Heartland Energy Intern Will Analyze and Report on Bitcoin Mining Impacts on Public Power
February 6, 2023
by Paul Ciampoli
APPA News Director
February 6, 2023
South Dakota-based Heartland Energy is seeking applications for a summer Intern who will analyze and report on the impacts of bitcoin mining operations on public utilities.
“The successful candidate will work directly with our Operations team, having the opportunity to advance their knowledge and gain experience working in the wholesale power industry,” the job description for the position notes.
Heartland Energy provides wholesale power to public power communities across South Dakota, Minnesota, Iowa and Nebraska. Based in Madison, SD, Heartland Energy also provides a suite of customer service programs including economic development, energy efficiency, cybersecurity and more.
As Heartland Energy is approached with large economic development loads, “we often ask ourselves which customer systems can handle a large addition to their system,” said Nate Jones, Chief Operations Officer at Heartland Energy in response to questions from Public Power Current.
“In addition, it is highly likely that we don’t know the limit that our municipal systems can handle. Many times, we have to respond that our customers wouldn’t be capable of supplying that type of load without significant infrastructure improvements,” he said.
“But in the end, we don’t have any real answers as to what portions of the system would need to be upgraded and what the cost of these upgrades would be. To complicate things further, bitcoin mining operations are looking for short-term deals likely not wanting to pay back lofty infrastructure costs over long periods of time,” Jones said in an email.
Heartland Energy hired a consultant “to tell us what our municipal systems were/are potentially capable of for load additions without the need to add a substation or make major upgrades. For example, perhaps Customer A can handle a 2 MW load addition, but this same load would push Customer B to a breaking point,” he said.
The internship was designed to fill in the gaps for Heartland for those customers that it didn’t have data for. “The intern would be doing data gathering on the following pieces of information and performing a simple analysis (power system study) to determine the headroom on each system.”
He said that ideally, the intern would collect the following information:
- One-Line Diagram of substation(s) (with equipment nameplate information, etc.)
- Electric distribution system map (with circuit locations, conductor sizes, etc.)
- Existing system loading information pertaining to the circuits/substations
- Transmission feed(s) and alternate feed(s) and any limiting factors here
Heartland could then send this information to its consultant to analyze and put together a cost matrix for Heartland.
Jones said that the intern will deliver a final report to Heartland Energy at the conclusion of his or her internship.
“We like all of our interns to deliver an end of the summer presentation and report to staff and our Board,” he noted.
Study Finds Steeply Rising Interconnection Costs In PJM
February 6, 2023
by Peter Maloney
APPA News
February 6, 2023
The costs to connect a power project to the grid in the PJM Interconnection region have risen steeply, according to a new report by Lawrence Berkeley National Laboratory.
Interconnection costs have risen across the board, according to the report, Interconnection Cost Analysis in the PJM Territory.
For projects with completed studies and plants in service, costs have doubled. For active projects still in the interconnection queue, estimated costs have grown eightfold since 2019.
More specifically, average costs for completed projects have doubled, rising from a mean cost of $42 per kilowatt in 2000-2019 to $84/kW in 2020-2022 and a median cost of $18/kW in 2000-2019 to $30kW in 2020-2022.
Costs of active projects in the queue have risen even more steeply, with mean costs growing from $29/kW in 2017-2019 to $240/kW in 2020-2022 and median costs rising from $8 in 2017-2019 to $85/kW in 2020-2022.
Withdrawn projects had the highest costs of all, with a mean cost of $599/kW in 2020-2022 and a median cost of $156.kW, which was likely a “key factor in those withdrawals,” the authors of the report said. “Project costs vary widely and a small number of high cost projects caused average costs to rise above median costs,” the authors noted.
The main driver behind the cost increases has been broader network upgrade costs, the Berkeley report found. Average costs for upgrades beyond the interconnecting substation have risen sharply since 2019, to $71/kW for complete projects, $227/kW for active projects, and $563/kW for withdrawn projects, the authors said.
A small subset of generators faces lower network upgrade costs by choosing interconnection services as an energy instead of a capacity resource, but those owners forfeit preferential treatment during high load hours, cannot participate in PJM’s capacity market, and may face increased curtailment, the report said.
PJM’s interconnection queue has ballooned in recent years, with 2021’s active queue increasing by 240 percent compared with year-end 2019, reaching a level nearly twice as large as PJM’s peak load in recent years of about 155 gigawatts.
At year-end 2021, PJM had 259 GW of generation and storage capacity actively seeking grid interconnection. Most of that capacity is represented by solar interconnection requests, 116 GW, followed by standalone battery storage, 42 GW, wind projects at 39 GW, and solar-battery hybrid projects at 32 GW.
PJM’s data also shows that 79 GW of projects have dropped out of the queue because they entered service while 432 GW of projects dropped out of the queue because they withdrew.
The rapid growth of interconnection requests, along with lengthy study timelines and high project withdrawal rates, motivated PJM to reform its interconnection process in 2022, adopting a “first-ready, first-served” cluster study approach and increasing study deposits that are at risk if a project is withdrawn.
CAISO-WEIM Agreement Forges Path For Extended Day-Ahead Market
February 5, 2023
by Peter Maloney
APPA News
February 5, 2023
The governing bodies of the California Independent System Operator’s and the Western Energy Imbalance Market on Thursday approved initiatives establishing an extended day-ahead market.
The EDAM final proposal will allow WEIM entities that currently buy and sell energy in the real-time market to participate in an extended day-ahead market, giving them access to additional economic, environmental and reliability benefits and better position them to respond to operational challenges stemming from a changing resource mix and extreme weather events, CAISO said.
Along with the EDAM initiative, the governing bodies also approved a proposal that, among other things, would apply the existing joint approval authority of the WEIM’s board and governing body to the EDAM market rules.
The proposal would also encourage the WEIM Regional Issues Forum to engage more directly in the stakeholder process for establishing priorities on policy initiatives,
CAISO said its next step in the EDAM process is the development of tariff language through additional stakeholder engagement over the coming months, and then spend the rest of the year and part of 2024 focusing on implementation activities.
CAISO’s board of governors also adopted the Transmission Services and Market Scheduling Priorities Phase 2 initiative that supports grid reliability by providing a long-term approach to allocating transmission capacity to California load-serving entities while enabling external entities to obtain priority scheduling, or wheel-through rights, to transfer energy across the ISO’s system.
PacifiCorp in December announced its intention to join EDAM when it launches. In May, the Bonneville Power Administration became one of the newest members of the Western Energy Imbalance Market.
Agreement For 11-MW Microgrid at New York State Airport is Unveiled
February 5, 2023
by Peter Maloney
APPA News
February 5, 2023
AlphaStruxure in late January announced an agreement to design, build, and operate an 11.3-megawatt microgrid at John F. Kennedy International Airport in New York that will feature the largest rooftop solar array in New York City and on any airport terminal in the United States.
The microgrid, at the New Terminal One at the airport, will provide sustainable, resilient, locally generated, and cost-predictable energy and will deliver immediate greenhouse gas emission reductions of 38 percent over grid-sourced energy, the project’s developers said.
The microgrid will include 7.66 MW of rooftop solar, 3.68 MW of fuel cells, a 2-MW battery storage unit capable of providing 4 megawatt-hours of energy, and will use reclaimed heat to generate chilled water and heating hot water.
The microgrid will consist of four power islands with each functioning as a local, integrated energy system with sources of generation, storage, advanced automation and control.
The microgrid would enable the New Terminal One to be the first airport transit hub in the region that can function off-grid during power disruptions, the developers said.
New Terminal One is being developed by a consortium of labor, operating, and financial partners including Ferrovial, Carlyle, JLC Infrastructure, and Ullico. The project is being privately financed in partnership with the Port Authority of New York and New Jersey.
The project is delivered through an Energy as a Service contract, a long-term agreement ensuring predictable operating costs and guaranteed performance without upfront capital expenditures.
Upon project completion, New Terminal One will be the first resilient airport transit hub in the New York region that can function independently of the power grid, to maintain 100 percent of airport operations during power disruptions across the 23 gates and more than 177,000 square feet of dining, retail, lounges, and recreational space.
AlphaStruxure is a joint venture of Carlyle and Schneider Electric. Carlyle is financing the microgrid. Schneider Electric is providing microgrid technology, software, and services.
APPA Releases 17th Edition of Safety Manual
February 1, 2023
by Paul Ciampoli
APPA News Director
February 1, 2023
The American Public Power Association this week released the 17th edition of its Safety Manual, which has been a key tool for public power utility workplace safety programs since 1955.
In order to ensure relevance and accuracy, the Safety Manual is updated every four to five years to reflect important changes in the industry, as well as National Electrical Safety Code and Occupational Safety and Health Administration standards.
Members of APPA’s Safety Manual Revision Task Force met in early 2022 to review proposed changes to the latest edition of the manual. The meeting was hosted by CDE Lightband in Clarksville, Tenn. The group reviewed proposed changes to help develop the 17th edition of the APPA Safety Manual.
There were also meetings held at APPA’s offices in Virginia, the offices of the Minnesota Municipal Utilities Association and in South Carolina, as well as additional virtual meetings.
“This 17th edition of the Safety Manual would not be possible but for the tireless work of the revision taskforce members under the leadership of Chair Mike Willetts and Vice-Chair Jon Beasley,” said Adrienne Lotto, Senior Vice President for Grid Security, Technical and Operations, at APPA. “A safe and injury free work environment is essential for any public power utility and APPA is pleased to provide this latest version to members.”
An upcoming episode of APPA’s Public Power Now podcast will feature Beasley, Vice President for Training and Safety at Electric Cities of Georgia, and Willetts, Director of Training and Safety at the Minnesota Municipal Utilities Association, who will discuss the newest edition of the Safety Manual.
To order the safety manual, visit PublicPower.org and click on Shop or email Products@PublicPower.org.
The Journey to a Smart Grid: Funding and New Technology Make it Possible
February 1, 2023
by Aaron Larson
Power Magazine
February 1, 2023
With the U.S. government funneling billions of dollars into new grid infrastructure, and private companies rolling out new systems to mitigate outages and developing artificial intelligence that can predict with greater accuracy than ever before, the prospects for a truly smart grid have never been better.
Read the story here :https://www.nxtbook.com/accessintelligence/POWER/power-february-2023/index.php#/p/26
DOE Funding Opportunity Targets Clean Hydrogen Technologies
January 31, 2023
by Peter Maloney
APPA News
January 31, 2023
The Department of Energy recently announced up to $47 million in funding to accelerate the research, development, and demonstration of affordable clean hydrogen technologies.
The funding, which is being administered by the DOE’s Hydrogen and Fuel Cell Technologies Office, is focused on the research, development, and demonstration of hydrogen delivery and storage technologies, as well as affordable and durable fuel cell technologies.
Clean hydrogen, which is produced with zero or near-zero emissions, can play a role in reducing emissions from some of the hardest-to-decarbonize sectors of the economy, including industrial and chemical processes and heavy-duty transportation, but while hydrogen technologies have come a long way, costs and other challenges to at-scale adoption need to be addressed for clean hydrogen to realize its full potential, the DOE said.
The DOE said the fuel cell projects should focus on applications for heavy duty trucks that have the potential to reduce carbon dioxide emissions and eliminate tailpipe emissions that are harmful to local air quality.
The DOE said those efforts will work in concert with hydrogen-related activities funded by the Bipartisan Infrastructure Law, including the Regional Clean Hydrogen Hubs and an upcoming funding opportunity for research, development, and demonstration projects to advance electrolysis technologies and improve the manufacturing and recycling of critical components and materials.
Last February, the DOE announced two requests for information to collect feedback from stakeholders to inform the implementation and design of the infrastructure law’s Regional Hydrogen Hub and the Electrolysis and Clean Hydrogen Manufacturing and Recycling Programs.
The DOE said the aim of the funded projects is to reduce costs, enhance hydrogen infrastructure, and improve the performance of hydrogen fuel cells in order to advance the goal of the agency’s Hydrogen Shot program, which is to reduce the cost of clean hydrogen to $1 per kilogram within a decade.
Achieving those cost reductions will accelerate the use of clean hydrogen across multiple sectors and strengthen the nation’s energy security while supporting the Biden administration’s goals of a 100 percent clean electric grid by 2035 and a net-zero emissions economy by 2050, the DOE said.
The DOE said it would provide financial assistance awards in the form of cooperative agreements, and the estimated performance period for each award would be approximately two to four years.
The DOE is encouraging applicant teams that include stakeholders within academia, industry, and national laboratories across multiple technical disciplines, as well as teams that include representation from diverse entities such as minority serving institutions, labor unions, and community colleges.
Department of Energy Report Examines Geothermal Energy Potential
January 31, 2023
by Peter Maloney
APPA News
January 31, 2023
An analysis recently released by the Department of Energy updates the potential of enhanced geothermal systems in the United States. It was prepared by DOE’s National Renewable Energy Laboratory.
The report, Enhanced Geothermal Shot Analysis for the Geothermal Technologies Office, was released on Jan. 25.
The United States has more than 5 terawatts of heat resources. The goal of significantly expanding EGS deployment by cutting costs 90 percent to $45 per megawatt-hour by 2035 is ambitious but is achievable with technology advances, according to NREL’s analysis.
The Enhanced Geothermal Shot Analysis builds on DOE’s 2019 GeoVision report that found the potential for 60 gigawatts of geothermal capacity by 2050.
The latest analysis from NREL includes modeling assumptions reflecting recent technology advances and uses updated estimates of EGS resource potential. Those findings indicate that by 2050 the total amount of installed domestic geothermal capacity could reach 90 GW.
Geothermal energy currently generates about 3.7 gigawatts of electricity in the United States.
There is the potential for EGS deployment throughout the U.S. West, as well as in several states east of the Mississippi River, including Mississippi, West Virginia, Virginia, and Pennsylvania, by 2050, NREL said in its analysis.
The Bipartisan Infrastructure Law supports EGS with $84 million for four pilot EGS demonstration projects that will provide information about EGS in different geographies and geologies.
DOE’s Office of Science recently announced $200 million for DOE’s national laboratories to conduct Energy Earthshots research, including three EGS topics.
Lower Colorado River Authority Begins Major Improvement Project at Dam
January 31, 2023
by Paul Ciampoli
APPA News Director
January 31, 2023
The Lower Colorado River Authority is beginning a $76 million, three-year project to remove and replace the 10 floodgates at Wirtz Dam in Texas to help ensure the dam continues to operate safely and reliably, LCRA said on Jan. 18.
The dam, which creates Lake LBJ, was completed in 1951. The dam has nine original floodgates and a 10th floodgate that was added when the original Thomas C. Ferguson Power Plant was constructed in 1974.
Each floodgate will be removed and replaced with a new custom-made floodgate that meets current engineering standards. The work will be conducted on one floodgate at a time to help ensure the dam remains operational and available to pass floodwaters downstream.
Work on each floodgate is expected to take about two months, with the entire project expected to be completed in 2025.
Since fiscal year 2010, LCRA has invested more than $134 million in capital projects at the dams along the Highland Lakes, Lake Bastrop and Lake Fayette, including on the dams themselves and related hydroelectric generation infrastructure. LCRA plans to invest more than $107 million in these types of projects over the next five years.
In addition to replacing the floodgates, LCRA will upgrade the machinery that lifts the floodgates, called hoists. Two hoists will be replaced and eight will be refurbished. LCRA also will replace the existing hoist bridge.
Construction crews preparing the laydown yard will be in the area beginning in late January. Heavy equipment is expected to begin arriving in mid-February. Installation of the first floodgate is planned to begin in April.
Read more about the project at www.lcra.org/wirtzdamproject.
National Community Solar Partnership Launches Initiatives to Support Community Solar Projects
January 31, 2023
by Paul Ciampoli
APPA News Director
January 31, 2023
The U.S. Department of Energy’s National Community Solar Partnership recently launched a slate of initiatives to support the deployment of community solar projects.
Community solar allows any household to access the benefits of renewable energy, with an emphasis o those that cannot access rooftop solar, DOE noted.
DOE’s National Community Solar Partnership launched the Community Power Accelerator to bring together investors, philanthropic organizations, developers, community-based organizations, and technical experts to work together to get more equitable community solar projects financed and deployed.
The Accelerator will support developers with technical assistance and a Learning Lab to build a pipeline of verified, credit-ready projects that will connect with investors seeking to fund community solar in disadvantaged communities.
The Community Power Accelerator and its $10 million prize will leverage private-sector financing commitments to help community-based organizations and other mission-aligned project developers access financing and build community solar projects, particularly in disadvantaged and underrepresented communities.
Financial institutions and philanthropic organizations participating in the Accelerator have committed $5 billion in private sector financing for projects that are credit ready.
The Community Power Accelerator Prize is a new competition that will provide pre-development funds to organizations to build the expertise, experience, and capacity required to develop community solar projects at scale.
DOE is also launching a new campaign to highlight the connections between solar energy and its long-term benefits, beginning with community solar.
DOE said that community solar will play a vital role in supporting the Biden-Harris Administration’s Justice40 Initiative to ensure that every community benefits from the clean energy transition and in achieving the President’s goals of a 100% electric grid by 2035 and net-zero carbon emissions by 2050.
The Inflation Reduction Act established tax credits for solar energy projects, including a 20% bonus credit for solar power projects that sell their electricity to low-income households. This tax credit could support up to 18 GW of additional community solar projects over the next 10 years, DOE said.
The National Community Solar Partnership is working to increase community solar installed in the United States to 20 gigawatts.
In 2020-2021, the American Public Power Association partnered with the National Community Solar Partnership on the Municipal Utility Collaborative to identify and address common barriers to community-based solar for public power.
APPA joined the National Community Solar Partnership in 2020.