[Japan] J-Power and KDDI Completed a Drone Demonstration Test at Tomamae Winvilla Wind Farm

J-Power (Headquarters: Tokyo), a power producer and KDDI (Headquarters: Tokyo), a  telecommunications operator, announced on October 7, 2020, that they had conducted a drone demonstration test at J-Power’s Tomamae Winvilla Wind Farm from September 1, 2020 to September 30, 2020.

The drone was equipped with auto-flight software that was manufactured by Drone Base (Headquarters: Tokyo), a drone software developer.[1] The software enables the drone to automatically capture images of wind turbine blades when they are in shutdown mode. The demonstration test showed that the drone was able to capture images of all three blades of a wind turbine from four different directions in one flight. The captured images were then uploaded to a cloud server along with additional data, such as positioning and altitude information. It took approximately 20 minutes for the drone to capture images of each wind turbine, which means that the drone reduced inspection times approximately 90% compared with conventional manual inspections.

Based on the results of the test, J-Power and KDDI will continue to advance their automated drone inspection methods by utilizing Artificial Intelligence (AI), robots, and Internet of Things (IoT) technologies.[2]

[1] https://drone-base.jp/

[2] https://www.jpower.co.jp/news_release/2020/10/news201007.html

[USA] GE Renewable Energy announces first U.S. wind turbine blade recycling program

On December 8, 2020, GE Renewable Energy announced that it has signed a multi-year agreement with Veolia North America (VNA), a consulting firm that provides solutions to promote sustainability and a circular economy, to recycle blades removed from its onshore turbines in the U.S. during upgrades and repowering efforts, the first program of its kind in the U.S.[1] GE plans to use this agreement to recycle the majority of blades that are replaced during repowering efforts. Once the blades are removed from the turbines, they will be shredded at VNA’s processing plant in Missouri and then used as a replacement for coal, sand, and clay at cement manufacturing facilities. Nearly 90% of the blade material, by weight, will be reused as repurposed material for cement production. More than 65% of the blade weight will replace raw materials and about 28% of the blade weight will provide energy for the chemical reaction that takes place in the kiln. Environmental impact analysis by Quantis U.S. found that the process will make while reducing CO2 emissions from cement production by a net 27%. According to the GE press release, similar recycling processes in Europe have been effective at a commercial scale. GE has committed to reducing the environmental impacts of its products throughout their life cycles. To this end, GE announced a pledge in 2019 to decarbonize its operations and achieve carbon neutrality by the end of 2020.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-announces-us-blade-recycling-contract-with-veolia

[USA] NRDC Report: LNG as bad for climate as coal over next 20 years

According to a report released on December 8, 2020 by the Natural Resources Defense Council (NRDC), a non-profit environmental advocacy group, projected increases in U.S. exports of liquefied natural gas (LNG) are likely incompatible with holding the rise in global temperature at 1.5° Celsius.[1] [2] The report, titled “Sailing to Nowhere: Liquefied Natural Gas Is Not an Effective Climate Strategy”, found that although greenhouse gas (GHG) emissions from U.S. LNG are lower than coal over a 100-year time span, methane’s more immediate impact compared to CO2 means the "near-term" climate effect of LNG over the next 20 years is similar to coal. The emissions from the LNG industry will generate up to 213 million metric tons of new GHG emissions by 2030, which is equal to the annual emissions of 28 to 45 million fossil fuel-powered cars, according to the report. Much of LNG’s climate impact also comes from the extraction, transport, liquefaction, and re-gasification of LNG. The report also emphasized that the long lifespan of LNG infrastructure “locks in” fossil fuels instead clean energy which prevents of clean energy technologies like wind and solar, which produce significantly lower life-cycle GHG emissions, from expanding. The report concluded that the estimated social cost of U.S. LNG exports was $8.1 billion in 2019 and would be $30.5 billion per year by 2030.

[1] https://www.nrdc.org/resources/sailing-nowhere-liquefied-natural-gas-not-effective-climate-strategy

[2] https://www.nrdc.org/sites/default/files/sailing-nowhere-liquefied-natural-gas-report.pdf

[USA] LBNL releases annual studies on wind and solar, solar gaining ground

The Lawrence Berkeley National Laboratory (LBNL) released its annual wind energy data update in August 2020 and its annual utility-scale solar data update in November 2020.[1] [2] During a webinar on December 8, 2020 that compared the data from these studies, Mark Bollinger, one of the lead authors on the studies, concluded that solar is gaining ground on wind and natural gas in terms of projects seeking approval to connect to the grid.[3] On average, although solar is still more expensive, it delivers a greater net financial benefit to customers on average, according to Bollinger.

LBNL noted that new solar projects are benefiting from a growing trend toward "hybrid" combinations of renewable generation with battery storage which help with the “duck curve” challenge. This growing trend is helped by the federal investment tax credit, for which solar and battery hybrid projects are eligible while wind and battery pairings are not. However, whether wind or solar power is cheaper depends heavily on the region due to varying environmental conditions. The lab also emphasized that wind and solar still total no more than 10% of U.S. electricity output and there are several issues that could slow renewable market growth. Phaseouts of federal tax credits could significantly slow down market growth. Bollinger also added that in regions where the two power sources compete, "they tend to cannibalize their own market value” which could further slow down renewable growth.

[1] https://eta.lbl.gov/publications/wind-energy-technology-data-update

[2] https://eta.lbl.gov/publications/utility-scale-solar-data-update-2020

[3] https://www.youtube.com/watch?v=gUXDG7SzIl8

[USA] Vineyard Wind selects GE as wind turbine supplier; puts project on hold

On December 1, 2020, Vineyard Wind, a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners (CIP), announced that it has selected General Electric (GE) as the supplier of wind turbine generators for its Vineyard Wind 1 project.[1] Vineyard Wind 1 is an 800MW project located off the coast of Martha’s Vineyard, Massachusetts and will be the first large-scale offshore wind farm in the U.S. As a part of this decision, Vineyard Wind has decided to temporarily withdraw its Construction and Operations Plan (COP) from further review by the Bureau of Ocean Energy Management (BOEM) in order to conduct a final technical review associated with the inclusion of GE Renewable Energy’s Haliade-X wind turbine generators. According to Vineyard Wind’s CEO, Lars T. Pedersen, the company believes that the move will avoid more federal delays and provide the shortest timeline for delivering the project. Vineyard Wind expects the review to take several weeks after which it will continue the permitting process with BOEM. The company still plans to reach financial close in the second half of 2021 and begin delivering energy to Massachusetts in 2023.

[1] https://www.vineyardwind.com/press-releases/2020/12/1/vineyard-wind-selects-ge-renewable-energy-as-preferred-turbine-supplier

[USA] Senate Votes to Confirm Christie and Clements to FERC

The Senate voted on November 30, 2020 to confirm the nominations of Republican-pick Mark Christie and Democrat-pick Allison Clements to the Federal Energy Regulatory Commission (FERC).[1] Clements, who will be filling the spot left by Commissioner Cheryl LaFleur in July of 2019, will serve on the commission until 2024 and Christie, who will fill the spot left by Commissioner Bernard McNamee in June 2020, until 2025. 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 pair was nominated by the White House in July 2020 and advanced by the Senate Committee on Energy and Natural Resources in November 2020. Their confirmation by the Senate means FERC will have a full quorum for the first time since before the departure of Commissioner Robert Powelson in 2018. The other members of FERC are Chairman James Danly (Republican), former Chairman Neil Chatterjee (Republican), and Commissioner Richard Glick (Democrat). FERC will be a majority Republican body until June 2021 when former Chairman Neil Chatterjee's term ends.

[1] https://www.ferc.gov/news-events/news/senate-votes-confirm-christie-clements-commission

[Japan] JCI member companies request renewable energy regulatory reforms during meeting with Japanese government

On Wednesday, November 18, 2020, the CEOs of Nissay Asset Management, Kao, Ricoh, and Sony, all members of the Japan Climate Initiative (JCI), had a meeting with Taro Kono, Minister for Administrative Reform & Regulatory Reform, to discuss regulatory reforms that will expand renewable energy.[1] During the meeting, JCI representative, Takejiro Sueyoshi, presented a proposal for regulatory reform on renewable energy expansion. According to the CEOs, about half of the energy used at European locations have already been switched to renewable energy, but in Japan, the companies cannot procure renewable energy as expected and therefore their renewable energy usage remains around 1%. Additionally, the companies’ customers are increasingly requiring that their products be made with 100% renewable energy. For example, Apple, a major customer of Sony, is calling for its manufacturing partners to switch to 100% renewables by 2030, but there is only limited renewable energy supply in the factory location. The companies acknowledged that if companies in Japan collaborate, it would be possible to accelerate the development of new technologies for decarbonization. It was also emphasized that the investment risk of renewable energy can be reduced with clear indication of Japanese government’s long-term energy policy. The CEOs requested Japan’s energy mix target of renewable energy by 2030 be set at 40% or more.

[1] https://japanclimate.org/english/news-topics/re-expansion-topleader/

[Japan] JERA Released its Vision for the Digital Transformation of Power Plants

On October 1, 2020, JERA released its vision to implement "Digital Power Plants,” which describes the firm’s plans to integrate digital technology to optimize the operation and maintenance (O&M) of thermal power plants. JERA is one of Japan’s major energy companies and was established through a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture). JERA has established a Digital Power Plant Promotion Office within its O&M Engineering Department to spearhead this initiative. 

JERA's broad vision for the realization of digital power plants is as follows:
·       Facilities and equipment will continue to evolve by adopting shared data platforms, standardization, and advancing their operational processes.
·       World-class O&M professionals will transform the way that power plants operate.
·       Power plant workers will shift their focus from time-consuming work to data-driven innovations.

JERA has already taken actions to digitalize its power plant O&M prior to the release of its digital power plants vision. Since January 2018, JERA has been remotely monitoring for signs of abnormalities at power plants through utilizing Internet of Things (IoT) sensors, which has resulted in fewer shutdowns and forced outages. In April 2020, JERA implemented an Artificial Intelligence (AI) solution to optimize the operation of a boiler at Hitachinaka Thermal Power Plant in Ibaraki Prefecture, which has reduced the plant’s environmental impact and fuel consumption.

JERA’s vision anticipates that future improvements to power plant operations will link real-time data collected from plant operations with the technology expertise and “Kaizen know-how” (continuous improvement) that JERA has developed over the years. Specifically, JERA’s digital improvements will enable existing plants to 1) improve operations through automated, remote inspections, 2) reduce O&M costs and enhance equipment reliability by optimizing the planned outages schedule and incorporating predictive maintenance, and 3) improve the power generation efficiency and reduce the consumption of chemical agents and electricity. JERA will offer its digital power plant solutions to power generation companies in Japan and overseas.[1] [2]

[1] https://www.jera.co.jp/information/20201001_535

[2] https://www.jera.co.jp/english/information/20201001_535

[USA] Mayors unveil $60B “Marshall Plan for Middle America”

On November 12, 2020, Pittsburgh Mayor Bill Peduto and other mayors from Kentucky, Ohio and West Virginia announced the "Marshall Plan for Middle America," a $60 billion per year plan running from 2021 to 2030 that will help the region transition away from fossil fuels toward more a sustainable economy.[1] The nonpartisan plan was drafted by academic and policy researchers based at the University of Pittsburgh, the University of Massachusetts Amherst, the City of Pittsburgh, the Steel Valley Authority and the Heartland Capital Strategies Network, and the Enel Foundation. The plan calls for federal and private funds to provide $15 billion in block grants to local governments to make buildings more energy efficient; $15 billion in low-interest loans for clean energy production; $15 billion in tax incentives for manufacturers to develop clean energy equipment; and $15 billion in workforce development funds to help further understanding of clean energy. The plan notes that although local action has been taken, federal help is key, especially for jurisdictions in rural Appalachia that struggle economically. The authors estimate that the investments will generate an average of about 270,000 direct plus indirect jobs and an additional 140,000 induced jobs, for a total average annual increase of about 410,000 jobs.

[1] https://www.sustainablebusiness.pitt.edu/sites/default/files/mp4ma_roadmap_-_final_1.pdf

[USA] New Jersey regulators to collaborate with PJM on developing offshore wind transmission solutions

The New Jersey Board of Public Utilities (BPU) announced on November 18, 2020 that it has submitted a solicitation to develop offshore wind transmission solutions in 2021 with PJM Interconnection, which makes New Jersey the first state to engage in this type of transmission planning.[1][2] The State Agreement Approach (SAA), a new type of solicitation established by FERC Order 1000, is intended to explore new frameworks to advance offshore wind energy. The SAA, which was unanimously approved by the BPU, requests PJM to incorporate New Jersey's offshore wind public policy objectives into its transmission planning process starting in the first quarter of 2021 and authorizes PJM to solicit potential offshore wind transmission solutions from developers on behalf of BPU. Under this solicitation process, the BPU will examine details on ready-to-build transmission options, including key considerations such as cost, siting, environmental impacts, and the timeframe for construction. The results of the 2021 solicitation will be revealed by PJM later in 2021 in collaboration with New Jersey.

New Jersey’s goal of generating 7.5 GW of power from offshore turbines by 2035 is second only to New York and will rapidly expand the state’s renewable energy. During the state’s first two offshore wind solicitations, BPU staff recommended a coordinated approach to generation and transmission. However, with the resource set to expand substantially, the BPU recognizes that there needs to be an integrated transmission plan early in the planning process so that there is no double building or unnecessary environmental disruption.

[1] https://www.nj.gov/bpu/pdf/boardorders/2020/20201118/8D%20-%20ORDER%20Offshore%20Wind%20Transmission.pdf

[2] https://www.bpu.state.nj.us/bpu/newsroom/2020/approved/20201118a.html

[USA] Report: Rule changes at DOE could save U.S. households $230 a year on utility bills by 2050

On November 17, 2020, the Appliance Standards Awareness Project and the American Council for an Energy-Efficient Economy released a report that found that energy efficiency rules from the Department of Energy (DOE) for 47 products could reduce carbon emissions by 1.5 billion to 2.9 billion metric tons through 2050 which is equal to the closing 13 to 25 coal plants.[1] The standards that the report recommends could be met using current technology and completed over the next few years. The report noted that of the 47 products the report recommended standards for, strengthened standards for residential water heaters, commercial and industrial fans, residential furnaces, and light bulbs could provide the greatest potential emissions reductions.

The rule changes would save the average U.S. household more than $100 a year in utility costs by 2030, $230 a year by 2035, and nearly $350 a year by 2050. Cumulatively, consumers and businesses could potentially save $1.1 trillion on utility bills. The standards would also reduce peak electricity demand by almost 90 GW by 2050, which is equivalent to about 13% of total peak demand today. According to the report, the DOE could achieve greater emissions reductions by setting standards for products that do not currently have any standard and by improving test procedures used to rate products’ energy and water use. The report does acknowledge, though, that the DOE has not finished any updates for appliance standards since the beginning of the Trump administration, and as of November 2020, it has missed 28 legal deadlines for reviewing appliance standards.

[1] https://www.aceee.org/press-release/2020/11/report-biden-could-slash-carbon-pollution-energy-costs-efficiency-standards

[USA] APS proposes plan to give $144 million to Arizona tribes and others affected by coal plant closures

According to The Arizona Republic, Arizona Public Service (APS), Arizona’s largest electric utility and a subsidiary of Pinnacle West Capital Corporation, is proposing a plan to offer $144 million to aid three coal country and Native American communities where the company plans to close its remaining coal-run power plants.[1] Under the plan, APS would increase investments in Navajo Nation, Hopi Tribe and Joseph City area while retaining workers, providing electricity to regions in the Navajo Nation that are off the power grid, and developing renewable energy projects. APS is the majority owner of the Four Corners Power Plant on Navajo land which employs 327 people, 80% of them Native American. 350 people work at a Navajo Nation-owned coal mine next to the plant. Four Corners is scheduled to close by 2031. APS is also the majority owner of the Cholla Power Plant in Joseph City, which employs roughly 200 people and is scheduled to close by 2025, with one of the three remaining units closing in 2020. According to the CEO of APS Jeff Guldner, APS is trying to prevent layoffs with the 2020 closure.

[1] https://www.azcentral.com/story/money/business/energy/2020/11/06/arizona-public-service-co-offering-144-million-tribes-coal-country/6180829002/

[USA] 14 states sue DOE over failure to update appliance efficiency standards

On November 9, 2020, 12 states and two cities[1] filed a lawsuit in the U.S. District Court for the Southern District. against the Department of Energy (DOE) over the DOE’s failure to review and update 25 standards for a wide range of appliances including washers and dryers, dishwashers, microwaves, water heaters, room air conditioners, small electric motors, furnaces, and fans.[2] According to the lawsuit, the updated standards could save $580 billion in energy costs and avoid over 2 billion metric tons of carbon dioxide emissions by 2050. In the November lawsuit, the states say the Trump administration has violated the Energy Policy and Conservation Act (EPCA) which requires standards to be reviewed every six years. The EPCA covers more than 60 categories of appliances; these appliances account for about 90% of the total amount of energy consumed in homes, 60% of the energy used in commercial buildings, and 30% of the energy used by industry. A similar lawsuit was filed on October 30, 2020 by six environmental and consumer groups[3] which asked that the court direct the DOE to "promptly initiate rulemakings and complete reviews" of the missed standards.[4] 

[1] New York, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Vermont, Washington, the District of Columbia and the city of New York.

[2]https://oag.ca.gov/sites/default/files/2020%2011%2009%20Missed%20Deadline%20Complaint%20with%20Attachments%20FILED.pdf

[3] Natural Resources Defense Council, Public Citizen, Sierra Club, the Center for Biological Diversity, Consumer Federation of America, and the Massachusetts Union of Public Housing Tenants with Earthjustice as their counsel

[4] https://www.nrdc.org/sites/default/files/complaint-doe-standards-delay-20201030.pdf

[USA] DOE Report: Certain policies key to lower barriers to low-income rooftop solar uptake

A new study from the Department of Energy’s (DOE) Lawrence Berkeley National Laboratory (Berkeley Lab) published in Nature Energy in November 2020 found that three of the five policy and business models studied increased adoption of solar photovoltaics (PV) among low- and middle-income households—defined as households that were earning less than the median income in counties where they were located—thus increasing adoption equity.[1] The study, titled “The impact of policies and business models on income equity in rooftop solar adoption,” was led by Eric O’Shaughnessy, a Berkeley lab affiliate researcher, and co-authored by Galen Barbose, Ryan Wiser, Sydney Forrester, and Naïm Darghouth, all of Berkeley Lab’s Electricity Markets & Policy group, which conducts research to inform decision-making in the U.S. electricity sector.

According to the study, as much as 42% of the U.S.’s rooftops that could accommodate solar panels are in low- to moderate-income housing but many solar programs are not bringing these households in the rooftop solar market which could "decelerate" the solar industry and slow emission cuts. The study evaluated the effects of five types of programs or business models on adoption equity: financial incentives targeted at low- and middle-income households; leasing, which reduces upfront costs; Property Assessed Clean Energy Financing (PACE), a program to finance PV through property tax payments that is only available in California, Florida, and Missouri; financial incentives offered to customers of any income level; and Solarize, a community initiative to recruit a coalition of prospective PV adopters. Their analysis found that the first three types of interventions – targeted incentives, leasing, and PACE – are effective at increasing adoption equity.

[1]  https://newscenter.lbl.gov/2020/11/09/how-to-accelerate-solar-adoption-for-the-underserved/

[USA] Report: Not-for-profit utilities less prepared for cybersecurity threats

According to a Moody’s Investors Service report released on November 4, 2020, privately owned utilities are better prepared to face cybersecurity threats than not-for-profit utilities.[1] [2] The report surveyed 115 private, state-owned, unregulated and not-for-profit electric utilities. Moody's found that smaller utilities that operate in the not-for-profit space don't have the same resources to handle cybersecurity threats while private utilities have more funds to combat cyberthreats and are more likely to have advanced defensive tools at their disposal to counteract hackers. Larger utilities also have more training against some of the common attack methods like email spearphishing, which is when hackers send malicious links aimed at tricking victims to give up valuable information or inserting malware into their devices. The report also found that only the largest utilities with total assets valued at over $100 billion have directors on their board with any cybersecurity expertise.

[1]https://www.eenews.net/energywire/2020/11/05/stories/1063717835?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[2] https://www.moodys.com/research/Moodys-Electric-utilities-cybersecurity-readiness-tied-to-scale-and-business--PBC_1252439

[USA] Utility commission incumbents set to retain majority of their seats in 2020 election

In the ten states that held elections for public service commissions on November 3, 2020, incumbents are set to retain the vast majority of their seats.[1] As of November 6, 2020, incumbents will retain seats in Nebraska, Oklahoma, North Dakota, South Dakota and Alabama. Arizona’s election for three available commission seats remains too close to call as of November 6, 2020, with Democrat Anna Tovar, incumbent Republican Lea Márquez Peterson and Republican James O'Connor in the lead by narrow margins.[2] Georgia also remains undecided, but Republican incumbents Jason Shaw and Lauren McDonald both lead in the vote.[3] In Louisiana, Democrat incumbent Foster Campbell has retained his seat, but Republican incumbent Eric Skrmetta is headed to a run-off with his Democratic challenger Allen Borne.[4] Montana voted to retain Republican incumbent Tony O'Donnell.[5] Republican James Brown defeated Democrat Tom Woods for the second seat and Republican Jennifer Fielder won the final seat. In New Mexico, 56% of voters approved a constitutional amendment that will reduce the Public Regulation Commission from five commissioners to three, with all three members to be appointed by the governor.[6]

[1] https://www.utilitydive.com/news/utility-commissions-largely-retained-incumbents-on-election-night-with-pot/588448/

[2] https://www.azcentral.com/elections/results/2020-11-03/state/arizona/

[3] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-georgia.html?auth=login-email&login=email

[4] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-louisiana.html

[5] https://montanafreepress.org/2020/11/03/one-incumbent-and-two-newcomers-headed-for-psc/?utm_source=Energy+News+Network+daily+email+digests&utm_campaign=8c6121486a-EMAIL_CAMPAIGN_2020_05_11_11_46_COPY_01&utm_medium=email&utm_term=0_724b1f01f5-8c6121486a-89257591

[6] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-new-mexico.html

[Japan] New Prime Minister of Japan sets goal to become carbon neutral by 2050

On October 26, 2020, in his first policy speech since taking office in September 2020, Japanese Prime Minister, Yoshihide Suga, set an ambitious target for his country to be carbon neutral by 2050.[1] According to Prime Minister Suga, achieving that goal will not only good for the world, but also for Japan’s economy and global standing. “Taking an aggressive approach to global warming will bring about a transformation in our industrial structure and economic system that will lead to big growth” in the economy, he said. The prime minister said he would accelerate research and development on key innovative technologies such as next-generation solar batteries and carbon recycling. He also promised a stable energy supply by conserving energy, maximizing the use of renewable energy sources, and promoting nuclear energy policies that place the highest priority on safety. He also plans to radically change Japan's long-standing policy on coal-fired power generation.

Japan is the world’s fifth-largest emitted of greenhouse gases. In 2018, Japan emitted 1.24 billion metric tonnes (1.36 billion US tons) of greenhouse gases, which was 3.9% less than 2017 and 12% less than its peak in 2013.[2] Previously, Japan had committed to going carbon neutral “at the earliest possible date,” and had a goal to reduce greenhouse gas emissions 80 percent by 2050.

[1] https://www.nytimes.com/2020/10/26/business/japan-carbon-neutral.html

[2] https://www.cnn.com/2020/10/26/asia/japan-emissions-target-2050-scli-intl/index.html

[USA] BLM approves $4 billion oil project in the National Petroleum Reserve-Alaska

On October 27, 2020, the Bureau of Land Management (BLM), an agency within the Department of the Interior (DOI), approved ConocoPhillips Alaska Inc.'s Willow Master Development Plan, a $4 billion oil project in the National Petroleum Reserve-Alaska (NPR-A).[1] The NPR-A is a 23-million-acre piece of federally managed land that lies west of Alaska's Prudhoe Bay oil field and the Arctic National Wildlife Refuge (ANWR). According to BLM, the project could produce up to 160,000 barrels of oil per day over its anticipated 30-year life which will equal approximately 590 million total barrels of oil. BLM estimates the project will generate up to 1,000 jobs during construction and 400 permanent positions to keep it operating. BLM’s decision allows construction of up to three drill sites and associated processing and support facilities. BLM says the decision also adopts modifications to the project based on input from tribal governments, cooperating agencies and various other stakeholders received during the comment period for the project’s environmental impact statement (EIS).

[1] https://www.blm.gov/press-release/trump-administration-approves-willow-master-development-plan

[USA] Report: Carbon price in PJM would cut emissions by 30%

According to a study released on October 28, 2020 by the consulting firm Energy + Environmental Economics (E3) and commissioned by the Electric Power Supply Association (EPSA), a national trade group representing competitive power suppliers, PJM Interconnection, the nation’s largest grid operator, could reduce greenhouse gas (GHG) emissions nearly 30% and save consumers $2.8 billion by 2030 by setting a modest carbon price.[1]

The report examined four scenarios: a Business as Usual (BAU) scenario that is representative of current policy; a Renewables Portfolio Standard (RPS) scenario where increased renewable generation is mandated; a Clean Energy Standard (CES) scenario that credits any form of qualifying clean power; and a Greenhouse Gas (GHG) Reduction scenario that places a price on carbon through a cap-and-trade program. Of these scenarios, the report found that the most cost-effective policies are ones directly target carbon emissions, either by placing a price on carbon or by placing a limit on electricity-sector carbon emissions. The report found that a carbon price of $10 per ton could reduce 80 million metric tons of GHG emissions in PJM. The study also found that current state policies that mandate low-carbon goals such as RPS are "costly and ineffective" at reducing emissions. These policies would increase system costs by over $3 billion per year by 2030 while only achieving 40 million metric tons of emissions reductions.

[1] https://www.eenews.net/assets/2020/10/29/document_ew_02.pdf

[Japan] Hokkaido Electric Power’s First LNG Cargo from the United States arrived at Ishikari LNG Terminal, Hokkaido Prefecture

On September 21, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that its first Liquefied Natural Gas (LNG) cargo ship, the Shinshu Maru, has arrived at the Ishikari LNG terminal at Ishikari Bay, Hokkaido Prefecture from Freeport City, Texas in the United States.

The newly arrived LNG will fuel HEPCO’s Ishikari Bay New Port Power Plant. The 70,000-ton LNG order is based on an LNG spot sales contract between HEPCO and JERA Global Markets (JERAGM, Headquarters: Singapore[2]), a group company of JERA (Headquarters: Tokyo) that specializes in LNG trades. JERA is a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture).

The Ishikari LNG terminal is operated by Hokkaido Gas (Headquarters: Sapporo City, Hokkaido Prefecture) and is shared with HEPCO. At the terminal, HEPCO owns the No. 3 tank, which was completed in July 2018, and the No. 4 tank, which is scheduled to be completed in October 2020. Once the No. 4 tank is completed, HEPCO will be able to accept imported fuel at a wide range of time periods, which will enable more flexible fuel purchases.

HEPCO decided to choose the U.S. as its LNG importer based on their desire to work with an attractive LNG supplier. Their decision took into account factors such as country’s stable political situation and its steady productivity of LNG, according to a Japanese media outlet. HEPCO will continue to combine long-term contracts with spot sales in order to ensure the stability of future fuel supplies.[3]

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

[2] http://www.jeragm.com/contactus

[3] https://www.hepco.co.jp/info/2020/1251027_1844.html