[USA] 14 states sue DOE over failure to update appliance efficiency standards

On November 9, 2020, 12 states and two cities[1] filed a lawsuit in the U.S. District Court for the Southern District. against the Department of Energy (DOE) over the DOE’s failure to review and update 25 standards for a wide range of appliances including washers and dryers, dishwashers, microwaves, water heaters, room air conditioners, small electric motors, furnaces, and fans.[2] According to the lawsuit, the updated standards could save $580 billion in energy costs and avoid over 2 billion metric tons of carbon dioxide emissions by 2050. In the November lawsuit, the states say the Trump administration has violated the Energy Policy and Conservation Act (EPCA) which requires standards to be reviewed every six years. The EPCA covers more than 60 categories of appliances; these appliances account for about 90% of the total amount of energy consumed in homes, 60% of the energy used in commercial buildings, and 30% of the energy used by industry. A similar lawsuit was filed on October 30, 2020 by six environmental and consumer groups[3] which asked that the court direct the DOE to "promptly initiate rulemakings and complete reviews" of the missed standards.[4] 

[1] New York, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Vermont, Washington, the District of Columbia and the city of New York.

[2]https://oag.ca.gov/sites/default/files/2020%2011%2009%20Missed%20Deadline%20Complaint%20with%20Attachments%20FILED.pdf

[3] Natural Resources Defense Council, Public Citizen, Sierra Club, the Center for Biological Diversity, Consumer Federation of America, and the Massachusetts Union of Public Housing Tenants with Earthjustice as their counsel

[4] https://www.nrdc.org/sites/default/files/complaint-doe-standards-delay-20201030.pdf

[USA] DOE Report: Certain policies key to lower barriers to low-income rooftop solar uptake

A new study from the Department of Energy’s (DOE) Lawrence Berkeley National Laboratory (Berkeley Lab) published in Nature Energy in November 2020 found that three of the five policy and business models studied increased adoption of solar photovoltaics (PV) among low- and middle-income households—defined as households that were earning less than the median income in counties where they were located—thus increasing adoption equity.[1] The study, titled “The impact of policies and business models on income equity in rooftop solar adoption,” was led by Eric O’Shaughnessy, a Berkeley lab affiliate researcher, and co-authored by Galen Barbose, Ryan Wiser, Sydney Forrester, and Naïm Darghouth, all of Berkeley Lab’s Electricity Markets & Policy group, which conducts research to inform decision-making in the U.S. electricity sector.

According to the study, as much as 42% of the U.S.’s rooftops that could accommodate solar panels are in low- to moderate-income housing but many solar programs are not bringing these households in the rooftop solar market which could "decelerate" the solar industry and slow emission cuts. The study evaluated the effects of five types of programs or business models on adoption equity: financial incentives targeted at low- and middle-income households; leasing, which reduces upfront costs; Property Assessed Clean Energy Financing (PACE), a program to finance PV through property tax payments that is only available in California, Florida, and Missouri; financial incentives offered to customers of any income level; and Solarize, a community initiative to recruit a coalition of prospective PV adopters. Their analysis found that the first three types of interventions – targeted incentives, leasing, and PACE – are effective at increasing adoption equity.

[1]  https://newscenter.lbl.gov/2020/11/09/how-to-accelerate-solar-adoption-for-the-underserved/

[USA] Report: Not-for-profit utilities less prepared for cybersecurity threats

According to a Moody’s Investors Service report released on November 4, 2020, privately owned utilities are better prepared to face cybersecurity threats than not-for-profit utilities.[1] [2] The report surveyed 115 private, state-owned, unregulated and not-for-profit electric utilities. Moody's found that smaller utilities that operate in the not-for-profit space don't have the same resources to handle cybersecurity threats while private utilities have more funds to combat cyberthreats and are more likely to have advanced defensive tools at their disposal to counteract hackers. Larger utilities also have more training against some of the common attack methods like email spearphishing, which is when hackers send malicious links aimed at tricking victims to give up valuable information or inserting malware into their devices. The report also found that only the largest utilities with total assets valued at over $100 billion have directors on their board with any cybersecurity expertise.

[1]https://www.eenews.net/energywire/2020/11/05/stories/1063717835?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[2] https://www.moodys.com/research/Moodys-Electric-utilities-cybersecurity-readiness-tied-to-scale-and-business--PBC_1252439

[USA] Utility commission incumbents set to retain majority of their seats in 2020 election

In the ten states that held elections for public service commissions on November 3, 2020, incumbents are set to retain the vast majority of their seats.[1] As of November 6, 2020, incumbents will retain seats in Nebraska, Oklahoma, North Dakota, South Dakota and Alabama. Arizona’s election for three available commission seats remains too close to call as of November 6, 2020, with Democrat Anna Tovar, incumbent Republican Lea Márquez Peterson and Republican James O'Connor in the lead by narrow margins.[2] Georgia also remains undecided, but Republican incumbents Jason Shaw and Lauren McDonald both lead in the vote.[3] In Louisiana, Democrat incumbent Foster Campbell has retained his seat, but Republican incumbent Eric Skrmetta is headed to a run-off with his Democratic challenger Allen Borne.[4] Montana voted to retain Republican incumbent Tony O'Donnell.[5] Republican James Brown defeated Democrat Tom Woods for the second seat and Republican Jennifer Fielder won the final seat. In New Mexico, 56% of voters approved a constitutional amendment that will reduce the Public Regulation Commission from five commissioners to three, with all three members to be appointed by the governor.[6]

[1] https://www.utilitydive.com/news/utility-commissions-largely-retained-incumbents-on-election-night-with-pot/588448/

[2] https://www.azcentral.com/elections/results/2020-11-03/state/arizona/

[3] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-georgia.html?auth=login-email&login=email

[4] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-louisiana.html

[5] https://montanafreepress.org/2020/11/03/one-incumbent-and-two-newcomers-headed-for-psc/?utm_source=Energy+News+Network+daily+email+digests&utm_campaign=8c6121486a-EMAIL_CAMPAIGN_2020_05_11_11_46_COPY_01&utm_medium=email&utm_term=0_724b1f01f5-8c6121486a-89257591

[6] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-new-mexico.html

[USA] BLM approves $4 billion oil project in the National Petroleum Reserve-Alaska

On October 27, 2020, the Bureau of Land Management (BLM), an agency within the Department of the Interior (DOI), approved ConocoPhillips Alaska Inc.'s Willow Master Development Plan, a $4 billion oil project in the National Petroleum Reserve-Alaska (NPR-A).[1] The NPR-A is a 23-million-acre piece of federally managed land that lies west of Alaska's Prudhoe Bay oil field and the Arctic National Wildlife Refuge (ANWR). According to BLM, the project could produce up to 160,000 barrels of oil per day over its anticipated 30-year life which will equal approximately 590 million total barrels of oil. BLM estimates the project will generate up to 1,000 jobs during construction and 400 permanent positions to keep it operating. BLM’s decision allows construction of up to three drill sites and associated processing and support facilities. BLM says the decision also adopts modifications to the project based on input from tribal governments, cooperating agencies and various other stakeholders received during the comment period for the project’s environmental impact statement (EIS).

[1] https://www.blm.gov/press-release/trump-administration-approves-willow-master-development-plan

[USA] Report: Carbon price in PJM would cut emissions by 30%

According to a study released on October 28, 2020 by the consulting firm Energy + Environmental Economics (E3) and commissioned by the Electric Power Supply Association (EPSA), a national trade group representing competitive power suppliers, PJM Interconnection, the nation’s largest grid operator, could reduce greenhouse gas (GHG) emissions nearly 30% and save consumers $2.8 billion by 2030 by setting a modest carbon price.[1]

The report examined four scenarios: a Business as Usual (BAU) scenario that is representative of current policy; a Renewables Portfolio Standard (RPS) scenario where increased renewable generation is mandated; a Clean Energy Standard (CES) scenario that credits any form of qualifying clean power; and a Greenhouse Gas (GHG) Reduction scenario that places a price on carbon through a cap-and-trade program. Of these scenarios, the report found that the most cost-effective policies are ones directly target carbon emissions, either by placing a price on carbon or by placing a limit on electricity-sector carbon emissions. The report found that a carbon price of $10 per ton could reduce 80 million metric tons of GHG emissions in PJM. The study also found that current state policies that mandate low-carbon goals such as RPS are "costly and ineffective" at reducing emissions. These policies would increase system costs by over $3 billion per year by 2030 while only achieving 40 million metric tons of emissions reductions.

[1] https://www.eenews.net/assets/2020/10/29/document_ew_02.pdf

[USA] FERC issues policy proposal statement on carbon pricing

On October 15, 2020, the Federal Energy Regulatory Commission (FERC) issued a proposed policy statement saying the Commission is willing to consider grid operator’s requests to set a carbon price.[1] The proposed policy statement also asserts that FERC has authority over regional market rules incorporating a state-determined carbon price because it fits under FERC’s jurisdiction over wholesale rates under the Federal Power Act (FPA). However, FERC acknowledged that whether the carbon pricing rules proposed in any particular FPA section 205 filing fall under FERC jurisdiction will be based on the specifics of that filing. Stakeholders now have 30 days to comment on the proposal.

FERC’s proposed policy statement—led by Republican FERC Chairman Neil Chatterjee and Democratic Commissioner Richard Glick—follows the September 30, 2020 technical conference where expert panelists identified a diverse range of benefits from state-determined carbon pricing including the development of technology-neutral, transparent price signals within the markets and providing market certainty to support investment. The panelists also largely defended FERC’s authority to address carbon pricing proposals from grid operators. Currently, states are leading in efforts to address climate change by adopting policies to reduce their greenhouse gas emissions. 11 states have some version of carbon pricing, and other entities like regional market operators are examining the benefits of this approach.

[1] https://www.ferc.gov/news-events/news/ferc-proposes-policy-statement-state-determined-carbon-pricing-wholesale-markets

[USA] NextEra announces record renewables, expanded green hydrogen in Q3 earnings call

During its Q3 earnings call on October 21, 2020, Florida-based NextEra announced that the backlog of renewable energy projects that the utility expects to construct over the next few years now exceeds 15 GW, more than the total current renewables portfolio of its wholesale generating subsidiary, NextEra Energy Resources.[1] Since the beginning of 2020, NextEra has signed contracts for roughly 4,800 MW of renewable projects, including 2,200 MW between July and September. The 4,800 MW includes 1,000 MW of solar and storage projects for NiSource Inc.'s Northern Indiana Public Service Co. and a 325-MW, four-hour battery storage system in California that NextEra claims will be the largest in the world. NextEra Resources is also planning on moving into green hydrogen and aims to replicate the approach it has used to build its renewable energy portfolio. NextEra Energy Resources has developed a pipeline of approximately 50 potential green hydrogen projects spanning the power, transportation and industrial sectors.

[1] http://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/reports-and-fillings/quarterly-earnings/2020/Q3/NEEQ32020News%20Release%20Final.pdf

[USA] Avangrid and PNM Resources announce merger

Avangrid Inc. announced on October 21, 2020 that it is planning to acquire Public Service of Company of New Mexico (PNM) Resources, New Mexico’s largest electric utility company, in a $4.3 billion transaction.[1] The transaction represents a combined $8.3 billion enterprise value. The merger would cement Avangrid as the third-largest renewable energy operator in the U.S. with renewable operations in 24 states. The combined entity would also own 10 regulated utilities in six states. Avangrid estimates that the combined company would have nearly 11,000 MW of generation capacity in its portfolio, including more than 7,600 MW of that coming from wind. Both companies plan on transitioning to lower-carbon energy. Avangrid has pledged to be carbon neutral by 2035. PNM has said it plans to provide 100% emissions-free power by the end of 2040 which would be 5 years ahead of New Mexico’s zero-carbon resources deadline.

The boards of each company have approved the merger, and Avangrid and PNM Resources hope to close their deal by the end of 2021, though the proposal must pass federal and state regulatory bodies. The proposal includes an all-cash offer for PNM Resources at $50.30/share which essentially cashes out existing investors in PNM Resources.

[1] https://www.businesswire.com/news/home/20201021005299/en

[USA] FERC approves Mountain Valley Pipeline construction

In a 2-1 decision on October 9, 2020, the Federal Energy Regulatory Commission (FERC) granted developers of the Mountain Valley Pipeline, which runs from West Virginia to southern Virginia and aims to be in service in 2021, permission to resume construction on the 303-mile natural gas project.[1] In a separate order filed the same day, FERC lifted an October 2019 stop-work order which allows construction to move forward on all but a 25-mile exclusion zone that includes the Jefferson National Forest. The project lacks the necessary authorizations to pass through the national forest, although two permits that were set aside by legal challenges have since been reissued. In its decision, FERC found that a supplemental environmental impact statement (EIS) is not required for construction to move forward. In his dissent, Glick said FERC’s responsibility is to balance all stakeholder interests “not just the desire to complete the pipeline in the shortest time possible." Additionally, Glick argued that the order does not address “the uncertainty created by the outstanding permits, not to mention the litigation that is likely to follow, and instead rushes to recommence construction."

[1] https://www.eenews.net/assets/2020/10/12/document_ew_03.pdf

[USA] Report: YUMA Energy contract may prevent Puerto Rico from building a safe, reliable and resilient grid

The Institute for Energy Economics and Financial Analysis (IEEFA), a non-profit focused on energy markets and policies, released a report on October 12, 2020 that concluded that the service contract LUMA Energy, a consortium of Houston-based Quanta Services and Calgary-based ATCO, signed to operate Puerto Rico's electricity grid will likely result in electricity prices that fail to meet legislative goals and could keep Puerto Rice from reaching its 100% renewable energy target by 2050.[1][2] In June 2020, LUMA was awarded the Puerto Rico grid contract to manage the Puerto Rico Electric Power Authority’s (PREPA) energy transmission and distribution.

The report found that the LUMA contract will create electricity prices of around $0.30/kWh compared with the island's goal of $0.20/kWh. The IEEFA report cites several other issues with the contract including potential financial problems with the two companies, encouragement of natural gas, lower transparency, sidelining of union collective bargaining agreements, and lower accountability to the public. The report argues that the contract will essentially privatize the functions of PREPA. IEEFA concluded that the contract should be canceled because it will not benefit the island.

[1] https://ieefa.org/ieefa-luma-energy-deal-paves-way-for-puerto-rico-regulators-to-repeat-past-mistakes/

[2] https://ieefa.org/wp-content/uploads/2020/10/Contract-with-LUMA-Energy-Sets-up-Full-Privatization_Higher-Rates_October-2020.pdf

[USA] House passes four bipartisan bills to bolster DOE’s cybersecurity fight

On September 29, 2020, the U.S. House of Representatives passed four bipartisan bills yesterday to boost the Department of Energy's (DOE) capabilities to help maintain cybersecurity. All four bills were passed by voice vote under suspension of the rules, a means of fast-tracking noncontroversial bills. Bills passed by voice vote have to pass with supermajorities (two-thirds of the House) and without floor amendments. The bills passed by voice vote are:

·   H.R. 360, the Cyber Sense Act of 2020, which would direct the DOE to launch a voluntary Cyber Sense program to identify products secure enough for the bulk power system.[1] The bill was introduced by Representative Robert Latta (R-Ohio) and cosponsored by Representatives Jerry McNerney (D-California), Ralph Norman (R-South Carolina), and Josh Harder (D-California).

·   H.R. 5760, the Grid Security Research and Development Act, which would support DOE research into cybersecurity and physical protections of the grid.[2] The bill is from Representatives Ami Bera (D-California) and Randy Weber (R-Texas).

·   H.R. 359, the Enhancing Grid Security through Public-Private Partnerships Act, which would create a DOE program to enhance cybersecurity at utilities through increased collaboration and public-private partnerships.[3] The bill is from Representatives Jerry McNerney (D-California) and Robert Latta (R-Ohio).

·    H.R. 362, the Energy Emergency Leadership Act, which would codify the new DOE assistant secretary position related to cybersecurity.[4] The bill was introduced by Energy Subcommittee Chairman Bobby Rush (D-Illinois) and cosponsored by Representatives Tim Walberg (R-Michigan), Jefferson Van Drew (D-New Jersey), and Brian Fitzpatrick (R-Pennsylvania).

[1] https://www.congress.gov/bill/116th-congress/house-bill/360

[2] https://www.congress.gov/bill/116th-congress/house-bill/5760

[3] https://www.congress.gov/bill/116th-congress/house-bill/359

[4] https://www.congress.gov/bill/116th-congress/house-bill/362

[USA] Ameren announces commitment to net-zero carbon emissions by 2050

On September 28, 2020, Ameren Missouri announced a new commitment to net-zero carbon dioxide emissions by 2050, with interim goals of 50% emissions reduction in 2030 compared to 2005 levels and 85% emissions reduction by 2040 compared to 2005 levels.[1] The commitment is an update to the targets it set in 2017— 35% reduction by 2030, 50% reduction by 2040, and 80% reduction by 2050. According to the utility, the move is primarily guided by investors and customers. Ameren’s new plan allocates approximately $4.5 billion over the next decade to add 3.1 GW of new wind and solar to its portfolio. By 2040, the utility expects to have 5.4 GW of renewables in its portfolio. Under this plan, the utility will retire its 5 GW og coal-fired generation by 2042: Meramec Energy Center by the end of 2022, the Sioux Energy Center by the end of 2028, two units at the Labadie Energy Center by the end of 2036, both units at the Rush Island Energy Center by the end of 2039, and the remaining two units at the Labadie Energy Center by the end of 2042. The plan also assumes that the operating license for Ameren’s Callaway nuclear facility is extended beyond 2050.

[1] https://www.ameren.com/-/media/missouri-site/files/environment/irp/2020/ch1-executive-summary.pdf?la=en-us-mo&hash=67ECB83304090AE189E1528AABDD2211E5A091BC

[USA] Vistra announces plan to retirement of its Midwest coal fleet by 2027

Vistra, a competitive energy supplier headquartered in Irving, Texas, announced on September 29, 2020 that it would retire its entire Midwest coal fleet, about 6.8 GW of energy, by 2027.[1] The company currently owns seven coal-fired power plants across the Midwest and would retire the majority of its plants through 2025-2027, though the company commented that the retirements could be sooner if it is more economic to do so. According to Vistra, the coal plants, especially the one operating in the “irreparably dysfunctional” Midcontinent Independent System Operator (MISO) market, are economically challenged. Additionally, upcoming Environmental Protection Agency (EPA) filing deadlines would require either significant capital expenditures for compliance or retirement declarations.

Vistra also announced the launch of Vistra Zero, a portfolio of zero-carbon power generation facilities. Under Vistra Zero, the company is breaking ground on six new solar projects and one battery energy storage project, which total nearly 1,000 MW. These projects will be online by 2022 and are all located in the Electric Reliability Council of Texas (ERCOT) market. Additionally, the company announced new greenhouse gas emissions reduction targets. Vistra is now setting out to achieve a 60% reduction, up from 50%, in carbon emissions by 2030, and a long-term objective to achieve net-zero carbon emissions, up from an 80% reduction target, by 2050.

[1] https://investor.vistracorp.com/investor-relations/news/press-release-details/2020/Vistra-Accelerates-Pivot-to-Invest-in-Clean-Energy-and-Combat-Climate-Change/default.aspx

[USA] Maine regulators approve state's largest renewables solicitation

On September 22, 2020, the Maine Public Utilities Commission (PUC) approved the terms for 546 MW of renewable energy projects, the largest renewable energy procurement in the state's history.[1] During its 2019 session, the Maine Legislature enacted An Act To Reform Maines Renewable Portfolio Standard which directed the PUC to conduct two competitive solicitation processes to procure renewable energy equal to 14% of retail electricity sales in the State during calendar year 2018. This first round of solicitations included 482.5 MW of new solar, 20 MW of new wind, 39 MW of existing biomass, and 4.5 MW of existing hydropower.[2] The selected bidders will enter into 20-year contracts with both or either of Maine's investor-owned utilities, Central Maine Power and Emera Maine.

The projects are expected to provide substantial benefits to Maine’s environment and economy. Based on estimates from project bidders, the projects would reduce greenhouse gas emissions by roughly 500,000 tons per year. Bidders also committed to providing more than 450 full-time equivalent jobs during the construction phase and more than 30 full-time equivalent jobs in each year of the operations phase. Additionally, according to Commission Chairman Philip L. Bartlett, the first-year prices for energy from the new projects will be competitive, ranging between $0.029-$0.042 per kWh.

[1] https://www.maine.gov/tools/whatsnew/index.php?topic=puc-pressreleases&id=3329595&v=article08

[2] https://www.maine.gov/mpuc/electricity/rfps/class1a2020/

[USA] Trump Administration authorizes $9.6B to rebuild Puerto Rico's grid

The Trump Administration announced on September 18, 2020 that the Federal Emergency Management Agency (FEMA) authorized $9.6 billion to rebuild Puerto Rico's power infrastructure.[1] Puerto Rico’s electric grid was destroyed in 2017 when Hurricane Maria made landfall, bringing a large storm surge, very heavy rains, and wind gusts over 100 mph. The island’s power system remains fragile, but more of the island does have power. In response to the disaster, the Bipartisan Budget Act of 2018 included funding for FEMA to support Hurricane Maria response and recovery. The critical infrastructure projects are funded under FEMA’s Public Assistance Alternative Procedures, pursuant to Section 428 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Under this funding method, Puerto Rican officials will work directly with FEMA to determine how to best meet the island’s recovery needs. The funding will go to the Puerto Rico Electrical Power Authority (PREPAP) to repair and replace transmission and distribution lines, electrical substations, power generation systems, office buildings, and make other grid improvements. It is unclear when Puerto Rico will have access to the aid. PREPA must first produce a plan showing how the money will be used.

[1] https://www.whitehouse.gov/briefings-statements/statement-press-secretary-largest-fema-infrastructure-grants-awarded-puerto-rico/

[USA] DOE Announces $24 Million in funding for commercialization of battery and methane detection technologies

On September 16, 2020, the Department of Energy (DOE) announced $24 million in funding for two projects as part of the first stage of the Advanced Research Projects Agency-Energy’s (ARPA-E) Seeding Critical Advances for Leading Energy technologies with Untapped Potential (SCALEUP) program.[1][2] The two SCALEUP “Fast-Track” teams are Natron Energy and Bridger Photonics. Natron Energy will receive $19 million in funding to scale up production of Natron Energy’s (Natron) Prussian blue electrode sodium-ion batteries by 30-fold to 18,000 trays per year. Natron’s primary product is an 8-kilowatt, 50-volt battery tray to be used in data centers to manage peak computer load and provide backup power. Bridger Photonics will receive $5 million in funding to commercialize its Gas Mapping LiDAR (GML) which scans oil and gas infrastructure to detect and quantify leak magnitude using an aerial platform. The technology eliminates the need for costly ground crews.

The SCALEUP program is a first-of-its-kind initiative that builds on ARPA-E’s primary focus of supporting the scaling up and commercialization of high-risk and potentially disruptive new technologies. The program works to take promising energy technologies to the pre-pilot stage of the path to market and ultimately lead to commercialization. ARPA-E developed the “Fast-Track” in response to disruptions caused by COVID-19.

[1] https://www.energy.gov/articles/doe-announces-24-million-commercial-scaling-battery-and-methane-detection-technologies

[2] https://arpa-e.energy.gov/?q=scaleup-launch-pad

[USA] Frontier Energy announces hydrogen pilot to tap Texas wind

On September 15, 2020, California-based Frontier Energy, Inc., in close collaboration with the Gas Technology Institute (GTI) and the University of Texas at Austin, announced the launch of a Department of Energy (DOE) pilot project, Demonstration and Framework for H2@Scale in Texas and Beyond, which aims to fast track development of a hydrogen fuel that is both low-carbon and low-cost.[1] The project leaders hope to deploy a "dual-pathway" to the fuel by combining electrolysis, in which energy from wind or solar is used to split hydrogen from water molecules, with a production process that involves capturing landfill methane emissions. The project will be conducted at the University of Texas at Austin and the Port of Houston. The hydrogen produced at the University of Texas site will power a stationary fuel cell to provide power for the Texas Advanced Computing Center and supply a hydrogen station with fuel to fill a fleet of Toyota Mirai fuel cell electric vehicles.

The project is backed by $10.8 million in startup funding. Half of this funding comes from the Department of Energy (DOE). Other partners include Shell and the utility Southern California Gas Co. which have taken an interest in developing carbon-free alternatives to natural gas.  OneH2, Texas Gas Service, Toyota Motor North America, Mitsubishi Heavy Industries, Air Liquide and PowerCell Sweden AB are also involved in the project. The project started on July 1, 2020 and will continue for three years.

[1] https://app.greenrope.com/users/myteam46356/Media214.pdf

[USA] MISO and SPP launch joint study to address interconnection challenges

On September 14, 2020, two regional transmission organizations (RTOs), the Midcontinent Independent System Operator (MISO) and Southwest Power Pool (SPP), announced a year-long transmission study to address historical challenges facing customers in areas where the RTO boundaries connect, known as seams, by identifying comprehensive, cost effective, and efficient upgrades.[1] Seams are the invisible boundaries between two RTO control areas, systems, and markets. The primary issue with seams is that there are inherent differences in how the RTOs create market rules or designs which leads to inefficiencies at the seams that prevent the economic transfer of capacity and energy between neighboring RTOs. One of the biggest issues this study seeks to address is the large amount of renewable energy that cannot be developed due to the issues inherent at seams.

The study will focus on solutions that MISO and SPP believe will offer benefits to both their transmission customers and end use consumers of RTO member companies. While the RTOs’ have a Joint Operating Agreement, which allows them to work through reliability issues, current processes do not include coordinated evaluation of benefits, or allocation of cost, to both load and interconnection customers. The study is expected to formally begin in December 2020 and will include several joint stakeholder meetings to provide updates on the findings. Any projects identified by the joint study will need to be approved by each RTOs’ respective Board of Directors before moving ahead.

[1] https://www.misoenergy.org/about/media-center/miso-and-spp-to-conduct-joint-study-targeting-interconnection-challenges/

[Japan] Japan and U.S. to conduct a study on methane hydrate extraction in Alaska

On September 9, 2020, a Japanese government source said Japan and the U.S. will conduct a year-long joint study in northern Alaska starting in April 2021 to produce gas from methane hydrate in permafrost.[1] Methane hydrate, an ice-like substance in which a large amount of methane is trapped within a crystal structure of water, is seen as a potential alternative source of energy to traditional fossil fuels. Reserves of methane hydrate have been confirmed to be in the seabed of Japan’s coastal water.

The joint study will be conducted by Japan Oil, Gas and Metals National Corporation and the U.S. National Renewable Energy Laboratory. They plan to conduct another test to manufacture methane gas in the Pacific in fiscal 2023 or later. According to the source, the Ministry of Economy, Trade and Industry (METI) is set to allocate funds in its request for the fiscal 2021 budget. The study comes as Japan plans a project aimed at commercializing the use of methane hydrate from Japan’s coastal waters by March 2028. Tokyo is trying to strengthen the development of its domestic energy resources while also promoting the use of wind power and other renewable sources. Tokyo is seeking to strengthen the development of domestic energy resources such as methane hydrate, while promoting the use of wind power and other renewable resources.

[1] https://www.japantimes.co.jp/news/2020/09/10/national/japan-methane-hydrate-alaska/