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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Japan] Mitsubishi Heavy Industries’ Turboden will Deliver an Organic Rankine Cycle Power Generation System to the Meadow Lake Tribal Council in Saskatchewan, Canada

On February 10, 2020, Mitsubishi Heavy Industries’ (MHI) subsidiary Turboden, a manufacturer based in Bersica, Italy that specializes in Organic Rankine Cycle (ORC) systems that produce electric and thermal power[1], announced that it would deliver an 8MW ORC power generation system to the Meadow Lake Tribal Council (MLTC) in Saskatchewan, Canada. The system will be fueled by sawmill residual wood biomass.

MTLC is a tribal council representing nine First Nation band governments in Saskatchewan. Multiple native inhabitant groups reside in the tribal area which is located near Meadow Lake in the northwestern area of the province. The ORC system will be funded by both the Canadian federal government and the Saskatchewan government as a part of the MLTC’s local development program. Approximately 5,000 households in the region will be supplied with a total of 6.6 MW of carbon neutral baseload electricity. In addition to electricity, the heat generated by this system will be supplied to NorSask sawmill’s lumber dry kiln and buildings, which is expected to reduce natural gas consumption. The NorSask Sawmill is Canada’s largest sawmill.

Although it was originally established in 1980 by professors at the Polytechnic University of Milan, Turboden was acquired by MHI in 2013. In 2016, Turboden signed a contract with Daiichi Jitsugyo (Headquarter: Tokyo, Japan), a general machinery trading company[2], to promote the marketing of its products. Since then, Daiichi Jitsugyo has become its sales distributor in Japan.[3]


[1] https://www.turboden.com/company/1058/about-us

[2] https://www.djk.co.jp/company/outline.html

[3] https://www.mhi.com/jp/news/story/200210.html

[Japan] Chubu Electric Power Will Test Information Bank MINLY in Early March 2020 in Toyota City, Aichi Prefecture

Chubu Electric Power (Chuden), headquartered in Nagoya City, Aichi Prefecture[1], announced on February 17, 2020 that it will test a local information bank, MINLY, in early March 2020 in Toyota City, Aichi Prefecture. MINLY will utilize Chuden customers’ personal data to improve their convenience and promote local economic development.

With the consent of the customers living in Toyota City or visiting the city, Chuden will consolidate, manage, and utilize their personal daily-life data (i.e. age, gender, interests or preferences and user behavior history). Customers will be offered personalized services and information that match their interests. This will include shopping information, coupons, and event information from 50 service providers and local retailers as well as approximately 25 Toyota city-owned public facilities operators. The test is supported by the Toyota City Connected Society Verification Promotion Council.

In order to launch MINLY, Chuden has obtained Information Bank P certification from the Information Technology Federation of Japan (ITrenmei, Headquarter: Tokyo)[2], which advocates for individual users’ privacy protections. As a next step, Chuden will acquire an Ordinary Certification from ITrenmei by demonstrating the project in Toyota City. The Ordinary Certification is based on the Japanese government guidelines for information banking services, and indicates that the service complies with international standards for privacy protection and information security measures.[3]

[1] https://www.chuden.co.jp/english/corporate/ecor_company/ecom_outline/index.html

[2] https://www.itrenmei.jp/summary/

[3] https://www.chuden.co.jp/corporate/publicity/pub_release/press/3272452_21432.html

[Japan] Kansai Electric Power Launched an Energy Management Demonstration Project Using Solar Power and Storage Batteries

Kansai Electric Power Company (KEPCO, Headquarters: Osaka Prefecture) announced on February 17, 2020, that it has launched an energy management demonstration project that will be deployed in grocery stores using solar power systems integrated with battery storage.

 As a part of the project, storage batteries will be installed at grocery stores operated by an Osaka-based grocery retailer, Kano Co.[1], which has contracted for a KEPCO’s onsite solar power service[2]. The project will verify the effectiveness of the battery storage in reducing electricity costs. It will also use a Kanden Virtual Power Plant Integrated Platform System (K-VIPs) to validate the performance of the storage battery control technology.

 Storing surplus energy from solar power generation on batteries and discharging it at other times, such as during the night, is expected to reduce electricity costs. The stored surplus energy can also be utilized during emergencies or as part of a demand response (DR) program by responding to the signals from aggregators.

 KEPCO aims to provide comprehensive energy management services by utilizing various components such as solar power generation with battery storage and energy resource aggregation services which are expected to grow. KEPCO’s energy aggregation services help customers to increase their revenues through operational improvements for energy procurement management and facility optimization by utilizing VPP and DR.[3]

[1] https://www.kk-kano.co.jp/

 [2] The KEPCO provides commercial and industrial customers with a suite of comprehensive (one-stop-shop) solar power services, ranging from rooftop solar installations, to operations and maintenance.

[3] https://www.kepco.co.jp/corporate/pr/2020/0217_1j.html

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

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

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

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

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

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

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

[USA] FERC launches revision of transmission incentives

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

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

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

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

[USA]Massachusetts Set to Launch Clean Peak Standard

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

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

[Japan] Tohoku Electric Power Issued Green Bond to Expand Renewable Energy Business

Tohoku Electric Power Company, headquartered in Miyagi Prefecture, announced on January 29, 2020 that it has decided to issue a Tohoku Electric Power Green Bond in order to expand its renewable energy business and increase diversified funding procurement.[1] The Green Bond is expected to be issued in February 2020 and will be used for investment and refinancing in renewable energy development, construction, operation, and renovation projects.[2] Tohoku aims to develop 2,000 GW of renewable energy, mainly wind power. The funds raised through the Green Bond will be used mainly for renewable business activities.

To issue the Green Bond, DNV GL Business Assurance Japan K.K. (DNV GL), a third-party certification body headquartered in Kobe City,[3] evaluated and verified the Green Bond’s compliance with various standards related to green bond issuance. A Tokyo-based stock investment and fund management firm, SMBC Nikko Securities,[4] will be mainly responsible for issuing the 10-year green bonds with a total value of JYP 5 billion (app. $ 46 M). Details will be announced at the time of issuance.

Tohoku is the first Japanese former general electricity utility to obtain certification for a Green Bond from the Climate Bonds Initiative (CBI), an international non-profit organization located in London that sets strict standards for ensuring the reliability and transparency of green bonds.[5]

[1] http://www.tohoku-epco.co.jp/news/normal/1205380_1049.html

[2] http://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2020/01/29/1205380_b1.pdf

[3] https://www.dnvgl.jp/about/overview/business_assurance.html

[4] https://www.smbcnikko.co.jp/company/info/profile/index.html

[5] https://www.climatebonds.net/

[USA]Glidepath Ventures Announces 1GW Solar Portfolio Sale

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

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

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

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

[USA]Duke Energy settles with ChargePoint, expanding options for $76M North Carolina EV pilot

On February 28, 2020, Duke Energy filed a settlement with the North Carolina Utilities Commission (NCUC) that resolves competitive issues raised by ChargePoint, an electric vehicle (EV) charging infrastructure company that operates the nation's largest charging network, in earlier filings by making modifications to its proposed EV pilot like bringing ChargePoint on board.[1] Prior to these changes, ChargePoint had raised particular concerns that the pilot limits customers’ ability to choose their preferred charging equipment because the original plan was to execute a request for proposals generating a single vendor. The new plan allows site hosts to choose from at least two vendors which will decrease the risk of any one specific vendor having a monopoly.

Currently, North Carolina has a target of having 80,000 zero-emission vehicles on its roads by 2025, and Duke claims its pilot is key to reaching that goal.[2] The utility’s EV pilot is comprised of seven individual programs, including rebates for residential chargers, incentives for fleet equipment, and an electric school bus charging initiative. In an effort to address concerns from NCUC Public Staff, which acts as a consumer advocate, the utility has offered to scale back its $76 million EV offerings.[3] Duke’s proposed order offers to remove programs that involve multi-family charging stations and the public Level 2 charging stations, which would result in a decrease of approximately $4.1 million from the overall cost of the pilot. However, NCUC Public Staff stated in a proposed order that its previous objections that the pilot is too large to be considered a proof-of-concept still stands.

[1] https://starw1.ncuc.net/NCUC/ViewFile.aspx?Id=486df7da-0095-4356-88a6-90d5a0b90626

[2] https://www.ncdot.gov/news/press-releases/Pages/2019/2019-08-22-ncdot-draft-zev-plan-released.aspx

[3] https://starw1.ncuc.net/NCUC/ViewFile.aspx?Id=91abe520-2ef0-4d1c-bfc0-fc7bd2abec48

[Japan] Chugoku Electric Power Released Corporate Vision ENERGIACHANGE 2030

Chugoku Electric Power (Chugoku EPCo), headquartered in Hiroshima Prefecture, issued a corporate vision white paper called ENERGIACHANGE 2030 on January 21, 2020. “ENERGIACHANGE" is a term that combines a corporate philosophy of "ENERGIA" and its new vision concept "Gear-change. "ENERGIA" is derived from Latin words, expressing activity, work and vitality. It is the origin of energy. "ENERGIA" expresses Chugoku EPCo’s desire to help create a brighter, more dynamic society. The white paper establishes a new vision with financial and non-financial goals. By 2030, Chugoku EPCo seeks to increase the company’s profit share of its fast-growing business segment from 5% to 25%, aiming to grow consolidated ordinary income from JPY 36 billion (approximately USD 328 million) to more than JPY 60 billion (App. USD 546 M). For non-financial goals, Chugoku EPCo plans to enhance its work environment by diversifying human resources and increase the amount of renewable energy capacity to between 300MW and 700MW. The utility plans to strengthen and advance existing businesses by improving the operational efficiency of existing nuclear power plants as well as promoting initiatives for carbon recycling technologies and renewable energy.[1]

After the full deregulation of Japan’s retail electricity market, Chugoku EPCo revenues have decreased due to the introduction of new retail energy providers and increased competition in the market. Though the company has generated a profit surplus, the consolidated ordinary income is only around JYP 30 billion (app. USD 273 M). In 2019, Chugoku EPCo announced that it will establish a wholly owned subsidiary called Chugoku Electric Power Network in April 2020,[2] aiming to separate its power transmission and distribution divisions.[3] Subsequently, Chugoku EPCo released Energia Change 2030, adjusting its vision and reviewing its past achievements.

According to the Energia Change 2030, major measures that will be completed by 2020 include;

1) Promoting development of new energy solutions/services

2) Strengthen the competitiveness of power sources

3) Improve the quality of transmission and distribution network services

4) Create revenue streams in Japan and overseas

5) Enhance collaboration with local communities

6) Improve the balance of income and expenditure.[4] [5] [6]

[1] p. 42, http://www.energia.co.jp/ir/irkeiei/pdf/groupvision_02.pdf

[2] http://www.energia.co.jp/press/2019/12139.html

[3] http://www.energia.co.jp/press/2019/12139.html

[4] p. 11-16, http://www.energia.co.jp/ir/irkeiei/pdf/groupvision_02.pdf

[5] http://www.energia.co.jp/press/2020/12262.html

[6] http://www.energia.co.jp/ir/irkeiei/groupvision.html

[Japan] J-Power Began Commercial Operation of Nikaho No.2 Windfarm

Tokyo-based Japanese power producer J-POWER[1] began commercial operation of the new Nikaho No.2 wind farm in Nikaho City, Akita Prefecture on January 24, 2020. J-POWER began construction of the Nikaho No.2 wind farm in July 2017, and connected it to the grid to begin testing in March 2019.

This is J-POWER’s second wind farm in Nikaho City, following the Nikahokogen wind farm; it is also the third wind farm in Akita Prefecture. Currently, J-POWER operates 24 wind farms across Japan. The Nikaho No.2 wind farm produces 41.4 GW of electricity, increasing the combined capacity of J-POWER wind farms in Japan from 489.16 GW to 530.56 GW.

Between J-POWER’s two wind farms that are under construction in Japan and one offshore wind farm under construction overseas, J-POWER’s total domestic and international capacity will reach 830.942 GW. Leveraging its experience and knowledge, J-POWER will continue to develop and deploy renewable energy sources, including wind power.[2]

[1] http://www.jpower.co.jp/english/company_info/operations_in_japan/

[2] https://www.jpower.co.jp/news_release/2020/01/news200124.html?rss=news

[USA]Charlotte, NC City Council approves plan to acquire large-scale solar power through a green tariff

The Charlotte, North Carolina, City Council unanimously approved a plan on February 24, 2020 to buy power from a 35MW solar project located in nearby Statesville, North Carolina.[1] The project is expected to produce enough electricity to power the equivalent of 10,000 homes annually. It is also expected to reach 24% of its goal to power municipal buildings with carbon-free energy by 2030. The plan stems from Charlotte’s commitment to having all its municipal buildings and fleet get their energy from carbon free sources by 2030 under the city’s Strategic Energy Action Plan approved in December 2018.[2] The city has a wider goal, the Sustainable and Resilient Charlotte by 2050 Resolution, to reduce greenhouse gas emissions across the community to below 2 tons of carbon dioxide per person per year.[3] In addition to these resolutions, the plan approval developed from Charlotte’s acceptance into Duke Energy’s Green Source Advantage (GSA) green tariff program which gives large energy users in North Carolina the flexibility of selecting and negotiating all price terms directly with a renewable supplier of their choice as opposed to negotiating through the utility.[4]

[1] https://www.youtube.com/watch?v=zPauL3QA1Wg

[2] https://charlottenc.gov/sustainability/seap/Pages/default.aspx

[3] https://cleanaircarolina.org/wp-content/uploads/2019/10/Sustainable-and-Resilient-Charlotte-Resolution.pdf

[4] https://news.duke-energy.com/releases/more-renewable-energy-options-available-under-duke-energys-green-source-advantage

[USA]Michigan regulators direct DTE Energy to revise IRP and pursue more renewables

On February 20, 2020, the Michigan Public Service Commission (PSC) recommended removal of all supply-side resource additions from DTE Energy’s integrated resource plan (IRP) after finding "fundamental flaws" and "significant deficiencies” in the utility’s plan.[1] The IRP DTE submitted proposed continuing to operate the coal-fired Belle River plant for another decade with the reasoning that the utility has no near-term "persistent capacity need" until 2030. However, regulators found this plan to be inadequately justified because the cost analysis lacked environmental upgrade considerations. The order requests for the utility to raise its energy savings goals to 1.75% in 2020 and 2% in 2021. The utility had proposed slightly lower levels of 1.65% in 2020 and 1.75% in 2021. The PSC also recommended that the utility issue a request for proposals for new electric generation, and boost proposed energy efficiency targets. The utility has until March 21, 2020 to file a revised IRP or the commission will deny the IRP. In addition to the IRP deadline, regulators also directed DTE to seek alternatives through an updated renewable energy plan (REP), which outlines the utility’s plan to meet renewable portfolio standards in the state, to be filed no later than April 1, 2020.

[1] https://mi-psc.force.com/sfc/servlet.shepherd/version/download/068t0000009jWc2AAE

[USA]DOE Announces up to $38.5 million for new ARPA-E program

On February 18, 2020, the Department of Energy (DOE) announced up to $38.5 million in funding for a new Advanced Research Projects Agency-Energy (ARPA-E) program, Rapid Encapsulation of Pipelines Avoiding Intensive Replacement (REPAIR) which will address aging pipeline infrastructure.[1] [2] Pipelines were built with cast iron and wrought iron when gas utilities began operation in 1800s. In the 1930s, bare steel pipes began to replace these outdated pipelines. Although legacy cast iron and bare steel pipes make up only 3% of the utility pipes in use, they account for a disproportionate number of leaks and failures. The REPAIR program will solve this issue by sponsoring new technologies to rehabilitate old natural gas distribution pipes by creating a new pipe inside the old pipe. Effective technologies will meet regulatory requirements, have a minimum life of 50 years, and have sufficient material properties to operate throughout its service life. The technologies in REPAIR will work towards a 10 to 20-times reduction in cost per mile.  Current pipe excavation and replacement costs range up to $10 million per mile.

[1] https://www.energy.gov/articles/department-energy-announces-385-million-develop-technology-rehabilitate-natural-gas

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

[USA]CPUC outlines new proposal for decarbonizing buildings in California

On February 12, 2020, the California Public Utilities Commission (CPUC) published a proposed decision outlining two new pilots that would set the state on the path toward decarbonizing its buildings with an estimated cost of $200 million over four years.[1] The two pilot programs are Building Initiative for Low-Emissions Development (BUILD) program, which would incentivize low emissions technologies in new residential buildings, and the Technology and Equipment for Clean Heating (TECH) initiative, which would expand the market for low-emission space heaters in both new and existing residential buildings. The CPUC's proposed decision would allocate 40% of the total $200 million budget for the BUILD program, and 60% for the TECH initiative. The proposed pilot programs stem from a 2018 state senate bill, SB 1477, which mandated that the CPUC must develop BUILD and TECH.[2] According to SB 1477, California has seen very little growth in near-zero emissions construction practices and clean heating despite the economic savings they would provide. To comply with the senate bill and achieve the growth in near-zero emissions it proscribes, the CPUC launched its building decarbonization rulemaking in January, 2019. It also intends to align its policies with building energy efficiency standards and create a broader framework for building decarbonization policy.[3]

[1] http://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M326/K933/326933578.PDF

[2] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB1477

[3] http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M264/K629/264629773.PDF

[Japan] Chugoku Electric Power Received its First Supply of LNG from the U.S. Sabin Pass LNG Project

Chugoku Electric Power (Chugoku EPCo), headquartered in Hiroshima Prefecture, announced on January 7, 2020, that it has purchased and received liquefied natural gas (LNG) from the Sabin Pass LNG Project (SPL Project) at Yanai Power Station in Yamaguchi prefecture.[1] [2] [3] Chugoku EPCo signed a contract to purchase up to 400,000 tons of LNG annually for 17 years from Total Gas and Power Asia Ltd, a French energy company.

The SPL Project, operated by Cheniere, a U.S. LNG company, is located in Cameron Parish, Louisiana.[4] The LNG was loaded onto the carrier BW Tulip on December 9, 2019, in Louisiana. This is the first time that Chugoku EPCo has received LNG produced in the U.S., and the first time that it has received LNG containing shale gas. The LNG price index is based on the U.S. natural gas market price.

Chugoku EpCo is working to diversify its suppliers and procurement methods, alleviate its quality constraints, and reduce procurement prices, in order to improve the stability of its LNG procurement and reduce risks due to fluctuations in fuel prices.

[1] http://www.energia.co.jp/e/corp/pr/pr.html

[2] http://www.energia.co.jp/business/lng/lng1.html

[3] http://www.energia.co.jp/press/2020/12235.html

[4] https://www.cheniere.com/terminals/sabine-pass/

[Japan] JERA Joined Ocean Renewable Energy Action Coalition

On January 14, 2020, JERA (Japan’s Energy for a new eRA)[1] announced that it had joined the Ocean Renewable Energy Action Coalition, to advance the development of ocean-based renewable energy and mitigate the impact of climate change. JERA is a joint venture between Tokyo Electric Power Fuel & Power (headquartered in Tokyo)[2] and Chubu Electric Power (headquartered in Nagoya City, Aichi Prefecture).[3] It is the first Japanese company to join the Action Coalition.

The Ocean Renewable Energy Action Coalition was established by a group of offshore wind power companies, including Ørsted and Equinor, to promote the sustainable deployment of ocean-based renewable energies such as offshore wind, floating solar, tidal and wave power. Ørsted is a utility company based in Fredericia, Denmark.[4] Equinor is an energy company headquartered in Stavanger, Norway[5].

The Action Coalition will develop a 2050 vision, which will include action plans for stakeholders from industry, the financial sector, and the government to sustainably scale up the deployment of offshore wind, and to contribute to the United Nations’ (UN) Sustainable Development Goals (SDGs) and Decarbonization goals. The Action Coalition plans to announce a status update for the initiative at the UN Ocean Conference in Lisbon in June 2020.[6]

JERA has stated that it hopes to be a global leader in renewable energy, through commitments such as promoting large-scale offshore wind energy projects in Japan and abroad, and by contributing to the sustainable development of offshore wind energy through participation in the Coalition.

[1] https://www.jera.co.jp/english/corporate/

[2] https://www7.tepco.co.jp/fp/about/index-e.html

[3] https://www.chuden.co.jp/english/corporate/ecor_company/ecom_outline/index.html

[4] https://orsted.com/en/About-us

[5] https://www.equinor.com/en/about-us.html

[6] https://www.jera.co.jp/information/20200114_450