 to look into how that can achieve its clean energy objectives, including its goal of reaching 100% carbon-free energy by 2050.[1] [2] FERC’s MOPR rule raises the floor prices for state-subsidized resources which clean energy advocates believe could prevent new renewable resources from competing in the wholesale market, making it harder for states like New Jersey to achieve their clean energy goals.

The investigation will consider several questions, including whether a Fixed Resource Requirement (FRR) alternative can satisfy the state's resource adequacy needs, and if modifications to the state's default Basic Generation Service construct, the service provided to consumers who do not choose a third-party supplier, could facilitate resource adequacy procurements aligned with its clean energy objectives. An FRR approach would mean New Jersey withdraws one or more service areas from the broader PJM capacity market. An additional alternative to the capacity market would be to adopt a statewide clean energy standard that would require load-serving entities to source increased percentages of renewable or other clean energy.

[1] https://www.bpu.state.nj.us/bpu/pdf/boardorders/2020/20200325/3-27-20-2H.pdf

[2] https://assets.documentcloud.org/documents/6589824/20191219-3124-33920957.pdf

[USA] Trump administration slashes required annual fuel economy increase to 1.5%

On March 31, 2020, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) issued a final rule that weakens Obama-era fuel efficiency guidelines by requiring corporate average fuel economy (CAFE) and carbon emissions standards to increase 1.5% from 2021 to 2026 rather than 5% annually.[1] The EPA and NHTSA estimate the rule will reduce the sticker price of new cars by about $1,000, but consumers can still, by choice, buy more efficient vehicles.

The March rule is phase two of the Safer Affordable Fuel-Efficient (SAFE) rules. The first phase, issued in fall 2019, revokes states' authority to issue their own fuel standards, specifically targeting California’s fuel standards which are considered to be the biggest driver of electric vehicle (EV) deployment. In September 2019, 23 states including California sued the Trump Administration over the rule.[2] Automakers are split in their support of the lawsuit and California’s standards. Ford, Honda, BMW and Volkswagen support states' rights to set their own standards, but GM, Toyota, and Fiat Chrysler have sided with the Trump Administration's push for a single national standard. The lawsuit is currently pending, and advocates expect litigation on the second rule as well.

[1] https://www.nhtsa.gov/press-releases/safe-final-rule

[2]https://oag.ca.gov/system/files/attachments/press_releases/California%20v.%20Chao%20complaint%20%2800000002%29.pdf

[USA] Senate reaches agreement on $2 trillion coronavirus stimulus bill

On March 25, 2020, the U.S. Senate reached an agreement on a $2 trillion coronavirus stimulus bill, the largest of its kind in U.S. history.[1] However, the package does not include the tax credit extensions and direct pay provisions lobbied for by wind and solar industries to help them withstand the supply-chain and economic disruptions caused by the global crisis.

Prior to the agreement on the stimulus bill, the American Wind Energy Association (AWEA) warned that a failure to pass provisions for tax credit extensions and direct pay provisions could threaten up to $43 billion in investments.[2] The Solar Energy Industries Association (SEIA) has warned that tens of thousands of solar jobs may be at risk from the coronavirus pandemic's economic effects.[3] To be eligible for the full PTC, wind projects must be completed by the end of 2020 and many U.S. projects are at risk of missing this deadline due to disruptions to the supply chain. Solar companies are also under pressure to lock in delivery and possession of key equipment by mid-April to assure they comply with the 5% safe-harbor provisions of the ITC to receive the full credit. In response to the stimulus bill, AWEA CEO Tom Kiernan released a statement that "while [AWEA is] disappointed clean energy sector relief did not make it into the phase three stimulus package, [AWEA] will continue working with Congress and other renewable energy leaders to find solutions to the specific challenges COVID-19 is causing our members."[4]

[1] https://www.washingtonpost.com/business/2020/03/25/trump-senate-coronavirus-economic-stimulus-2-trillion/

[2] https://www.awea.org/resources/news/2020/american-wind-energy-association-releases-covid-19

[3] https://www.seia.org/coronavirus-information-resources

[4] https://www.awea.org/resources/news/2020/american-wind-energy-association-statement-on-the

[USA] FERC launches revision of transmission incentives

During its monthly meeting on March 19, 2020, the Federal Energy Regulatory Commission (FERC) announced a notice of proposed rulemaking (NOPR) to change electric transmission incentive policy and stimulate transmission infrastructure development.[1] The NOPR would shift from a "risks and challenges" framework to a model that grants transmission incentives based on benefits to consumers. Essentially, the NOPR would eliminate Order No. 679’s “nexus test,” which requires applicants such as utilities to show a connection between the requested incentives and the risks and challenges associated with the project, and instead provide a series of incentives based on economic and reliability benefits. The NOPR stems from a directive from Congress in 2005 that required FERC to develop incentive-based rates for electric transmission because there is a need to buildout and update the transmission system. The commission has previously implemented rules, but the latest NOPR will more fully take into account the changes to transmission since the past decade of rapid energy transition.

Once the notice is published in the Federal Register, there will be a 90 day comment period. Commissioner Richard Glick dissented in part to the order and objected to the 90 day comment period because he thinks it is too brief given the current coronavirus crisis.[2] Instead, he said the comment period should be extend to 120 days to allow for substantial reactions and create more flexibility. However, Chairman Neil Chatterjee wants to "keep the business of the commission going," though he added FERC expects requests for deadline extensions on some of its processes due to the pandemic.

[1] https://www.ferc.gov/media/news-releases/2020/2020-1/03-19-20-E-1.asp#.Xnur5qhKg2x

[2] https://www.ferc.gov/media/statements-speeches/glick/2020/03-19-20-glick.asp#.XnusH6hKg2x

［USA］Massachusetts Set to Launch Clean Peak Standard

On March 20, 2020, Massachusetts’ Department of Energy Resource (DOER) filed its Clean Peak Standard regulations with the appropriate committees at the state legislature, beginning a 30-day review period.[1] The Clean Peak Standard, required by state legislation passed in 2018, creates credits for clean energy delivered during time windows classified as peak hours for a given season. Electricity retailers will be required to procure a minimum percentage of their annual electricity sales from renewable generation or energy storage during peak hours; starting in 2020, the minimum percentage will be 1.5% and will increase annually. Electricity retailers will satisfy these obligations by purchasing Clean Peak Energy Certificates (CPEC), . After short-term costs are considered, the state expects the Clean Peak Standard will save $400 million over the next decade. While other states like Arizona have discussed measures like the Clean Peak Standard, Massachusetts is the first state to put it into effect. The goal of the measure is to create a price signal to shift clean power to the hours it’s most beneficial. Because renewables are intermittent, the Clean Peak Standard may create an opportunity for more energy storage technologies.

[1] https://www.mass.gov/service-details/clean-peak-energy-standard

［USA］Glidepath Ventures Announces 1GW Solar Portfolio Sale

On February 28, 2020, Pennsylvania-based solar developer Glidepath Ventures announced that it sold its first projects: a 278-megawatt, 12-project portfolio to Canada’s Grasshopper Solar and an additional four projects totaling 887-megawatts to an unnamed independent power producer.[1] The majority of the projects bought by Grasshopper Solar are expected to come online in 2021 and 2022. According to Glidepath, the developer will move the projects through the permitting and interconnection processes. Glidepath will then transfer the portfolio to Grasshopper Solar at notice to proceed (NTP), which is a formal notice that construction can begin. Grasshopper Solar will then construct, own, and operate the projects. Grasshopper has committed more than $300 million to the projects and will lead funding.

All of the projects are being developed in Pennsylvania—an unusual choice given that the state only has 475 megawatts of solar installed and is more well known for its fossil fuel production. A partner at Glidepath Ventures, Geoff Underwood, said the company is attracted to places with little political intervention because the market won’t dry up when incentives do. Solar Energy Industries Association (SEIA) and WoodMac’s report on solar backs up this claim, stating that long-term solar industry growth after tax credits expire will be “contingent on geographic diversification outside of legacy state markets”.[2]

[1] http://glidepathventures.com/glidepath-ventures-breaks-out-with-1gw-solar-portfolio-sale/

[2] https://www.seia.org/research-resources/solar-market-insight-report-2019-q4