[USA] California experiences rolling blackouts as heatwave continues

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Japan] J-Power Concluded a New Share Subscription Agreement with Australian Renewable Energy Company Genex Power

Tokyo-based Japanese power producer J-Power announced on August 3, 2020 that it had concluded a new share subscription agreement with Genex Power, a renewable energy development company in Sidney City, Australia. Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia.

J-Power’s decision to invest in Genex Power is aligned with its business strategy to expand its renewable energy investments in both Japan and abroad. Australia has abundant renewable energy resources and the share of renewable energy in Australia is expected to increase in the future. The need for services and energy storage technologies is also expected to increase to accommodate higher levels of intermittent renewable energy sources.

J-Power has also signed a Technical Services Agreement with Genex Power to provide technical advice for the construction and operation of the Kidston Pumped Storage Hydro Project (K2-Hydro), located in northern Queensland. J-power will leverage the technical expertise that it has gained from Genex’s experience with pumped storage hydro power plant projects in Japan. Once completed, K2-Hydro is expected to have a capacity of 250MW.[1] [2]

[1] https://www.jpower.co.jp/news_release/2020/08/news200803.html

[2] https://www.jpower.co.jp/english/news_release/pdf/news200803.pdf

[Japan] METI and MLIT Held the First Meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation

On July 17, 2020, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly held the first meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation. In the meeting, the Council members discussed the state of wind power generation utilization in Japan and the potential challenges for expanding offshore wind power generation in the mid- to long-term.

Japan aims to increase the total share of wind energy generation from the current level of approximately 0.7% to 1.7% by 2030 as part of Japan’s 5th Strategic Energy Plan.[1] Under the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, which was enacted in April 2019, METI and MLIT have been making progress in designating sea areas for wind energy projects to achieve this goal.[2]

METI and MLIT established the council to collaborate with industry members to advance the systematic and continuous introduction of offshore wind power generation. The council also seeks to enhance Japan’s industrial competitiveness, build up domestic industrial clusters, and develop the infrastructure environment for the wind power generation industry. The council members consist of Japanese utility companies, including Kyuden Mirai Energy (Headquarters: Fukuoka Prefecture), TEPCO Renewable Power (Headquarters: Tokyo), and other major companies in the manufacturing, construction, and financial sectors.

During the first meeting, the council underscored the importance of enhancing the industrial competitiveness of the offshore wind power sector and reducing costs in order to make offshore wind power one of the main energy sources in Japan. The key measure discussed at the council meeting was to increase the investment in wind power generation. Currently, the lack of certainty in the wind generation market outlook is prohibiting investors from actively engaging in the sector. The council is committed to continue the dialogue with industry members to identify areas for public private collaboration to reduce investment obstacles, and to strengthen infrastructure, R&D, human resources, and public engagement.[3]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.
The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources aims to promote the utilization of wind power generation through measures such as the formulation of basic policies, designating maritime areas as targets of promotion projects, creating a certification system for plans related to the licensed use of such designated maritime areas.

[3] https://www.meti.go.jp/shingikai/energy_environment/yojo_furyoku/001.html

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

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

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

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

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

[USA] Xcel Energy announces vision to serve 1.5M EVs by 2030

On August 12, 2020, Xcel Energy announced a vision to serve 1.5 million electric vehicles (EVs) by 2030, which is a 30-fold increase in EVs across the utility’s eight-state service territory.[1] Xcel energy is planning to deliver 100% carbon-free electricity by 2050. According to the utility, the cleaner mix of generation paired with expanded EV adoption will result in significant customer savings and carbon reductions. If the new vision is realized, Xcel Energy expects 20% of all vehicles in its territories to be replaced by EVs by 2030. These EVs will operate at the equivalent of $1/gallon of gasoline when charged with the utility’s low, off-peak electricity prices. In total, customers will pay $700 less per year to drive an EV than to fuel a gas-powered car, resulting in $1 billion in savings overall. The increase in EVs will reduce carbon emissions by nearly 5 million tons annually by 2030.

The utility has already proposed $300 million in investments in smart charging pilot, fleet infrastructure programs, initiatives to boost public charging and residential subscription plans across Colorado, Minnesota, New Mexico and Wisconsin. However, Xcel Energy has said that it will need the support of policymakers and other stakeholders to make its vision real.

[1] https://www.xcelenergy.com/staticfiles/xe-responsive/Marketing/EV%20Vision%20Brochure.pdf

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

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

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

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

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

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

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

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

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

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

[Japan] Hokkaido Electric Power Network Selects Sumitomo Electric Industries’ Redox Flow Battery for Wind Power Generation

On July 14, 2020, Sumitomo Electric Industries (Headquarters: Osaka City, Sumitomo Electric) announced that its redox flow battery was selected for Hokkaido Electric Power Network’s (Headquarters: Sapporo City, Hokkaido Prefecture) wind energy grid interconnection expansion project. The project aims to connect fifteen wind power generation facilities, reaching a total capacity of 162MW.

In this project, Sumitomo Electric will install and maintain a redox flow battery with an installed capacity of 51MWh at Hokkaido Electric Power Network’s Minami-Hayakita Substation which is located in Yufutsu District, Hokkaido Prefecture. A redox flow battery is a type of battery storage that charges and discharges via the oxidation-reduction reactions (redox reactions) of metal ions in the electrolyte. Sumitomo Electric’s redox flow battery features a long life, high reliability, and durability to fire hazards.

The installation of Sumitomo Electric’s redox flow battery will begin in FY 2020 and is expected to be completed by the end of March 2022. The operational period is scheduled from April 2022 to March 2043. Prior to this installation, Hokkaido Electric Power Network has been conducting a large-scale demonstration project since 2015 using Sumitomo Electric’s redox flow battery at Minami-Hayakita Substation to test its operational reliability and safety. [1]

[1] https://sei.co.jp/company/press/2020/07/prs078.html

[World] BP targets 50GW of renewables by 2030

On August 4, 2020, BP announced a new long-term strategy to pivot away from fossil fuels and achieve its goal of being net-zero by 2050.[1] BP first announced its intention to become net-zero by 2050 in February 2020 following the appointment of Bernard Looney as BP’s new CEO.[2] Under the new strategy, BP set a target of 50 GW of renewable by 2030 and an interim goal of 20GW by 2025, up from 2.5GW in 2020. BP will also ramp up its spending on low-carbon energy resources to about $3-4 billion per year by 2025 and $5 billion annually by 2030. As of 2020, BP spends about $500 million annually on low-carbon energy. It also plans to cut its oil and gas production by 40% by 2030. BP also stated that it will not launch new oil and gas exploration efforts in countries where it does not already have a presence. However, the company is not ruling out new wells in countries where it already operates.

[1] https://www.bp.com/en/global/corporate/news-and-insights/press-releases/from-international-oil-company-to-integrated-energy-company-bp-sets-out-strategy-for-decade-of-delivery-towards-net-zero-ambition.html

[2] https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bernard-looney-announces-new-ambition-for-bp.html

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

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

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

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

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

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

[Japan] Japan’s Agency for Natural Resources and Energy Held a Discussion About Phasing Out Inefficient Coal-Fired Power Plants

On July 3, 2020, the Ministry of Economy, Trade, and Industry (METI) announced its plan to develop specific measures for phasing out inefficient coal-fired power plants by 2030. The announcement was made by Hiroshi Kajiyama, the minister of METI, in a press conference.

Japan’s decision to phase out inefficient coal-fired power plants is described in the 5th Strategic Energy Plan[1] issued in 2018; however, no detailed implementation plans were developed thus far. Minister Kajiyama described the need to develop concrete steps towards phasing out inefficient coal-fired power plants and accelerating the implementation of renewable energy to achieve a decarbonized society while carefully balancing Japan’s energy mix with consideration of limited energy resources to ensure a stable energy supply. The minister said that he had ordered METI’s officials to start discussion to develop the phase out plans by the end of July 2020.

Following this announcement, on July 13, 2020, the Agency for Natural Resources and Energy’s Electricity and Gas Industry Committee held a meeting to discuss specific measures to phase out coal-fired power plants.  The discussion focused on addressing the following topics:

1)   Introduce new regulatory measures in order to phase out inefficient coal-fired power plants

2)   Create new mechanisms to promote the early retirement of inefficient coal-fired power plants while ensuring a stable energy supply

3)   Review the current utilization rules on transmission lines to implement measures to accelerate the expansion of renewable energy, while considering various specific regional conditions.

Currently, coal-fired power generation accounts for 32 percent of Japan’s energy mix and inefficient coal-fired generation accounts for 16 percent of the total. Japan plans to reduce the share of coal-fired power generation to 26 percent by FY 2030. Japan plans to continue supporting the long-term use of coal generation by promoting innovative technologies to enhance the efficiency of coal-fired power plants, including Integrated Coal Gasification Combined Cycle (IGCC), Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC), and Carbon Capture Utilization and Storage (CCUS). [2] [3] [4]

[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018.  It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.

The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf

[2] https://www.meti.go.jp/speeches/kaiken/2020/20200703001.html

[3] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/pdf/026_03_00.pdf

[4] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/denryoku_gas/026.html

[Japan] J-Power Consolidates its Thermal Power Generation and Service under J-POWER Generation Service

Tokyo-based Japanese power producer J-Power announced on June 25, 2020, that it will transfer the operation of its thermal power generation plants to JPEC (Headquarters: Tokyo).[1] JPEC is J-Power’s wholly owned subsidiary that provides construction and maintenance services for power generation equipment.[2] JEPC will be renamed J-POWER Generation Service to reflect this change.

Since 2004, J-Power and JPEC have shared responsibility of operations and maintenance (O&M) of thermal power plants. However, in response to the rising competition introduced by the deregulation of the electricity market, J-Power plans to streamline its businesses to improve efficiency and reduce the cost of O&M by consolidating O&M under J-POWER Generation Service. In the long term, J-Power plans to strengthen its investment in renewable energy and overseas business development.

Starting in August 2020, the O&M for seven of J-Power’s Thermal Power Plants will be managed by J-POWER Generation Service. J-Power will integrate its Thermal Power Generation Department and Thermal Power Construction Department into the Thermal Energy Department, which will be responsible for developing the company’s strategy for thermal generation and maintaining and improving the thermal generation technology. J-Power will continue to be responsible for fuel supply and electricity sales. [3]

[1] https://www.jpec.co.jp/company/index.html

[2] https://www.jpec.co.jp/service/index.html

[3] https://www.jpower.co.jp/news_release/2020/06/news200625_4.html

[USA] Report: U.S. grid needs updates to handle projected EV growth

In a new report released on July 29, 2020, the Pacific Northwest National Laboratory (PNNL) in Washington state found that the U.S. energy grid will be able to handle growth in electric vehicle (EV) charging demand until 2028, but after that, the grid will need costly updates or smarter charging to maintain reliability.[1] The report based its analysis on information from the Western Electricity Coordinating Council (WECC), the grid authority west of the Rocky Mountains, because it has commonly agreed-upon data set for a future grid scenario called the WECC 2028. The study is the first to consider medium- and heavy-duty trucks in addition to light-duty trucks. The report’s authors concluded that the current grid could support up to 24 million EVs (including 200,000 medium-duty trucks and 150,000 heavy-duty trucks), which the report predicted the U.S. would reach in 2028. Currently, there are about 1.5 million EVs.

The study looked at two scenarios for how to handle the effect of EVs surpassing this milestone. The first is based on current actions and assumes that most charging sessions will continue to begin at the end of the day, with drivers plugging in and drawing electrons at the same time in the evening. Under this scenario, utilities would need to build new transmission lines and power plants fueled by natural gas to meet demand and keep reliability. The other scenario imagines a system where the battery-filling schedule is coordinated with the needs of the electric grid. This scenario relies on technologies that are in development but have not been tested at scale. Under this scenario, the number of vehicles that the grid can handle more than doubles to 65 million vehicles.

[1] https://www.pnnl.gov/sites/default/files/media/file/EV-AT-SCALE_1_IMPACTS_final.pdf

[USA] Report: APS declares thermal runaway event caused 2019 battery explosion

According to a report released on July 27, 2020, an explosion on April 19, 2019 at Arizona Public Service’s (APS) McMicken Battery Energy Storage System (BESS) facility in Surprise, Arizona was caused by an internal cell failure in a single battery which led to a cascading thermal runaway event[1].[2] The report was written for APS by Davion Hill, a U.S. energy storage leader DNV GL, a Norway-based company that provides advisory and analytics services to the energy industry. The report found that abnormal lithium metal deposits likely led to the internal failure. Contributing factors to the explosion include: a lack of thermal barriers between battery cells, a fire suppression system ill equipped to stop the thermal runaway, a concentration of flammable off-gassing, and a lack of coordination with emergency responders.

The APS report concluded that four issues must be addressed in future BESS installations: barriers to limit cell-to-cell and module-to-module cascading; ventilation and cooling; a combined strategy of fire suppression followed by ventilation and cooling strategies; and response procedures that incorporate system monitoring, the detection of gases, ventilation practices, extinguishing methods, and critical information.

[1] A thermal Runaway occurs in situations where an increase in temperature changes the conditions in a way that causes a further increase in temperature.

[2] https://www.aps.com/en/About/Our-Company/Newsroom/Articles/Equipment-failure-at-McMicken-Battery-Facility

[USA] President Trump to nominate a pair of Democrat and Republican appointees to FERC

On July 27, 2020, the White House announced President Donald Trump’s intention to nominate Democrat Allison Clements and Republican Mark Christie to the Federal Energy Regulatory Commission (FERC).[1] According to the White House, Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004.

The commission is composed of five commissioners who are nominated by the U.S. President and confirmed by the U.S. Senate. No more than three commissioners of one political party may serve on the commission at any given time. As of July 2020, FERC is one commissioner short and has a 3-1 Republican majority. The current members are Chairman Neil Chatterjee (R), Commissioner Bernard McNamee (R), Commissioner James Danly (R), and Commissioner Richard Glick (D). McNamee’s term ended on June 30, 2020, but he has stayed on until a replacement is confirmed. If confirmed by the Senate, Christie will take McNamee’s seat on the commission.

In March 2020, Senate Energy and Natural Resources (ENR) Chair Senator Lisa Murkowski (R-Alaska), and Ranking Member Joe Manchin (D-W. Virginia) expressed frustration with the White House's lack of movement on bringing forward a Democratic nominee along with the nomination of Danly, as is the tradition of nominations to the agency.[2]

[1] https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-appoint-following-individuals-key-administration-posts-072720/

[2] https://www.utilitydive.com/news/senate-confirms-danly-but-manchin-pledges-to-hold-out-for-democratic-ferc/573430/

[Japan] JERA, ADEME Investment SAS, and IDEOL Agreed to Jointly Invest in the Development of Commercial Scale Floating Offshore Wind Projects

JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo)  and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), 100% French state-owned infrastructure investment company ADEME Investment SAS (Headquarters: Angers City, France)[1], and the leading French floating offshore wind technology company IDEOL (Headquarters: La Ciotat, France) announced on June 22, 2020, that they have agreed to establish an investment vehicle that will finance the development and construction phase of several commercial-scale floating offshore wind projects around the world. This includes two upcoming wind farms in Scotland and France, which will use IDEOL’s patented Damping Pool technology. The three parties are in discussion to determine the details of the partnership, including the investment amount.

Offshore wind power generation technologies can generally be divided into  two types: fixed structures connected to the offshore foundations called “bottom-mounted foundations” and “floating-type” structures where the foundation is floating on the sea.[2] Floating-type offshore wind turbines, which can be installed even in deep water, have significant potential to help expand the use of renewable energy in the future. The three companies are therefore trying to better understand floating-type offshore wind power and accelerate its global development through this partnership.[3] [4]

[1] https://www.ademe.fr/en/about-ademe

[2] https://www.nedo.go.jp/news/press/AA5_100970.html

[3] https://www.jera.co.jp/information/20200622_508

[4] https://www.jera.co.jp/english/information/20200622_508

[USA] FERC finalizes updates to PURPA

On July 16, 2020, the Federal Energy Regulatory Commission (FERC) issued a final order in a 3-1 vote to finalize its updates to the Public Utility Regulatory Policies Act (PURPA), a 1978 law to reduce demand and promote greater use of domestic energy and renewable energy.[1] FERC stated that the updates are an effort to preserve competition and give states more flexibility in executing PURPA. One of the biggest changes allows states to set the rates paid to qualifying facilities at a variable wholesale rate rather than a fixed cost, meaning that the price will vary with the markets. Utilities and state regulators have expressed frustrations in the past with paying fixed rates to qualifying facilities, arguing that it prevents more efficient and cost-effective renewable facilities from competing.

FERC also changed how proposed projects qualify for PURPA financing rules, reducing the upper limit for facilities from 20 MW to 5 MW. This essentially means that utilities are no longer obligated to purchase from qualifying renewable facilities above that threshold. Another modification FERC made was to change the one-mile rule to prevent facilities 10 or more miles apart from aggregating as a single project. Facilities under 10 miles apart can still choose whether to aggregate. The change to the one-mile rule is one that Commissioner Richard Glick, who dissented to the other changes, sees as reasonable.

[1] https://www.ferc.gov/news-events/news/ferc-modernizes-purpa-rules-ensure-compliance-reflect-todays-markets