[Japan] Toshiba Energy Systems & Solutions and Chubu Electric Power Announced the Construction of the Double-Flash Geothermal Power Plant in Gifu Prefecture

On May 13, 2020, Toshiba Energy Systems & Solutions (Headquarters: Kawasaki City, Kanagawa Prefecture) announced that Nakao Geothermal Power Generation Corporation (Nakao Geothermal, Headquarters: Takayama City, Gifu Prefecture) will build a double-flash geothermal power plant in Takayama City, Gifu Prefecture.[1] Nakao Geothermal was jointly established in 2013 by Toshiba Energy Systems & Solutions, a subsidiary of Toshiba (Headquarters: Tokyo)[2] that offers energy business products and services [3], and Cenergy, a subsidiary of Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture). Toshiba Energy Systems & Solutions owns 55 percent of shares of Nakao Geothermal, and Chuden owns 45 percent of share of it.

The construction of the Nakao Geothermal Power Plant is scheduled to begin in September 2020, and it is expected to begin commercial operations in late 2021. It is the first time for Toshiba and Chuden to cooperate to build a geothermal power plant. The maximum capacity of the power plant is expected to be 1,998 kW, and all of the generated electricity will be sold to Chubu Electric Power Grid (Chuden Power Grid, Headquarters: Nagoya City, Aichi Prefecture)[4] to supply approximately 4,000 households.

The plant will adopt the double-flash method, which is about 20% more efficient than the general single flash method. It will be the world’s smallest geothermal power plant using this method. The Okuhida Onsengo Nakao district where the plant will be constructed is famous for its hot springs and the hot temperature of its steam, which makes it suitable for geothermal generation.[5]

[1] https://www.toshiba-energy.com/info/info2020_0513.htm

[2] https://www.toshiba.co.jp/about/profi_j.htm

[3] https://www.toshiba-energy.com/company/about.htm

[4] https://powergrid.chuden.co.jp/corporate/company/com_outline/

[5] https://www.toshiba-energy.com/info/info2020_0513.htm

[Japan] Tokyo Electric Power Company Holdings, NTT, Hitachi, and Ricoh Established a Consortium to Promote the Utilization of Electric Vehicles

On May 11, 2020, Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo)[1], Hitachi (Headquarters: Tokyo)[2], and Ricoh (Headquarters: Tokyo) announced that they have established the “Electric Vehicle Utilization Consortium” to promote the use of Electric Vehicles (EV) in the commercial sector.

TEPCO’s partners come from a wide range of industries: NTT is a Japanese telecommunication company, Hitachi is an electric manufacturing company that offers a range of electronics and industrial equipment, and Ricoh is an imaging and electronics company that produces and distributes printing equipment. The consortium is endorsed by a total of forty companies, ranging from the automotive industry to electric utilities, such as Toyota Motor (Toyota, Headquarters: Toyota City), Toshiba (Headquarters: Tokyo)[3], and Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[4]).[5]

Amid concerns about climate change, companies and organizations are required to take actions to realize a decarbonized society. In Japan, the transportation sector accounts for approximately 20% of Japan’s CO2 emissions, however, EVs are expected to contribute to CO2 emission reductions. EVs can also be utilized to strengthen the resilience of electricity infrastructure during a disaster, when they are used for battery storage.

With the launch of the Electric Vehicle Utilization Consortium, the forty members will work together to promote the implementation of EVs in the commercial sector through standardization, information sharing, and resolving implementation barriers, in order to achieve the United Nations’ (UN) Sustainable Development Goals (SDGs).[6]

[1] https://www.ntt.co.jp/about/gaiyou.html

[2] https://www.hitachi.com/corporate/about/hitachi/index.html

[3] https://www.toshiba.co.jp/about/profi_j.htm

[4] https://www.kyuden.co.jp/english_company_outline_index.html

[5] https://www.tepco.co.jp/press/release/2020/pdf2/200511j0101.pdf

[6] https://www.tepco.co.jp/press/release/2020/1541025_8710.html

[USA] Businesses, lawmakers urge federal investment and support of the clean energy sector

On June 2, 2020, two unrelated groups sent letters to Congressional leaders and lawmakers urging the government to increase support for the clean energy industry in the wake of the COVID-19 pandemic. In the first letter, 57 Democratic Senators and Representatives, led by Sen. Martin Heinrich, D-N.M., called for “additional flexibility” for energy tax credits in order to support the clean energy sector and work force.[1] According to the letter, the clean energy sector has seen a 17.4% decline in employment—nearly 600,000 jobs—compared to the April 2020 national unemployment rate of 14.7%.

The second letter included about 80 companies and organizations and proposed federal appropriations of $22 billion over five years to retrofit critical public facilities.[2] The group has also proposed $18 billion for state and local public buildings through the federal State Energy Program over five years, $2.5 billion for improvements to federal buildings through the Federal Energy Efficiency Fund, and $1.5 billion for energy efficiency improvements in public housing. The funding would go toward a range of efficiency and resilience measures. The letter claims that the federal funding could help leverage an estimated private investment of $88 billion to deliver a total of $110 billion in economic activity. Organizations signed on to the letter include: ConEdison Solutions, Constellation, DuPont Specialty Products USA, FPL Energy Services, Greentech Energy, Schneider Electric, Siemens Corporation USA, and the Sheet Metal and Air Conditioning Contractors National Association.

[1] https://www.heinrich.senate.gov/press-releases/heinrich-tonko-lead-bicameral-call-for-inclusion-of-clean-energy-workforce-support-in-covid-19-economic-recovery-packages

[2] https://www.documentcloud.org/documents/6935575-Mission-Critical-Facility-Renewal-Letter-to.html

[USA] DOE to provide $30 million to develop small-scale solid oxide fuel cell systems and hybrid energy systems

On May 29, 2020, the U.S. Department of Energy’s (DOE’s) Office of Fossil Energy (FE) announced up to $30 million in funding for cost-shared research and development projects for Small-Scale Solid Oxide Fuel Cell Systems and Hybrid Energy Systems.[1] The new funding supports the development of technologies that can advance the present state of small-scale solid oxide fuel cells (SOFC) hybrid systems, which produce electricity directly from oxidizing a fuel, using solid oxide electrolyzer cell (SOEC) technologies. The development of advanced technologies will increase the commercial readiness of hydrogen production and power generation. The funding will solicit applications for multiple areas of interest, corresponding to the research outline in DOE’s 2019 Congress report, Report on the Status of the Solid Oxide Fuel Cell Program.[2] The three primary areas of interest are small-scale distributed power generation SOFC systems, hybrid systems using solid oxide systems for hydrogen and electricity production, and cleaning process for coal-derived syngas to be used as SOFC fuel.

[1] https://www.energy.gov/articles/doe-provide-30-million-develop-small-scale-solid-oxide-fuel-cell-systems-and-hybrid-energy

[2] https://www.energy.gov/fe/report-congress-status-solid-oxide-fuel-cell-program

[USA] Energy efficiency continues to be cheaper than natural gas

According to new research released by the U.S. Department of Energy’s (DOE) Lawrence Berkley National Laboratory on May 13, 2020, natural gas energy efficiency programs through utilities saved energy at a cost of about $0.40/therm (1 therm is equal to 100,000 Btu) from 2012 to 2017.[1] [2] Compared to natural gas—which averaged about $1/therm—energy efficiency programs are significantly cheaper. Researchers also found that commercial and industrial (C&I) programs had the lowest savings-weighted average cost of gas savings ($0.18/therm) during the study period. However, C&I programs represented only about 20% of overall efficiency program spending. For residential and low-income program savings costs were $0.43/therm and $1.47/therm, respectively. Savings costs varied widely by geographic region. For instance, savings in the Midwest averaged $0.29/therm while in the West saving averaged $0.59/therm. The study says this is likely due to higher spending on low-income programs in the West, as well as differences in savings opportunities between cold and temperate regions.

In response to the study, many efficiency advocates claim there are even more savings to be had through the electrification of end-uses, but the study did not consider this in their analysis. Additionally, efficiency advocates say the natural gas industry may be building unnecessary infrastructure; the Natural Resources Defense Council says around 90% of proposed gas power plants and their respective pipelines will likely be unnecessary by 2035.[3]

[1] https://emp.lbl.gov/news/energy-efficiency-continues-be-cheaper

[2] https://eta-publications.lbl.gov/sites/default/files/cose_natural_gas_final_report_20200513.pdf

[3] https://www.nrdc.org/experts/sheryl-carter/energy-efficiency-still-abundant-and-cheaper-gas

[Japan] Kansai Electric Power Began Commercial Operation of Hickory Run Thermal Power Plant in the U.S.

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced on May 18, 2020, that the Hickory Run Thermal Power Plant, located in Pennsylvania State, U.S., has begun its commercial operations. KEPCO, Tyr Energy, and Siemens Financial Services (Headquarters: Munich, Germany)[1] jointly participated in the Hickory Run Thermal Power Plant Project in 2017, carrying out the investment and construction. KEPCO owns a 30 percent of share of the project.[2] Tyr Energy (Headquarters: Overland Park, Kansas) is a subsidiary of ITOCHU (Headquarters: Tokyo), one of the largest Japanese general trading companies[3], and invests in and develops independent power projects.[4]

The Hickory Run Power Plant has adopted a combined cycle gas turbine generation with a capacity of 1,000MW. This is KEPCO’s first green field power project in North America. KEPCO dispatched experienced thermal engineers to the site during the construction stage to ensure the quality and efficiency of the process. The power plant will supply electricity to PJM (Pennsylvania-New Jersey-Maryland), which is the largest wholesale electricity market in North America. Now that the Hickory Run Power Plant is operating, the total capacity of KEPCO’s overseas power projects adds up to 2,606 GW.

Based on its Medium-Term Management Plan, overseas business is one of the important earnings pillars for KEPCO. KEPCO views North America as one of its most important markets, and aims to expand its businesses in the region.[5]

Overview of the Hickory Run Thermal Power Project[6]

(1)    Site: North Beaver Township, Lawrence County, PA, U.S.A.

(2)    Type: Combined Cycle

(3)    Output: 1,000 MW

(4)    Start of Construction: August, 2017

(5)    Commercial Operation: May, 2020

(6)    Project Company: Hickory Run Holdings, LLC

(7)    Project Partners:

-            Kansai Electric Power Group (Kansai):30%

-            ITOCHU Corporation Group (Itochu):50%

-            Siemens Group (Siemens):20%

◇ The Kansai Electric Power Co., Inc.

Establishment: 1951 President and Director: Takashi Morimoto Headquarters: 3-6-16, Nakanoshima, Kita-ku, Osaka, Japan Main Business: Energy generation, heat supply, telecommunications, gas supply, etc.

◇ ITOCHU Corporation

Establishment：1949 Chairman and CEO: Masahiro Okafuji Headquarters: 5-1 Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan Main Business: General trading company dealing in textiles, machinery, metals & minerals, energy & chemicals, food, general products & realty, ICT & financial business, etc.

◇ Siemens AG

Establishment: 1847 President and Chief Executive Officer: Joe Kaeser Headquarters: Munich, Germany Main Business: Building technology, digital factories, energy management, financial services, transportation, etc.

kansai 1.jpg
＜Profiles of Project Partners＞

＜Profiles of Project Partners＞

Table 1 KEPCO’s Operating Plants in the U.S.

Table 1 KEPCO’s Operating Plants in the U.S.

[Japan] Hokuriku Electric Power Accelerates Investment by Entering Overseas Power Business

Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), released its 2030 Long-Term Vision Plan and Medium-Term Management Plan (2020 version) in April 2020. The 2030 Long-Term Vision sets a goal of investing more than 200 billion yen (approximately $1.9 billion[1]) through Fiscal 2030 as part of its growth strategy. Rikuden identified three strategic areas of growth to accelerate investment: 1) supporting the local community through addressing challenges, 2) creating new services through a fusion of existing assets and new technology, and 3) entering overseas power businesses. [2]

As part of its efforts to invest in overseas energy businesses, on April 21, 2020, Rikuden announced its investment in Japan Energy Capital 1 L.P., which targets overseas renewable energy business in Turkey and Jordan as well as energy technology venture companies in Europe and the U.S. It is Rikuden’s first overseas business investment. [3] On April 30, 2020, Rikuden further announced that it will establish Hokuriku Electric Power Business Investment G.K. in June 2020. The subsidiary will focus on accelerating investments in Rikuden’s strategic areas of growth. According to Rikuden, it will continue to cultivate new business opportunities and make investments to accelerate its growth. [4]

[1] ¥ 1 = $ 0.0094 USD. Based on the exchange rate as of May 8th, 2020.

[2] http://www.rikuden.co.jp/press/attach/19042502.pdf

[3] http://www.rikuden.co.jp/press/attach/20042101.pdf

[4] http://www.rikuden.co.jp/press/attach/20043003.pdf

[Japan] Hokkaido Electric Power Acquired Shares of Alten RE Developments America B.V.

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) announced that it had acquired a 40% stake in Alten RE Developments America B.V. (Alten America, Headquarters: Amsterdam, Netherlands), as part of its participation in the operation of the Cubico Alten Aguascalientes Solar Project in Mexico. Alten America is a subsidiary of Alten Renewable Energy Developments B.V. (Alten), which invests in solar power generation businesses. Alten owns a 20% share of Alten America.

Alten America has a 30% stake in the Solar Power Project Company, thus HEPCO will own a 12% share of the Company. It will be the first time HEPCO has joined an overseas power generation business. The Cubico Alten Aguascalientes Solar Project, located in the El Llano municipality of Aguascalientes, includes two solar power plants with a total installed capacity of 290MW. The power generated by the two plants will be sold to the state-owned power utility, Comisión Federal de Electricidad (Headquarters: Mexico City, Mexico). HEPCO expects to earn a stable income from this investment as the Cubico Alten Aguascalientes Solar Project has a long-term power purchase agreement with Comisión Federal de Electricidad.[1] [2] This investment aligns with the goals laid out in HEPCO’s Management Vision 2030, in which HEPCO committed to expanding its domestic and overseas renewable businesses to contribute to a sustainable society.

[1] https://www.hepco.co.jp/info/2020/1250847_1844.html  

[2] https://wwwc.hepco.co.jp/hepcowwwsite/info/2020/__icsFiles/afieldfile/2020/04/30/200430.pdf

[Japan] Hokkaido Electric Power Released the Hokuden Group Management Vision 2030

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) released its “Hokuden Group Management Vision 2030.” HEPCO transferred its Power Transmission & Distribution Division to the newly established “Hokkaido Electric Power Network " to legally separate the transmission and distribution divisions on April 1, 2020. The business split was implemented to comply with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). This is a major turning point because even after the split, both companies will still collaborate to supply electricity. The Management Vision discusses HEPCO’s plans on how the two companies will collaborate to provide stable electricity and its business plans in response to the changes in the business environment, including intensifying competition, advancements in technology, climate change issues, and an aging society.

The Management Vision 2030 sets two phases before and after the restart of HEPCO’s Tomari Nuclear Power Plant. The target profit of phase 1 will be 23 billion yen (approximately $215 million) and phase 2 will be 45 billion yen (approximately $422 million) [1]. HEPCO aims for the early restart of the Tomari Nuclear Power Plant to achieve a more balanced generation mix in terms of S+3E (Safety + Energy Security, Economic Efficiency, and Environment). HEPCO’s goal is to reduce CO2 emissions by half or more by FY2030, which is equivalent to 10 million tons or more/year (FY2013 baseline), through the restart of Tomari Nuclear Power Plant and an increase in renewable energy, as well as the use of Liquefied natural gas (LNG) fired thermal power. HEPCO’s three reactors at Tomari Nuclear Power Plant have been shut down since the Fukushima accident, waiting for the regulatory approval for the restart.

HEPCO will also facilitate its business growth through expanding its business outside of the Hokkaido area and overseas, and by entering into new businesses that utilize digital technologies, such as IoT and drones in a wide range of sectors, including transportation and real estate. HEPCO will also strengthen its resiliency against natural disasters. The newly established Hokkaido Electric Power Network will play a critical role in ensuring the secure and stable supply of electricity. [2] [3]

Issue 2 Attachment_Hokuden Group Management Goals_wcore.jpg

[USA] Energy sector jobs plunge at 'historic' rate amid COVID-19 crisis

On May 18, 2020, the BW Research Partnership, an economic research firm, released a report that found that the coronavirus pandemic has eliminated five years of job growth across the U.S. energy sector.[1] Since the beginning of the pandemic, the energy sector has lost 1.3 million jobs and nearly a million of those were lost in April 2020 alone. According to the report, job losses in the fuels sector made up about 10% of the cuts in April 2020. The motor vehicles industry was the hardest hit in April 2020, with 340,000 jobs being cut in April 2020. Coal mining (including electric power generation) experienced 4,000 job losses in April 2020, bringing the total losses to more than 9,000 jobs since the beginning of the pandemic. For oil and gas drilling and refineries, 40,000 jobs were cut in April 2020 and nearly 90,000 jobs have been lost since the beginning of March 2020.

Out of all the state, California has taken the greatest hit, losing more than 124,000 jobs since the onset of the pandemic. Texas and Michigan also had high job losses with 78,700 and 64,500, respectively. The report also notes that despite only making up 14% of the industry, Latino workers made up 23% of total job losses.

[1] https://bwresearch.com/covid/docs/BWResearch_EnergyJobsAprilCOVID-19Memo_05-18-2020.pdf

[USA] Colorado judge clears way for Tri-State exit fee determinations

On May 15, 2020 Colorado Administrative Law Judge (ALJ) Robert Garvey granted a motion for summary judgement filed by La Plata Electric Association (LPEA) and United Power—two cooperative power providers—to not allow Tri-State Generation and Transmission (G&T) to raise a federal preemption defense.[1] In 2019, modifications to Tri-State’s bylaws allowed Tri-State to add new non-utility members which brought Tri-State under FERC jurisdiction. Therefore, Tri-State had argued that federal law preempts state law in the issue of exit fees . The ruling, however, has stated that the issue falls under state purview and has cleared the way for state regulators to determine the fees the two cooperatives will pay to exit Tri-State’s service.

United Power, LPEA and other members of Tri-State have pressed to leave Tri-State's service over dissatisfaction with the G&T provider’s generation mix which heavily relies on coal. Tri-State, however, says it is working to eliminate coal emissions in New Mexico by the end of 2020 and in Colorado by 2030. According to a new report by the Rocky Mountain Institute, Tri-State’s new clean energy plan is a well thought out approach to phasing out 1 GW of coal.[2]

[1] https://www.documentcloud.org/documents/6895523-Interim-Decision-Granting-Motion-for-Summary.html

[2] https://rmi.org/tri-state-chooses-the-low-carbon-path/

[USA] PJM MOPR could cost market consumers up to $2.6B annually according to new report

According to a May 2020 report released by consulting firm Grid Strategies, the Federal Energy Regulatory Commission’s (FERC) 2019 Minimum Offer Price Rule (MOPR) decision could cost customers in the PJM Interconnection from $1 billion to $2.6 billion annually.[1] The new estimate updates a previous cost analysis done by the group in August 2019 which found the MOPR could cost up to $5.7 billion per year.[2] The newest analysis finds the rule could cost consumers nearly $24 billion over the next nine years if FERC adopts minimum bid levels closer to PJM’s initial proposal rather then its most recent finding. Under that scenario, it is likely that subsidized nuclear units in Illinois, New Jersey, and Ohio will not be able to clear the capacity market. Under another scenario that assumes FERC adopts more recent PJM minimum bid levels, Grid Strategies still estimates that the rule will cost customers $10 billion over the same period. In this scenario, it is still possible that some units would not clear under PJM’s newest bid numbers.

Grid Strategies’ analysis comes in the midst of efforts by PJM to negotiate with stakeholders concerned by the MOPR’s potential impacts on state resource goals. Maryland and New Jersey have stated that they are looking at pursuing a Fixed Resource Requirement alternative which would allow parts or all of their state to secure capacity outside the wholesale market.[3]

[1] https://gridprogress.files.wordpress.com/2020/05/a-moving-target-paper.pdf

[2] https://gridprogress.files.wordpress.com/2019/08/consumer-impacts-of-ferc-interference-with-state-policies-an-analysis-of-the-pjm-region.pdf

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

[Japan] Hokuriku Electric Power Accelerates Investment by Entering Overseas Power Business

Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture), released its 2030 Long-Term Vision Plan and Medium-Term Management Plan (2020 version) in April 2020. The 2030 Long-Term Vision sets a goal of investing more than 200 billion yen (approximately $1.9 billion[1]) through Fiscal 2030 as part of its growth strategy. Rikuden identified three strategic areas of growth to accelerate investment: 1) supporting the local community through addressing challenges, 2) creating new services through a fusion of existing assets and new technology, and 3) entering overseas power businesses. [2]

As part of its efforts to invest in overseas energy businesses, on April 21, 2020, Rikuden announced its investment in Japan Energy Capital 1 L.P., which targets overseas renewable energy business in Turkey and Jordan as well as energy technology venture companies in Europe and the U.S. It is Rikuden’s first overseas business investment. [3] On April 30, 2020, Rikuden further announced that it will establish Hokuriku Electric Power Business Investment G.K. in June 2020. The subsidiary will focus on accelerating investments in Rikuden’s strategic areas of growth. According to Rikuden, it will continue to cultivate new business opportunities and make investments to accelerate its growth. [4]

[1] ¥ 1 = $ 0.0094 USD. Based on the exchange rate as of May 8th, 2020.

[2] http://www.rikuden.co.jp/press/attach/19042502.pdf

[3] http://www.rikuden.co.jp/press/attach/20042101.pdf

[4] http://www.rikuden.co.jp/press/attach/20043003.pdf

[Japan] TEPCO Power Grid, Hokuriku Power Electric, Osaka Gas, and Saibu Gas Entered into a Capital and Business Alliance with Japan Infrastructure Waymark

On April 20, 2020, Japan Infrastructure Waymark (JIW, Headquarters: Osaka), which is wholly owned by Nippon Telegraph And Telephone West (NTT West, Headquarters: Osaka)[1] and provides infrastructure inspection solutions using drones, announced that it had entered into a capital and business alliance with four utility companies, TEPCO Power Grid (Headquarters: Tokyo), Hokuriku Power Electric (Headquarters: Toyama Prefecture), Osaka Gas (Headquarters: Osaka)[2], and Saibu Gas (Headquarters: Saitama Prefecture)[3]. In addition to the four utility companies, an IT solution provider, NTT Data (Headquarters: Tokyo)[4]; a Tokyo-based venture capital firm, Drone Fund[5]; and an engineering company, Toyo Engineering (Headquarters: Chiba Prefecture)[6] also joined the alliance.  

Aging infrastructure and labor shortages are making it increasingly challenging for utility companies to efficiently inspect a large amount of infrastructure, such as power plants, transmission towers, and electric poles. The four utility companies and Toyo Engineering partnered with JIW to improve the efficiency of infrastructure maintenance work by developing Artificial Intelligence (AI) and drone solutions. The collaboration will develop AI and drone technologies for monitoring and inspection, ensuring more sophisticated, safe, and high-quality maintenance work. The alliance also facilitates sharing inspection expertise and enhanced AI solutions based on the collected data. [7] [8] [9] [10]

[1] https://www.ntt-west.co.jp/corporate/about/profile.html

[2] https://www.osakagas.co.jp/en/aboutus/corporate_profile/

[3] https://seibugas.com/wp/company_group/%E4%BC%9A%E7%A4%BE%E6%A6%82%E8%A6%81/

[4] https://www.nttdata.com/global/en/about-us/company-profile

[5] https://dronefund.vc/en/about/

[6] https://www.toyo-eng.com/jp/ja/company/outline/

[7] https://www.jiw.co.jp/20200420-infra-tieup/

[8] http://www.rikuden.co.jp/press/attach/200420001.pdf 

[9] https://www.osakagas.co.jp/company/press/pr2020/1286672_43661.html

[10] https://www.tepco.co.jp/pg/company/press-information/press/2020/1539425_8615.html

[USA] Great River Energy to close 1.15 GW North Dakota coal plant

On May 7, 2020, Great River Energy, an electric transmission and generation cooperative in Minnesota, announced that it plans to significantly reduce its carbon footprint by replacing a North Dakota coal plant with renewable energy projects, market purchases and grid-scale battery technology.[1] Under the plan, the 1,151 MW Coal Creek Station would be retired in the second half of 2022 and 1,100 MW of wind energy would be purchased by the end of 2023. Great River Energy will also modify the 99 MW lignite coal-fired Spiritwood Station power plant to burn natural gas, install a 1-MW/150-MWh battery demonstration system, and repower its Blue Flint biorefinery with natural gas. According to the cooperative, the changes will significantly reduce member power supply costs, and will allow it to provide a 95% carbon-free energy portfolio.

Environmental activists praised the decision to close the Coal Creek Station, but North Dakota lawmakers are concerned that it will affect the state’s economy. North Dakota Governor Doug Burgum (R) said his administration is "more determined than ever to find a path forward for Coal Creek Station that preserves high-paying jobs. ... We remain committed to bringing stakeholders to the table to evaluate all options and find opportunity in this uncertainty."[2]

[1] https://greatriverenergy.com/major-power-supply-changes-to-reduce-costs-to-member-owner-cooperatives/

[2] https://www.governor.nd.gov/news/burgum-statement-great-river-energys-announcement-retire-coal-creek-station-2022

[USA] New report finds oil demand may not recover until 2026

According to a report released by Wood Mackenzie on May 12, 2020, demand for crude oil will take until at least 2026 to recover under a full recovery scenario.[1] In its report, Wood Mackenzie examined several trends happening as a result of the pandemic: reduced travel and trade, greater government involvement, and increased automation. The analysts then developed three scenarios for how those trends could affect energy over the next two decades. In the ‘Full recovery’ scenario, there is a rapid return to pre-pandemic conditions. Under the ‘Go it alone’ scenario, economies are slow to recover from the pandemic, with mixed outcomes for coal, oil and natural gas. And finally, in the ‘Greener growth’ scenario, governments focus stimulus programs on supporting the energy transition.

While natural gas use and coal use are expected to trend upward and downward, respectively, across all scenarios, crude oil demand is less predictable. Under the ‘Greener growth’ scenario, for example, oil demand would slowly rebound over the next decade, followed by a sudden decline in 2030 as policies reinforce the energy transition and electric vehicles take hold. In the other scenarios, oil demand slowly increases over the next two decades.

[1] https://www.eenews.net/assets/2020/05/13/document_ew_02.pdf

[USA] St. Louis becomes first Midwest city to pass a Building Energy Performance Standard

On May 7, 2020, St. Louis, Missouri Mayor Lyda Krewson signed into law a Building Energy Performance Standard (BEPS) plan that requires buildings in the city to meet energy efficiency standards and establishes resources to help building owners achieve the savings associated with energy efficiency.[1] [2] St. Louis is the first Midwest city and one of only four jurisdictions (includes: Washington State, Washington, D.C., and New York City) in the U.S. to pass a BEPS. The BEPS plan will help the city achieve its goal of eliminating community-wide greenhouse gas emissions by 2050.

The BEPS plan only applies to buildings that are 50,000 square feet or larger and were already required to report their energy and water use under current city law.[3] Under BEPS, these buildings will be required to meet several levels of energy performance. The BEPS plan also requires several energy-saving actions, including upgrading HVAC units, ventilation, lighting and elevators. In addition, the new law sets up a Building Energy Improvement Board to help ensure buildings are complying with new standards and consider owners’ alternative plans when compliance is not possible. The board will be made up of nine members from utilities, labor, affordable housing owners and tenants, and commercial buildings.

[1] https://www.nrdc.org/media/2020/200506

[2] https://www.nrdc.org/experts/nrdc/st-louis-becomes-third-us-city-adopt-bold-standards-slash-energy-waste-buildings

[3] https://www.stlouis-mo.gov/internal-apps/legislative/upload/as-amended/BB219AACombined.pdf

[Japan] Japanese Utilities’ Response to COVID-19

On April 7, 2020, the Japanese Government announced a state of emergency in seven prefectures, including Tokyo and Osaka. On April 10, 2020, Aichi Prefecture and Gifu Prefecture also declared a state of emergency on their own. Amid the outbreak of COVID-19, Japanese electric power companies are taking measures to secure a stable power supply while ensuring the safety and health of their employees and customers.

For instance, Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture) has implemented several measures in response to COVID-19. It implemented remote work and replaced business trips with video conferencing to enable social distancing. It also shifted commuting times to avoid the peak traffic times for those who still have to commute. As of April 10, 2020, of the approximately 16,100 Chuden staff, approximately 3,600 worked from home. Since April 8, 2020, Chuden established a backup team to respond to the operations for a central power supply command center, which operates 24/7, to maintain a stable supply and service level, even if an employee is infected. JERA (Headquarters: Tokyo), the Japanese largest thermal power company, prohibited entry to the main control room of plants, except for the person in charge. Kansai Electric Power (Headquarters: Osaka) has increased the number of commuter buses at its operating nuclear power plants to strengthen social distancing. [1] [2]

[1] https://www.chuden.co.jp/publicity/press/1201168_3273.html

[2] https://www.nikkei.com/article/DGXMZO58360870S0A420C2X93000/

[Japan] Toyota and Chubu Electric Power Jointly Establish Toyota Green Energy

On April 3, 2020, Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Toyota Motor (Toyota, Headquarters: Toyota City), and Toyota Tsusho (Headquarters: Nagoya City) announced that they had reached an agreement to establish Toyota Green Energy, which aims to obtain and operate Japanese renewable energy sources for the Toyota Group in the future. Chuden owns 40 percent of shares of Toyota Green Energy, and Toyota Motor owns 50 percent of shares of it. The establishment of Toyota Green Energy is expected in July 2020.

Based on the Toyota Environmental Challenge 2050, Toyota plans to create a society in which people, cars, and nature coexist by making the environmental impact of cars closer to zero, and by making a positive impact on the earth and society. Through Toyota Green Energy, Toyota will contribute to the realization of a low-carbon society by reducing the CO2 emitted from plants and other facilities.

Chuden has been working to expand the use of renewable energy, with the aim of deepening Environmental, Social, and Governance (ESG) management and contributing to the resolution of issues identified by the United Nations (UN) in the Sustainable Development Goals (SDGs). By partnering with Toyota, it will strive to improve Japan's energy self-sufficiency rate and reduce CO2 emissions.[1]

[1] https://www.chuden.co.jp/publicity/press/1201128_3273.html

[USA] New Mexico regulators delay two solar+storage projects intended to replace San Juan coal plant

On April 29, 2020 the New Mexico Public Regulation Commission voted 3-2 to delay the decision on whether to approve two solar-plus-storage projects that the Public Service Company of New Mexico (PNM), the New Mexico’s largest investor-owned utility, had proposed as part of the replacement generation for its San Juan coal plant.[1] The regulators determined that they could not approve the two solar projects before taking a closer look at the utility’s full replacement plan. The two projects in question are the Arroyo (300 MW of solar and 40 MW/160 MWh of battery storage) and the Jicarilla (50 MW solar and 20 MW/80MWh of battery storage) projects. The two projects are part of PNM's broader plan to add 350 MW of solar capacity, 380 MWh battery storage, and 280 MW of natural gas to replace its coal-fired generation. PNM has plans to spend $733 million in order to replace its coal-fired generation.[2]

Environmental groups and PNM have both stated that they were not happy with the decision, though they both understood in part the commission's reasoning. A major downfall to the delay is that the projects won’t be able to secure the full value of the solar investment tax credit as it winds down, making the projects' future prices unknown.

[1] https://www.santafenewmexican.com/news/local_news/regulators-again-delay-decision-on-pnms-solar-proposals/article_475242f8-8a32-11ea-aa6c-571c28313f6f.html

[2] https://www.prnewswire.com/news-releases/pnm-files-consolidated-application-for-san-juan-generating-station-300878854.html