[USA] Report: Pandemic causes largest plunge in energy consumption in 30 years

According to the ninth edition of the Sustainable Energy in America Factbook, which was released in February 2021 by the Business Council for Sustainable Energy (BCSE) and BloombergNEF, the COVID-19 pandemic caused the largest year-on-year decline in energy consumption in three decades.[1] In 2020, U.S. primary energy consumption dropped 7.8%. Transportation energy demand fell 14.4% due to lower rates of commuting and traveling. Electricity use declined least, falling by 3.8% as decreased commercial and industrial demand was partially offset by increased residential demand. Renewables production rose 11% year-on-year and renewable sources generated a fifth of U.S. power in 2020. The U.S. power grid added 17 GW of wind and 16.5 GW of solar. Coal-fired power generation was 19% of the U.S. power mix, down from 45% a decade ago. The report attributes this change to weak demand and increased competition. Total U.S. emissions fell 9.2% which put 2020 20% below 2005 levels. According to the report, these changes have put the U.S. on a trajectory to meet its commitments under the Paris Agreement. However, the report notes that 2021 emissions will likely rebound with economic recovery.

[1]https://bcse.org/factbook/#:~:text=The%202020%20edition%20of%20the,natural%20gas%20and%20renewable%20energy

[USA] FERC, NERC to investigate outages following severe cold weather in central U.S.

On February 16, 2021, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) announced that they will open a joint inquiry into bulk-power system operations during the polar vortex that has hit states in the Midwest and central South.[1] FERC and NERC will investigate all regions impacted by the polar vortex, including the Electric Reliability Council of Texas (ERCOT), the Southwest Power Pool (SPP), and the Midcontinent Independent System Operator (MISO). The severe weather across the Midwest, Oklahoma and Texas, which began on February 11, 2021, led to a spike in demand on the night of February 14, 2021. Coinciding with this event, there was a drop in supply. As a result, ERCOT, SPP, and MISO directed generators to begin rolling blackouts starting on February 14, 2021 in order to avoid negative system impacts.

On February 14, 2021, President Biden declared a state of emergency in Texas and ordered federal assistance to supplement state and local response efforts.[2] On February 16, 2021, the governor of Texas, Greg Abbott (R), directed his state's legislature to investigate ERCOT following the outages.[3] According to officials, increased electricity demand due to the extreme weather, limited gas supplies, frozen wind turbines, and frozen thermal plant instrumentation lines equipment were the major contributors to rolling blackouts across ERCOT.[4] According to a news release from ERCOT on February 18, 2021, roughly 40,000 MW of generation, including 23,500 MW of thermal generation, remains on forced outage due to the extreme weather event.[5]

[1] https://www.ferc.gov/news-events/news/ferc-nerc-open-joint-inquiry-2021-cold-weather-grid-operations

[2] https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/14/president-joseph-r-biden-jr-approves-texas-emergency-declaration/

[3] https://gov.texas.gov/news/post/governor-abbott-declares-ercot-reform-an-emergency-item

[4] http://www.ercot.com/news/releases/show/225369

[5] http://www.ercot.com/news/releases/show/225742

[Japan] Mitsubishi Heavy Industries Engine & Turbocharger Conducted a Combustion Test for a Pure Hydrogen Engine in Collaboration with AIST

On January 21, 2021, Mitsubishi Heavy Industries Group (MHI, Headquarters: Tokyo) announced that its subsidiary company, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET, Headquarters: Sagamihara, Kanagawa Prefecture), had conducted a combustion test for a pure hydrogen engine in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST, Headquarters: Tokyo), a Japanese research institute.

This combustion test installed a modified single cylinder gas engine (bore 170mm x stroke 220mm) made by MHIET at the AIST Fukushima Renewable Energy Institute in Koriyama City, Fukushima Prefecture. The test aims to validate and confirm certain conditions for combusting hydrogen without emitting CO2.

MHIET and the MHI Research and Innovation Center have jointly developed and produced the hydrogen engine by leveraging their knowledge of hydrogen combustion technologies, diesel engines, and natural gas engines. Since AIST has prior experience in developing large-scale, high-power, high thermal efficiency, and low NOx hydrogen engines, the research institute has been responsible for building and testing the hydrogen power generation facility, as well as collecting data from the test. Based on the test results, the hydrogen power output is expected to increase up to 340kW for a 6-cylinder engine and 920kW for a 16-cylinder engine. MHIET plans to conduct further tests and gather more data in order to build a multi-cylinder hydrogen engine with 1MW of output.

Both MHI and MHIET have prior experience in hydrogen R&D: MHI has been developing zero-CO2 emission products, while MHIET has also been developing hydrogen engines and has been partnering with AIST to conduct hydrogen engine combustion research since FY2019. MHIET plans to replace its gas engine generator with EBLOX, its triple-hybrid, self-sustaining power supply system, including a hydrogen engine generator. MHI has stated that it will continue to contribute to an energy-stable and carbon-free society by utilizing solar power, batteries, and hydrogen energy.[1]

[1] https://www.mhi.com/jp/news/210121.html

[Japan] Daigas Group Released its Carbon Neutral Vision to achieve the 2050 Carbon Neutrality Action Plan

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

·       Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

·       Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

·       Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html

[Japan] J-Power has Begun Hydrogen Production for a Japan-Australia Hydrogen Energy Supply Chain Pilot Project

J-Power, a Tokyo-based Japanese power producer, announced on February 1, 2021 that it has begun hydrogen production at a coal gasification and hydrogen refining facility located in Latrobe Valley, Victoria, Australia. The hydrogen production is part of its Japan-Australia Hydrogen Energy Supply Chain Pilot Project, which aims to develop and demonstrate technologies for hydrogen production, storage and distribution, and to facilitate the creation of a hydrogen supply chain in Japan.

The project is financially supported by the Victoria state government and the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japanese public R&D funding organization. The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA)[1] and the Australian Consortium[2] are also cooperating in the project. HySTRA is also separately carrying out a demonstration project led by NEDO for the establishment of a mass hydrogen marine transportation supply chain derived from unused brown coal (lignite).[3]

Victoria has abundant lignite resources. The coal has a high moisture content and is considered unsuitable for exporting and it is normally exclusively used by power plants adjacent to the mining sites. However, lignite can be converted into a syngas containing hydrogen. J-Power believes that the hydrogen from undeveloped lignite reserves in Australia has the potential to accommodate Japan's electricity demand. The project therefore aims to optimize the utilization of Australia’s lignite. J-Power is responsible for operating the demonstration facility for the coal gasification and hydrogen refining.

The hydrogen generated at the demonstration plant will be shipped from the port of Hastings in Victoria, Australia to the hydrogen discharging terminal on Kobe Airport Island. In the future, J-Power will collaborate and integrate with the CarbonNet project, a CO2 storage project being promoted by the Commonwealth of Australia and the Victoria state government, in order to manage the CO2 generated from the project. The by-product CO2 will be captured and stored underground. Through these projects, J-Power hopes to contribute to the formation of a hydrogen supply chain in Japan, as well as the realization of a decarbonized society. [4] [5]

[1] The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) comprises J-Power; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Shell Japan (Headquarter: Tokyo); Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; ENEOS (Headquarters: Tokyo), a petroleum company; and Kawasaki Kisen Kaisha (Headquarters: Tokyo), a Japanese transportation company.

[2] The Australian consortium consists of J-Power, Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo), a heavy machinery manufacturer; Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; Sumitomo (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; and AGL Energy (Headquarters: Sydney, Australia), an Australian utility.

[3] http://www.hystra.or.jp/about/

[4] https://www.jpower.co.jp/news_release/2021/02/news210201.html

[5] https://www.jpower.co.jp/english/news_release/pdf/news210201e.pdf

[USA] 14 states call for Biden to reinstate Keystone XL permit

In a letter sent on February 9, 2021, a coalition of 14 Republican attorneys general led by Montana Attorney General Austin Knudsen urged President Biden to reinstate the Keystone XL pipeline’s permit to cross the Canadian border.[1] The letter was also signed by attorneys general from Alabama, Arkansas, Georgia, Indiana, Kansas, Louisiana, Mississippi, Missouri, North Dakota, South Carolina, South Dakota, Texas, and West Virginia. In their letter to the president, the coalition hinted at possible legal action over Biden’s January 20, 2021 executive order that rescinded the permit for the pipeline, stating, “Please be aware that the states are reviewing available legal options to protect our residents and sovereign interests.” The Republican coalition emphasized the economic harm that the permit cancellation will bring. According to the state attorneys, states had relied on the expected tax revenue from the pipeline. In Montana, for instance, the state will lose approximately $58 million in annual tax revenue due to Biden’s decisions. The coalition also noted that more than 1,000 pipeline workers were laid off after the executive order.

[1] https://dojmt.gov/attorney-general-knudsen-leads-coalition-calling-on-biden-to-reinstate-keystone-xl-permit/

[USA] California utilities plan to spend nearly $15 billion on reducing wildfire risk in 2021 and 2022.

According to annual wildfire mitigation plans filed with the California Public Utilities Commission (CPUC) on February 5, 2021, PG&E, Edison International's Southern California Edison (SCE) and Sempra Energy's San Diego Gas & Electric (SDG&E) plan to spend $15 billion in 2021 and 2022 to reduce the risk of live wires sparking wildfires.[1] The CPUC began requiring utilities to file annual wildfire mitigation plans after power lines ignited a series of fires in 2017 and 2018. PG&E’s 2021 plan will cost $5 billion in 2021 and $5.2 billion in 2022. The utility will use a new fire risk model to prioritize its wildfire mitigation work, including system hardening and tree trimming. SCE plan outlines strategies such as installing an additional 1,000 to 1,400 miles of insulated powerlines and installing 375 weather stations in its service territory. SCE expects to spend $3.5 billion in 2021 and 2022. SDG&E plans to spend over $646 million in 2021 and nearly $670 million in 2022 on wildfire mitigation. The utility will continue with many of the programs it initiated last year, including expanding outreach to vulnerable communities and strengthening data collection and analyses processes. All three utilities aim to reduce the impact of public safety power shut-offs (PSPS) on their customers.

[1] https://www.cpuc.ca.gov/wildfiremitigationplans/

[USA] MISO study concludes 50% renewables in region is achievable but challenging

On February 10, 2021, the Midcontinent Independent System Operator (MISO), an Independent System Operator (ISO) that monitors the electric grid in 15 U.S. states and the Canadian province of Manitoba, published its Renewable Integration Impact Assessment (RIIA).[1] RIIA’s purpose was to better understand the long-term impacts of renewable energy growth in the Eastern Interconnection bulk electric systems with a focus on the MISO footprint, provide examples of integration issues, and examine potential solutions to mitigate them. The report examined renewable penetration levels in 10% increments up to 50%. As of 2021, about 13% of MISO’s systemwide energy is generated from renewables, including 26 GW of wind and 1 GW of solar. There are agreements in place for an additional 6GW of wind and 10GW of solar, bringing renewables penetration up to 20% of total energy. MISO predicts that 30% renewable penetration could be achieved by 2026.

RIIA found that renewable penetration under 30% would be manageable within MISO’s existing framework. However, beyond 30%, transformative thinking and coordinated action between MISO and its stakeholders will be required to manage the challenges associated with renewable penetration such as resource adequacy and reliability. The report also notes that renewable growth is not happening uniformly and nearly 80% of renewable resources in MISO are in the northwest region of its footprint, which concentrates current integration challenges to one area. Reaching 30% penetration, though, would mean that those challenges will be system wide. The study concluded that 50% renewable penetration is achievable, but will require changes in planning, operations, and markets to accommodate more variable energy sources.

[1] https://cdn.misoenergy.org/RIIA%20Summary%20Report520051.pdf

[USA] National Academies report maps path to zero-carbon goa

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.

[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.

[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[USA] Supreme court to hear PennEast pipeline case on eminent domain

On February 3, 2021, the U.S. Supreme Court agreed to review a 2019 ruling from the 3rd U.S. Circuit Court of Appeals that prevented PennEast Pipeline Co. LLC from suing New Jersey to seize 42 parcels of state-owned land to build a 116-mile natural gas pipeline between Pennsylvania and New Jersey.[1] Under a provision in the U.S. Natural Gas Act (NGA), pipeline companies can use the federal government’s eminent domain power. After gaining approval for the pipeline from the Federal Energy Regulatory Commission (FERC) in 2018, PennEast sued to gain access to land that is either owned or partially controlled by New Jersey. The 3rd Circuit, which is based in Philadelphia, found that while the AGA lets companies use eminent domain, it does not allow them to sue states to enforce that power. The panel cited the 11th Amendment of the Constitution, which limits the situations in which private entities can sue states without their consent. In recent friend of the court briefs, PennEast and other industry groups claim that the 3rd Circuit decision overturned precedent and would be disruptive to the energy industry.[2] The Supreme court will hear arguments in April 2021, with a ruling likely by late June 2021.

[1] https://www.bloomberg.com/news/articles/2021-02-03/supreme-court-agrees-to-hear-appeal-from-penneast-pipeline

[2] https://www.eenews.net/stories/1062692321/

[Japan] Tohoku Electric Power Began Adopting Non-Firm Grid Connection Method to Adapt to Increase the Use of Renewable Energy

On January 13, 2021, Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced it has adopted a non-firm grid connection method to give operators more flexibility to control the power output generated from renewable energy generation, in order to better deal with increased sources of renewable energy. The grid connection is a method of connecting and accessing new energy sources by utilizing the free available capacity of power transmission and transformation equipment, including transmission lines. The non-firm method also allows operators to curtail their output, along with their capacity status, even in normal times.[1] The Japanese government has directed all of its transmission and distribution operators to begin to adopt the non-firm method from January 13, 2021. As part of the government’s directive, Tohoku decided to adopt the method for its bulk-power systems with 500kV and 270kV, in order to optimize the management of the power generated by renewable resources.

The Subcommittee on the Introduction of Renewable Energy and Next-Generation Power Network[2], developed by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), and the Wide-Area System Maintenance Committee[3] of the Organization for Cross-Regional Coordination of Transmission Operators, Japan (OCCTO, Headquarters: Tokyo), have studied the non-firm grid connections and have promoted the adoption of this method. Based on their findings, Tohoku has therefore decided to utilize the non-firm grid connection method. Tohoku will make an announcement once the method has been adapted to Tohoku’s systems.[4]

[1] https://nw.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/01/13/21011302.pdf

[2] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/saisei_kano/index.html

[3] https://www.occto.or.jp/iinkai/kouikikeitouseibi/

[4] https://nw.tohoku-epco.co.jp/news/normal/1218240_2394.html

[Japan] Chugoku Electric Power Invested in Live Smart KK

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) announced on January 14, 2021 that it has invested in Live Smart KK (Live Smart, Headquarters: Tokyo), a venture company established in 2016 that provides smart home devices and service platforms based on Artificial Intelligence (AI) and Internet of Things (IoT) to support customers’ convenient and comfortable living. The investment amount has not been disclosed. This is the fifth time that EnerGia has invested in a start-up company.

A smart remote controller developed by Live Smart can control a wide variety of home appliances and equipment. Through EnerGia’s IoT platform, the controller can provide users with various AI-powered energy management services, such as setting individualized preferences for air conditioners.

Smartphones and smart speakers have become essential devices for many people, and the smart home market is expected to grow in the future. EnerGia sees this growth as an opportunity for Live Smart’s service platform, which can improve user’s lives and energy efficiency, to grow significantly in the future. Therefore, the company decided to invest in Live Smart and will consider future collaborations.[1]

[1] https://www.energia.co.jp/press/2021/12917.html

[Japan] Tokyo Electric Power and Nippon Telegraph and Telephone Launched a Joint Demonstration Test for a Renewable Energy Direct Current Power System in Chiba City

On January 14, 2021, Tokyo Electric Power (TEPCO, Headquarters: Tokyo) announced that its partner company, NTT Anode Energy (Headquarters: Tokyo), has launched a demonstration test for a renewable energy direct current (DC) power system in Chiba City. NTT Anode Energy is a subsidiary of Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo), a Japanese telecommunications company that offers smart energy solutions. The project will also collaborate with TN Cross (Headquarters: Tokyo), jointly owned by TEPCO and NTT, which provides smart energy management systems.

The demonstration test is part of their pilot project “Toward the Realization of a Smart Energy City for Chiba City” which was launched in April 2020. The project is studying the following items:

1)   Supporting the development of backup power systems at evacuation shelters,

2)   Promoting the use of renewable energies and improve disaster resilience by utilizing the DC power system,

3)   Maximizing the energy value through the effective use of Information and Communications Technology (ICT) in both normal times and emergencies.

The project aims to achieve the 2) goal above in order to support Chiba city’s transition to a smart city that promotes the introduction of renewable energies and enhance the disaster resilience. According to NTT Anode Energy, this is the first project of its kind to provide DC power from private companies and municipalities to off-site third parties’ facilities, using their own lines.

The test will install and use a 59 KW solar power generation system with 36 kWh storage batteries at an idle area of land owned by NTT East (Headquarters: Tokyo[1]). In the event of a power outage, Shirai Junior High School, one of Chiba city’s designated evacuation shelters, will be supplied with renewable energy generated by the installed equipment. The project will demonstrate and verify the operational procedure and the power quality of the power supply system for shelters during emergencies; the power supply system by solar power generation and energy storage battery for communications equipment in normal times; and the utilization of the power system with solar power generation with storage batteries during disasters.[2]

[1] https://www.ntt-east.co.jp/en/aboutus/profile.html

[2] https://www.tepco.co.jp/press/release/2021/1570026_8711.html

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.

[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[USA] National Academies report maps path to zero-carbon goal

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.

[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[USA] Supreme Court to hear PennEast pipeline case on eminent domain

On February 3, 2021, the U.S. Supreme Court agreed to review a 2019 ruling from the 3rd U.S. Circuit Court of Appeals that prevented PennEast Pipeline Co. LLC from suing New Jersey to seize 42 parcels of state-owned land to build a 116-mile natural gas pipeline between Pennsylvania and New Jersey.[1] Under a provision in the U.S. Natural Gas Act (NGA), pipeline companies can use the federal government’s eminent domain power. After gaining approval for the pipeline from the Federal Energy Regulatory Commission (FERC) in 2018, PennEast sued to gain access to land that is either owned or partially controlled by New Jersey. The 3rd Circuit, which is based in Philadelphia, found that while the AGA lets companies use eminent domain, it does not allow them to sue states to enforce that power. The panel cited the 11th Amendment of the Constitution, which limits the situations in which private entities can sue states without their consent. In recent friend of the court briefs, PennEast and other industry groups claim that the 3rd Circuit decision overturned precedent and would be disruptive to the energy industry.[2] The Supreme court will hear arguments in April 2021, with a ruling likely by late June 2021.

[1] https://www.bloomberg.com/news/articles/2021-02-03/supreme-court-agrees-to-hear-appeal-from-penneast-pipeline

[2] https://www.eenews.net/stories/1062692321/

[USA] Colorado regulators approve Xcel’s $110 million transportation electrification plan

On January 11, 2021, the Colorado Public Utilities Commission (PUC) formally approved Xcel Energy’s $110 million “2021-2023 Transportation Electrification Plan,” which includes installing approximately 20,000 electric vehicle (EV) charging stations at residential, commercial, and public sites across Xcel's Colorado service territory.[1][2] Xcel’s plan, which was first filed in 2020, comes as a result of a bipartisan bill passed in 2019 that directed Colorado’s electric utilities to file applications to enable the deployment of EV charging stations and support EV adoption. Colorado has set a goal of having 940,000 EVs on the road by 2030 and Xcel has stated that their plan is designed to help the state achieve that goal. Xcel's plan includes an emphasis on ensuring EV adoption for all customers, with approximately 15% of the program budget directed toward equity-focused programs. The approved plan includes a $5 million pilot to provide rebates to income-qualified customers to support low-income adoption of EVs. Through this pilot, Xcel will offer upfront $5,500 rebates for new EV purchases and $3,000 for used EVs for qualifying customers. Xcel’s plan also includes adding programs and rates to help manage the new charging load. According to Utility Dive, Xcel's plan will add about 67 cents to monthly customer bills.

[1] https://www.dora.state.co.us/pls/efi/EFI_Search_UI.Show_Decision?p_session_id=&p_dec=28011

[2] https://www.nrdc.org/experts/miles-muller/colorado-approves-110m-transportation-electrification-plan

[USA] EIA: Wind and solar will make up 70% of new capacity in 2021

According to a U.S. Energy Information Administration (EIA) update on the latest inventory of electricity generators, wind and solar will represent more than two-thirds of new energy production to come online in 2021, while battery storage capacity is set to quadruple over the next year.[1] 39.7 GW of new electricity generating capacity is set to start commercial operation in 2021. 15.4 GW of that capacity will be solar photovoltaic (PV), making it the largest source of new capacity at 39%. More than half of new utility-scale solar PV capacity is planned for four states: Texas (28%), Nevada (9%), California (9%), and North Carolina (7%). 12.2 GW of wind capacity is scheduled to come online in 2021, putting it at 31% of new capacity with more than half of additions in Texas and Oklahoma. This is a decrease from 2020, which saw 21 GW of wind come online. 4.3 GW of battery power capacity additions are expected to come online in 2021 which will more than quadruple battery storage capacity. About 3% of the new capacity in 2021 will come from the new nuclear reactor at the Vogtle power plant in Georgia. Planned natural gas capacity additions are set at 6.6 GW, with more than 70% of these planned additions in Texas, Ohio, and Pennsylvania.

[1] https://www.eia.gov/todayinenergy/detail.php?id=46416

[USA] Gov. Cuomo announces largest procurement of offshore wind by a state

On January 13, 2020 during a multiday series of State of the State speeches, New York Governor Andrew Cuomo (D) announced the largest award of offshore wind contracts by a U.S. state as part of the state’s broader plan to scale up renewable power over the next decade.[1] New York selected Equinor and incoming strategic partner bp to develop two new offshore wind farms about 20 miles off the coast of Long Island.[2] Empire Wind 2 will provide 1,260 MW of renewable offshore wind power and another 1,230 MW of power will come from Beacon Wind 1. Equinor has not released expected commercial operations dates for these projects, yet. Combined with Equinor’s existing commitment to provide 816 MW of renewable power from Empire Wind 1—expected to come online in 2024—Equinor will provide 3.3 GW of offshore wind power to New York. According to Cuomo, the newly announced wind farms will bring $8.9 billion in investment and create more than 5,200 jobs. Cuomo also announce that New York will contract 23 solar farms and one hydroelectric facility in 2021, which will produce more than 2,200 MW of clean power.  When the large-scale renewable and offshore wind facilities are complete, more than half of the state’s electricity will come from renewable sources, putting the state ahead of schedule for reaching its goal of 70% renewable energy by 2030.

[1] https://www.nyserda.ny.gov/About/Newsroom/2021-Announcements/2021-01-13-Governor-Cuomo-Outlines-2021-Agenda-Reimagine-Rebuild-Renew

[2] https://www.equinor.com/en/news/202101-us-offshore-wind.html