GRID: Virtual power plants, dynamic line ratings, and other advanced grid technologies could open up space on the grid for more electricity while staving off the need for costly, time-consuming transmission construction, a new U.S. Energy Department roadmap finds. (Canary Media)
ALSO:
EMISSIONS:
WIND: The world installed a record 117 GW of new wind power generation capacity last year, up 50% from the year before, a wind power advocacy group finds. (The Hill)
ENVIRONMENTAL JUSTICE: Black Americans are more likely than other racial groups to say they’re “very” or “fairly” concerned about pollution, and are more likely than White Americans to be displaced by environmental contamination, a survey finds. (The Hill)
CARBON CAPTURE: Illinois bills would add a series of restrictions on carbon sequestration and pipeline projects as developers seek to capitalize on the state’s geology and lucrative federal tax credits. (Energy News Network)
SOLAR:
ELECTRIC VEHICLES: Cities across the U.S. are building out electric vehicle charging networks to meet anticipated EV growth. (Utility Dive)
POLITICS: House Republican leaders are poised to cut a provision to reverse the Biden administration’s LNG permitting ban from critical foreign aid packages. (E&E News)
TRANSMISSION: A federal judge rejects tribal nations’ and advocates’ bid to halt work on a segment of the SunZia transmission project in a culturally and ecologically significant part of southern Arizona. (Associated Press)
MINING:
OIL & GAS:
CLIMATE:
WIND: A Colorado electric cooperative and wholesale power supplier agree to purchase the full output of a 200 MW wind facility in the eastern part of the state. (news release)
UTILITIES:
COAL:
GEOTHERMAL: The federal Bureau of Land Management plans to exempt some geothermal exploration projects from environmental reviews to expedite development. (E&E News, subscription; news release)
ELECTRIC VEHICLES: An Arizona community college launches an electric vehicle technician training course. (news release)
COMMENTARY: Nevada advocates urge the federal Bureau of Land Management to push utility-scale solar projects toward low-conflict, previously disturbed public lands. (Nevada Independent)
Just about every week, Shawn Grant, who works for Salt Lake City-based Rocky Mountain Power, gets an inquiry from another utility looking for information about the company’s Wattsmart battery program.
“We want to do something. … How did you guys do it?’” Grant, the company’s customer innovation manager, says he’s often asked. “We’re always fielding those questions.”
The program pays customers with solar who opt to install battery storage systems for the ability to use that stored electricity to help balance flows on the electric grid.
For customers, the benefits come in the form of lower electric bills and backup power in case of an outage. For Rocky Mountain Power, which has 1.2 million customers in Utah, Wyoming and Idaho, the program allows the company to harness the collective power stored in those distributed batteries to shave electric demand when it spikes rather than calling for more generation from a traditional power plant, among other uses.
“We’re using every battery every day to reduce demand on the grid,” Grant said.
The concept is known as a virtual power plant, and grid operators, utilities, state regulators and lawmakers across the country are increasingly exploring the possibilities. They are seen as a cost-effective way to aid an electric grid that in many parts of the country is increasingly embattled by power plant retirements as well as difficulties building new, cleaner generation and the transmission lines they need — all at a time when huge projected electric demand increases loom.
“We’re now in this load-growth era,” said Robin Dutta, acting executive director at the Chesapeake Solar and Storage Association, a solar and storage industry group focused on Maryland, Virginia and Washington, D.C. “When you’re mitigating peak demand growth at the source, that’s perhaps the most cost effective way to modernize the grid.”
Nearly 800,000 American homes installed a new solar or solar and energy storage system in 2023, according to the Solar Energy Industry Association. That growth set a record, with about 6.8 gigawatts installed, a 12% increase from 2022. Electric vehicles, another potential grid resource as a store of energy, also broke a sales record last year, despite consumer uptake being slower than some expected.
“These are devices that people are buying anyway because they’re faster, better, cheaper and virtual power plants allows everybody to leverage these devices while putting some money back in the pockets of people that bought the thing in the first place,”said Brian Turner, a director at Advanced Energy United, a clean energy trade group
The U.S. Department of Energy found in a report last year that large-scale deployment of virtual power plants “could help address demand increases and rising peaks at lower cost than conventional resources, reducing the energy costs for Americans — one in six of whom are already behind on electricity bills.”
They’re not a new concept, the DOE noted, adding that most existing virtual power plants are so-called demand response programs. In Virginia, for example, the commonwealth for years has run a program that enrolls hundreds of public facilities (airports, universities, K-12 schools, municipal buildings, water treatment plants and others) that agree to reduce or shift their electric demand to relieve strain on the grid. The DOE report says deploying 80 to 160 gigawatts of virtual power plants by 2030 could save about $10 billion in annual grid costs and would “direct grid spending back to electricity consumers.” At that scale, virtual power plants could meet between 10 and 20% of peak electric demand. The Rocky Mountain Institute, a research nonprofit focused on sustainability, called virtual power plants “a valuable and largely overlooked resource for advancing key grid objectives,” including reliability, affordability, decarbonization and electrification, among others.
However, many states are starting to take notice of the potential:
Experts who study and run the nation’s electric grid are worried about the pace of the energy transition. Old coal and gas plant retirements are accelerating, driven by economics, state clean energy policies and utilities’ own decarbonization goals. At the same time, massive backlogs in the queues to connect new power resources — overwhelmingly wind, solar and battery projects — in the regional transmission organizations that run the grid in much of the country mean big delays in replacing that retiring power generation. And after roughly a decade of flat electric demand, load growth is projected by many experts to explode as a result of transportation, industrial and home heating electrification, as well as a surge in data center development, among other factors. Throw in the fact that the construction of new transmission lines, essential to get excess power to where it might be urgently needed, has also stagnated and a problematic picture emerges.
“Most utilities in the country are planning on pretty significant load growth,” said Turner from Advanced Energy United. ”They could plan to build a new peaker plant or they could plan to ‘build’ VPPs.”
That’s where utility incentives come into play.
Generally speaking, Turner said, utilities that operate transmission and distribution systems are more friendly to the idea. Companies that also own their own generation, – and make a sizable chunk of their income from guaranteed profits on building new plants – , might not like the idea of a program that erodes the business case for a pricey new facility.
“That’s why we have utility commissions,” Turner said. “They exist to say to the utility that virtual power plants are a cheaper option for the ratepayer and therefore you should implement it.”
However, even companies that might have resisted the idea are facing such dire electric-demand growth scenarios that virtual power plants may be attractive ways to get more flexibility out of the grid more quickly than building new generation.
“This is a way to get the capacity online faster and oftentimes cheaper,” Turner said. “Meeting that load growth is a real challenge in a lot of places.”
ELECTRIFICATION: A new Department of Energy program aims to help manufacturers develop next-generation heat pumps that can replace large buildings’ rooftop heating and cooling systems and save U.S. businesses as much as $5 billion annually. (Utility Dive)
ALSO: Clean energy advocates and professional cooks continue to work to electrify restaurant kitchens and homes in Berkeley, California, even after a court shot down the city’s natural gas-hookup ban. (Guardian)
ELECTRIC VEHICLES:
OIL & GAS:
EMISSIONS:
GRID:
NUCLEAR: Experts are divided on whether Georgia Power’s costly, long-delayed expansion of its nuclear Plant Vogtle heralds a new era for nuclear power development or will discourage future investment in the power source. (Grist)
SOLAR: New York officials confirm Tesla’s Buffalo solar panel factory uses panels made by a competitor on its roof, not its own product. (Investigative Post)
CLIMATE:
GRID: The New England grid operator’s newest transmission study finds the region has to spend up to $26 billion over the next 26 years to bulk up its transmission network — a large sum but roughly comparable to spending in recent decades. (CommonWealth Beacon)
ALSO: Two Connecticut municipalities sue to stop a state-approved transmission line expansion, calling the plan an “aesthetic eyesore and an unjust blight.” (Only In Bridgeport)
SOLAR:
COAL: Federal energy analysts believe April coal exports will be slashed by about a third because of the Francis Scott Key Bridge collapse and subsequent Port of Baltimore closure. (The Hill)
BUILDINGS:
NUCLEAR:
STORAGE: Pennsylvania’s utility commission issues new battery storage guidelines for utilities that allow them to use non-wires distribution reliability projects and possibly own them on a case-by-case basis. (Utility Dive)
UTILITIES:
CLEAN ENERGY: A town in Massachusetts’ Berkshires region is undertaking weatherization measures, installing electric vehicle chargers and installing solar arrays to achieve net-zero by 2050. (Berkshire Eagle)
TRANSIT: Rhode Island’s public transit agency says piloting no fares on its most popular bus route increased ridership by nearly 100,000 riders but cost it $2.7 million, calling the cost unsustainable. (Rhode Island Current)
EQUITY:
GRID: California’s grid operator proposes $6.1 billion in transmission projects aimed at increasing reliability and providing access to solar, geothermal and wind resources in Arizona, Nevada, New Mexico and offshore. (Utility Dive)
ALSO:
UTILITIES: Arizona advocates campaign for positions on a Salt River Project’s board with hopes of prodding the Phoenix-area utility to adopt more clean energy generation. (Capital & Main)
SOLAR:
CLEAN ENERGY: Idaho lawmakers pass a resolution supporting clean energy technologies such as green hydrogen production and advanced nuclear reactors. (KMVT)
NUCLEAR: Bill Gates-backed TerraPower applies for a federal permit to construct a proposed 345 MW sodium-cooled nuclear reactor in a Wyoming coal town. (World Nuclear News)
HYDROPOWER: An Arizona utility moves forward with a proposed 1,000 to 2,000 MW pumped hydropower energy storage project outside Phoenix, but predicts construction wouldn’t begin until 2027. (KJZZ)
ELECTRIC VEHICLES: Colorado launches the nation’s first statewide electric bicycle tax credit giving residents a $450 discount at the point of sale. (CBS News)
OIL & GAS:
CLIMATE:
POWER PLANTS: As economic growth drives new electricity demand, utilities such as Georgia Power look to natural gas as a quick fix, but customers and clean energy advocates say the strategy lacks ambition and ignores the giant pool of federal money currently available for cleaner alternatives. (Grist/WABE)
ALSO: A new report urges state regulators to be skeptical about “a panicked rush” to build new gas plants and says utilities could mitigate near-term load growth with a myriad of tech and policy solutions. (Latitude Media)
GRID: Software and smart meters are unlocking new potential for price-based demand response — using variable rates to change customer behavior — with Georgia Power and Entergy Louisiana among the utilities exploring the concept as a way to manage loads. (Utility Dive)
ELECTRIC VEHICLES: The shift to electric vehicles in North Carolina is happening faster than state officials anticipated, with electric vehicle registrations surpassing a state goal two years ahead of schedule with more than 80,000 on the road. (WRAL)
SOLAR: The developer of a Virginia solar project informs county officials that it is withdrawing its application for a special use permit. (Farmville Herald)
COAL:
CLIMATE: Indoor farming offers producers steady growing conditions amid increasingly unpredictable weather, but their energy consumption represents a potential threat that could worsen climate change. (Washington Post)
COMMENTARY: Duke Energy’s proposed carbon plan in North Carolina ignores a 2030 emissions target, doubles down on fossil fuels, and leans too heavily on expensive, unproven technology, an advocacy group writes. (SELC)
The Maine House rejected a bill Wednesday that would direct regulators to explore performance-based ratemaking for Central Maine Power and Versant, which last year beat back a referendum to replace the companies with a consumer-owned model.
The House voted 75-67 against LD 2172, sponsored by Rep. Gerry Runte (D-York). Republicans largely opposed the legislation but a handful of Democrats also voted against it. The proposal then moved to the Senate on Thursday, where it was tabled, meaning it will be taken up at a later date.
Runte’s bill would require the Public Utilities Commission (PUC) to examine performance-based metrics that could be implemented for utilities and conduct that examination every three years thereafter. Generally speaking, performance-based ratemaking (PBR) creates specific benchmarks for utilities to meet. The utilities could then get rewarded if they meet the targets or be penalized if they don’t.
The performance of Maine’s primary investor-owned utilities, CMP and Versant, has been a frequent topic of discussion in recent years. The companies’ relative unpopularity with Mainers, frustration with their quality of service and concerns about their for-profit business model spurred the referendum last fall to replace CMP and Versant with a nonprofit, consumer-owned utility. However, Mainers voted down the measure amid a deluge of spending against the proposal.
During Wednesday’s debate in the House, Rep. Sophia Warren, a Democrat from Scarborough, argued there isn’t sufficient evidence that LD 2172 would benefit ratepayers and improve the utility system.
“We cannot with any guarantee know the outcome of this legislation, and I believe that is a potentially quite harmful consequence we must take seriously,” said Warren, adding that she would support a targeted study on PBR policies in Maine.
Warren — a critic of CMP and Versant who supported the referendum to replace the companies — also pushed back against proponents who have argued that the bill will hasten Maine’s clean energy transition. She said nothing in the legislation ties a utility’s performance to making the grid more sustainable.
Republican Rep. Steven Foster of Dexter also expressed opposition to the bill. Among other issues, Foster argued that some parts of the proposal are duplicative of a 2022 bill that requires the PUC to adopt rules for CMP and Versant. Specifically, the PUC was tasked under that law with creating quantitative metrics around service quality along with coming up with a report card to evaluate utilities.
Runte said LD 2172 is meant to build on that previous measure. And he added that if the state wants CMP and Versant to perform better, it needs to create rules that incentivize the companies to further Maine’s grid-related policy goals — which he argued is currently lacking.
“LD 2172 attempts to solve this problem by directing the PUC to begin a process to define how we want our utilities to perform in the 21st century, as well as consider modern models of utility regulation that better align a utility’s performance with these new goals,” he said.
Under Runte’s proposal, the PUC would have to establish goals and evaluate options for creating metrics to determine how well utilities meet certain criteria. In creating those goals, PUC would have to keep in mind the following: benefit to ratepayers, promotion of cost efficiency and affordability, increased planning for extreme weather and climate hazards, a comprehensive response to outages, and support of renewable resource and greenhouse gas reduction goals. The goals would also have to be consistent with the state’s climate action plan.
Runte said the process for coming up with goals for utilities to meet and metrics to evaluate them is kept deliberately flexible in the bill, giving appropriate latitude to the PUC to determine what will work best for Maine and to adjust policies as needed.
The bill would further require that the commission get input from various stakeholders, mandate that the PUC provide a summary of its performance-based ratemaking actions, task the organization with coming up with recommendations for forming a regulatory policy group within the commission, and require the PUC to implement emerging reforms if such changes better align with state goals.
Runte pointed out that 17 states have approved similar reforms, although Warren noted that just two states have moved to extensively implement PBR policies, and she argued the experience of one of those states — Connecticut — has not been positive.
But Rep. Valli Geiger (D-Rockland) said that although Mainers voted down the November referendum to replace CMP and Versant, that doesn’t mean they are happy with the service provided by the companies. She said implementing PBR would provide the state the tools to bring the utilities into alignment with important goals, particularly when it comes to the clean energy transition.
Both CMP and Versant have been tepid about the bill. During a committee hearing earlier this year, a representative from Versant said the company is willing to take initial steps toward performance-based ratemaking but called for the goals established by the PUC to be brought back to lawmakers for review. And CMP argued the time isn’t right for Runte’s bill because lawmakers should first see how recent regulations, like the 2022 bill, work out.
GRID: A Texas municipal utility builds four large solar farms and a natural gas-fired power plant as it aims to keep pace with power demand from data centers and electrification. (El Paso Times)
ALSO:
SOLAR:
ELECTRIC VEHICLES:
OIL & GAS:
COAL: An Alabama family sues for damages after a coal mine explodes because of what a lawyer blames on a buildup of methane gas. (Inside Climate News)
CLEAN ENERGY: A report finds Georgia ranks second in the U.S. for clean energy development with $23.12 billion in investment. (Augusta Chronicle)
POLITICS: Virginia lawmakers use a budget amendment to try to force the state to rejoin a regional carbon market, but it will likely be vetoed by Gov. Glenn Youngkin. (Inside Climate News)
CLIMATE:
COMMENTARY:
GRID: National Grid announces a $4 billion plan to upgrade its upstate New York power grid, with new substations and rebuilt power lines among its 6-year plan. (Utility Dive)
ALSO: Several hundred thousand New England residents lost power during severe storms over the weekend, and more than 100,000 remained in the dark Monday morning. (NBC Boston, WMTW)
OFFSHORE WIND:
UTILITIES:
POLICY:
SOLAR: Westmoreland County, Pennsylvania’s housing authority seeks county funding to help build a solar farm that could power a low-income senior apartment complex and other county facilities. (TribLive)
CLEAN ENERGY: The Massachusetts Clean Energy Center awards $2.5 million for projects across the state, including a solar panel recycling project and a biogas production system. (Worcester Business Journal)
HYDROGEN:
ELECTRIC VEHICLES: Rhode Island considers replacing its gas tax with a mileage-based user fee to combat an expected drop in revenue as electric vehicles replace combustion cars. (EcoRI)
CLIMATE: Maryland’s chief resilience officer says climate issues pose the biggest challenge to the state’s stability, with rising floods, worsening storms and growing heat among his biggest concerns. (Inside Climate News)
COMMENTARY: