New Product Aims To Brings More Transparency To REC Market In Midwest
April 1, 2022
by Peter Maloney
APPA News
April 1, 2022
Australian software firm Powerledger is introducing a new product to the Midwest Renewable Energy Tracking System (M-RETS) that aims to provide greater transparency and granularity to the renewable energy credit (REC) market.
By using blockchain technology, the new software, TraceX, will allow companies with renewable energy targets to have greater speed and visibility over the RECs that are bought and sold, Powerledger said.
Decisions on which unbundled RECs to purchase are often based on price and vintage (the year the REC was issued), Fiona Tiller, Powerledger’s TraceX product owner, said in a statement.
“Powerledger’s TraceX marketplace provides provenance transparency, so customers can pick and choose exactly what they want and get alignment with their corporate goals,” Tiller said. “For example, customers can buy by project, fuel source, voluntary or compliance eligibilities or at the most basic level, vintage and price.”
Those and other attributes “are becoming increasingly important as companies look behind the REC at the energy they represent,” Tiller said.
In February 2020, Powerledger announced its plans to add the ability to buy and sell RECs to the M-RETS platform that previously had only been a Web-based platform for tracking RECs.
Powerledger says its blockchain-enabled digital platform can match buy and sell orders using TraceX. The platform also provides an immutable and verifiable audit trail for the transfer of REC ownership and allows financial settlement to occur seamlessly within the platform, which connects to users’ business bank accounts and their REC registry account with M-RETS.
M-RETS, the largest REC registry in North America, is used by power generators, utilities, marketers, and qualified reporting entities across the United States.
“M-RETS is excited to be working with Powerledger to pioneer a more data-driven approach to renewable energy certificates,” Ben Gerber, M-RETS CEO, said in a statement.
“Organizations can now make a much deeper impact on the environment, community or grid beyond decarbonization alone,” Tiller said.
Biden Moves To Support Production Of Minerals, Materials For Large Capacity Batteries
April 1, 2022
by Paul Ciampoli
APPA News Director
April 1, 2022
The White House on March 31 said that President Biden would issue a directive authorizing the use of the Defense Production Act (DPA) to support the production and processing of minerals and materials used for large capacity batteries such as lithium, nickel, cobalt, graphite, and manganese.
The sectors supported by these large capacity batteries — transportation and the power sector — account for more than half of our nation’s carbon emissions, the White House said in a fact sheet.
“The President is also reviewing potential further uses of DPA — in addition to minerals and materials — to secure safer, cleaner, and more resilient energy for America,” the White House said.
On March 11, a group of Senators sent a letter to President Biden that urged him to invoke the DPA to rebuild the capacity of key sectors and value-chains by domestically producing and processing critical minerals, such as battery metals like lithium and graphite.
The letter was sent by Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee, Lisa Murkowski (R-AK), Jim Risch (R-ID) and Bill Cassidy (R-LA).
“We appreciate your issuance of Executive Order 14017 and the associated 100-day review that recognizes America’s ongoing supply chain crisis,” the Senators said in the letter.
“We are committed to maintaining and strengthening our nation’s leadership and rebuilding our productive capacity in key sectors and value-chains. To do so, however, we must address our most vulnerable positions, and in no place are our supply chains more vulnerable than our lack of home-grown production and processing of rare earth and critical minerals,” they wrote.
LG Energy Solution Invests $1.7 Billion In EV Battery Plant Expansion At Holland, Mich., Location
March 31, 2022
by Paul Ciampoli
APPA News Director
March 31, 2022
Michigan Gov. Gretchen Whitmer and the Michigan Economic Development Corporation recently announced that LG Energy Solution (LGES) is investing $1.7 billion and creating 1,200 jobs at its current location in Holland, Mich.
LGES’ expansion will quintuple the plant’s capacity to help produce battery components into the future as Michigan’s electric vehicle industry grows.
“Holland Board of Public Works is proud to support the expansion of LG Energy Solution,” said Dave Koster, General Manager for the public power utility in Holland.
“Just as with the original investment almost 12 years ago, we appreciate that LG puts it trust in the reliable, cost-effective power that the HBPW provides. HBPW is dedicated to bringing innovative energy solutions to a robust and diverse primary manufacturing base, comprised of automotive, office furniture, food processing, and automation,” he said.
“LG’s growth in the advanced energy sector will keep Michigan, and specifically the Holland-area at the center of tomorrow’s automotive industry,” Koster said.
As the future of the electric vehicle industry grows, LG Energy Solution said it needs the additional capacity to allow for the production, testing and storage of materials needed for battery manufacturing. The expansion includes the construction of several new facilities on LGES’s existing footprint in Holland.
The state-of-the-art Michigan plant will use the most advanced and efficient battery cell manufacturing processes, the company said. In particular, the facility will manufacture the company’s new long cell design batteries with improved energy density thanks to cutting-edge technologies that allow engineers to more fully utilize the space within the battery pack. The long cell design batteries are expected to advance EV’s driving range and ESS’s energy storage, and at the same time, simplify the overall structure of battery pack.
The LGES expansion announcement comes just two months after GM announced its historic $7 billion investment in the state, which includes up to $2.5 billion to build Ultium Cell LLC’s third U.S. battery cell plant in the public power city of Lansing and Delta Township, a joint venture between GM and LG.
Wisconsin Public Power Utilities Rally To Help Stoughton, Wis., In Wake Of Tornado
March 31, 2022
by Paul Ciampoli
APPA News Director
March 31, 2022
Electric utility customers and officials in Stoughton, Wis., are thanking their local lineworkers, as well as those from many neighboring public power communities, for their quick response to safely restore service in the wake of a recent tornado traveling up to 95 miles per hour.
The tornado touched down for approximately five miles and was up to 50 yards wide.
“This is the spirit of neighbors helping neighbors when it’s needed most,” said Stoughton Utilities Director Jill Weiss. “That’s what our not-for-profit, community-owned utilities are all about.”
The severe storm struck the community March 5. High-speed, destructive winds — later classified as an F-1 tornado — damaged homes and buildings southeast of downtown and decimated a local family farm.
The tornado also downed nine poles on one of the American Transmission Co.’s high-voltage transmission lines that deliver bulk power to the utility, along with three poles belonging to Stoughton Utilities. More than 7,000 homes and businesses in Stoughton lost power as a result.
Through the Municipal Electric Utilities of Wisconsin’s mutual aid program, public power utilities across the state assist one another to restore local electric service in the wake of major storm events.
Responding to the call for help in Stoughton were the WPPI Energy member municipal electric utilities of Cedarburg, Hartford, Lake Mills, Mount Horeb, Prairie du Sac and Waunakee.
WPPI Energy is a member-owned, not-for-profit organization that serves 51 locally owned electric utilities in Wisconsin, Iowa, and Upper Michigan.
“The support was overwhelming,” said Weiss. “I know that many other local utilities were ready and willing to jump in as well.”
The lineworkers responded immediately, opening up roads, repairing power lines and restoring service.
Power was returned to all but 25 percent of customers by 4 a.m. on March 6, and all service connections were restored within 25 hours of the storm hitting the area.
“Not only do we have a highly dedicated local crew, but we are also part of something bigger,” said Weiss.
“When the worst happens, and we know all too well that it sometimes does, we can lean on the shared strength of our highly dedicated Stoughton Utilities line crew, as well as our fellow public power communities, to get the lights back on for local customers safely and as quickly as possible.”
New York Leads Multi-State Group To Develop A Regional Hydrogen Hub Proposal
March 29, 2022
by Peter Maloney
APPA News
March 29, 2022
New York State, along with Connecticut, Massachusetts, and New Jersey, has formed a coalition to develop a proposal to become one of at least four regional clean energy hydrogen hubs designated by the Bipartisan Infrastructure Investment and Jobs Act.
The New York-led consortium also encompasses an initial group of 40 hydrogen ecosystem partners, including Long Island Power Authority (LIPA) and the New York Power Authority (NYPA).
The agreement calls for the consortium partners to collaborate with New York State Energy Research and Development Authority (NYSERDA), NYPA, and Empire State Development (ESD) on proposal development to advance hydrogen projects under the Regional Clean Hydrogen Hubs program of the Bipartisan Infrastructure Investment and Jobs Act.
The partner states of the consortium will coordinate with their respective state entities to help align the consortium’s efforts with each state’s climate and clean energy goals.
New York’s Climate Leadership and Community Protection Act calls for the state to reduce greenhouse gas emissions 85 percent by 2050. Connecticut’s Global Warming Solutions Act sets a goal of reducing greenhouse gas emissions 80 percent by 2050, while Massachusetts set a goal to be carbon neutral by 2050, and New Jersey’s Global Warming Response Act set a goal of reducing greenhouse gas emissions 80 percent by 2050.
The consortium members also committed to develop a proposal in response to the U.S. Department of Energy (DOE) funding opportunity announcement, anticipated to launch in May 2022 with $8 billion in funding available.
In addition, the coalition members agreed to work together to define the shared vision and plans for the regional hydrogen hub that can advance safe green hydrogen energy innovation and investment to address climate change; advance a hub proposal that makes climate and environmental justice central to its strategy; and to perform research and analysis necessary to support the hub proposal and align on an approach to quantifying greenhouse gas emissions reductions resulting from use of the technology.
“We at the New York Power Authority are intrigued by the role that hydrogen may play in pushing us toward that decarbonized future and we are supporting green hydrogen firms like Plug Power at multiple locations throughout the state with low-cost hydropower,” Justin Driscoll, NYPA’s interim president and CEO, said in a statement.
The consortium members described the project as “a multi-state approach to a hydrogen hub that connects the entire value chain of hydrogen producers, users, technology and equipment manufacturers, and the research and development community including national labs and universities,” adding that the group would welcome the participation of other states in the future.
In her 2022 State of the State address, New York Gov. Kathy Hochul also announced that NYSERDA, with the Department of Public Service and the New York State Department of Environmental Conservation, would work to develop a green hydrogen regulatory framework to measure emissions reduction and health benefits and will evaluate and develop codes and standards to ensure the safe operation of green hydrogen.
NYSERDA is also developing a program to support locally owned green hydrogen-powered microgrid solutions and plans to release $27 million in Hydrogen Innovation funding to support product development, pilots, and demonstration projects.
NYSERDA is also working on a green hydrogen demonstration project for district heating and cooling and plans to launch a Green Hydrogen Prize Program to support green hydrogen firms seeking to expand in New York State.
To help public power utilities understand the potential — and the limitations — of hydrogen, and why they should get involved, the American Public Power Association developed Understanding Hydrogen: Trends and Use Cases.
Groups Want Federal Aviation Administration To Provide Guidance On Drone Use
March 29, 2022
by Paul Ciampoli
APPA News Director
March 29, 2022
The Federal Aviation Administration (FAA), which is part of the U.S. Department of Transportation, should provide guidance to the electric utility sector tied to the use of drones, the American Public Power Association (APPA), Edison Electric Institute (EEI) and the National Rural Electric Cooperative Association (NRECA) said in a recent letter to Secretary of Transportation Peter Buttigieg.
“As the owners and operators of critical infrastructure, electric utilities operate and maintain the electric grid and are working to build out the additional infrastructure needed to meet our collective clean energy goals,” the groups said in their March 17 letter to Buttigieg.
“Both manned and unmanned aircraft systems (drones) play a critical role in these efforts, helping electric companies to inspect transmission infrastructure safely and efficiently. In addition, drones play a growing role in our efforts to reduce wildfire risks and can help electric utilities restore power as safely and as quickly as possible following major storms and hurricanes,” the letter noted.
In April 2019, APPA, EEI, and NRECA submitted joint comments on the Safe and Secure Operations of Small Unmanned Aircraft Systems Advanced Notice of Proposed Rulemaking issued by the FAA. Those comments advocated for an additional rulemaking that would allow the integration of drones into the nation’s airspace, including for utility operations beyond visual line of sight (BVLOS).
The recent joint letter builds off those comments, as well as a recent FAA-convened Aviation Rulemaking Committee for BVLOS operations, which includes electric utilities.
In early March, the Aviation Rulemaking Committee concluded nine months of discussion, deliberation, and consensus building and provided the FAA with its final report and recommendations for performance-based regulatory requirements to normalize safe, scalable, economically viable, and environmentally advantageous BVLOS operations.
In their letter, the trade groups said that among the most critical recommendations provided by the Aviation Rulemaking Committee are minor changes to right-of- way rules for low altitude operations, particularly shielded operations under 400 feet.
Under the recommended changes, drones being operated by electric companies within 100 feet of their electric lines would be given right-of-way over all other manned aircraft. “This change recognizes the importance of critical infrastructure inspections and would allow electric utilities to perform these inspections in a more efficient manner, while also recognizing the low likelihood of manned aircraft operating in the same airspace. This recommended change does not absolve electric utilities operating drones of their duty to detect and avoid other aircrafts, but rather gives them the priority in the airspace while performing inspections of their critical infrastructure in their own rights-of-way,” APPA, EEI and NRECA said.
The Committee also recommended providing a path forward for extended visual line of sight operations (EVLOS), where a visual observer other than the remote pilot ensures the airspace is clear of hazards.
Currently, the remote pilot must be able to personally see the drone through the entire flight. Adopting EVLOS operations would provide an alternative route for linear infrastructure inspections by using visual observers to ensure the airspace remains clear. This option, which already is being employed by some electric companies operating under waivers, presents lower barriers to entry than BVLOS operations and requires visual observers and the remote pilot to remain in constant communication regarding hazards, ensuring a safe operating environment.
“Providing a regulatory pathway for the expanded use of drones BVLOS is a priority for us and our members,” APPA, EEI and NRECA said in encouraging the FAA to prioritize a rulemaking that codifies the Aviation Rulemaking Committee recommendation.
The groups also also encouraged the FAA to issue interim guidance on BVLOS operations to allow electric utilities to operate BVLOS and EVLOS to perform critical infrastructure inspections now “while we collectively work toward the promulgation of a final rule.”
Department Of Commerce To Commence Investigation Into Solar Imports
March 29, 2022
by Peter Maloney
APPA News
March 29, 2022
The U.S. Department of Commerce last week said it would begin an investigation into whether certain photovoltaic solar cells and modules imported from Southeast Asia are circumventing U.S. tariffs.
The March 25 announcement, by James Maeder, deputy assistant secretary for antidumping and countervailing duty operations, was quickly met by criticism and objections, in particular from the Solar Energy Industries Association (SEIA), which said the effect of the tariffs, which could be as high as 250 percent, could “have a devastating impact on the U.S. solar market at a time when solar prices are climbing, and project delays and cancellations are adding up.”
The Department of Commerce memo recommends whether imports of solar cells and/or modules from Cambodia, Malaysia, Thailand, and Vietnam are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on crystalline silicon photovoltaic cells, whether or not assembled into modules, from the People’s Republic of China.
Tariffs on imported Chinese solar power components were originally put in place during the Trump administration in response to American solar manufacturers claims that China was harming their business by flooding the market with inexpensive components.
President Joe Biden in February extended the tariff for another four years.
The Department of Commerce’s investigation is being launched in response to a complaint filed by Auxin Solar, a photovoltaic solar manufacturer based in California’s Silicon Valley.
In November, the department rejected a similar request by a group of anonymous petitioners called the Solar Manufacturers Against Chinese Circumvention because the anonymity of the petitioners could hamper a full inquiry into the matter.
In its petition, Auxin Solar claims that the solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam are identical to those from China that are subject to tariffs. Auxin also provided the names and addresses of the producers allegedly circumventing the tariffs.
Further, Auxin said, certain solar cell and module processors in Cambodia, Malaysia, Thailand, and Vietnam obtained needed materials, such as silicon wafers, silver paste, silane, solar glass, aluminum frames, junction boxes, ethylene vinyl acetate, and backsheets, from China “either from, or with the assistance of, their Chinese parent solar conglomerates”
In its filing with the Department of Commerce, Auxin also submitted a BloombergNEF report stating that 70 percent of the actual value of the solar equipment imported into the United States from Southeast Asia accrues to China where key, pre-assembly steps take place.
Auxin’s filing also noted that China had invested $643 million to $2.1 billion in polysilicon enrichment facilities while “Chinese solar conglomerates’ investments in solar cell and/or module facilities in the third countries ranged from as little as $7.7 million to a maximum of $160 million.”
In its response to Commerce’s announcement, SEIA said the decision “responds to the self-interests of one company and will lead to more market volatility and job losses. Additional tariffs will cause the loss of 70,000 American jobs, including 11,000 manufacturing jobs.”
SEIA cited a Wood Mackenzie report that argued that higher tariffs on solar components could cause solar deployment to crater by 16 gigawatts annually.
Energy Storage Installations Hit Record In Fourth Quarter
March 29, 2022
by Peter Maloney
APPA News
March 29, 2022
The U.S. energy storage market set a record in the fourth quarter with new system installations totaling 4,727 megawatt hours (MWh), according to Wood Mackenzie and the American Clean Power Association’s latest U.S. Energy Storage Monitor report.
Even with project delays, there was more energy storage capacity installed in fourth-quarter 2021 than there was in the first three quarters of the year combined, the report said. And, on an annual basis, deployments of grid-scale energy storage nearly tripled year-over-year to 3 gigawatts (GW), 9.2 gigawatt hours (GWh).
Despite a record year, the grid-scale energy storage market did not meet expectations in 2021, the report said. Supply chain challenges delayed more than 2 GW of capacity into 2022 and 2023. Supply chain pressures and delays within interconnection queue processing will persist through 2024, Wood Mackenzie forecast.
“2021 was yet another record for the U.S. energy storage market, with annual installations of multiple gigawatts for the first time,” Jason Burwen, vice president for energy storage at American Clean Power, said in a statement. “Even in the face of continued macro-economic headwinds, interconnection delays, and lack of proactive federal policy, increasing demand for resilient clean energy and volatility in the price of fuel-based generation will drive energy storage deployment forward,” he said, adding, “despite supply tightness leading to some project delays, the grid-scale market is still on track for exponential growth.”
In the non-residential market sector, there were 131 MWh of non-residential energy storage installations in the fourth quarter which brought total annual deployments in 2021 to 162 megawatts (MW), 350 MWh.
Increased storage attachment rates in community solar markets of New York and Massachusetts were the main driver of demand for storage in the non-residential market, the report said.
The residential energy storage market had its strongest quarter to date with 123 MW installed, beating the previous quarterly record of 110 MW in the first quarter of 2021, the report said.
Increasingly effective solar-plus-storage sales in markets outside of California helped establish the new quarterly benchmark and resulted in a national annual total of 436 MW, according to the report.
By 2026, annual installations in the residential market segment are expected to hit 2 GW, 5.4 GWh, with California, Puerto Rico, Texas, and Florida leading the residential market, the report said.
California will continue to be the largest residential energy storage market with three-and-a-half times more storage installed annually in 2027 compared with 2021, the report found.
APPA Recognizes 138 Public Power Utilities For Outstanding Safety Practices
March 29, 2022
by Paul Ciampoli
APPA News Director
March 29, 2022
One hundred thirty-eight utilities have earned the American Public Power Association’s (APPA) Safety Award of Excellence for safe operating practices in 2021, APPA said on March 29.
318 utilities from across the country entered the annual Safety Awards. Entrants were placed in categories according to their number of worker-hours and ranked based on the most incident-free records during 2021.
A utility’s incidence rate, used to judge entries, is based on its number of work-related reportable injuries or illnesses and the number of worker-hours during 2021, as defined by the Occupational Safety and Health Administration.
The Safety Awards have been held annually for more than 65 years.
A complete list of winners is available at www.PublicPower.org.
Appeals Court Reverses Judge’s Injunction Against Federal Social Cost Of GHG Order
March 29, 2022
by Paul Ciampoli
APPA News Director
March 29, 2022
The U.S. Appeals Court for the Fifth Circuit recently reversed a federal judge’s decision to grant a motion for a preliminary injunction filed by 10 states that had argued that they will be harmed as a result of an early 2021 Biden Administration move to set interim estimates for the social cost of greenhouse gas emissions for federal agencies to use.
Background
In April 2021, 10 states filed a complaint against the federal government seeking declaratory and injunctive relief as a result of Executive Order 13990 (EO 13990).
EO 13990 reinstated the Interagency Working Group on Social Costs of Greenhouse Gas Emissions. In addition, the Interagency Working Group (IWG) was directed to publish interim estimates for the social cost of carbon, nitrous oxide, and methane — collectively referred to as SC-GHG estimates — for agencies to use when monetizing the value of changes in greenhouse gas emissions resulting from regulations and other relevant agency actions.
The states that filed the complaint are Louisiana, Alabama, Florida, Georgia, Kentucky, Mississippi, South Dakota, Texas, West Virginia, and Wyoming.
A Louisiana-based federal judge agreed with the states and granted a motion for a preliminary injunction filed by the 10 states in February 2022.
In response, the federal government moved to stay the injunction pending appeal arguing, among other things, the states lack standing, their claims are not ripe, and the interim estimates are not final agency action under the Administrative Procedures Act.
Appeals Court
In conducting cost-benefit analyses, agencies consider the impact of the emissions of greenhouse gases. The impact of these emissions on various factors like health, agriculture, and sea levels, can be quantified into dollar amounts per ton of gas emitted—i.e., the SC-GHG, the appeals court noted in its March 16 opinion.
“Because we conclude the government defendants have made a strong showing that they are likely to succeed on the merits, and the balance of harms to the parties favors granting the stay, we grant the government defendants’ motion,” the appeals court said.
The appeals court said that the government defendants are likely to succeed on the merits because the states lack standing. “The Plaintiff States’ claimed injury is ‘increased regulatory burdens’ that may result from the consideration of SC-GHG, and the interim estimates specifically. This injury, however, hardly meets the standards for Article III standing because it is, at this point, merely hypothetical.”
Moreover, the appeals court said that the interim estimates on their own do nothing to the states, adding that the states’ claims “amount to a generalized grievance of how the current administration is considering SC-GHG.”
The appeals court said that the government defendants have shown they will be irreparably harmed absent a stay.
It is unclear how the states’ “qualms with the interim estimates justify halting the President’s IWG. All of this effectively stops or delays agencies in considering SC-GHG in the manner the current administration has prioritized within the bounds of applicable law,” the appeals court said.
“The preliminary injunction’s directive for the current administration to comply with prior administrations’ policies on regulatory analysis absent a specific agency action to review also appears outside the authority of the federal courts. We therefore find the government defendants are irreparably harmed absent a stay of the injunction.”