[USA] Report: U.S. grid needs updates to handle projected EV growth

In a new report released on July 29, 2020, the Pacific Northwest National Laboratory (PNNL) in Washington state found that the U.S. energy grid will be able to handle growth in electric vehicle (EV) charging demand until 2028, but after that, the grid will need costly updates or smarter charging to maintain reliability.[1] The report based its analysis on information from the Western Electricity Coordinating Council (WECC), the grid authority west of the Rocky Mountains, because it has commonly agreed-upon data set for a future grid scenario called the WECC 2028. The study is the first to consider medium- and heavy-duty trucks in addition to light-duty trucks. The report’s authors concluded that the current grid could support up to 24 million EVs (including 200,000 medium-duty trucks and 150,000 heavy-duty trucks), which the report predicted the U.S. would reach in 2028. Currently, there are about 1.5 million EVs.

The study looked at two scenarios for how to handle the effect of EVs surpassing this milestone. The first is based on current actions and assumes that most charging sessions will continue to begin at the end of the day, with drivers plugging in and drawing electrons at the same time in the evening. Under this scenario, utilities would need to build new transmission lines and power plants fueled by natural gas to meet demand and keep reliability. The other scenario imagines a system where the battery-filling schedule is coordinated with the needs of the electric grid. This scenario relies on technologies that are in development but have not been tested at scale. Under this scenario, the number of vehicles that the grid can handle more than doubles to 65 million vehicles.

[1] https://www.pnnl.gov/sites/default/files/media/file/EV-AT-SCALE_1_IMPACTS_final.pdf

[USA] Report: APS declares thermal runaway event caused 2019 battery explosion

According to a report released on July 27, 2020, an explosion on April 19, 2019 at Arizona Public Service’s (APS) McMicken Battery Energy Storage System (BESS) facility in Surprise, Arizona was caused by an internal cell failure in a single battery which led to a cascading thermal runaway event[1].[2] The report was written for APS by Davion Hill, a U.S. energy storage leader DNV GL, a Norway-based company that provides advisory and analytics services to the energy industry. The report found that abnormal lithium metal deposits likely led to the internal failure. Contributing factors to the explosion include: a lack of thermal barriers between battery cells, a fire suppression system ill equipped to stop the thermal runaway, a concentration of flammable off-gassing, and a lack of coordination with emergency responders.

The APS report concluded that four issues must be addressed in future BESS installations: barriers to limit cell-to-cell and module-to-module cascading; ventilation and cooling; a combined strategy of fire suppression followed by ventilation and cooling strategies; and response procedures that incorporate system monitoring, the detection of gases, ventilation practices, extinguishing methods, and critical information.

[1] A thermal Runaway occurs in situations where an increase in temperature changes the conditions in a way that causes a further increase in temperature.

[2] https://www.aps.com/en/About/Our-Company/Newsroom/Articles/Equipment-failure-at-McMicken-Battery-Facility

[USA] President Trump to nominate a pair of Democrat and Republican appointees to FERC

On July 27, 2020, the White House announced President Donald Trump’s intention to nominate Democrat Allison Clements and Republican Mark Christie to the Federal Energy Regulatory Commission (FERC).[1] According to the White House, Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004.

The commission is composed of five commissioners who are nominated by the U.S. President and confirmed by the U.S. Senate. No more than three commissioners of one political party may serve on the commission at any given time. As of July 2020, FERC is one commissioner short and has a 3-1 Republican majority. The current members are Chairman Neil Chatterjee (R), Commissioner Bernard McNamee (R), Commissioner James Danly (R), and Commissioner Richard Glick (D). McNamee’s term ended on June 30, 2020, but he has stayed on until a replacement is confirmed. If confirmed by the Senate, Christie will take McNamee’s seat on the commission.

In March 2020, Senate Energy and Natural Resources (ENR) Chair Senator Lisa Murkowski (R-Alaska), and Ranking Member Joe Manchin (D-W. Virginia) expressed frustration with the White House's lack of movement on bringing forward a Democratic nominee along with the nomination of Danly, as is the tradition of nominations to the agency.[2]

[1] https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-appoint-following-individuals-key-administration-posts-072720/

[2] https://www.utilitydive.com/news/senate-confirms-danly-but-manchin-pledges-to-hold-out-for-democratic-ferc/573430/

[USA] FERC finalizes updates to PURPA

On July 16, 2020, the Federal Energy Regulatory Commission (FERC) issued a final order in a 3-1 vote to finalize its updates to the Public Utility Regulatory Policies Act (PURPA), a 1978 law to reduce demand and promote greater use of domestic energy and renewable energy.[1] FERC stated that the updates are an effort to preserve competition and give states more flexibility in executing PURPA. One of the biggest changes allows states to set the rates paid to qualifying facilities at a variable wholesale rate rather than a fixed cost, meaning that the price will vary with the markets. Utilities and state regulators have expressed frustrations in the past with paying fixed rates to qualifying facilities, arguing that it prevents more efficient and cost-effective renewable facilities from competing.

FERC also changed how proposed projects qualify for PURPA financing rules, reducing the upper limit for facilities from 20 MW to 5 MW. This essentially means that utilities are no longer obligated to purchase from qualifying renewable facilities above that threshold. Another modification FERC made was to change the one-mile rule to prevent facilities 10 or more miles apart from aggregating as a single project. Facilities under 10 miles apart can still choose whether to aggregate. The change to the one-mile rule is one that Commissioner Richard Glick, who dissented to the other changes, sees as reasonable.

[1] https://www.ferc.gov/news-events/news/ferc-modernizes-purpa-rules-ensure-compliance-reflect-todays-markets

[USA] Microsoft announces first investment from $1 billion climate fund

On July 21, 2020, Microsoft announced its first investment from a $1 billion climate fund aimed at investing in early-stage clean energy technology.[1] Microsoft announced the climate fund in January 2020 to support low-carbon technologies and achieve its goal of becoming “carbon negative”[2] by 2030.[3] The $50 million investment will go to Energy Impact Partners’ (EIP) global platform for innovation of new technologies. EIP is a New York-based investment firm that has served as a link between renewable energy startups and several of the U.S.’s largest utilities, including Southern Company and Xcel Energy. EIP manages about $1.2 billion in assets and has invested in a wide array of technologies such as smart home thermostats and software services for solar and gas pipeline projects. One of its notable investments was Greenlots, an electric vehicle charging software provider that was later sold to Royal Dutch Shell PLC. According to spokespeople for the Microsoft, the company will not take a direct stake in any startups as part of this investment, though it may take advantage of debt or equity if a startup was successful.

[1] https://www.bloomberg.com/news/articles/2020-07-21/microsoft-nike-unilever-announce-global-carbon-neutral-group

[2] “carbon negative” here means that Microsoft plans to reduce their carbon footprint to less than neutral (i.e. removing carbon from the atmosphere)

[3] https://www.microsoft.com/en-us/corporate-responsibility/sustainability/climate-innovation-fund

[USA] Enel Green Power begins construction on 146 MW PV and battery facility

Enel Green Power, an Italian multinational renewable energy corporation with roughly 100 renewable power plants in North America, announced on July 21, 2020 that it began constructing a 146 MW photovoltaic (PV) facility co-located with a 50 MW/75 MWh battery in Texas, its first utility-scale hybrid project in North America.[1] The project is scheduled to be operation by summer 2021. In the press release, CEO of Enel Green Power, Antonio Cammisecra, said, “The Lily solar plus storage project highlights the huge potential of renewable energy growth and represents the future of power generation, which will increasingly be made up by sustainable, flexible plants that provide zero-carbon electricity while boosting grid stability.”

Enel also announced that it plans to deploy an additional 1 GW of battery storage capacity across its renewable projects in the U.S. over the next two years. To achieve this, Enel plans to set up 1 GW of utility-scale wind and solar projects in the U.S. and Canada annually through 2022 and evaluate the potential for co-located storage for each project. According to the company, that storage could provide benefits like bolstering grid reliability and further monetizing energy production.

[1] https://www.enelgreenpower.com/media/press/2020/07/enel-green-power-starts-construction-of-its-first-renewables-storage-project-in-north-america

[USA] D.C. Circuit upholds FERC energy storage order

On July 10, 2020, the U.S. Court of Appeals for the District of Columbia Circuit upheld a 2018 Federal Energy Regulatory Commission (FERC) order, Order No. 841, promoting the participation of energy storage technologies like batteries on the electric grid.[1] The court ruled that the order does not infringe upon states’ authority over distribution systems. Order No. 841 is intended to reduce barriers for energy storage resources (ESR) to access the federal wholesale electricity market. While the order is broadly seen by the storage and clean energy advocates as key to furthering the deployment of energy storage, groups like the National Association of Regulatory Utility Commissioners (NARUC), a national association representing State Public Service Commissioners, argued that the order is an attempt to curtail state authority over the distribution system. Specifically, NARUC argued that certain parts of the order, such as blocking states from making rules to “broadly prohibit” energy storage from participating in federally regulated wholesale markets, are violating states’ authority. The three-judge panel of the court found that FERC is within its legal authority under the Federal Power Act (FPA) to ensure storage rules and practices involving wholesale rates are just and reasonable because the order only regulates matters concerning federal transactions.

[1] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/dc-circuit-upholds-landmark-ferc-order-aimed-at-boosting-energy-storage-59391742

[USA] Biden outlines $2 trillion climate plan

In a speech on July 14, 2020, presidential candidate Joe Biden outlined his climate plan which seeks to invest nearly $2 trillion to boost renewable energy and rebuild infrastructure with the goal of achieving net-zero carbon emissions by 2050.[1] [2] The plan is the second piece of Biden’s new economic agenda (called "Build Back Better") which he first detailed on July 9, 2020.[3] Biden has described the plan as a “one-time” opportunity to reestablish the U.S. as an economic and political leader.

The plan calls for major investments in infrastructure, the auto-industry, transit, buildings, the power sector, housing, innovation, agriculture and conservation, and environmental justice. These investments would include electrifying government-owned vehicle fleets, creating a nationwide network of 500,000 electric vehicle (EV) charging stations, building 1.5 million energy efficient homes, retrofitting 4 million buildings, and decarbonizing electrical generation. Biden’s plan also emphasizes the importance keeping existing carbon-free energy provided by nuclear and hydropower while investing in new technologies like renewable hydrogen and advanced nuclear. According to Biden, the sweeping investments proposed in his plan would spur millions of jobs and would end carbon-based electrical generation by 2035.

[1] https://joebiden.com/clean-energy/

[2] https://www.npr.org/2020/07/14/890814007/biden-outlines-2-trillion-climate-plan

[3] https://joebiden.com/build-back-better/

[USA] 15 states and D.C. announce joint MOU to accelerate bus and truck electrification

In a press release on July 14, 2020 by the Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit association of air quality agencies in the Northeast, governors from 15 states and the mayor of Washington, D.C.[1] announced a memorandum of understanding (MOU) committing to zero-emissions vehicles (ZEV) in 100% of medium- and heavy-duty sales by 2050 and interim target of 30% electric vehicle (EV) sales by 2030.[2][3] Collectively, these states account for nearly 50% of the U.S. economy and about 40% of goods moved by truck (by value).[4] To meet the targets of the MOU, key policies, including the Advanced Clean Truck Rule (California’s  zero-emission commercial truck requirement) and investments in electric vehicle charging infrastructure, are identified in the MOU.

The participating locations will work through NESCAUM’s Multi-State ZEV Task Force to develop a roadmap to increase electric vehicle supply, encourage zero-emission vehicle purchases, and establish a supportive ecosystem comprised of a trained workforce, charging infrastructure, and financing tools. The Multi-State ZEV Task Force’s 2018 action plan focused on light-duty vehicles. Under the MOU, the task force will focus on developing a plan for heavy duty vehicles like trucks and buses in the next six months.

[1] Participating locations: California, Colorado, Connecticut, Washington D.C., Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Vermont

[2] https://www.nescaum.org/about-us/newsroom/#

[3]http://d31hzlhk6di2h5.cloudfront.net/20200714/dc/3a/2b/58/794e750e808dd4a82ae402dd/MHDV_ZEV_MOU_7-14-20.pdf

[4] https://www.nrdc.org/experts/patricio-portillo/15-states-take-historic-action-transportation-pollution

[USA] Department of Homeland Security announces plan for securing critical infrastructure against cyberattacks

On July 7, 2020, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), the federal civilian agency responsible for advising critical infrastructure (CI) partners on how to manage industrial control systems (ICS) risk, revealed a five-year plan titled Securing Industrial Control Systems: A Unified Initiative FY 2019–2023 to address the challenges posed by protecting critical infrastructure networks from hackers.[1] ICS is a term used to describe different types of control systems which include the devices, systems, networks, and controls used to operate or automate industrial processes. ICS underpin everything from power grids to oil and gas pipelines. According to CISA, cyberattacks on ICS can "result in significant physical consequences, including loss of life, property damage, and disruption of the essential services and critical functions upon which society relies.” CISA’s plan lays out a four-part initiative to secure ICS against cyber threats. The four parts are: (1) deepen existing partnerships while expanding the scope of activities with the broader ICS community; (2) develop and use technology to mature ICS cyber defense; (3) build “deep data” capabilities to analyze and deliver information the can be used to disrupt cyberattacks; and (4) enable informed and proactive security investments by understanding and anticipating ICS risk.

[1] https://www.cisa.gov/publication/securing-industrial-control-systems

[USA] Sunrun strikes deal to acquire Vivint Solar for $1.46 billion

Sunrun, the largest residential solar company in the U.S., announced on July 6, 2020 that it has struck a deal to acquire residential energy competitor Vivint Solar, the second largest residential solar company in the U.S., for about $1.46 billion in an all-stock deal, a type acquisition where shareholders of the acquired company receive shares in the acquiring company as payment rather than cash.[1] Sunrun offers energy storage and grid services, working directly with utilities and grid operators. Vivint targets customers through direct-to-home sales which eases customer access to services and drives product purchases. Sunrun shareholders will hold about 64% of the combined company. The deal is expected to deliver about $90 million in annual cost savings between the companies. Based on Sunrun’s stock price on July 6, 2020, the combined entity will be valued at approximately $9.2 billion. In a statement regarding the acquisition, Sunrun said, "We expect to benefit from efficiencies in large scale project finance capital raising activities and are excited about the opportunity to build an even stronger and more recognizable consumer brand in residential energy services.”

[1] https://investors.sunrun.com/news-events/press-releases/detail/207/sunrun-announces-definitive-agreement-to-acquire-vivint

[USA] Duke and Dominion cancel Atlantic Coast Pipeline amid ongoing legal battles

On July 5, 2020, Duke Energy and Dominion Energy announced that they are cancelling the Atlantic Coast Pipeline—originally slated to run 600 miles from West Virginia to eastern North Carolina to provide additional natural gas capacity in the region—due to ongoing delays and cost uncertainty.[1][2] The Atlantic Coast Pipeline project has run into several legal challenges which has increased cost estimates from $4.5 billion to $8 billion. In June 2020, the Supreme Court ruled 7-2 overturning a lower court’s decision to block the pipeline from crossing beneath the Appalachian Trail, a protected national scenic trail overseen by the U.S. Forest Service. Despite this win, Duke and Dominion pointed to other legal battles as barriers to the project. In particular, the U.S. District Court for the District of Montana decision to overturn federal permit authority for waterbody and wetland crossings and a Ninth Circuit ruling on May 28, 2020 are stated as major concerns.

In addition to the announcement regarding the Atlantic Coast Pipeline, Dominion announced the sale of its natural gas transmission and storage assets to a Berkshire Hathaway affiliate for $9.7 billion.[3] However, this sale does not include Dominion's interest in the Atlantic Coast Pipeline.

[1] https://news.duke-energy.com/releases/dominion-energy-and-duke-energy-cancel-the-atlantic-coast-pipeline

[2] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-and-Duke-Energy-Cancel-the-Atlantic-Coast-Pipeline

[3] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-Agrees-to-Sell-Gas-Transmission-Storage-Assets-to-Berkshire-Hathaway-Energy-Strategic-Repositioning-Toward-Pure-Play-State-Regulated-Sustainability-Focused-Utility-Operations

[USA] House Democrats release new proposal to address climate crisis

On June 20, 2020, Democrats in the House Select Committee on the Climate Crisis released a comprehensive proposal called the Climate Crisis Action Plan which establishes a goal of reaching net-zero greenhouse gas (GHG) emissions in the United States by 2050; directs the president to set ambitious interim targets to meet or exceed that goal; and calls for achieving net-negative GHG emissions after 2050.[1] The report recommends investments in infrastructure; investments in clean energy and decarbonization technologies; and decarbonization of the transportation and electricity sectors. The report does not directly recommend an end to natural gas fracking or coal-fired power. It also leaves the door open for carbon capture technology and nuclear power to play a role in a net zero-carbon grid.

The majority staff for the Select Committee previewed its draft policy recommendations with Energy Innovation: Policy and Technology LLC (Energy Innovation), a nonpartisan think tank. Energy Innovation modelled the emissions reductions and co-benefits from implementing a subset of the Select Committee’s recommendations. According to Energy Innovation, the Select Committee majority staff’s policy recommendations will set the country on a path to achieving net-zero greenhouse gas emissions by 2050.

[1] https://climatecrisis.house.gov/sites/climatecrisis.house.gov/files/Climate%20Crisis%20Action%20Plan.pdf

[USA] U.S. Department of Commerce recommends tariffs on wind tower imports from four countries

On June 30, 2020, the U.S. Department of Commerce announced the results of its antidumping duty and countervailing duty investigations into importers of wind towers from Canada, Indonesia, South Korea (antidumping only), and Vietnam.[1] According to the Department of Commerce, importers of wind towers from these countries sold their products at less than fair value in the United States. Antidumping duties prevent products manufactured overseas from being sold by foreign firms in the U.S. at "less than fair value.” Countervailing duties attempt to offset the subsidies that foreign governments provide for some exporting firms by imposing duties on the goods exported to the U.S. According to the Department of Commerce, the four countries combined accounted for about 76% of all imported utility-scale wind towers in 2019, or about $350 million worth. The Department of Commerce recommended tariffs ranging from roughly 5% (Korean imports) to 66% (Vietnamese imports) of the value of the imports. Those fees would go into effect if the U.S. International Trade Commission decides to support the recommendation in August 2020.

The Department of Commerce investigation stems from a request made in July 2019 by the Wind Tower Trade Coalition (WTTC), which argued that imports were undercutting U.S. producers. However, a majority of the wind industry oppose the request. The American Wind Energy Association (AWEA) has warned that the request would raise the average cost of wind turbines by 10% to 18%.[2]

[1] https://www.trade.gov/press-release/us-department-commerce-finds-dumping-and-countervailable-subsidization-imports-0

[2] https://www.awea.org/Awea/media/Resources/Fact%20Sheets/AWEA_Tariffs-Put-Jobs-at-Risk-FINAL.pdf

[USA] Dominion announces successful installation of 2nd offshore wind farm in United States

Dominion Energy announced on June 29, 2020 that it has successfully installed its two turbine, 12-megawatt Coastal Virginia Offshore Wind (CVOW) pilot project 27 miles off Virginia Beach.[1] The CVOW pilot project is the first offshore wind farm to be installed in federal waters and is the second offshore wind farm in the United States. The CVOW pilot project—engineered and constructed by the world's largest offshore wind developer, Ørsted A/S—is currently undergoing testing and is anticipated to come online by the end of summer 2020. According to Dominion, the pilot will provide enough power at peak capacity to power 3,000 homes. The pilot project lays the groundwork for a separate Dominion 2,600-MW proposal which will be built in multiple phases about 30 miles from Virginia Beach starting in 2024 and generate enough power for 650,000 homes. In a statement, Dominion Energy Chairman, President and CEO Thomas F. Farrell, II said, "The construction of these two turbines is a major milestone not only for offshore wind in Virginia but also for offshore wind in the United States.” He also emphasized the importance of the pilot for bringing new clean energy jobs to Virginia, which Virginia Governor Ralph Northam echoed in his own statement.

[1] https://news.dominionenergy.com/2020-06-29-Dominion-Energy-Completes-Construction-of-First-Offshore-Wind-Project-in-U-S-Federal-Waters

[Japan] Japan’s Ministry of Economy, Trade, and Industry Issued an Interim Report on the Post-2020 Infrastructure Systems Export Strategy

On May 21, 2020, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that the Roundtable Panel for the Post-2020 Infrastructure Systems Export Strategy had published its interim report. The interim report includes the results of discussions from the two sessions held by the panel on April 24, 2020 and May 11, 2020. The panel discussed Japan’s current position in the global market. The panel also discussed strategies for promoting the export of electricity and energy infrastructure systems moving forward, considering the global economy, environmental issues, and the new challenges introduced by COVID-19. The panel consists of members from industry, government, and experts in the fields.

The report noted that access to a stable electricity supply is increasing in global importance. In the short-term, the outbreak of COVID-19 has accelerated the digitalization of society as more people work remotely and rely on online services, which has increased the demand for electricity. In the medium to long term, the electricity demand will continue to grow primarily in the Asia Pacific due to regional population and economic growth.

There will be a shift to renewable energy and distributed energy resources globally. However, it is expected that many emerging countries will continue to rely on fossil fuels to meet their electricity demand. The report also noted that the market environment for sustainable energy solutions will become increasingly competitive as the interest in SDGs (Sustainable Development Goals) rises. 

Recognizing the increasing competition in the global market, the report provided a potential approach for the Japanese government and industry to support energy and electricity infrastructure systems exports. It addressed the importance of strengthening public and private partnerships in order to put forward projects that cater towards each country’s energy and sustainability goals in terms of technology solutions, infrastructure, capacity building, and financing. The report recommends that Japanese industry members should accelerate their renewable energy systems exports and focus on Japan’s competitive areas, such as offshore wind and consumer energy solutions. The report also identified other potential areas for opportunities, including hydrogen utilization, CCS (Carbon Capture and Storage), energy efficiency, and advanced coal fired technologies.[1] [2] [3]

[1] https://www.meti.go.jp/press/2020/05/20200521001/20200521001-1.pdf

[2] https://www.meti.go.jp/press/2020/05/20200521001/20200521001.html

[3] https://www.meti.go.jp/english/press/2020/0521_003.html

[USA] West Coast utilities propose charging stations for electric trucks along I-5 and connected highways

In a report issued on June 17, 2020 through the West Coast Clean Transit Corridor Initiative, nine West Coast utilities and two agencies representing 24 municipal utilities[1] have recommended electric-charging stations for trucks every 50 miles along Interstate 5 (I-5) and connecting highways.[2] [3] According to the report, the first phase would build 27 sites along I-5 for medium-duty electric vehicles (EVs) by 2025. By 2030, 14 of those charging sites would be expanded to also accommodate heavy duty EVs. The report says that by 2030, 8% of all trucks on the road in California are expected to be electric. Sixteen of the sites will be in California, five in Oregon, and six in Washington. The report found that the plan could take years because rural areas do not have the generating capacity for charging medium-duty EVs and no rural area along I-5 can serve heavy-duty EVs so infrastructure to provide these services have to be built. However, most utilities in urban areas have the ability offer medium-duty EV charging.

The report recommends expanding state, federal, or private programs that provide funding for electrification. Several utilities in California like Pacific Gas & Electric Company (PG&E) and Southern California Edison (SCE) have programs that support the adoption of electric trucks, but more support will be needed for the report’s recommended infrastructure.

[1] Los Angeles Department of Water & Power (LADWP), Northern California Power Agency (NCPA), Pacific Gas and Electric Company (PG&E), Pacific Power, Portland General Electric (PGE), Puget Sound Energy (PSE), Sacramento Municipal Utility District (SMUD), San Diego Gas & Electric (SDG&E), Seattle City Light (SCL), Southern California Edison (SCE), and Southern California Public Power Authority (SCPPA)

[2] https://westcoastcleantransit.com/resources/WestCoastCleanTransitNewsRelease-Website.pdf

[3] https://www.westcoastcleantransit.com/#resources-section

[USA] FERC issues white paper considering incentives for voluntary cybersecurity investments

On June 18, 2020, the Federal Energy Regulatory Commission (FERC) released a white paper on transmission incentives for utilities making cybersecurity enhancements to the electric grid.[1] The white paper asks stakeholders to address a variety of questions, including whether a project- specific return on equity (ROE) for voluntarily employing cybersecurity enhancements is enough to incentivize investments that exceed the requirements of the Critical Infrastructure Protection (CIP) Reliability Standards. For non-ROE incentives, the white paper proposes that cybersecurity investments be eligible for Construction Work in Progress, recovery of abandoned plant costs, and accelerated depreciation which are the same incentives offered under FERC’s electric transmission incentives policy. Construction Work in Progress incentives allow a party to record the current costs related to long-term projects. Recovery of abandoned plant costs is the ability of an entity to recover costs if the project is canceled for reasons beyond the entity's control. Accelerated depreciation allows for greater tax deductions in the early years of an asset. The white paper requests comments on the paper within 60 days and reply comments within 75 days.

[1] https://www.ferc.gov/sites/default/files/2020-06/notice-cybersecurity.pdf

[USA] Report: U.S. local governments signed 335 renewable energy deals since 2015

According to data released on June 17, 2020 from the Local Government Renewables Action Tracker, local governments have signed 335 deals to procure 8.28 gigawatts (GW) of renewable energy in the last five years.[1] [2] That figure is more than the total combined energy generation capacity of Alaska, Hawaii, Rhode Island, and Vermont. A few of the largest deals from the last five years include a 50 MW solar deal by Sanford, Maine, and a 100 MW deal by Cincinnati, Ohio. The Local Government Renewables Action Tracker was created by the American Cities Climate Challenge Renewables Accelerator, an initiative that supports Bloomberg Philanthropy’s cities renewable program, to show and support the growing shift by local governments toward clean energy. The tracker has two primary components: a transaction map that shows all renewable energy transaction implemented by local governments from January 1, 2015 to March 31, 2020; and an engagement map that details the efforts those governments have made to advance their renewable goals.

[1] https://www.wri.org/news/2020/06/release-us-local-governments-lead-way-clean-energy-transition

[2] https://cityrenewables.org/local-government-renewables-action-tracker/

[USA] Vectren Energy announces plans to reduce coal mix 78% to 12% by 2025

On June 15, 2020, Vectren Energy, a subsidiary of CenterPoint Energy based in Indiana and parts of Ohio, announced it would retire 730 MW of coal by 2030 which would bring its resource mix to 12% coal-fired power by 2025.[1] As of 2020, the utility’s generation portfolio is 78% coal. Under Vectren’s preferred integrated resource plan (IRP), which is based on an all-resource request for proposals, the utility would add 700 MW to 1000 MW of solar+storage, 300 MW of wind, 30 MW of demand response resources and 460 MW of combustion turbine natural gas plants. In total, the mix would be 64% renewable energy plus demand response by 2025. According to Vectren, the proposed plan is expected to reduce greenhouse gas emissions (GHG) 75% below 2005 levels by 2035 and save customers up to $320 million over the next 20 years.

In recent years, the utility has been under pressure from state legislators to keep Indiana coal online. In 2019, Indiana lawmakers proposed legislation that would place a moratorium on new resources in the state in order to protect coal-fired power from getting replaced.[2] Though the bill failed in the 2019 legislative session, in early 2020 lawmakers passed House Bill 1414 which makes coal plants in the state more difficult to retire.[3] Vectren’s new plan, though, bucks these pressures.

[1] https://www.centerpointenergy.com/en-us/corporate/about-us/news/1348

[2] http://iga.in.gov/documents/b14c355b

[3] https://legiscan.com/IN/bill/HB1414/2020