[USA] ERCOT asks residents to use less energy during heatwave

A high number of outages in Texas combined with potential record electricity usage caused the Electric Reliability Council of Texas (ERCOT) on June 14, 2021, to request that residents reduce electric use during peak hours through June 18, 2021.[1] On June 14, 2021, generator owners reported that about 11,000 MW of generation is on forced outage for repairs. Of that generation, 8,000 MW is thermal energy, and the rest is intermittent resources. Typically, the average for thermal generation outages on hot summer days is about 3,600 MW. Roughly 1,200 MW of power was regained overnight on June 14, 2021, when some repairs were done.[2]

According to ERCOT, the peak load reached a new record. On June 15, 2021, the peak load was 69,943 MW, which exceeds the previous June record of 69,123 MW set on June 27, 2018. ERCOT has requested that residents set their thermostat to 78 degrees or higher. The grid operator has also asked that residents turn off lights and pool pumps and avoid using large appliances like ovens, washing machines, and dryers. In addition, residents have been asked to turn off and unplug all unnecessary devices.

[1] http://www.ercot.com/news/releases/show/233037

[2] http://www.ercot.com/news/releases/show/233159

[USA] Federal judge reverses Biden administration pause on new oil and gas leasing on federal lands

On June 15, 2021, Judge Terry Doughty, a federal judge in the U.S. District Court for the Western District of Louisiana, ordered new oil and gas leasing to restart in public lands and waters.[1] The move reverses President Biden’s January 2021 executive order that paused new lease sales during a review of the federal oil and gas program.[2] The review would likely include an assessment of the climate impacts of drilling for federal resources, which could lead to new restrictions on drilling in sensitive areas or higher royalty rates.

Judge Doughty’s preliminary injunction reverses Biden’s leasing pause until the court decides on the arguments in the case, allowing leasing to resume nationwide. The judge said the Department of the Interior had overstepped its authority by halting new oil and gas leasing and cited the legal requirements to offer leasing under the Mineral Leasing Act and the Outer Continental Shelf Lands Act. According to Judge Doughty, federal agencies could cancel or suspend specific leases if they had identified problems but could not suspend leases for a review of the leasing program. He also rejected the Biden administration’s argument that the Department of Interior’s pause on new leases is not a final agency action that could be reviewed under the Administrative Procedure Act[3]. Judge Doughty’s decision is a win for Louisiana Attorney General Jeff Landry (R), who is leading a coalition of 13 attorneys in the case against the Biden administration’s leasing pause. The attorneys argue that the leasing pause could lead to economic harm in their states. The Biden administration cannot move forward until the case is resolved or there are further orders from Doughty, the 5th U.S. Circuit Court of Appeals, or the Supreme Court.

[1]https://naturalresources.house.gov/imo/media/doc/Terry%20Doughty%20June%2015%20Lease%20Sales%20Opinion.pdf

[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/

[3] The Administrative Procedure Act governs the way in which administrative agencies of the federal government may propose and establish regulations. The legislation gives U.S. federal courts oversight over all agency actions. Under the Administrative Procedure Act, a court can decide that a final agency action is unlawful and set aside the action if it does not fulfill the legislation’s reasoned decision-making requirement.

[Japan] JERA announces carbon-free synthetic methane use study in the U.S.

On June 16, 2021, JERA, a joint venture between TEPCO Fuel and Power and Chubu Electric Power, announced that it had secured a grant from the New Energy and Industrial Technology Development Organization (NEDO), state-controlled research and development institute, to conduct a feasibility study on CO2 capture and methanation in the U.S.[1] The purpose of the study is to investigate the potential business case of producing carbon-free methane gas from hydrogen. The hydrogen would be generated from renewable energy and carbon captured from existing thermal sources in the U.S. Methanation enables the production of carbon-free LNG from carbon-free methane gas, allowing countries to utilize existing infrastructure to achieve low-cost decarbonization. The company’s subsidiary, JERA Americas, will conduct the feasibility study from June 2021 to February 2022. Under its “JERA Zero CO2 Emissions 2050” objective, the company is committed to cutting carbon emissions from its domestic and overseas businesses by 2050, promoting the adoption of greener fuels, and pursuing non-emitting thermal power.

[1] https://www.jera.co.jp/english/information/20210616_697

[USA] Report: Energy storage deployment could reach 125 GW by 2050

According to a report released on June 1, 2021, by the National Renewable Energy Laboratory (NREL), energy storage deployment could reach over 125 GW of installed capacity by 2050 under modest assumptions—a more than five-fold increase.[1] Depending on cost and other variables, the report, “Storage Future Study (SFS), Economic Potential of Diurnal Storage in the U.S. Power Sector,” estimates that deployment could total as much as 680 GW by 2050. Currently, there is 23 GW of storage capacity in the U.S., most of which is pumped hydropower.

The report’s authors concluded that new storage deployment would primarily start with shorter durations of about four hours, and as costs drop, durations would gradually increase to 12 hours. By 2030, annual battery storage deployment could range from one to 30 GW. By 2050, deployments could range between seven to 77 GW. According to the authors, energy storage will provide the most considerable value when deployed together with solar and given the ability to provide grid services. In the study, researchers added new capabilities to the NREL’s Regional Energy Deployment System (ReEDS) to model the value of diurnal battery energy storage and its offerings to grid services. They modeled two sets of scenarios: one with storage providing multiple grid services and one that restricted the services that storage can provide. The NREL found that not allowing storage to provide grid services like firm capacity and time-shifting would hinder deployment.

[1] https://www.nrel.gov/news/program/2021/grid-scale-storage-us-storage-capacity-could-grow-five-fold-by-2050.html

[World] 23 Governments launch Mission Innovation 2.0 to achieve Paris Agreement’s goals

On June 2, 2021, during the Innovating to Net Zero Summit in Santiago, Chile, 23 governments[1], including the U.S. and Japan, launched Mission Innovation 2.0, the second phase of the Mission Innovation initiative.[2] The Mission Innovation initiative was launched alongside the Paris Agreement at the 2015 COP21 conference to make clean energy affordable by accelerating investment, collaboration, and innovation. Since 2015, member governments, collectively responsible for over 90% of global public investment in clean energy innovation, have increased clean energy innovation investments by $18 billion.

As a part of the initiative, each member will develop National Innovation Pathways to describe their plans to encourage innovation to meet their climate and energy goals up to 2030. Mission Innovation 2.0 will initially focus on three “missions” to scale up “clean” hydrogen, zero-emission shipping, and renewable power systems in various locations. First, the Clean Hydrogen mission will be led by Australia, Chile, the U.K., the U.S., and the European Union, and aims to make clean hydrogen cost-competitive by reducing costs to $2/kg by 2030 by increasing research. The mission also intends to develop at least 100 geographic hubs for hydrogen production, storage, and end-use by 2030. Second, Denmark, the U.S., and Norway, together with the Global Maritime Forum and the Maersk McKinney Moller Center for Zero Carbon Shipping, will lead the Zero-Emissions Shipping mission, with the goal of zero-emissions ships making up at least 5% of the global deep-sea fleet by 2030. Third, the Green Powered Future mission, led by China, Italy, and the U.K., aims to demonstrate that power systems in various locations will be able to integrate up to 100% renewable energy by 2030. These missions will be underpinned by a new “global Innovation Platform” that will strengthen confidence and awareness in emerging technologies and maximize national investment impacts.

[1] Austria, Australia, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, India, Italy, Japan, the Republic of Korea, Morocco, the Netherlands, Norway, Saudi Arabia, Sweden, the United Arab Emirates, the United Kingdom, the United States of America, and the European Commission (on behalf of the European Union)

[2] http://mission-innovation.net/2021/06/02/decade-clean-energy-innovation-mi-6/#_ftn1

[Japan] EU and Japan commit to a Green Alliance to accelerate the energy transition

The European Union (EU) and Japan announced on May 27, 2021, that they are forming a Green Alliance to accelerate decarbonization efforts across both economies.[1] The alliance was finalized during the 2021 EU-Japan Summit, where the two parties discussed global issues such as climate change. Both the EU and Japan have goals of becoming carbon-neutral by 2050, and the Green Alliance will help both parties achieve these decarbonization goals.

There will be five priority areas for the Green Alliance. (1) Achieve a cost-effective, safe, and sustainable energy transition by deploying low-carbon technologies like renewable energy, renewable hydrogen, energy storage, and carbon capture, utilization, and storage (CCUS). (2) Strengthen environmental protection by promoting sustainable, circular practices in production and consumption. The parties will also contribute to the global goal of protecting at least 30% of both land and sea to conserve biodiversity. (3) Increase regulatory cooperation and business exchange between the two parties to drive uptake of low-carbon technologies and environmental solutions. (4) Consolidate existing collaboration on research and development (R&D) on decarbonization, renewable energy, and the bioeconomy. (5) Maintain leadership on international sustainable finance to help unite on a definition of sustainable investments. In addition to these priority areas, the EU and Japan also agreed to work together to promote cooperation on climate action in developing countries.

[1] https://ec.europa.eu/clima/news/eu-japan-green-alliance_en

[USA] ACORE releases new report on benefits of a transmission ITC

On May 13, 2021, the American Council on Renewable Energy (ACORE) released a report that outlines the benefits of a transmission investment tax credit (ITC).[1] The report, titled “Investment Tax Credit for Regionally Significant Electricity Transmission Lines: A Description and Analysis,” was released during a webinar featuring Senator Martin Heinrich (D-NM) and Representative Steven Horsford (D-NV). The transmission tax credit, which would provide tax incentives for transmission development, has been proposed by the senator and congressman in Congress and is included in the Biden administration’s American Jobs Plan.

According to the report, a targeted tax credit is necessary to incentivize the construction of necessary high-voltage transmission infrastructure. A transmission ITC would create upwards of 650,000 jobs, enable an additional 30,000 MW of renewable energy capacity, spur more than $15 billion in private capital investment in the near term, and provide $2.3 billion in energy cost savings for the lower 80% of income brackets. The report also argues that there is currently no other functioning means of funding critically needed large-scale regional and interregional transmission in the U.S. The authors said expanding transmission benefits domestic manufacturing, yields public health and environmental justice benefits, improves grid reliability and resilience, and generates carbon emissions reductions.

[1] https://acore.org/report-transmission-itc-would-create-650000-jobs-spur-15-3b-in-investment/

[USA] Biden administration announces new initiatives to cut building emissions and create jobs

On May 17, 2021, the White House announced new federal investments to energy efficiency in buildings and new opportunities to modernize buildings while creating new jobs.[1] The plans include developing the first building performance standards (BPS) for federal buildings. The new BPS will be spearheaded by the Council on Environmental Quality (CEQ) and will establish metrics, targets, and tracking methods to reach federal carbon emissions goals. The Department of Energy (DOE) announced that it will invest $30 million into workforce initiatives designed to train people to develop and construct high-performance buildings. In addition, the DOE is launching a low-carbon buildings pilot program, and in coordination with the Department of Housing and Urban Development, the program will partner with 55 commercial, industrial and multifamily organizations to participate and share lessons about constructing and developing energy-efficient buildings. The DOE also announced a new initiative in partnership with the Advanced Water Heating Initiative to increase market adoption of heat pump water heaters in residential and commercial buildings.

The Environmental Protection Agency (EPA) said that it is launching new residential and commercial sector partnerships to accelerate efficiency and electrification retrofits in underserved residential households through the ENERGY STAR Home Upgrade program. The White House also announced new ENERGY STAR standards to improve heat pump technology and fast chargers for electric vehicles.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/17/fact-sheet-biden-administration-accelerates-efforts-to-create-jobs-making-american-buildings-more-affordable-cleaner-and-resilient/

[USA] Agilitas Energy to begin pre-construction activities on largest battery energy storage system in Rhode Island

On May 6, 2021, Agilitas Energy announced that it is starting pre-construction work on its 3 MW/9 MWh lithium-ion battery storage system in Pascoag, Rhode Island, which will be the largest battery energy storage system in the state.[1] The battery storage project will provide peak shaving services to the Pascoag Utility District, a quasi-municipal, “not-for-profit” utility that serves 4,800 customers, and ancillary services to ISO-New England (ISO-NE). According to Mike Kirkwood, the general manager of the Pascoag Utility District, the project will allow the District to modernize its infrastructure and avoid a more costly transmission line reconstruction project. The project is Agilitas Energy’s first battery energy storage system in Rhode Island and is slated to enter commercial operation by Q2 2022.

In 2020, Rhode Island’s then-governor Gina Raimondo signed an executive order committing the state to meet 100% of its electricity demand with renewables and non-fossil fuel resources by 2030. According to Agilitas Energy, battery storage could enable the state to meet its climate goals by storing electricity generated by renewable energy sources for use at another time. Additionally, the company stated that its system would enable flexibility and result in cost savings for end consumers.

[1] https://agilitasenergy.com/agilitas-energy-to-commence-construction-of-largest-bess-in-rhode-island/

[Japan] GE and Toshiba announce partnership on offshore wind in Japan

On May 11, 2021, GE Renewable Energy and Toshiba Energy Systems and Solutions Corporation announced that they had signed a strategic partnership agreement to localize critical phases of the manufacturing process of GE’s Haliade-X offshore wind turbine and support its commercialization in Japan.[1] As part of its goal of becoming carbon neutral by 2050, the Japanese government plans to award 10 GW of offshore wind by 2030 with tenders of 1 GW per year. Japan’s plan calls for 30 to 45 GW of offshore wind by 2040, in part by building a competitive domestic supply chain. Japan also plans to set a 60% local content target for offshore wind, which would require domestically procured parts to account for at least 60% of total capital expenditure.

According to the companies, they are well-positioned to contribute to and benefit from the success of offshore wind in Japan. Toshiba has local manufacturing capabilities, a highly skilled workforce, energy domain expertise, and knowledge in the Japanese offshore market. GE has the most powerful offshore wind turbine, engineering and project management experience, and experience in Japan. The companies also stated that the agreement will help GE’s offshore wind technology be more competitive in Japan’s upcoming auctions. Under the strategic partnership, GE will provide the technology, parts, and components for nacelle assembly and support Toshiba in jointly developing a local supply chain and completing assembly of the nacelles. Toshiba will assemble, warehouse, transport the nacelles, provide preventative maintenance services, and have sales and commercial responsibilities in the Japanese market. The companies did not disclose the financial terms and specific details of the partnership.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-and-toshiba-announce-strategic-partnership-agreement-on-offshore-wind-japan

[USA] Biden signs executive order to bolster federal cybersecurity

President Biden signed an executive order on May 12, 2021, to strengthen cybersecurity in the U.S. and protect federal networks.[1] The executive order, titled “Executive Order on Improving the Nation's Cybersecurity,” comes in the aftermath of the ransomware attack that shut down the 5,500-mile Colonial oil pipeline on May 7, 2021. Colonial is the largest gasoline pipeline in the U.S. and supplies an estimated 40-45% of all fuel used on the East Coast. As of May 13, 2021, Colonial has restarted operations of the pipeline, but the brief shutdown caused widespread uncertainty.[2]

The executive order’s main directives are to 1) set more rigorous IT and cybersecurity policy, 2) remove barriers to information sharing among federal agencies, 3) modernize federal government cybersecurity, 4) enhance software supply chain security, 5) establish a cybersecurity safety review board, 6) standardize the federal government’s response to cybersecurity vulnerabilities and incidents, 7) improve detection of cybersecurity issues on federal networks, 8) improve the federal government’s investigative and remediation capabilities, and 9) adopt national systems security requirements. The Cybersecurity Safety Review Board will be co-chaired by the government and the private sector and will analyze lessons learned from major cybersecurity incidents. Although the order does not apply to the private sector, private companies will need to increase their own security to contract with the federal government.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/12/fact-sheet-president-signs-executive-order-charting-new-course-to-improve-the-nations-cybersecurity-and-protect-federal-government-networks/

[2] https://www.colpipe.com/news/press-releases/media-statement-colonial-pipeline-system-disruption

[USA] DOE announces 100-day plan to address threats to the electric grid

On April 20, 2021, the Department of Energy (DOE) launched a 100-day plan to increase the cybersecurity of electric utilities’ industrial control systems (ICS) and protect the electric grid as a part of the Biden administration’s effort to safeguard critical infrastructure in the U.S against threats.[1] The initiative is a coordinated effort between the DOE, the electric industry, and the Cybersecurity and Infrastructure Security Agency (CISA). In partnership with electric utilities, the DOE’s Office of Cybersecurity, Energy Security, and Emergency Response (CESER) will advance technologies and systems that will provide cybersecurity capabilities for ICS of electric utilities. The 100-day plan will encourage the implementation of measures or technology that “enhance their detection, mitigation, and forensic capabilities;” include milestones throughout the initiative for identification and deployment of technologies and systems that facilitate near real-time situational awareness and response capabilities in ICS and operational technology (OT) networks; reinforce the cybersecurity of critical infrastructure information technology networks; and include a “voluntary industry effort” to improve threat visibility in ICS and OT systems.

The DOE also released a new Request for Information (RFI) to seek stakeholder recommendations for supply chain security in U.S. energy systems. In addition, the DOE announced that it is revoking the "Prohibition Order Securing Critical Defense Facilities.” The prohibition order, which the Trump administration issued in 2020, blocked utilities that supply critical defense facilities from procuring certain types of bulk power system equipment from China.

[1] https://www.energy.gov/articles/biden-administration-takes-bold-action-protect-electricity-operations-increasing-cyber-0

[Japan] Japan raises 2030 emissions reduction target to 46%

On April 22, 2021, the Japanese prime minister, Yoshihide Suga, announced the country's new target for cutting greenhouse gas emissions.[1] Prime Minister Yoshihide Suga said, "I have pledged to achieve a carbon-neutral society by 2050 and have made it a pillar of our growth strategies. Japan is now taking a giant step forward toward solving global challenges. In line with our goal for 2050, and as a more ambitious goal, we now aim to cut greenhouse gas emissions by 46% by 2030, compared with fiscal 2013 levels. In addition, Japan would further try to push the reduction as high as 50%." The 46% reduction will be a significant increase from the current 2030 target set 6 years ago of a 26% reduction from 2013. The prime minister acknowledged that the new target would not be easy and said, “In order to achieve the target, we will firmly implement concrete measures, while aiming to create a positive cycle that links the economy and environment and achieve strong growth.” Specifically, the plan calls for the maximized use of decarbonized power sources like renewable energy, stimulus measures to encourage investment, and the establishment of a "Green International Financial Center" to attract global funding, which is said to be worth 3000 trillion yen. It also calls for support for decarbonization within Japan and around the world, including Asian countries.

[1] http://www.kantei.go.jp/jp/99_suga/actions/202104/22ondanka.html

[USA] Biden administration sets a goal of 50% emissions reduction by 2030

On April 22, 2021, President Joe Biden announced that the U.S. will reduce greenhouse gas (GHG) emissions 50-52% below 2005 levels by 2030.[1] The goal was decided through a government process that included the National Climate Task Force, which was formed when the U.S. re-entered the Paris Accord. The 2030 goal advances previous targets set by former President Barack Obama to reduce emissions up to 28% below 2005 levels by 2025. While many details on the new 2030 emissions target have not been released, the plan is consistent with the administration’s efforts to reach net-zero emissions in the power sector by 2035. The announcement was made on the first day of the Leaders Summit on Climate, a two-day virtual summit hosted by President Biden that is expected to include 40 foreign leaders. The event also included executives from financial institutions like the World Bank, union officials, green energy companies, and entrepreneurs.

[1] https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/

[USA] Biden’s budget proposal includes major increases in overall clean energy spending

On April 9, 2021, President Joe Biden sent a preliminary outline of his budget request for Fiscal Year 2022 to Congress.[1] The $1.52 trillion budget request included new climate change investments, totaling more than $14 billion more compared to FY2021, across nearly all agencies. This is the first time that a budget request has detailed funding of specific climate programs. The administration is requesting a 10.2% increase to $46.1 billion for the Department of Energy (DOE), a 21.3% increase to $11.2 billion for the Environmental Protection Agency (EPA), and a 16.3% increase to $17.4 billion for the Department of the Interior (DOI). At the DOE, funding for clean energy programs includes $1.9 billion to support the development of a new energy efficiency and clean electricity standard, provide local grants to incentivize clean energy workforce support, and support the development of streamlined transmission. For the EPA, funding requested by the administration includes $110 million to restore EPA staff capacity to pre-Trump administration levels and $1.8 billion in programs to reduce greenhouse gas emissions. Biden’s budget request for the DOI includes $450 million to remediate orphaned oil and gas wells, remediate mining sites, and develop new jobs.

Proposed clean energy spending in other agencies includes $6.5 billion to the Department of Agriculture to spur rural clean energy projects and $300 million to the General Services Administration to electrify its vehicle fleet. The budget request follows the April 2021 release of the administration’s $2 trillion infrastructure plan, which proposed a federal clean electricity standard[2] and expanding clean energy tax credits. Both the budget request and the infrastructure plan are intended to put the U.S. on a path to achieve net-zero emissions by 2050.

[1] https://www.whitehouse.gov/wp-content/uploads/2021/04/FY2022-Discretionary-Request.pdf

[2] A clean electricity standard requires a percentage of retail electricity sales to come from low- and zero-carbon electricity sources. The share of clean electricity typically increases with time. Clean electricity standards are similar to renewable portfolio standards, which require that a certain percentage comes from renewable sources.

[USA] California Energy Commission announces $50 million project for zero-emission trucks and bus infrastructure

During a virtual event held on April 13, 2021, the California Energy Commission (CEC), the state’s primary energy planning and policy agency, announced the approval of a $50 million multi-year project to add sites for recharging or refueling zero-emission buses and big trucks.[1] The Energy Infrastructure Incentives for Zero-Emission Commercial Vehicles (EnergIIZE) project will use a “concierge-like model” to work directly with private companies and local transit agencies to help plan and fund charging and hydrogen fueling infrastructure additions. CALSTART, a nonprofit consortium focused on the clean transportation industry, will administer the first-of-its-kind project. CALSTART will receive an initial $17 million to design and launch the project, with additional funds subject to annual approval from the state budget and the CEC. Tetra Tech Inc., CALSTART’s long-term incentive program administrator, and GRID Alternatives, a non-profit that manages clean energy programs in low-income communities, will be a part of the project team.

The EnergIIZE project is funded by the CEC’s Clean Transportation Program, which invests more than $100 million annually to support research, development, and deployment of advanced transportation and fuel technologies. According to the CEC, the EnergIIZE project will benefit at-risk communities by meeting the infrastructure needs of companies and public agencies committed to adding clean battery-electric and hydrogen equipment. The project will also help advance Governor Gavin Newsom’s goal of 100% zero emissions from medium-duty and heavy-duty vehicles by 2045.

[1] https://www.energy.ca.gov/news/2021-04/energy-commission-announces-nations-first-incentive-project-zero-emission-truck

[USA] Marine energy industry sets deployment goal of 1GW by 2035

In a new report released on April 14, 2021, the National Hydropower Association (NHA) announced new industry deployment targets of 50 MW by 2025, 500 MW by 2030, and 1 GW by 2035.[1] The report, titled “Commercialization Strategy for Marine Energy,” considers the accelerated commercialization of marine energy technologies that generate electricity from waves, tides, and currents in oceans and rivers, as well as from the ocean's heat cycles. The NHA report follows the release of a Department of Energy (DOE) report on marine energy released in February 2021 that found that the total marine energy resource in the U.S. is roughly equivalent to 57% of U.S. electricity generation in 2019. The NHA report argues that marine energy could be essential for remote areas of the U.S. dependent on fossil fuels by providing zero-carbon power generation without the need for expensive new transmission lines. Marine technologies could also help produce green hydrogen and could be a strong complement to more intermittent renewable technologies.

The NHA report calls for the federal government to accelerate the commercialization of marine energy technologies by increasing financial support for research development, reducing market barriers, and creating financial incentives for marine energy deployment. Specifically, the NHA is looking for substantial new investments in the DOE’s Water Power Technologies Office and the Navy Energy Program, which will accelerate technology demonstration, reduce costs, and increase technology adoption.

[1] https://www.hydro.org/wp-content/uploads/2021/04/NHA_MEC_Commercialization_Strategy_Marine_Energy.pdf

[Japan] Japan and UAE sign agreement to cooperate on hydrogen technology and supply chain

On April 8, 2021, Japan’s Ministry of Economy, Trade and Industry (METI) signed a memorandum of cooperation (MOC) with the UAE’s Ministry of Energy & Infrastructure to work together on hydrogen production technology and to develop an international hydrogen supply chain.[1] [2] The UAE is an oil-producing country, but the country has abundant solar radiation and focuses on renewable energy such as solar power generation, so it has high production potential for "green hydrogen." Japan has signed the MOC with the UAE as the first step to strengthen its relationship with hydrogen resource countries. The hydrogen will most likely be produced from fossil fuels, but the emissions will be captured and used in industry. The countries will also work to boost hydrogen demand in the UAE. Currently, Japan’s hydrogen demand is 2 million tonnes per year. As a part of its green growth strategy to reach net-zero carbon emissions by 2050, Japan set a goal in December 2020 to boost demand to 3 million tonnes of hydrogen per year by 2030 and 20 million tonnes of hydrogen per year by 2050. Japan’s green growth strategy also includes plans for ammonia; in January 2021, Japan struck a deal with the UAE’s state-owned Abu Dhabi National Oil Co. (ADNOC) to cooperate on fuel ammonia production.

[1] https://www.reuters.com/article/us-japan-hydrogen-emirates/japan-uae-to-collaborate-on-hydrogen-technology-supply-chain-idUSKBN2BV1CJ

[2] https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/040821-japan-signs-first-hydrogen-cooperation-deal-with-uae-to-consider-supply-chain

[USA] FPL files 10-year plan that would expand emissions-free energy

Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, filed a Ten-Year Site Plan with the Florida Public Service Commission on April 1, 2021.[1] The plan includes opening a 409 MW solar-powered battery storage facility and seven new solar energy centers by the end of 2021. The solar-power battery storage facility, currently under construction in Manatee County, will be the largest facility of its kind in the world. According to FPL, zero-emissions sources will generate 40% of its power by the end of the decade, a more than 65% increase from 2020. Under the plan filed with the commission, FPL would install 30 million solar panels and have more than 11,000 MW of installed solar capacity by 2030. Currently, FPL is the state’s largest solar producer and has 40 solar energy centers in Florida. By 2030, FPL also plans to have 700 MW of battery storage, a 186% increase compared to 2021.

Regarding coal, FPL has shut down less efficient coal-fired units to save customers millions of dollars, and on January 1, 2021, the company closed its last remaining coal-fired plant in the state. FPL is also currently building the FPL Dania Beach Clean Energy Center, an ultra-efficient power plant in Fort Lauderdale. The company does not currently anticipate the need to build another new natural gas power plant through 2030. For nuclear, FPL plans to request that the Nuclear Regulatory Commission extend the licenses of St. Lucie Units 1 and 2, allowing for up to 20 additional years of operations.

[1] http://newsroom.fpl.com/news-releases?item=126215

[USA] ERCOT report finds weather-related issues were the primary cause of February outages

On April 6, 2021, the Electric Reliability Council of Texas (ERCOT) sent its preliminary report to the Texas Public Utility Commission (PUC) on the causes of generator outages and derates during the February 14-19, 2021 extreme cold weather event.[1] ERCOT’s report follows initial requests for information from generators about why so much generation went offline during the cold weather event. The report found that most of the outages during the event were weather-related outages, which ERCOT defined as outages “explicitly attributed to cold weather,” such as frozen or flooded equipment. During the February 14-19 time period, weather-related issues caused 54% of generator outages, equipment failures caused 14% of outages, and fuel limitations caused 12% of outages. ERCOT estimates that approximately 51,173 MW were forced offline during that period, which is slightly lower than the original estimate of 52,277 MW. ERCOT is still waiting on data for February 10-13, 2021. The grid operator anticipates completing a full report on the event by the end of August 2021.

[1]http://www.ercot.com/content/wcm/lists/226521/51878_ERCOT_Letter_re_Preliminary_Report_on_Outage_Causes.pdf