[USA] SCE procures 770 MW of battery storage to bolster California's grid

On May 1, 2020, Southern California Edison (SCE) announced that it is procuring a 770 MW/3,080 MWh package of battery resources to bolster grid reliability.[1] This procurement is more than the entire energy storage market in the U.S. for all of 2019. The utility has contracts with seven battery projects developers, ranging from 50 MW to 230 MW and slated to come online in August 2021. The largest of the projects is a 230 MW facility by NextEra Energy in California’s Riverside County. Most of the projects will be co-located with adjacent solar plants. The utility plans to ask the CPUC for approval of the contracts later in May 2020. According to SCE, the battery projects will enhance electric grid reliability and help address potential energy shortfalls identified by regulators in California. In 2019, the California Public Utilities Commission (CPUC)raised concerns that retiring fossil fuel resources, shifting peak periods, and increasing levels of renewables would create reliability issues.[2] The CPUC has also stated that battery storage will play a critical role in California’s effort to supply all electricity from zero-carbon resources by 2045. Recently, the CPUC adopted an optimal resource portfolio to reach California’s goals; the portfolio requires 1 GW of long-duration storage by 2026 and tripling battery storage capacity from 2020 levels.

[1] https://newsroom.edison.com/releases/sce-grows-clean-energy-portfolio-enhances-system-reliability-with-770-megawatts-of-new-energy-storage-capacity

[2] http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M319/K349/319349071.PDF

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Japan] The Japanese Cabinet Approved a Business Split by Nine Utilities

Japan’s Ministry of Economy, Trade and Industry on March 13, 2020, announced that it has approved the application for a business split submitted by nine utilities. Each of the utilities’ transmission and distribution businesses will be legally separated starting on April 1, 2020. The utility split aims to secure the neutrality of the power transmission and distribution sector, in accordance with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). 

The nine utilities include the following[1];

·       Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido)

·       Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture)

·       Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture)

·       Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture)

·       Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture)

·       Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture)

·       Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture)

·       Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture)

·       Electric Power Development (J-POWER, Headquarters: Tokyo).

There are two forms of splits that will be implemented: (1) implementing a holding company structure or (2) establishing the power generation/retail division as a parent company. The image below shows the post-split business structure for each company.

[1] https://www.meti.go.jp/press/2019/03/20200313008/20200313008.html

[Japan] Chugoku Electric Power Issued Chugoku Electric Power Network Management Vision 2030

On March 13, 2020, Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture) issued the Chugoku Electric Power Network Management Vision 2030. The Management Vision 2030 addresses three key pillars: strengthening the power transmission and distribution business, developing new businesses, and contributing to regional revitalization by collaborating with the local community. In April 2020, Chugoku Electric Power Network will take over the power transmission and distribution business from EnerGia.

Chugoku Electric Power Network aims to achieve sustainable growth in the power transmission and distribution business by providing services that meet customer expectations, and by reforming its business structure in response to changes in the business environment, such as declining population, digitalization, the need for resiliency, and the introduction of renewable energy. Chugoku Electric Power Network will invest in advanced systems for operations and maintenance, cybersecurity, and monitoring to improve efficiency while maintaining a stable energy supply.

In order to develop new businesses, the company plans to collaborate with other companies in various fields such as IT, finance, and transportation. It will also explore the utilization of Artificial Intelligence (AI), Internet of Things (IoT), blockchain, Electric Vehicles (EV), and battery storage. Chugoku Electric Power Network will also focus on strengthening its two-way communication with the local community that it serves to better understand their needs and to support safe and resilient community development.[1] [2]

[1] http://www.energia.co.jp/press/2020/12365.html

[2] http://www.energia.co.jp/assets/press/2020/P200313-1a.pdf

[Japan] Chubu Electric Power, Hokuriku Electric Power, and Kansai Electric Power Began Operation of Wide-Area Supply and Demand Adjustment

Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), and Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced on March 12, 2020, that they had begun a joint wide-area supply and demand adjustment in order to improve the efficiency of their power transmission and distribution.

In order to supply electricity, the supply and demand for electricity needs to be balanced. However, power generation and demand may not always be balanced due to power supply loss or errors in demand forecasting. In the past, each utility company had to adjust the supply and demand within their service areas. However, the wide-area supply-demand adjustment allows the utility companies to cooperate in adjusting supply and demand, using the inter-regional interconnection lines connecting their service areas. The partnership helps the utility companies to reduce their operational costs.

The operation of a wide-area supply and demand adjustment is expected to expand as six more major utilities will participate in the plan. The additional six utilities are: Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), TEPCO Power Grid (Headquarters: Tokyo), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture), and Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture).[1]

[1] http://www.rikuden.co.jp/press/attach/20031201.pdf

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Japan] Chubu Electric Power Invested in Pitango Healthtech Fund

Chubu Electric Power (Chuden), headquartered in Nagoya City, Aichi Prefecture, announced on February 27, 2020 that it had decided to invest in the Pitango Healthtech Fund, which was established in 2019 by Pitango Venture Capital, a leading Israeli venture capital firm.

Pitango Venture Capital has knowledge of the Israeli start-up ecosystem and has invested more than 200 companies. The Pitango Healthtech Fund will target Israeli startups in the intersection of healthcare and technology, particularly Artificial Intelligence (AI) and Internet of Things (IoT).

The investment will be made from the Chubu Electric Community Support Fund, an internal fund established in April 2019 in order to speed up investments in venture companies and venture investment funds with advanced technologies and innovative business models. It is the first time that the Chubu Electric Community Support Fund has invested in a venture investment fund.

Chuden will continue to build relationships with Israeli companies with advanced AI and IoT technologies in order to adopt cutting edge technologies and build community support infrastructure.[1]

[1] https://www.chuden.co.jp/corporate/publicity/pub_release/press/3272536_21432.html

[Japan] Tohoku Electric Power Released its Medium- to Long-Term Vision

On February 27, 2020, Tohoku Electric Power (Tohoku), headquartered in Miyagi Prefecture, released its Medium- to Long-Term Vision. Tohoku’s goal is to become a business group that grows with the sustainable development of society and contributes to the realization of a smart society in the 2030s, while improving the competitiveness of its core electricity supply business.

Tohoku’s Medium- to Long-Term Vision reflects the changes in the business environment in their operating regions of Tohoku and Niigata Prefecture. Since its founding, Tohoku has been doing so through stable power supply with our basic principle: “No prosperity regions of Tohoku, no development of our group.” However, their operating region has seen progressive depopulation, declining birthrates, and an aging population. The competition has also become more intense due to the full liberalization of the electricity retail market and the impact of digitalization on the conventional utility business model. In its Medium- to Long-Term Vision, Tohoku focuses on enhancing the competitiveness of its core business as well as setting its growth strategy in the smart society businesses, addressing various social issues.

Tohoku has set 2020 to 2024 as a transition period for Tohoku’s business model. During this time, Tohoku will strategically invest in management resources in order to shift its business model towards the realization of a smart society. The investments will include Virtual Power Plant (VPP) and battery storage, mobility services, and smart city development. Tohoku will also strengthen its core business by maintaining its diversified energy portfolio and will continue the development of new renewable and gas-fired power plants. In addition, Tohoku will improve the resiliency of its electricity network and aims to reduce its operational costs using Artificial Intelligence (AI) and Internet of Things (IoT) technology solutions. Tohoku aims to achieve consolidated cash earnings of 320 billion yen (approximately $3 billion) * in FY 2024.[1][2]

*Based on the exchange rate as of March 10th, 2020.

[1] http://www.tohoku-epco.co.jp/news/normal/1205982_1049.html

[2] http://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2020/02/27/b2_1205982.pdf

[Japan] The Japanese Cabinet Decided to Revise the Electricity Business Act to Establish a Robust and Sustainable Electricity Supply System

On February 25, 2020, Japan’s Ministry of Economy, Trade, and Industry (METI) announced that the Cabinet had approved a bill enacting revisions to the Electricity Business Act, the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities, and the Act on the Japan Oil, Gas and Metals National Corporation, Independent Administrative Agency (JOGMEC Act)[1]. The proposed revisions aim to establish a resilient and sustainable electricity supply system. The bill was submitted to the 201st ordinary session of the Parliament.[2]

The bill, which is now pending in the Parliament, requires electricity distribution companies to coordinate on disaster response; establishes a new system supporting the introduction of renewable energy; and adds additional operations at the Japan Oil, Gas and Metals National Corporation (JOGMEC) to enable a stable energy supply. JOGMEC (Headquarters: Tokyo) is a Japanese government Independent Administrative Institution that is responsible for securing a stable supply of nonferrous metals and mineral resources.[3]

Key highlights of the proposed revisions include:

· The revised Electricity Business Act will require distribution and transmission operators to develop a disaster coordination plan and a wide-area grid maintenance plan.

· The modified Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities will require the establishment of a FIP (Feed-in Premium) scheme, which adds a premium to the market price for renewable energy production. The act also imposes external funding obligations on solar power generation companies for disposal costs. Furthermore, the act will ask the Japanese government to establish a system to support the cost of inter-regional transmission lines, which is necessary to expand the introduction of renewable energy.

· The revision of the JOGMEC Act will require the JOGMEC to launch a business to procure liquefied natural gas (LNG) and other fuel for power generation at the request of the Minister of Economy, Trade, and Industry in the event of an emergency. Additionally, in order to diversify LNG suppliers and secure a stable supply of metal minerals, JOGMEC will invest in natural gas transshipment and storage bases and mining businesses.

[1] https://www.meti.go.jp/english/information/data/laws.html

[2] http://www.shugiin.go.jp/internet/itdb_gian.nsf/html/gian/menu.htm

[3] http://www.jogmec.go.jp/about/organization_001.html

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

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

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

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

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

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

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

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

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

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

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

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

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