[Japan] Shikoku Electric Power and Norinchukin Bank will Jointly Establish an Agricultural Technology Solutions Company

Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture) and Norinchukin Bank (Headquarters: Tokyo) announced on September 25, 2020, that they will establish Aitosa (Headquarters: Nankoku City, Kochi Prefecture), an agricultural technology solutions company, on November 2, 2020. The total investment in Aitosa is 25 million yen (approximately $237,000).[1] Yonden will own 95% of the shares of the company, and Norinchukin Bank will own the remaining 5% of the company. This marks the second time that Yoden has participated in an agricultural business since its entry into the agricultural sector in 2018. Yoden has also participated in a strawberry production project in Miki Town, Kagawa Prefecture, Shikoku.

Agriculture is the primary industry of the Shikoku region. However, the region’s agricultural industry has been facing many challenges, such as an aging workforce, a reduction in the total number of workers, and an increase in abandoned farms. Yonden and Norinchukin Bank believe that cutting-edge agriculture technologies like smart agriculture have the potential to address these issues. Smart agriculture technologies include robotic, Artificial Intelligence (AI), and Internet of Things (IoT) products.

Aitosa aims to develop smart agriculture technologies that will help the region revitalize its agriculture industry by addressing labor shortages. The company will build two green-housing facilities in Nankoku City, Kochi Prefecture, and will contribute to keeping and expanding the regional farming area for shishito pepper, which is a major local agricultural commodity. Aitosa will collaborate with Kochi Prefecture's Internet of Plants (IoP) project, a private-public partnership initiative, to develop an efficient cultivation method that utilizes environmental data inside the facilities, along with biological plant data.[2]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of October 18, 2020.

[2] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2020/09/25/pr010.pdf

[Japan] Kansai Electric Power, Kawasaki Heavy Industries, and RITE Agreed to Build a Test Facility to Conduct CO2 Capture Demonstration Project

On September 24, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture); Kawasaki Heavy Industries (KHI, Headquarters: Tokyo)[1], a heavy machinery manufacturer; and the Research Institute of Innovative Technology for the Earth (RITE, Headquarters: Kyoto), a research institution that develops carbon dioxide capture and storage technologies[2], announced that they had reached an agreement to conduct a joint study on “Applicability to Capture Gas Generated by Coal Combustion using CO2 Solid Sorbents.”

KHI and RITE will work with KEPCO to build a pilot-scale test facility with a CO2 capture capacity of 40t-CO/day at KEPCO’s Maizuru coal-fired power plant to conduct the demonstration project. They were selected and financially supported by the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japan-based public funding organization that promotes the development and deployment of new clean energy technologies. The project marks the first demonstration test in Japan using solid sorbents for CO2 separation and capture at a thermal power plant. The method has the potential to significantly reduce the energy required for CO2 separation compared with conventional technologies.

The test facility is expected to begin the CO2 capture demonstration test in FY2022. KHI will be responsible for designing and constructing the test facility and conducting the CO2 capture and recovery test. KHI and RITE have been developing a solid absorber and a Kawasaki CO2 Capture (KCC) system for separating and recovering CO2 under the Carbon Dioxide Recovery Technology Practical Use Research Project, which was commissioned by the Ministry of Economy, Trade and Industry (METI) in FY2015. Since 2016, KEPCO has been collaborating with them toward the implementation of a pilot-scale tests to evaluate the durability and economic feasibility for solid sorbents at the Maizuru coal-fired power plant.

By leveraging the knowledge developed through the efforts of KEPCO’s engineering services branch, the Kansai-Value Creation Service (K-VaCS), KEPCO hopes to continue to contribute to the reduction of CO2 emissions and move towards a low-carbon society.[3] [4]

[1] https://www.khi.co.jp/corporate/outline.html

[2] http://www.rite.or.jp/en/about/outline/

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/0924_1j_01.pdf

[4] https://www.kepco.co.jp/corporate/pr/2020/0924_1j.html

[USA] FERC issues policy proposal statement on carbon pricing

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

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

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

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

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

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

[USA] Avangrid and PNM Resources announce merger

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

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

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

[Japan] Kyuden International Partnered with Enernet Global to Build a Local Electricity Supply Network Utilizing Renewable Energy

On September 14, 2020, Kyuden International (Headquarters: Fukuoka Prefecture), a subsidiary of Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), announced that it has invested in New York-based microgrid provider Enernet Global and signed a strategic partnership agreement with the vendor to build a local electricity supply network that utilizes renewable energy.

Launched in 2015[1], Enernet Global develops, finances, builds, and operates microgrids and Distributed Energy Resources (DER) projects for customers that operate diesel-fuel generators. The company uses its proprietary software platform to rapidly design the optimal equipment configuration and operations for its customers by combining a wide variety of DER, such as renewable energy generation and battery storage. Enernet Global is currently operating in Asia, Oceania, the Caribbean, and Australia.

Investing in Enernet Global is part of Kyuden’s strategy to transition from its diesel power generation by promoting renewable energy businesses. Based on the Kyuden Group Management Vision 2030, Kyuden will continue to reduce its carbon footprint to achieve a sustainable society.[2] [3]

[1] http://www.enernetglobal.com/company/

[2] http://www.kyuden.co.jp/press_h200914-1.html

[3] https://www.kyuden.co.jp/english_company_news_2020_h200914-1.html

[Japan] Kansai Electric Power, Kanden Power-Tech, and PT Medco Power Indonesia Formed a Strategic Partnership

Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and Kanden Power-Tech (KPT, Headquarters: Osaka Prefecture) announced on September 7, 2020, that they reached an agreement with PT Medco Power Indonesia (MPI, Headquarters: Jakarta, Indonesia), an Indonesian power generation company, to establish a joint venture that will accelerate the development of gas-fired power plants and operations and maintenance (O&M) businesses in Indonesia. KEPCO’s investment amount for the joint venture has not been disclosed, but according to Japanese media it is estimated to be a small amount of money.

Kanden Power-Tech is a wholly owned subsidiary of KEPCO which offers O&M services for power generation facilities.[1] MPI was established in 2004[2] as a group company for the power generation business unit of PT Medco Energi Internasional, the largest Indonesian energy company. MPI is actively developing power plants and is responsible for O&M services for 18 generation facilities in Indonesia, with a total capacity of over 3.3GW.

It is the first time that the KEPCO Group has entered into a strategic alliance with an overseas electric power developer. Based on its Medium-Term Management Plan, KEPCO views the development of its overseas business as an important earnings pillar and will continue to expand its overseas investments.[3][4]

[1] https://www.kepco.co.jp/corporate/pr/2020/pdf/0907_2j_01.pdf

[2] https://medcopower.co.id/about_us

[3] https://www.kepco.co.jp/corporate/pr/2020/0907_2j.html

[4] https://www.kepco.co.jp/english/corporate/pr/2020/pdf/sep07_1.pdf

[Japan] JERA announces retirement of its inefficient coal plants by 2030; goal of achieving net zero emissions by 2050

On October 13, 2020, JERA, On October 13, 2020, JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), announced that it will shut down all of its inefficient coal-fired power plants in Japan by 2030.[1] Shuttering inefficient coal plants is in line with the Japanese government’s policy, but this is the first time that a power company has announced that it will match that policy. The Japanese government has not set a definition of an inefficient coal-fired plant, but JERA said it sees inefficient plants as power plants that use “supercritical or less” technology. The company declined to say how many coal plants it will be closing due to competitive concerns.

JERA also announced that it aims to achieve net zero carbon emissions by 2050 to tackle climate change. To achieve this target, JERA plans to expand renewable energy through offshore wind farms while also using greener fuels like ammonia and hydrogen at its thermal power plants. The company intends to start a pilot program to use ammonia as a fuel with coal in mixed combustion at its Hekinan thermal power station in central Japan by 2030 and hopes to achieve 20% use of ammonia at its coal-fired power plants by 2035. Other measures of the plan include improving efficiency of gas-fired power plants and burning hydrogen in mixed combustion at gas-fired power stations.

[1] https://www.japantimes.co.jp/news/2020/10/13/national/power-firm-jera-shut-inefficient-coal-fired-plants-2030/

[USA] FERC approves Mountain Valley Pipeline construction

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

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

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

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

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

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

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

[Japan] TEPCO Power Grid Announced a Partnership Agreement on the Joint Development of New Digital Products and Services

On September 8, 2020, TEPCO Power Grid (Headquarters: Tokyo), in partnership with several Japanese companies, announced an agreement on the joint development and demonstration of new digital products and services in support of Japan’s Society 5.0 initiative. The Society 5.0 initiative, proposed by the Japanese Cabinet Office’s 5th Science and Technology Basic Plan in 2015, aims to achieve economic growth and address social challenges through a system that highly integrates cyberspace and physical space[1].[2] TEPCO Power Grid’s partners are Mitsui Sumitomo Insurance Group, a Japanese insurance company owned by MS&AD Insurance Group (Headquarters: Tokyo); NTT DoCoMo (Headquarters: Tokyo), a major Japanese telecommunication company; and Energy Gateway (Headquarters: Tokyo), an Internet of Things (IoT) platform solutions provider established by Tokyo Electric Power (TEPCO, Headquarters: Tokyo) in 2018.[3]

The partnership will collaboratively develop a variety of new digital products and services to tackle social challenges--including natural disasters, carbon emissions, and an aging population--by leveraging the four companies’ knowledge and expertise. By the end of FY2020, they will launch a demonstration test of new digital services to support disaster prevention and mitigation, energy savings, and remote monitoring to improve home-based senior and child care by collecting and analyzing residential energy consumption data to identify user behavior patterns and detect any anomalies. The test will be conducted through the DoCoMo IoT Managed Service, which provides customers with turnkey services, ranging from deployment to operations.

In the project, TEPCO Power Grid and Energy Gateway will be responsible for collecting power usage data and providing an application to control the sensors that collect data. NTT DoCoMo will support customers with the installation of IoT products at home and will provide post-installation monitoring services.[4] Mitsui Sumitomo Insurance will analyze power usage data and accident data to better understand fire risk, so that the firm can expand its insurance coverage and offer customers better discounts.[5]

[1] https://www8.cao.go.jp/cstp/english/society5_0/index.html

[2] https://onuglobal.files.wordpress.com/2018/05/japon_5basicplan_en.pdf

[3] https://www.energy-gateway.co.jp/company/summary.html

[4] https://www.nttdocomo.co.jp/biz/service/managed_services/

[5] https://www.tepco.co.jp/pg/company/press-information/press/2020/1552478_8615.html

[Japan] Hokkaido Electric Power Enters the City-Gas Retail Business in Hokkaido Prefecture

On August 18, 2018, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that it will enter the city-gas retail business[2] in Hokkaido Prefecture. It has registered HEPCO as a Gas Retailer based on the Gas Business Act, along with “Hokuden Gas” as a business trademark. Starting from October 1, 2020, HEPCO will supply gas to its customers in six cities in Hokkaido Prefecture, including Sapporo City, Otaru City, Ishikari City, Kitahiroshima City, Chitose City, and Eniwa City.

HEPCO is working on the creation of a secure system to ensure customer safety with affordable gas rate plans. For business customers, HEPCO will offer value-added energy related services, including energy audit service using the city-gas, in addition to delivering Liquefied Natural Gas (LNG).

HEPCO has become the seventh major utility company to register as a gas retailer after Japan’s deregulation of the city-gas retail business in April 2017, after Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), and Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture).[3]

[1] http://www.hepco.co.jp/english/company/corporateprofile.html

[2] The city-gas retail business is equivalent to the natural gas retail business specializing in selling and supplying the gas to residential and commercial & industrial customers in the U.S.

[3] http://www.hepco.co.jp/info/2020/1250975_1844.html

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Japan] PXiSE and Toshiba sign agreement to microgrid projects in Japan

On September 22, 2020, PXiSE Energy Solutions (PXiSE) and Toshiba Energy Systems & Solutions (Toshiba ESS, Headquarters: Kanagawa Prefecture) announced that they have signed a Memorandum of Understanding (MOU) that provides a framework for collaboration on developing new project opportunities for microgrids with an initial focus on Japan and plans to expand to the global market.[1] Mitsui & Co., a Japanese company and PXiSE investor, will also participate in the venture. PXiSE, a Sempra Energy subsidiary based in California, produces a software-based microgrid control platform that can remotely and locally manage interconnected distributed energy resources (DER) and loads. The control platform works in real time, can be grid-connected or standalone, and is designed to efficiently dispatch resources to increase resilience of the system.

The companies believe that by combining Toshiba ESS’s energy system products and expertise in operating virtual power plants with PXiSE software they will be able to capitalize on the growing global need for more flexible and resilient energy systems. According to Guidehouse, a consulting firm formerly known as Navigant Research, the global microgrid market is expected to reach $40 billion by 2028 and total global microgrid capacity is expected to increase from 3.5 GW to 20 GW by 2028. Latin America represents the fastest growing market, but the Asia-Pacific region remains the largest overall market for microgrids and is expected to grow to 7.5 GW by 2028.[2]

[1] https://www.globenewswire.com/news-release/2020/09/22/2097286/0/en/PXiSE-Energy-Solutions-and-Toshiba-Sign-Agreement-to-Develop-Renewable-Energy-and-Microgrid-Projects.html

[2] https://microgridknowledge.com/microgrids-navigant/

[Japan] Osaka Gas Participates in the Three Rivers Natural Gas-Fired Power Plant Project in Illinois, U.S.

On August 25, 2020, Osaka Gas (Headquarters: Osaka) announced that it will participate in the Three Rivers Natural Gas-Fired Power Plant Project, which is in development in Illinois, U.S., through its wholly-owned subsidiary. On August 21, 2020, Osaka Gas signed an agreement to acquire 15% of the equity of Three Rivers from a subsidiary of Competitive Power Ventures (CPV), an Independent Power Producer headquartered in Silver Spring, Maryland, U.S. The transaction amount has not been disclosed, but according to Japanese media it is estimated to be worth several billion Japanese yen.

The facility is a 1,250MW natural gas-fired combined-cycle power plant with about 61% generation efficiency. The plant is expected to begin commercial operations in May 2023 and will produce and sell electricity in the PJM wholesale market, located in the eastern U.S.

Based on its long-term management vision and medium-term plan, “Going Forward Beyond Borders 2030”, Osaka Gas’s parent company, Daigas Group, will continue to explore overseas energy business opportunities and create a strong position in the U.S. as a priority market.[1] [2]

[1] https://www.osakagas.co.jp/en/whatsnew/__icsFiles/afieldfile/2020/08/24/20200825.pdf

[2] https://www.osakagas.co.jp/company/press/pr2020/1289500_43661.html

[Japan] Kansai Electric Power Developed an AI-based Self-Driving Robot for Thermal Power Plant Inspections

On August 25, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) announced that it had developed an AI-based self-driving robot for inspecting thermal power plants. KEPCO partnered with K4 Digital (Headquarters: Osaka) and Kanden Systems (Headquarters: Osaka) to develop the robot. K4 Digital is a digital technology solution company jointly established by KEPCO and Accenture Japan (Headquarters: Tokyo) in 2018.[1] Kanden Systems is KEPCO’s wholly owned subsidiary that provides energy IT solutions.

Field workers need to conduct on-site inspections of thermal power plants on a regular basis, which requires substantial time and effort. Since Japan expects to face a labor shortage due to the future retirement of a large number of older workers, utility companies are concerned that they will face a shortage of skilled workers to conduct regular inspections. KEPCO’s robot design aims to address this expected labor shortage.

KEPCO, K4 Digital and Kanden Systems have worked together to develop the robot since December 2018. A demonstration testing for the robot that began in Sakaiko Power Station, Osaka, in December 2019, had successful results. The robot is expected to be introduced in KEPCO’s power plants and offered to other utilities in 2021.[2] [3]

[1] https://www.kepco.co.jp/corporate/pr/2018/0801_1j.html

[2] https://www.kepco.co.jp/corporate/pr/2020/0825_1j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/0825_1j_01.pdf