[Japan] JERA Signed Memorandum of Understanding (MOU) with ExxonMobil and the People’s Committee of Hai Phong City to Participate in an Integrated LNG to Power Project in Northern Vietnam

On October 28, 2020, JERA announced that it has signed a Memorandum of Understanding (MOU) with ExxonMobil Hai Phong Energy (EMPHE, Headquarters: Texas, the United States), and the People’s Committee of Hai Phong City, Vietnam to jointly work on an Integrated Liquefied Natural Gas (LNG) to Power Project. The project aims to establish an LNG value chain that consists of an LNG import terminal and an LNG-fired power plant in Hai Phong City, Vietnam. 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).

Hai Phong City is the largest port city in northern Vietnam. The city has seen fast economic growth over the years and its annual power consumption is expected to double over the next decade. EMPHE aims to meet the city’s future electricity demand with cleaner energy. EMPHE has submitted an application to the Vietnamese government for the project to be considered and potentially included in Vietnam’s National Power Development Plan (PDP), which sets out the long-term vision for Vietnam’s energy security and development.

The project is being conducted as part of the Japan US Strategic Energy Partnership (JUSEP), a Japan-US collaborative framework that facilitate economic growth and global security through developing an affordable and reliable energy supply in Southeast Asia, South Asia, and Sub-Saharan Africa. [1] The MOU was signed at the Indo-Pacific Business Forum hosted by the U.S. Trade and Development Agency, with the presence of government officials from Japan, the U.S., and Vietnam.

JERA aims to become a provider of cutting-edge solutions to solve global energy problems. Through this mission, JERA will contribute to addressing energy challenges in Vietnam by leveraging its experience in LNG value chains.[2] [3]

[1] https://www.meti.go.jp/english/press/2017/pdf/1107_001a.pdf

[2] https://www.jera.co.jp/information/20201028_545

[3] https://www.jera.co.jp/english/information/20201028_545

[Japan] Kansai Electric Power and e5 Lab Agreed to Form a Partnership for the Joint Development and Promotion of Urban Water Mobility Project in the Kansai Bay Area

On October 30, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and e5 Lab (Headquarters: Tokyo)[1], a Japanese electrically powered vessel developer, announced that they had agreed to form a partnership for the joint development and promotion of Urban Water Mobility Project, which would utilize electrically powered vessels to provide improved transportation options in the Kansai Bay area.

KEPCO and e5 Lab will develop and promote the electrification and automation of vessels to help resolve transportation challenges such as labor shortages and the need to achieve zero emission goals.

e5 Lab will contribute to the development of next generation electrically powered vessels that achieve both sustainability and comfort, and that can be used for multiple purposes, such as transportation and entertainment. KEPCO will be responsible for developing a two-way wireless charging and discharging system for electrically powered vessels. If successful, the partnership will be the first in Japan to install such systems on a vessel.

Electrically powered vessels offer several unique benefits, including reduced emissions, noise, and vibrations compared with traditional vessels. They also offer larger space, since the vessel does not need an engine room. In addition, KEPCO’s battery will provide efficient charging and will require less frequent maintenance. The batteries installed in the vessels can also be used to supply electricity in an emergency.

KEPCO and e5 Lab aim to contribute to the sustainable development of Japanese shipping industry through offering electrically powered vessels to governments and businesses in the future.[2][3]

*The video clip on KEPCO’s electrically powered vessels for Urban Water Mobility Project can be accessed from the following URL.

https://www.youtube.com/embed/SIkRpsqyBMA?enablejsapi=1&feature=oembed&wmode=opaque&vq=hd720

[1] https://e5ship.com/

[2] https://www.kepco.co.jp/corporate/pr/2020/1030_3j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/1030_3j_01.pdf

[Japan] Kansai Electric Power Transmission & Distribution Launched a Pilot Project for a Parcel Delivery Locker Service in Kyoto, Japan

On October 19, 2020, Kansai Electric Power Transmission & Distribution (Headquarters: Osaka Prefecture) announced that it would launch a pilot project for a parcel delivery locker service in Seika Town, Kyoto. The pilot project was launched in partnership with Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture); Nihon Network Support (Headquarters: Osaka Prefecture), a KEPCO subsidiary that produces power generation equipment; Kyoto Prefecture; Seika Town; and Toyota Industries (Headquarters: Aichi Prefecture) as well as some major Japanese logistics companies.

The growth of e-commerce in Japan in recent years has led to an increase in parcel delivery volumes, and labor shortages in the logistics sector. The COVID-19 outbreak further accelerated these issues and increased the demand for contactless parcel delivery. KEPCO Transmission & Distribution partnered with other companies to address these challenges through a contactless parcel delivery locker service.  

KEPCO Transmission & Distribution installed parcel delivery lockers alongside its electric poles in residential areas in Seika town. Community members who missed a delivery at home can request for their parcels to be stored at the lockers to pick them up later. KEPCO Transmission & Distribution aims to use this system to lessen the burden on logistic operators by reducing the need for re-delivery and hopes that the service will contribute to sustainability though improving operational efficiency.

The parcel delivery locker services are managed and operated by KEPCO Transmission & Distribution. The lockers were provided and maintained by Toyota Industries. Nihon Network Support assisted in developing the equipment to install the lockers. The delivery services will be operated by Yamato Transport (Headquarters: Tokyo), Japan Post Service (Headquarters: Tokyo), and Seino Transportation (Headquarters: Gifu Prefecture[1]).

The pilot project is being conducted as part of the Ministry of Land, Infrastructure, Transport and Tourism’s “Smart Keihanna Project”, an initiative to promote smart city projects in the “Keihanna” region on the border between Kyoto, Osaka, and Nara Prefectures. The pilot project started on October 19, 2020 and will run until January 31, 2021.[2] [3]

[1] https://www.seino.co.jp/seino/company/overall-condition/

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/1019_1j_01.pdf

[3] https://www.kepco.co.jp/corporate/pr/2020/1019_1j.html

[USA] NC Supreme Court rules Duke won’t foot $9B coal ask cleanup bill, shareholders may still pay half

On December 11, 2020, the North Carolina Supreme Court ruled that Duke Energy and its shareholders will not have to bear the full brunt of the coal ash cleanup costs.[1] In January 2020, Duke reached a settlement with environmental groups that requires the utility to excavate a total of 124 million pounds of coal ash from Duke’s coal plant sites over the next 10 to 15 years.[2] Duke estimates the total cost of the cleanup to cost $8-9 billion. Duke has repeatedly said that absorbing these costs would likely weaken its balance sheet.[3] The CEO has also said the company would be unwilling to reach a settlement with environmentalists on whether the utility can profit from the cleanup.

The NC Supreme Court decision partially upholds the North Carolina Utilities Commission’s (NCUC), the government agency that regulates utilities in the state, initial ruling that coal ash costs should be included in the cost of service used to establish the utilities’ retail rates, essentially putting the cost on Duke’s ratepayers. The NCUC’s decision was challenged by the state’s attorney general who argued that Duke should bear the costs of the cleanup and filed a brief in the NC Supreme Court to appeal the decision. The court also ruled that the NCUC should reconsider its rejection of North Carolina Public Staff’s “equitable sharing” proposal. The NC Public Staff’s, which helps consumers resolve disputes with utility companies, proposal would split the cost of cleanup between ratepayers and shareholders and extend the timeline for paying off the costs, but would not allow the utility to profit from the cleanup. The court's ruling does not mean the NCUC has to implement the NC Public Staff’s proposal, only that the commissions needs to consider "all potentially relevant facts."

[1] https://appellate.nccourts.org/opinions/?c=1&pdf=39826

[2] https://www.southernenvironment.org/news-and-press/news-feed/n.c-settlement-results-in-largest-coal-ash-cleanup-in-america

[3] https://www.utilitydive.com/news/uncertainty-over-earnings-return-for-8b-north-carolina-coal-ash-cleanup-we/583267/

[Japan] Vena Energy breaks ground on 162-MW PV facility in northern Japan

On December 16, 2020, Vena Energy, a Singapore-based independent power producer (IPP), announced that it has broken ground on the Amateras Shiroishi Solar Project, a 162-MW solar photovoltaic (PV) facility in Japan's Miyagi prefecture.[1] The project will be one of the largest renewable energy projects in the region. According to the press release, Vena Energy acquired Amateras Solar GK, the developer of the Amateras Shiroishi Solar Project, from X-ELIO, a Spain-based global solar developer. The deal expanded Vena Energy’s construction portfolio to 17 projects totaling 604 MW across Japan. During the peak of its construction, the project is expected to create over 200 jobs. When if begins operations, the project if expected to produce up to 175,000 MWh of clean renewable energy per year which will power roughly 35,000 Japanese households. The project will also reduce up to 104,000 tonnes of greenhouse gas emissions and save up to 165 million litres of water every year compared to thermal energy generators.

[1] https://www.venaenergy.com/all_news/vena-energy-expands-renewable-energy-construction-portfolio-in-japan-with-landmark-162mw-solar-project-in-miyagi-prefecture/

[USA] Biden picks two-term Michigan Governor Granholm to lead DOE

According to Politico on December 15, 2020, President-elect Joe Biden will pick former Michigan Governor Jennifer Granholm to be the head of the Department of Energy (DOE).[1] Granholm, who served two terms as Governor of Michigan from 2003 to 2011, has been a strong advocate for zero-emissions vehicles and has argued that the U.S. risks being left behind by other countries if it does not develop alternative energy technologies. In an op-ed in the Detroit News, Granholm wrote, “[T]he private sector needs greater support and political will from our policymakers to help us fully realize the potential of a zero-carbon future. The economics are clear: The time for a low-carbon recovery is now.”

Picking Granholm for DOE secretary is a clear sign that Biden wants the department to play a central role in achieving the targets of Biden’s climate plan. While the DOE’s budget is primarily devoted to maintaining the U.S.’s nuclear weapons arsenal, it also operates 17 national labs that help develop advanced technology used in renewables, nuclear energy and fossil fuel production. Under the Obama administration, the DOE oversaw tens of billions of dollars in loan guarantees and grants that expanded the adoption of solar and wind power and helped drive down the costs of renewables. The DOE also sets appliance standards, conducts research on innovations like electric heat pumps, and oversees building and residential energy efficiency programs, all of which will be key to reducing emissions from buildings.

[1] https://www.politico.com/news/2020/12/15/biden-to-tap-former-michigan-gov-granholm-to-lead-energy-department-445782

[Japan] KEPCO Joined the Preparatory Committee to Establish the Hydrogen Value Chain Promotion Council

On October 14, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture) announced that it had joined the Preparatory Committee which will work to establish the Hydrogen Value Chain Promotion Council by early December 2020. The Council will seek to promote global cooperation in the development of the hydrogen sector and the formation of hydrogen supply chains. The Preparatory Committee consists of nine companies[1] including KEPCO.[2]

Many countries, including Japan, are currently working towards the realization of a hydrogen society due to the potential for hydrogen technologies to help reduce CO2 emissions. The Hydrogen Value Chain Promotion Council will take the following actions:

·       Promote cross-cutting initiatives to build a hydrogen value chain.

·       Accelerate the application of hydrogen technologies to solve societal needs and challenges.

·       Promote the creation of a hydrogen financing scheme in collaboration with financial institutions.

Prior to joining the Preparatory Committee, KEPCO has already been working on accelerating the development of hydrogen technology, such as establishing Hydro Edge (Headquarters: Osaka City, Osaka Prefecture)[3], a joint venture involving KEPCO and other investors that manufactures and sells liquid hydrogen. KEPCO has also conducted a series of hydrogen demonstration tests and studies with the support of the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo). The research has included demonstrations of the efficiency of hydrogen co-generation systems (CGS) and hydrogen-fueled gas turbine operations with dry low NOx combustion technology[4], as well as exploring the possibility of integrating hydrogen into existing thermal power plants.

KEPCO plans to further accelerate its efforts to promote hydrogen utilization as a member of the committee through collaboration with the other participating organizations and businesses to explore hydrogen’s potential and through future work to overcome barriers to the realization of a hydrogen society.[5]

[1] The Preparatory Committee consists of KEPCO; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use ; ENEOS (Headquarters: Tokyo), a petroleum company ; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Kobe Steel (Headquarters: Kobe City, Hyogo Prefecture), a steel manufacturer ; Toshiba (Headquarters: Tokyo); Toyota (Headquarters: Toyota City, Aichi Prefecture); Sumitomo Mitsui Financial (Headquarters: Tokyo), a financing group provides banking services ; and Mitsui & Co (Headquarters: Tokyo) , a Japanese trading company.

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/1014_2j_01.pdf

[3] http://hydroedge.co.jp/

[4] https://www.nedo.go.jp/english/news/AA5en_100427.html

[5] https://www.kepco.co.jp/corporate/pr/2020/1014_2j.html

[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