[USA] Uber commits to being a zero emissions platform by 2040

On September 8, 2020, Uber, a ride-share company, announced that it is committed to becoming a zero emissions company by 2040. Uber is striving for 100% of its rides to take place in zero-emission vehicles, public transit, and micromobility—small, lightweight vehicles operating at speeds typically below 15 mph (25 km/h).[1] Uber CEO Dara Khosrowshahi detailed four key actions the company will take to meet this goal. First, Uber plans on expanding its Uber Green program, which enables riders to request an EV or hybrid vehicle for an extra $1 per ride, to 15 U.S. and Canadian cities, bringing the total to 52 globally. By the end of 2020, Uber plans on expanding the program to more than 65 cities. Second, the company will commit $800 million in resources to help drivers in the U.S., Canada and Europe transition to electric vehicles (EVs) or hybrid vehicles by 2025. Drivers who transition to EVs or hybrid vehicles will receive up to $1.50 in extra cash per ride. Third, Uber will increase its investments in micromobility and public transit solutions. And lastly, Uber launched its Climate Assessment and Performance Report which analyzes data collected from 4 billion rides between 2017 and 2019 to detail the company’s carbon intensity, the efficiency of its platform compared to personal vehicles or taxis, and the barriers to electrification.

[1] https://www.uber.com/newsroom/driving-a-green-recovery/

[USA] DOE issues order to ramp up generation from gas plants in light of increased demand in California

In light of increased demand due to a massive heatwave, the Department of Energy (DOE) issued an order on September 6, 2020 allowing the California Independent System Operator (CAISO) to dispatch up to 100 MW of additional generation from three plants in the Los Angeles region, if needed, to meet demand through September 13, 2020 between 2 p.m. and 10 p.m. each day.[1] On September 5, 2020, the CAISO issued a Stage 2 emergency[2] after fires took out around 1,600 MW of resources. Another emergency was declared on September 6, 2020 after 260 MW of generation tripped offline and an additional 900 MW of capacity was lost.

The rising demand prompted CAISO to instruct all the generators in its footprint to ramp up to maximum production capacity during specific times of the day. However, the operator of the three natural gas facilities — the El Segundo Energy Center, Walnut Creek Energy Park and Long Beach Generating Station — informed CAISO that it could not hit maximum capability without going above federal air quality. In light of this, CAISO requested that the DOE allow for leeway on environmental and air quality permit limitations for the plants. While the DOE granted this in its order on September 6, 2020, CAISO will have to submit a report to the DOE detailing when the facilities were operated and the estimated emissions that resulted.

[1] https://www.energy.gov/sites/prod/files/2020/09/f78/CAISO%20202c%20Order_1.pdf

[2] Requires ISO intervention in the market, such as ordering power plants online

[Japan] TEPCO Power Grid and Kansai Transmission and Distribution Jointly Launched the Smart Resilience Network

On August 5, 2020, TEPCO Power Grid (Headquarters: Tokyo) and Kansai Transmission and Distribution (Headquarters: Osaka Prefecture) announced that they have jointly launched the Smart Resilience Network, which aims to accelerate the implementation of Distributed Energy Resource (DER) systems to build more a sustainable and resilient energy infrastructure in Japan.

There has been increased pressure in recent years for companies to develop their infrastructure’s resilience to natural disasters, and to reduce their CO2 emissions as a part of their climate change mitigation activities. The Smart Resilience Network will invite partners from industry and academia to participate in data and information exchanges to explore ways to expand the use and applications of DER systems. The Network hopes that DER systems will facilitate the implementation of renewable energy and electrification activities such as the use of EVs in the mobility sector to reduce CO2 emissions. The network will also explore opportunities to use digital technologies, such as IoT and 5G, to integrate DER systems with local infrastructure for improved disaster resiliency and recovery.

TEPCO Power Grid and Kansai Transmission and Distribution see DER systems as potential solutions for accelerating the transition towards a low-carbon society, as well as supporting communities in their efforts to improve their disaster resilience.[1] [2]

[1] https://www.tepco.co.jp/pg/company/press-information/press/2020/1548526_8615.html

[2] https://www.tepco.co.jp/pg/company/press-information/press/2020/pdf/200805j0101.pdf

[Japan] Tokyo Gas America Established a Subsidiary in the U.S. and Acquired the Aktina Solar Project in Texas State

On July 29, 2020, Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas headquartered in Houston City, Texas, announced that it had established the TG Aktina Holdings and its subsidiaries in Delaware, and will purchase the Aktina Solar Project (Aktina Solar) through the TG Aktina Holdings. The acquisition of Aktina Solar was completed on August 5, 2020.

Aktina Solar was developed by a renewable energy development company, Hecate Energy (Headquarters: Chicago, Illinois). The project is located in Wharton County, Texas State. The current installed solar capacity is relatively low in Texas, but it is expected to grow in the future as the state has seen one of the highest GDP growth rate and population growth rates in the U.S., and is suitable for solar energy generation. Atkina Solar marks the first time for Tokyo Gas Group to participate in an overseas solar power generation business from construction to operation. Aktina Solar will start construction in 2020 and will begin commercial operations in 2021. The expected maximum capacity is 630MW.

With the addition of the Aktina Solar Project, Tokyo Gas’ total renewable energy capacity will be over 1,200MW. Based on Tokyo Gas’ Management Vision Compass 2030, Tokyo Gas aims to achieve net-zero CO2 emissions and reach 5GW of renewable power generation capacity by 2030.[1]

[1] https://www.tokyo-gas.co.jp/Press/20200729-03.html

[USA] ESA announces vision for 100 GW of new energy storage

On August 24, 2020, the Energy Storage Association (ESA), the national trade association dedicated to energy storage, announced an expanded vision for energy storage called 100×30: Enabling the Clean Power Transformation which charts a path for the storage industry to deploy 100 GW of new storage by 2030.[1] [2] The vision is informed by market developments and draws inspiration from ESA’s 2017 vision document (35×25: A Vision for Energy Storage). The 100 GW of new energy storage will include technologies like batteries, thermal, mechanical, and pumped storage hydropower. According to the ESA, 100 GW of storage deployment by 2030 would produce 200,000 jobs which is approximately three times current levels. This figure assumes that 100 GW of new storage will lead to 15 GW to 20 GW of annual installations for 2030, at a rate of 10 jobs per MW installed. The 100 GW will also reduce operating costs of the grid and lower customer cost. It will also significantly reduce emissions by enabling greater amounts of clean generation to reliably displace fossil generation

In order to reach the new goal, the ESA says that policy support is key. At the federal level, ESA points to a combination of increased policy support like investment tax credits (ITCs) for standalone storage facilities and the continuation of emerging policies that remove barriers to market participation. At the state level, ESA says energy storage targets corresponding with renewable portfolio standards will be important tools to ready the grid for increased renewable penetrations.

[1] https://energystorage.org/the-u-s-energy-storage-association-reveals-100x30-vision-for-the-industry/

[2] https://energystorage.org/about-esa/our-plan/100x30-a-vision-for-energy-storage/

[USA] Report: Southeast RTO could generate $384 billion in savings by 2040

According to a new report released by Vibrant Clean Energy on behalf of Energy Innovation on August 25, 2020, establishing a regional transmission organization (RTO), an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid, in the Southeast would generate a cumulative $384 billion in savings by 2040 compared to a business-as-usual scenario.[1] [2] The analysis follows confirmation by utilities like Southern Company and Duke Energy that there are ongoing discussions about forming a Southeast Energy Exchange Market (SEEM). The report did not model a SEEM-based scenario due to a lack of details. Instead, the study presents a scenario where an RTO is established in 2025 to cover seven states that are currently not covered by an RTO or independent system operator (ISO): Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee. The report maps the effects of a Southeastern RTO from 2025 through 2040.

Under this scenario, an RTO would save customers $17.4 billion a year and lead to the retirement of most coal plants and gas peakers in the region by 2040. The report also found that competitive pricing through an RTO would lead to decarbonization without state policies like carbon pricing and renewable energy mandates. On its current course, the region will about 21 GW of new renewables and storage by 2040. However, competitive pricing from a wholesale market could add 131 GW of clean energy: 52 GW solar, 42 GW wind and 37 GW storage.

[1] https://energyinnovation.org/wp-content/uploads/2020/08/Economic-And-Clean-Energy-Benefits-Of-Establishing-A-Southeast-U.S.-Competitive-Wholesale-Electricity-Market_FINAL.pdf

[2] https://energyinnovation.org/publication/economic-and-clean-energy-benefits-of-establishing-a-southeast-u-s-competitive-wholesale-electricity-market/

[USA] California experiences rolling blackouts as heatwave continues

On August 19, 2020, officials from California Independent System Operator (CAISO), the California Public Utilities Commission (CPUC), and the California Energy Commission (CEC) sent a letter to California Governor Gavin Newsom regarding the power outages of August 14 and 15 that were triggered due to insufficient resources.[1] According to the letter, CAISO anticipated high loads and temperatures beginning on August 14, so it issued an order restricting maintenance operations on August 12, an alert identifying a possible system reserve deficiency on August 13, and a Flex Alert[2] for August 14.  However, on the afternoon of August 14, the situation deteriorated due to a developing, historic west-wide heatwave. The imbalance in supply and demand forced utilities to turn off power to their customers during the evening of August 14. On August 15, CAISO experienced similar conditions which led to further shutoffs. In the near term, CAISO expects that energy demand will remain high as the heatwave persists.

CAISO recognized that although the specific situation could not have been predicted, better communications and advance warnings should have been implemented. In their letter, the regulators pointed to capacity shortfalls and California's heavy reliance on importing resources to meet its energy demand in the summer as key factors in the blackouts. The regulators stated that they will need to perform a deep dive into the issue to make sure reliability resources can be available to address unexpected grid conditions.

[1]https://www.cpuc.ca.gov/uploadedFiles/CPUCWebsite/Content/News_Room/NewsUpdates/2020/Joint%20Response%20to%20Governor%20Newsom%20Letter%20August192020.pdf

[2] A Flex Alert is a call for consumers to voluntarily conserve electricity when there is a predicted shortage of energy supply

[USA] Indiana regulators release report on state energy policies and market conditions

The Indiana Utility Regulatory Commission (IURC) delivered a 338-page study to the governor and a legislative task force on August 14, 2020, analyzing a variety of state energy policies and market conditions.[1] The House Enrolled Act 1278 of 2019 directed the IURC to conduct a comprehensive study of the statewide impacts of transitions in the fuel sources and other resources used to generate electricity by electric utilities and new and emerging technologies for the generation of electricity. While the report was overseen by the IURC, the analysis was done by the State Utility Forecasting Group (SUFG), the Lawrence Berkley National Laboratory (LBNL) and a team of Indiana University (IU) researchers.

Among the scenarios analyzed in the report, two considered the cost impact of a moratorium on coal plant retirements. In one, coal plant retirements would be postponed until at least 2025 and in the other, coal plants would run until 2030. In both scenarios, the analysis showed that postponed coal retirements would lead to slightly higher electricity prices. The IURC study also examined the roles of regional transmission organizations (RTOs), utility-integrated resource plans, and how emerging technologies like rooftop solar and electric vehicles (EVs) would affect Indiana's grid. While the report does not make any specific recommendations, it supports the need for flexibility in planning and the continued reliance on utility integrated resource plans (IRPs) that outline how utilities plan to meet energy demand. IRPs are submitted to the IURC every three years and while they are nonbinding, IRPs help guide power plant investment decisions.

[1]https://www.in.gov/iurc/files/2020%20Report%20to%20the%2021st%20Century%20Energy%20Policy%20Development%20Task%20Force.pdf

[USA] Interior Secretary signs a record of decision authorizing ANWR oil and gas leasing program

On August 17, 2020, Interior Secretary David L. Bernhardt signed a Record of Decision (ROD) approving the Coastal Plain Oil and Gas Leasing Program in the Arctic National Wildlife Refuge (ANWR) in Alaska.[1][2] The Tax Cuts and Jobs Act of 2017 (Public Law 115-97), passed by Congress and signed into law in late 2017, directs the Secretary of the Interior, through the Bureau of Land Management (BLM), to establish and administer a leasing program in the 1.46 million-acre Coastal Plain, a section within the 19.3 million-acre ANWR. Secretary Bernhardt’s August decision determines where and under what terms and conditions leasing will occur in the designated area.

The ROD makes the entire Coastal Plain program area available for oil and gas leasing, and for potential future exploration, development and transportation. The program adopted in the ROD also offers protections for surface resources and other uses through an array of lease stipulations that will apply to future oil and gas activities. Approximately 359,400 acres (23% of available lands) will be subject to No Surface Occupancy (NSO)[3] stipulations within barrier islands and important aquatic habitats, and that approximately 721,200 acres (46% of available lands) will be subject to operational timing limitations in the primary calving habitat area for the Porcupine caribou herd.

[1] https://www.doi.gov/pressreleases/secretary-bernhardt-signs-decision-implement-coastal-plain-oil-and-gas-leasing-program

[2]https://eplanning.blm.gov/public_projects/102555/200241580/20024135/250030339/Coastal%20Plain%20Record%20of%20Decision.pdf

[3] NSO prevents surface disturbing activities from occurring in specific areas

[USA] EPRI and GTI launch Low-Carbon Resources Initiative

On August 10, 2020, some of the nation’s largest utilities and energy firms launched the Low-Carbon Resources Initiative (LCRI), a $100 million initiative to bring early-stage technologies like clean energy and bioenergy to large-scale deployment in the 2030 to 2050 timeframe.[1][2] This five-year initiative will identify and accelerate development of promising technologies from around the world. Additionally, it will demonstrate and assess the performance of key technologies and identify possible improvements. Lastly, it will inform key stakeholders and the public about technology options and potential pathways to a low-carbon future.

The initiative was organized by the Electric Power Research Institute (EPRI) and the Gas Technology Institute (GTI). EPRI will provide $10 million in seed funding. The initiative's 18 members are American Electric Power; Con Edison; Dominion Energy; Duke Energy; Exelon Corporation; Lincoln Electric System; Los Angeles Department of Water & Power; Missouri River Energy Services; Mitsubishi Hitachi Power Systems, Americas; National Fuel; New York Power Authority; Portland General Electric; PPL Corporation; Salt River Project; SoCalGas; Southern California Edison; Southern Company; and the Tennessee Valley Authority.

[1] https://www.epri.com/lcri

[2] https://www.greencarcongress.com/2020/08/20200811-lcri.html

[USA] FERC report: HV transmission is essential for renewable deployment

On August 7, 2020, the Federal Energy Regulatory Commission (FERC) sent a report, "Report on Barriers and Opportunities for High Voltage Transmission", to Congress addressing strategies for building more high-voltage (HV) transmission lines.[1]  According to the report, HV transmission can improve the reliability and resilience of the transmission system “by allowing utilities to share generating resources, enhance the stability of the existing transmission system, aid with restoration and recovery after an event, and improve frequency response and ancillary services throughout the existing system.” HV voltage transmission also provides greater access to resources that are constrained by location such as wind turbines and offers opportunities to meet policy goals.

However, Commission staff found that while these opportunities exist, there are also barriers to HV transmission development. An example of a challenge pointed to in the report is that the siting of HV transmission requires navigating each state process. Many other authorizations and reviews are required at multiple government levels. It can take over a decade to develop a HV transmission facility that meets mandatory Reliability Standards, maximizes system benefits, and strikes a balance among interested stakeholders. To remedy this, the report suggests that FERC may need to amend its Order 1000, which revised rules on transmission planning, allocating transmission costs, and competitive bidding but has not worked as intended and led to planning paralysis. Amending the order would help overcome hurtles to HV transmission development.

[1] https://cleanenergygrid.org/wp-content/uploads/2020/08/Report-to-Congress-on-High-Voltage-Transmission_17June2020-002.pdf

[Japan] Kansai Electric Power Acquired Shares of a Wind Farm Project in Texas, U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced on July 10, 2020, that KPIC USA, its wholly owned subsidiary, has concluded an agreement with Ares Infrastructure and Power (Headquarters: New York City, New York State, U.S.), an infrastructure and energy investment management company, to acquire 48.5 percent of the shares of Aviator Wind, an onshore wind farm project located in Coke County, Texas State, U.S.

The commercial operation of the Aviator Wind Farm Project (Aviator) is expected to begin in August 2020. Aviator is expected to be equipped with 191 wind turbines and will have a total capacity of 525MW. When it begins its commercial operations, Aviator will be the largest wind project in the U.S. This deal will be the first renewable energy investment by KEPCO in the U.S., and marks KEPCO’s fifth overseas wind power project investment, following two onshore projects and two offshore projects in Europe. Counting Aviator, KEPCO’s total capacity of its overseas renewable energy projects will be 949MW, and its overseas projects will reach a total of 2,861MW.

Based on KEPCO’s Medium-Term Management Plan, KEPCO seeks to expand its overseas business and renewable energy portfolio. With the addition of approximately 255MW of output equivalent equity portions from Aviator, KEPCO’s total renewable energy capacity will reach 4,720MW. KEPCO will continue to invest in renewable energy in order to reach a total of 6,000 MW in the 2030s.[1] [2]

[1] https://www.kepco.co.jp/corporate/pr/2020/0710_2j.html

[2] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/july10_2.pdf

[USA] PSEG to explore strategic alternatives for its non-nuclear fleet

During its second quarter earnings conference call on July 31, 2020, New Jersey utility Public Service Enterprise Group (PSEG) announced that it is “exploring strategic alternatives” to PSEG Power’s, a subsidiary of PSEG, non-nuclear generating fleet.[1] This includes 6,750 MW of fossil generation located in New Jersey, Connecticut, New York and Maryland and its 467 MW Solar Source portfolio spread across 14 states. According to CEO Ralph Izzo, PSEG expects the sale of its fossil fuel portfolio to begin in late 2020 and be completed in 2021. PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet. Izzo said the move to exit merchant generation while retaining nuclear power “could reduce overall business risk and earnings volatility, improve our credit profile and enhance an already compelling [environmental, social and governance] position driven by pending clean energy investments, methane reduction and zero-carbon generation.” In addition to keeping its existing nuclear fleet, PSEG says that it is evaluating potential investments in offshore wind and considering participation in upcoming offshore wind solicitations in New Jersey and other Mid-Atlantic states. The utility expects to decide on whether to invest in Ørsted's Ocean Wind project by the end of 2020.

[1] https://www.prnewswire.com/news-releases/pseg-to-explore-strategic-alternatives-for-pseg-powers-non-nuclear-fleet-301103791.html

[USA] WoodMac forecasts $1.7B in revenue from BOEM auctions by 2022

On August 4, 2020, Wood Mackenzie (WoodMac), global energy, chemicals, renewables, metals and mining research and consultancy group, released a report that studies the economic impact of offshore wind activities as a result of potential Bureau of Ocean Energy Management (BOEM) lease auctions from 2020 to 2022.[1] The report was commissioned by the American Wind Energy Association (AWEA), National Ocean Industries Association (NOIA), New York Offshore Wind Alliance (NYOWA) and the Special Initiative on Offshore Wind at the University of Delaware. The analysis found that the U.S. could generate $1.7 billion in U.S. Treasury revenue by 2022 by leasing out offshore wind areas already under study by BOEM. Through these leasing auctions, BOEM would unlock the potential for 4 GW of offshore wind energy by 2025, 25 GW by 2030, and 37 GW by 2035. The new offshore wind would lead to $17 billion of capital investment by 2025, $108 billion by 2030, and $166 billion by 2035. If these auctions take place, total full-time equivalent job creation from the resulting offshore wind activities (including development, construction and operation) could support approximately 80,000 jobs per year from 2025 to 2035 and 16,000 per year after 2035.

[1] https://www.awea.org/resources/publications-and-reports/white-papers/offshore_lease_economic_impacts

[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