tag:blogger.com,1999:blog-91218368701645999382024-03-16T05:19:55.453-04:00Energy Policy UpdateEnergy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.comBlogger1262125tag:blogger.com,1999:blog-9121836870164599938.post-12484574275520012502024-02-28T09:20:00.003-05:002024-02-28T09:20:28.940-05:00Court suspends EIA-862 survey of crypto mining energy use<p>The U.S. Energy Information Administration's <a href="https://energypolicyupdate.blogspot.com/2024/02/eia-form-862-cryptocurrency-mining.html">efforts to require cryptocurrency miners to report on their electricity use</a> have been suspended by the U.S. District Court for the Western District of Texas, following a complaint by Texas crypto miners alleging that EIA exceeded its regulatory authority in requiring the report. </p><p>Earlier this year, EIA announced a new, mandatory survey of crypto miners. The Form EIA-862 report would cover topics like the nature and scale of equipment installed, electricity consumption, and sources of power. EIA developed the survey and announced it as a new requirement, after requesting and receiving approval from the U.S. Office of Management and Budget for an "emergency data collection request". Emergency requests generally skip procedural steps including publication of a 60-day notice in the Federal Register and public comment. </p><p>But a <a href="https://nclalegal.org/texas-blockchain-council-et-al-v-department-of-energy-et-al/">trade group and a crypto miner sued to block EIA from implementing the EIA-862 survey requirement</a>. They argued that EIA and OMB committed procedural violations in approving the survey, including that EIA failed to establish a bona fide emergency, and that OMB authorized the emergency data collection for 189 days (longer than the 180-day maximum under the Paperwork Reduction Act). </p><p>On February 23, a <a href="https://nclalegal.org/wp-content/uploads/2024/02/181131714821.pdf">judge from the federal District Court issued a 14-day temporary restraining order enjoining EIA from implementing the survey requirement</a>, based on a finding that the plaintiffs were "likely to succeed on the merits". The order scheduled a preliminary injunction hearing for February 27.</p><p>Regardless of the outcome of the judicial challenge to EIA's Form EIA-862 survey requirement, policymakers will likely continue to be interested in understanding energy consumption requirements for blockchain, crypto, hyper-scaling facilities, and even other data center activities.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-38313542436147285602024-02-08T17:02:00.004-05:002024-02-08T17:02:55.969-05:00Will ISO-NE capacity market shift from forward to prompt/seasonal?<p>The operator of New England's transmission grid and wholesale electricity markets has proposed major reforms to its market for capacity. For 18 years, ISO New England has administered a "Forward Capacity Market", featuring annual auctions to procure commitments from energy resources, for a capacity commitment period three years in the future. ISO-NE has now proposed to shift to a "prompt/seasonal" model. If adopted, the reforms will change important elements of New England's electric market systems.</p><p><a href="https://www.iso-ne.com/markets-operations/markets/forward-capacity-market">According to ISO-NE, its Forward Capacity Market</a> "ensures that the New England power system will have sufficient resources to meet the future demand for electricity." The grid operator adopted a capacity market 18 years ago, to provide a revenue stream to support the development and sustained availability of enough power plants (and eventually other resources like storage and demand response). Under the present construct, ISO-NE holds annual Forward Capacity Auctions (FCA), in which resources compete to obtain a capacity supply obligation (a commitment to supply capacity) in exchange for a capacity payment determined by the auction price.</p><p>But now the grid operator has proposed to shift away from a forward market design, to a "prompt/seasonal" design:</p><p></p><blockquote><p>“Prompt” means the capacity auction would take place much closer to the delivery period. As a result, the auctions would be based on more accurate information about the expected demand for electricity and resources’ ability to meet that demand during the most stressed system conditions. A prompt auction would better accommodate the development timelines of diverse resources, and reduce risk of resources securing capacity supply obligations but being unable to deliver.</p><p>The “seasonal” element involves procuring capacity in a way that better addresses the distinct reliability challenges of winter and summer, as well as variations in resource performance from season to season. Winter risks are expected to increase as weather becomes more extreme and unpredictable, and as public policies guide the region toward wider adoption of weather-dependent clean energy resources and the electrification of heating and transportation.</p></blockquote><p></p><p>According to ISO-NE's proposal, the reforms would take effect beginning with the 2028/2029 capacity commitment period. Absent reform, that period would be the subject of the 19th Forward Capacity Auction (FCA 19). FCA 19 was originally scheduled for 2025, but the auction timeline was extended by the Federal Energy Regulatory Commission at ISO-NE's request to allow time for a separate, lesser reform to how it accredits capacity to resources. The grid operator says it will pursue a further FERC approval to delay the auction until 2028, so it can develop rules for the prompt/seasonal market, and hold the first prompt capacity auction in early 2028.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-71392145218381595022024-02-06T12:41:00.005-05:002024-02-07T15:41:46.747-05:00EIA Form EIA-862 cryptocurrency mining electricity use survey<p>A federal agency will start requiring commercial cryptocurrency miners to report on their electricity consumption. The U.S. Energy Information Administration has obtained an <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202401-1905-002">emergency clearance allowing it to begin collecting data</a> on a monthly basis from February through July 2024. EIA's new <a href="https://www.reginfo.gov/public/do/DownloadDocument?objectID=139120901">Form EIA-862, the "Cryptocurrency Mining Facilities Report"</a>, is mandatory for all commercial cryptocurrency mining facilities in the U.S. Failure to file could result in criminal and civil fines and penalties that could exceed $10,000 per violation per day.</p><p>According to EIA, electricity demand from cryptocurrency mining operations in the United States has grown rapidly in recent years. While EIA doesn't have the full data it would need to evaluate crypto's share of domestic power use, EIA's "preliminary estimates suggest that annual electricity use from cryptocurrency mining probably represents from 0.6% to 2.3% of U.S. electricity consumption." </p><p>EIA says the growth of crypto load "has drawn the attention of policymakers and grid planners concerned about its effects on cost, reliability, and emissions." EIA continues, "As cryptocurrency mining has increased in the United States, concerns have grown about the energy-intensive nature of the business and its effects on the U.S. electric power industry. Concerns expressed to EIA include strains to the electricity grid during periods of peak demand, the potential for higher electricity prices, as well as effects on energy-related carbon dioxide (CO2) emissions." For example, several U.S. Senators and Representatives sent letters to U.S. Environmental Protection Agency Administrator Michael Regan and Secretary of Energy Jennifer Granholm in <a href="https://www.warren.senate.gov/imo/media/doc/2022.07.15%20Letter%20to%20EPA%20and%20DOE%20Re%20Cryptomining%20Environmental%20Impacts.pdf">July 2022</a> and <a href="https://www.warren.senate.gov/imo/media/doc/2023.02.06%20Follow-Up%20Letter%20to%20EPA%20and%20DOE%20Re%20Cryptomining%20Environmental%20Impacts2.pdf">February 2023</a>, asking the EPA and Energy Department to "require reporting of energy use and emissions from cryptominers."</p><p>To model crypto mining's effects on the grid, EIA performed two kinds of analysis: a "top-down approach" based on the <a href="https://ccaf.io/cbnsi/cbeci">Cambridge Bitcoin Electricity Consumption Index (CBECI)</a>, and a "bottom-up approach" based on identifying specific U.S. cryptocurrency mining operations and estimating their existing electric demands. Under the top-down approach, EIA estimates electricity usage from Bitcoin mining based in the United States to range from 25 TWh to 91 TWh, amounting to 0.6% to 2.3% of the nation's 2023 electricity demand in 2023 -- comparable to three million to six million homes, or at least as much annual electricity usage as entire states like Utah or West Virginia. </p><p>Under the bottom-up approach, EIA tried to "identify as many U.S. cryptocurrency mining facilities as possible". EIA ultimately identified a total of 137 facilities, of which EIA has location and capacity data for 52 facilities. These sites are located in 21 states, with most in Texas, Georgia, and New York. "Of the 137 facilities identified, we have identified maximum electricity use at 101 of those facilities, which we estimate to be 10,275 MW. This amount compares with an average annual power demand of about 450,000 MW in the United States, representing a share of 2.3%."</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhmYrDBHfq7iMl2LeJtd3uCjyDBUmilel3xu9mhsyZZQcDZEZushr3CSIbd798WPKSETmBGOMu0B60Xjh8IY64xTLsC2TntcsRlR6JDSy5VTUZITSq8qch6e5cXLJAaPu6KJCoCD08OXkgtJdbUdu6QIZWFIrWcxZqnpLY31mfADHbN9aUD7ZHygZLC_Nk" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="309" data-original-width="619" height="200" src="https://blogger.googleusercontent.com/img/a/AVvXsEhmYrDBHfq7iMl2LeJtd3uCjyDBUmilel3xu9mhsyZZQcDZEZushr3CSIbd798WPKSETmBGOMu0B60Xjh8IY64xTLsC2TntcsRlR6JDSy5VTUZITSq8qch6e5cXLJAaPu6KJCoCD08OXkgtJdbUdu6QIZWFIrWcxZqnpLY31mfADHbN9aUD7ZHygZLC_Nk=w400-h200" width="400" /></a></div><br />EIA notes that its surveys of power plants have revealed that some have been used for cryptocurrency mining. Considering "a group of five small U.S. power plants in Montana, New York, and Pennsylvania where cryptocurrency mining has occurred", EIA notes that these plants' generation "rose sharply beginning in 2021 when cryptocurrency miners established operations. ... Prior to the installation of the cryptocurrency mining equipment, output from the five plants had been much lower. The previous underutilization of these power plants has attracted cryptocurrency miners to these facilities given prospects of dedicated electricity at low rates."<p></p><p>Going forward, EIA "will be conducting a mandatory survey focused on systematically evaluating the electricity consumption associated with cryptocurrency mining activity, which is required to better inform planning decisions and educate the public." The survey instrument is Form EIA-862, which collects data on the energy usage, and related characteristics, of commercial cryptocurrency mining facilities in the U.S. </p><p>Form EIA-862 asks questions about cryptocurrency validation using a proof-of-stake consensus mechanism as well as cryptocurrency mining using a proof-of-work consensus mechanism. For each reportable facility, Form EIA-862 solicits information including total electricity consumption, the percentage of electricity used for cryptocurrency mining, details on the facility's cryptocurrency mining equipment, and copies of the facility's electricity bills. EIA says it will use data gathered during the survey to inform its approach going forward.</p><p>EIA has published its forms of several letters associated with the EIA-862 survey, including a <a href="https://www.reginfo.gov/public/do/DownloadDocument?objectID=139121301">Welcome letter</a> informing entities of the need to respond and <a href="https://www.reginfo.gov/public/do/DownloadDocument?objectID=139121401">a Reminder letter</a>. EIA also released a form of <a href="https://www.reginfo.gov/public/do/DownloadDocument?objectID=139121501">Escalation letter</a>, which reminds respondents that the report is mandatory under federal law, that failure to comply may result in criminal fines, civil penalties, and other sanctions, that making false, fictitious or fraudulent statements is a criminal offense, and that any failure to report "may result in a civil penalty of not more than $10,633 each day for each violation".</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-85055771713974963542024-01-25T13:15:00.001-05:002024-01-25T13:15:35.430-05:002022 Maine power outages quantified<p>Maine electricity customers experienced more frequent and longer power outages on average in 2022, compared to the national average, according to <a href="https://www.eia.gov/todayinenergy/detail.php?id=61303">recently released federal data</a>.</p><p>According to the U.S. Energy Information Administration, U.S. electricity consumers in 2022 experienced one or two outages, averaging about 5.5 total hours of power outage. According to EIA, major incidents like storms are most likely to cause outages with extended durations, while heavily forested states are most likely to experience a higher frequency of outages.</p><p>EIA tracks reliability and outages through two key metrics: SAIFI (which measures the frequency of service interruptions) and SAIDI (which measures duration). Some states are outliers with respect to both these metrics of electric grid reliability. The chart below, prepared by EIA, shows how various states' utilities performed in 2022 with respect to SAIDI and SAIFI. </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjxP4JMuepCLF0r68fIFV99nZ9_rquEgUOSfGDxp0KYXX9hcpfCHR-awR--8MIzsd4ZgqSYqKJWJvw9DbDeGSCua71I1vPfr44_rkTRq3qM6k7TyDVv1Lwpa77DGsb5xRnk9Ru-2Q6byhNCUUnII5eNLcml5bZi8OuOMsHlknMZ53lnMSqdiJIMKzeiF-4" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="295" data-original-width="503" src="https://blogger.googleusercontent.com/img/a/AVvXsEjxP4JMuepCLF0r68fIFV99nZ9_rquEgUOSfGDxp0KYXX9hcpfCHR-awR--8MIzsd4ZgqSYqKJWJvw9DbDeGSCua71I1vPfr44_rkTRq3qM6k7TyDVv1Lwpa77DGsb5xRnk9Ru-2Q6byhNCUUnII5eNLcml5bZi8OuOMsHlknMZ53lnMSqdiJIMKzeiF-4=s16000" /></a></div><div><br /></div><p>The average customer in Maine experienced three outages totaling over 15 hours without power in 2022. Only Alaska and Tennessee experienced more frequent outages than Maine, and only Florida and West Virginia experienced greater total durations of outages than Maine. Maine's outage duration in 2022 was <a href="https://energypolicyupdate.blogspot.com/2021/02/us-electric-distribution-service-outages.html">roughly the same as in 2021</a>; both were <a href="https://energypolicyupdate.blogspot.com/2018/12/eia-highlights-maine-electric-reliability.html">down compared to 2017</a>, when the average Maine customer went without power for about 42 hours. According to EIA, "Power interruptions resulting from falling tree branches are common, especially because of winter ice and snowstorms that weigh down tree limbs and power lines."</p>Meanwhile, the District of Columbia had both the lowest frequency of service interruption and the lowest total outage duration, with an average of just 34 minutes without power in 2022. Delaware, Rhode Island, Nebraska, and Iowa also had top rankings for low outage duration.Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-50901490368542162072024-01-16T14:13:00.003-05:002024-01-16T14:13:30.383-05:00ISO-NE 2022 generation portfolio emissions report<p>New England's electric power generation fleet emitting slightly less carbon dioxide in 2022 relative to 2021, according to the grid operator's <a href="https://www.iso-ne.com/static-assets/documents/100006/final_2022_air_emissions_report.pdf">2022 ISO New England Electric Generator Air Emissions Report</a>.</p><p>ISO New England operates the regional transmission grid and the wholesale market for electricity. In support of this role, ISO-NE tracks the portfolio of generation resources used in the region, as well as the resources' emission characteristics.</p><p><a href="https://isonewswire.com/2024/01/11/carbon-emissions-from-new-england-power-generation-fell-slightly-in-2022-iso-ne-analysis-finds/">According to ISO-NE</a>, New England generation emitted 33,382 kilotons of carbon dioxide in 2022, a decline of two-tenths of a percent relative to 2021. The grid operator reports an average 2022 emission rate of 643 pounds of CO2 per megawatt-hour of New England generation. </p><p>Over longer time scales, air emissions from New England's power plants have decreased significantly. "From 2001 through 2022, CO2 emissions fell by 37%, NOx emissions fell by 79%, and SO2 emissions fell by 98%."</p><p>While carbon dioxide emissions decreased slightly again this year, sulfur dioxide (SO2) emissions increased to 3.38 kilotons, climbing over 60 percent relative to 2021. The grid operator attributes the sulfur emissions to increased reliance on fuel oil for electric generation:</p><blockquote><p>More electricity came from oil-fired generators in 2022 than in the previous four years combined. At 1,845 GWh, production from these resources in 2022 was eight times higher than in 2021. Oil has a high sulfur content, so SO2 emissions rise when these resources produce more power.</p></blockquote><p>The chart below shows the region's generation portfolio on a monthly basis for 2022; the red and black bars at the top of each month's column represent oil and coal use. The largest blue bars represent natural gas, while the largest orange bars represent nuclear power.</p><p><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhGgbOm03IEhK_ax2nAnODzFK21GSUh4qrcM0fYYHxDWLm5E-R46ce8elBNRN5MTH7cRLev6ta-OZob2Za8pnERWRvvQL1AzYq0a-h4KDwmpq1GxivcM6RbDCwyWuqM11zrou4f3uwvT__EoWiSGvYxethYRuFuX8vWAViEM0eDRG0cMqT52iJYTuhSeV0" style="text-align: center;"><img alt="" data-original-height="793" data-original-width="1016" height="312" src="https://blogger.googleusercontent.com/img/a/AVvXsEhGgbOm03IEhK_ax2nAnODzFK21GSUh4qrcM0fYYHxDWLm5E-R46ce8elBNRN5MTH7cRLev6ta-OZob2Za8pnERWRvvQL1AzYq0a-h4KDwmpq1GxivcM6RbDCwyWuqM11zrou4f3uwvT__EoWiSGvYxethYRuFuX8vWAViEM0eDRG0cMqT52iJYTuhSeV0=w400-h312" width="400" /></a></p><p>ISO-NE attributes increased use of oil for power generation to "record high natural gas prices associated with the Russia-Ukraine conflict, and thus an increase in regional reliance on oil versus natural gas." The grid operator also says that decreases in coal generation largely offset the increased oil use for purposes of CO2 and NOX emissions.</p><p></p><div style="text-align: center;"><br /></div><br /><br /><p></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-69019158817700149452023-12-27T10:55:00.000-05:002023-12-27T10:55:07.477-05:00US renewable output exceeded coal in 2022<p>The U.S. generated more electricity from renewable sources than from coal last year, for the first time in history. The nation's portfolio of electric generation resources continues to shift away from coal and oil and towards renewable resources and natural gas.</p><p>The U.S. Energy Information Administration (EIA) tracks statistics on a variety of energy sources and their related infrastructure. <a href="https://www.eia.gov/todayinenergy/detail.php?id=61107">According to EIA</a>, the domestic electric power sector generated 4,090 million megawatthours (MWh) of electricity in 2022. The greatest share of this power (39%) came from natural gas in 2022, whose contribution has generally continued to increase over time. </p><p></p><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiz_Vf_c2govO0xV76QWaDk-5UMsuricdGHR18r3dnXlYMxcTAbt1r36YpRR_CzrkzyWV5W6YACCY1EL6EB5Vl8Cg9OW-TbGCnXI0EKfEFZ7W7S1FsTSMDUUsmNB14Xi0YDMCfJxnl-3CCQjmdgAW-A5OuAVCReuBfQ9M6oBsGPlM5zEzrTaRctuWfVmHo"><img alt="" data-original-height="281" data-original-width="609" height="185" src="https://blogger.googleusercontent.com/img/a/AVvXsEiz_Vf_c2govO0xV76QWaDk-5UMsuricdGHR18r3dnXlYMxcTAbt1r36YpRR_CzrkzyWV5W6YACCY1EL6EB5Vl8Cg9OW-TbGCnXI0EKfEFZ7W7S1FsTSMDUUsmNB14Xi0YDMCfJxnl-3CCQjmdgAW-A5OuAVCReuBfQ9M6oBsGPlM5zEzrTaRctuWfVmHo=w400-h185" width="400" /></a></div><p></p><p>Renewable energy sources contributed the second-largest share of U.S. electricity in 2022, surpassing nuclear output (for the second time) as well as coal output (for the first time). Within the renewables sector, the wind sector grew from 133 gigawatts (GW) of installed capacity in 2021 to 141 GW in 2022, and the solar sector grew from 61 GW to 71 GW. Contributions from hydro, biomass, and geothermal remained steady.</p><p>EIA notes that the closure of the Palisades nuclear power plant in 2022 reduced national nuclear output, and cites closure of multiple coal plants as well as decreased utilization of existing coal plants.</p><p>EIA projects continued growth in the shares of the U.S. generation mix provided by wind and solar; steady levels of natural gas generation; and continued decreases in coal use for electricity.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-25206256214170427482023-12-05T11:16:00.003-05:002023-12-05T11:16:39.156-05:00Maine "Solar for All" program proposed for EPA funding<p>The <a href="https://www.maine.gov/energy/initiatives/infrastructure/solar-for-all">Maine Governor's Energy Office has applied to the U.S. Environmental Protection Agency for $99.5 million to establish statewide "Solar for All" programs for Maine</a>. If selected for funding by EPA, the programs could create new incentives for residential solar development in Maine with a focus on low-income and disadvantaged communities.</p><p>The <a href="https://www.epa.gov/newsreleases/biden-harris-administration-launches-7-billion-solar-all-grant-competition-fund">Inflation Reduction Act allocated $7 billion to the EPA, to fund a system of competitive grants to states and other entities to establish or expand "Solar for All" programs</a> that support deployment of solar and energy storage to benefit low-income and disadvantaged communities. Implemented as part of the Inflation Reduction Act’s Greenhouse Gas Reduction Fund (GGRF), the EPA program will award up to 60 grants to states, territories, Tribal governments, municipalities, and eligible nonprofits to create and expand low-income solar programs that provide financing and technical assistance, such as workforce development, to enable low-income and disadvantaged communities to deploy and benefit from residential solar.</p><p>According to EPA, the Solar for All program advances President Biden’s <a href="https://www.whitehouse.gov/environmentaljustice/justice40/">Justice40 Initiative</a>, a program seeking to allocate 40% of the overall benefits of certain Federal investments to disadvantaged communities that are marginalized, underserved, and overburdened by pollution. EPA also cites the program as supporting the administration's goal of achieving a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050.</p><p>In Maine's proposal, the state energy office proposed three new programs: </p><p></p><ul style="text-align: left;"><li>New incentives for residential rooftop solar and energy storage serving affordable multifamily housing and single-family homes of low-income households and those located in Federally-defined disadvantaged communities in Maine, to minimize financial barriers to rooftop solar benefits; </li><li>New technical and financial assistance to support cooperatively-owned community solar enabling households, resident-owned communities, Tribal communities, and community-based organizations, to participate in solar energy ownership without barriers of homeownership or rooftop suitability; and </li><li>A new community solar and energy storage program focused on serving low-income and disadvantaged households, utilizing competitive bidding and aligning with existing energy assistance programs to minimize costs and maximize benefits delivered directly to households through lower electricity bills while building energy resilience.</li></ul><p></p><p>According to the energy office, full funding by EPA of Maine’s Solar for All proposal "will enable an estimated 38,000 low-income and disadvantaged households to access solar by supporting rooftop projects on owner-occupied and rental residences across the state, as well as cost-effective community solar to enable energy savings for low-income households." </p><p>Applications by states and others were due to EPA this past fall. Announcements of awards could be made as early as March 2024, with EPA anticipating beginning to make awards in July 2024. The Inflation Reduction Act requires EPA to award all Solar for All funds by September 30, 2024.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-6632446246037942212023-11-01T16:12:00.003-04:002023-11-01T16:12:50.061-04:00Feds predict winter oil heating cost increase; Maine pursues heat pumps<p>U.S. households that rely primarily on heating oil for heating will spend more this winter on heating compared to last winter, according to a federal projection.</p><p>The U.S. Energy Information Administration's <a href="https://www.eia.gov/outlooks/steo/report/perspectives/2023/10-winterfuels/article.php#hhtab3">2023 Winter Fuels Outlook</a> supplement to its October 2023 Short-Term Energy Outlook includes heating data, projections, and analysis. Based on NOAA data and a 30-year weather trend, EIA projects that this winter will be colder than last winter, driving an increase in demand for heating fuels and energy. </p><p>For households that heat primarily with heating oil, most of which are located in the Northeast, EIA projects a 40-gallon increase in oil consumption per household relative to last winter. Even accounting for a small projected decrease in oil pricing, EIA expects expenditures for these households to increase by 8 percent year-over-year.</p><p>Notably, only 4 percent of U.S. households heat primarily with oil. By contrast, in 2022 <a href="https://www.maine.gov/governor/mills/news/governors-energy-office-releases-updated-guide-help-maine-people-save-money-and-stay-warm#:~:text=With%20more%20than%2060%20percent,dependent%20state%20in%20the%20country.">over 60 percent of Maine households relied primarily on oil for heating</a>, according to the Governor's Energy Office. </p><p>To reduce Maine's reliance on oil, the state legislature, Governor Janet Mills, and various agencies have adopted policies favoring the deployment of heat pumps powered by electricity. Earlier this year, Maine surpassed the state's targeted level of 100,000 heat pump installations, and established increased goals for beneficial electrification of the state's heating systems. Incentives available depend on the circumstances of each deployment, but generally can include rebates and grants as well as tax credits.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-38428806649396716572023-10-03T17:09:00.004-04:002023-10-03T17:09:49.133-04:00Solar, wind, and natural gas power plant construction costs declined in 2021<p>Construction costs decreased for several types of new power plants on average in 2021, according to federal data. The Energy Information Administration reports that compared to 2020, average construction costs for natural gas-fired generators fell by 18% in 2021, with average construction costs for solar and wind systems declining by 6% and 5% respectively.</p><p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhPP1X1-yqgngce8oIKgGVLK4f_wsV8zAnC44ciDu-Sg7_L3qArU5wMiYHRjT99-CAhjNrfTODdUPRmZJQpwTGqax7G9isWsIhL6lB8QaByqnOIuEYwpca_mR0q-vAFPdHdR27Ah23TlgGohUCX87jJeKYNf550SFciY8E6YlRGYZGhProul5aJRE99f7E" style="margin-left: auto; margin-right: auto;"><img alt="" data-original-height="331" data-original-width="634" height="209" src="https://blogger.googleusercontent.com/img/a/AVvXsEhPP1X1-yqgngce8oIKgGVLK4f_wsV8zAnC44ciDu-Sg7_L3qArU5wMiYHRjT99-CAhjNrfTODdUPRmZJQpwTGqax7G9isWsIhL6lB8QaByqnOIuEYwpca_mR0q-vAFPdHdR27Ah23TlgGohUCX87jJeKYNf550SFciY8E6YlRGYZGhProul5aJRE99f7E=w400-h209" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;">Source: U.S. EIA</td></tr></tbody></table><br />Average U.S. solar project construction costs in 2021 were $1,561 per kilowatt. Crystalline silicon tracking systems, which accounted for 56% of the nation's utility-scale solar capacity installed in 2021, had a slightly lower per-unit cost, at $1,423 per kilowatt.</p><p>Average onshore wind turbine construction costs were slightly lower, at $1,428 per kilowatt. In general, larger projects tended to have smaller per-unit construction costs, implying efficiency due to economies of scale.</p><p>Natural gas provided the lowest average construction cost per unit of installed capacity, at $920 per kW. Within natural gas units, combustion turbines had the lowest average cost per unit of capacity, at $512 per kW.</p><p>According to EIA, solar, wind, and natural gas collectively account for over 91% of the electric generating capacity added to the U.S. grid in 2021. </p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-69482870404181542162023-09-20T10:46:00.003-04:002023-09-20T10:46:34.934-04:00Over 2 million light-duty EVs registered in the US in 2021<p>The number of light-duty electric vehicles registered in the U.S. reached 2.13 million in 2021, according to federal data. The Energy Information Administration reports a "sharp increase from the less than 100,000 EVs on the roads in 2012". The lagging nature of this data set and continued growth in EV adoption mean that an even greater number of EVs are now registered in the U.S.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhplNG7prBcFv8pRBXuTXdiFoLT-kImhcOmF4BwewO7PbUVj2uTsx0h1In0Q0rOBkprvWCNsSf5b7W_sFwM8Zgp0wO1iMhko85N8azjQSBQfW8lnJmqlDyHEefKrGEgbP5VL3EeAdfFSAZjBLsOKWB5_C0S6seBczw56QE9WBSVhzPb-pV6YVOJkg9_1Ks" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="281" data-original-width="609" height="185" src="https://blogger.googleusercontent.com/img/a/AVvXsEhplNG7prBcFv8pRBXuTXdiFoLT-kImhcOmF4BwewO7PbUVj2uTsx0h1In0Q0rOBkprvWCNsSf5b7W_sFwM8Zgp0wO1iMhko85N8azjQSBQfW8lnJmqlDyHEefKrGEgbP5VL3EeAdfFSAZjBLsOKWB5_C0S6seBczw56QE9WBSVhzPb-pV6YVOJkg9_1Ks=w400-h185" width="400" /></a></div><br />EIA's annual EV registration data is segmented into two categories: battery-electric vehicles (without any internal combustion engine) and plug-in hybrid electric vehicles (with both batteries and a traditional engine). Both categories show strong growth since 2012, with BEV adoption growing even faster in 2021.<p></p><p>Consistent with the recent growth of EVs, the average EV registered in the U.S. was 3.6 years old in 2021, considerably younger than the 11.1-year-old age of the average non-EV. </p><p>To explain the rise of EVs, EIA cites factors including changing consumer preferences and an increasing number of EV models, particularly in the "luxury" sector. EIA also notes the effect of government policies supporting beneficial electrification of the carbon-emission-intense transportation sector. Policies designed to increase EV uptake include purchase incentives like tax credits and rebates, zero-emission vehicle sales mandates, and fuel economy standards.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-65256810077090291792023-09-12T10:30:00.001-04:002023-09-12T10:30:32.855-04:00US added record amounts of small solar power in 2022<p>A recordbreaking amount of small-scale solar electric generating capacity was added to the U.S. grid in 2022, as the nation added more distributed solar than in any prior year according to federal energy data. </p><p>The U.S. Energy Information Administration tracks the nation's portfolio of electric generation resources. EIA considers solar-power systems with one megawatt (MW) of capacity or less to be "small-scale solar", also called distributed solar or rooftop solar.</p><p>According to EIA, U.S. small-scale solar capacity has grown consistently year-over-year since the agency started tracking it in 2014. In the ensuing eight years, U.S. small-scale solar capacity grew from 7.3 gigawatts (GW) to reach 39.5 GW in 2022. </p><p></p><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgAAAefbp_paKYhBVBpNRJE9n9ScNFAPEP_tHjo4Y8hWUAXXBZC5wlUOwYNB3vcdoQmgug5UjFiBMTdMYqRSqVYxtCcayqGZL1asYO83EySDxvlijwjH8noGcafD1YO5yzNvKDsbwvd4vLHneYs5EjkUQa9KE9v0NDedVJmIQN8NfX_B-x3asi7jpH6JwY"><img alt="" data-original-height="281" data-original-width="609" height="185" src="https://blogger.googleusercontent.com/img/a/AVvXsEgAAAefbp_paKYhBVBpNRJE9n9ScNFAPEP_tHjo4Y8hWUAXXBZC5wlUOwYNB3vcdoQmgug5UjFiBMTdMYqRSqVYxtCcayqGZL1asYO83EySDxvlijwjH8noGcafD1YO5yzNvKDsbwvd4vLHneYs5EjkUQa9KE9v0NDedVJmIQN8NfX_B-x3asi7jpH6JwY=w400-h185" width="400" /></a></div><br />About one-third of the total solar capacity in the U.S. now comes from small-scale systems. EIA reports that rooftop solar panels installed on homes make up the majority of the nation's small-scale solar capacity. Additional small-scale solar power systems are installed in commercial and industrial contexts.<p></p><p>EIA attributes growth in small-scale solar capacity over the past decade to tax credits and incentives, public policy, and higher retail electricity prices, as well as falling solar panel costs. The federal tax code includes tax credits for investments in small-scale solar power and other forms of clean energy. The scope and value of these credits was enhanced by the enactment of the Inflation Reduction Act. </p><p>In addition, many states offer state-level incentives for solar power production. Diversity among state levels of solar adoption isn't just about how sunny a place might be, as EIA posits that the levels of state incentives affect the degree to which solar projects are developed in each state. </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEibCTd_wrpvkdWETkU1aujXWiPs9oPgqIw27Z280vKABeifnWgbLcziFt7fGJqYrAIoh6y3huAmAfTLvRAMxwFjRpaVW6qUNGxc_Lx7hmiTU8_VvncZHZxmMUdlKmKgGvtDkXlpBXVs-T7yexux7e8jvOPZoaAplBcbRnQUUrNMQ_SX475Y0FFaozKed6c" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="281" data-original-width="622" height="181" src="https://blogger.googleusercontent.com/img/a/AVvXsEibCTd_wrpvkdWETkU1aujXWiPs9oPgqIw27Z280vKABeifnWgbLcziFt7fGJqYrAIoh6y3huAmAfTLvRAMxwFjRpaVW6qUNGxc_Lx7hmiTU8_VvncZHZxmMUdlKmKgGvtDkXlpBXVs-T7yexux7e8jvOPZoaAplBcbRnQUUrNMQ_SX475Y0FFaozKed6c=w400-h181" width="400" /></a></div><br />EIA also notes that while many states with the most small-scale solar capacity also have large populations (like California and New York), some smaller states like Hawaii, Rhode Island, Maine, and Vermont have high levels of market penetration on a watts-per-capita basis.<br /><p></p><p><br /></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-32655499615111307772023-09-08T10:32:00.003-04:002023-09-08T10:40:25.954-04:00Natural gas pricing drives New England's electricity costs<p>Two factors are the main drivers of wholesale electricity prices in New England, according to the region's grid operator: the cost of natural gas and other fuels used to generate electricity, and the level of consumer demand for power.</p><p>Fuel costs are a key component of the cost of electricity, and natural gas is the "predominant fuel in New England", used to generate 52% of the power produced in 2022 by New England’s power plants. <a href="https://isonewswire.com/2023/09/05/monthly-wholesale-electricity-prices-and-demand-in-new-england-july-2023/">According to ISO New England Inc.</a>, the regional transmission organization, natural gas-fired power plants usually set the price of wholesale electricity in New England.</p><p>As a result, the grid operator says that "average wholesale electricity prices are closely linked to natural gas prices." The chart below, prepared by ISO-NE, shows the close correlation between wholesale electricity and natural gas prices between for the past two decades:</p><div class="separator" style="clear: both; text-align: center;"><a href="https://isonewswire.com/wp-content/uploads/2023/08/mmr_july2023_prices-1060x641.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="484" data-original-width="800" height="243" src="https://isonewswire.com/wp-content/uploads/2023/08/mmr_july2023_prices-1060x641.png" width="400" /></a></div><br /><p>ISO-NE reports that demand for electricity is the second main driver of the region's wholesale electricity prices, and that demand "is driven primarily by weather, as well as economic factors." The extent to which consumers rely on electricity-powered heating and air conditioning equipment means that peak demand is driven by weather. </p><p>While New England's original electric system reached peak demand in winter, the region shifted to summer-peaking in the early 1990s due to increased air conditioner use and decreased reliance electric heating. The grid operator's records as of mid-2023 show that the all-time high winter peak of 22,818 MW occurred during a cold snap in January 2004, and the all-time peak demand of 28,130 MW occurred during an August 2006 heat wave. </p><p><a href="https://www.iso-ne.com/static-assets/documents/2023/08/8.21-neppa-keynote-gvw-isone.pdf">ISO-NE projects future growth in consumer demand for electricity</a> and a shift back to a winter-peaking system by 2035, as beneficial electrification of the region's heating and transportation sectors add heat pumps and electric vehicles to the grid.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgV7TzILgH98Ov1LLN3qdGFUWbLJyQ-tRN2oHXCY0ppLjbTume061soVCKWRSlkLiSPwqQhPkQF7V11HTGLTHh7TwOAeKV_myDPlRpHdmUWGSJ-NSy-4CGfAsISlEIqmmt3crbflXOM5FC6lRZvqcf0cDH6W_aYz8EeZIse3Dub-x2kAlkahiWrc8gcwRw" style="margin-left: 1em; margin-right: 1em;"></a><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgV7TzILgH98Ov1LLN3qdGFUWbLJyQ-tRN2oHXCY0ppLjbTume061soVCKWRSlkLiSPwqQhPkQF7V11HTGLTHh7TwOAeKV_myDPlRpHdmUWGSJ-NSy-4CGfAsISlEIqmmt3crbflXOM5FC6lRZvqcf0cDH6W_aYz8EeZIse3Dub-x2kAlkahiWrc8gcwRw" style="margin-left: 1em; margin-right: 1em;"></a><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhILsTu-cQUKV4Rb8bYvBp3z2fkcRK2E27ibp5li2sWESwlz3pijn793Wzb-B1rUoD2TqFb1dAbPkmcpTfy4HHtZ3eDumLcGeeFYfp-oFymG3OpuBzH_ybkVfbTizwmxtbP2PCtYgf5VLLxlZ7TVfhfytW3yR8dP6EIIT8Kmh-qwnQ_8ElfumAlkU1eqBg" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="480" data-original-width="688" height="279" src="https://blogger.googleusercontent.com/img/a/AVvXsEhILsTu-cQUKV4Rb8bYvBp3z2fkcRK2E27ibp5li2sWESwlz3pijn793Wzb-B1rUoD2TqFb1dAbPkmcpTfy4HHtZ3eDumLcGeeFYfp-oFymG3OpuBzH_ybkVfbTizwmxtbP2PCtYgf5VLLxlZ7TVfhfytW3yR8dP6EIIT8Kmh-qwnQ_8ElfumAlkU1eqBg=w400-h279" width="400" /></a></div><br /></div><p><br /></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-71863029072141817092023-08-25T13:51:00.002-04:002023-08-25T13:51:46.914-04:00U.S.-Canada energy trade reached record-high value in 2022<p>Energy trade between the United States and Canada reached record high levels of value in 2022, according to the U.S. Energy Information Administration.</p><p>EIA tracks and reports statistics concerning energy matters, including volumes and values of international trade. According to EIA, <a href="https://www.eia.gov/todayinenergy/detail.php?id=57380">high energy prices contributed to a total of $190 billion in energy trade between the U.S. and Canada in 2022</a>, when adjusted for inflation.</p><p>EIA tracks four main types of energy commodity transacted between the U.S. and Canada: crude oil, other petroleum products, natural gas, and electricity. In recent years, crude oil has represented the largest fraction of these countries' energy trade on a value basis, followed in turn by the other commodities listed above.</p><p></p><p></p><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhvnzG02O_Kg50hPCWnf-qV9DUauFls_cALrD-mfYJE7RlgqmmihZSgnf9JfzHzI6zycxwxqGCu5D2f07_V55qsl7hVfOpqOp-8B170YTsf6WVQx2cEwlELObYrJW3CvGgXW2cLgppjLquJIpVBEizRiXWPcmf4GT0QPPfiaVCFfXTTNRzVQC9zPreeNOQ" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="277" data-original-width="588" height="189" src="https://blogger.googleusercontent.com/img/a/AVvXsEhvnzG02O_Kg50hPCWnf-qV9DUauFls_cALrD-mfYJE7RlgqmmihZSgnf9JfzHzI6zycxwxqGCu5D2f07_V55qsl7hVfOpqOp-8B170YTsf6WVQx2cEwlELObYrJW3CvGgXW2cLgppjLquJIpVBEizRiXWPcmf4GT0QPPfiaVCFfXTTNRzVQC9zPreeNOQ=w400-h189" style="cursor: move;" width="400" /></a></div><p>The value of energy trade is driven by a combination of factors, including the volumes of energy imported and exported, as well as the prices for those transactions. EIA reports that volumes of energy trade between these two countries were nearly unchanged between 2021 and 2022. </p><p>Meanwhile, the value of energy trade increased by 41% in 2022. According to EIA:</p><p></p><ul style="text-align: left;"><li>The U.S. imported a greater value of trade from Canada ($156.3 billion, inflation-adjusted) than it exported to its neighbor ($33.8 billion, inflation-adjusted). </li><li>U.S. crude oil imports in 2022 averaged 3.7 million barrels per day by volume, while U.S. crude exports to Canada averaged 305,000 barrels per day. </li><li>Natural gas imports from Canada averaged 7.6 billion cubic feet per day (Bcf/d), while exports to Canada averaged 2.5 Bcf/d. </li><li>Petroleum product trade was closer to even, with 580,000 barrels per day imported and 524,000 barrels per day exported. </li></ul><div><br /></div><p></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-3908471348556539822023-06-30T08:09:00.005-04:002023-06-30T08:09:00.130-04:00Maine considers distributed generation interconnection reforms<p>The Maine legislature has enacted a law designed to reform the state's procedures for interconnecting solar projects and other forms of distributed generation resources to the electric grid. The law, <a href="https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0148&item=3&snum=131">An Act to Provide Maine Ratepayers with Equitable Access to Interconnection of Distributed Generation Resources</a>, requires the Public Utilities Commission to appoint an "interconnection ombudsman". The law also requires the PUC to align its interconnection rules with best practices and to prioritize interconnection of solar resources and energy storage systems used to serve on-site load.</p><p>Interconnection is an essential component of distributed generation project development and operation. Policies enacted since 2019 have led to a flood of interconnection requests by project developers, seeking access to the grid. Each request must be studied, sequentially, to identify what grid upgrades and interconnection facilities must be built for safe and reliable operation. Large projects and those connected to the interstate transmission grid generally interconnect under federally jurisdictional procedures, like the <a href="https://www.iso-ne.com/participate/applications-status-changes/interconnection-process-guide/">interconnection procedures adopted by regional grid operator ISO New England</a>. </p><p>Smaller distributed generation projects in Maine generally use the state-jurisdictional interconnection process, which operates under the <a href="https://www.maine.gov/sos/cec/rules/65/407/407c324.docx">PUC's Chapter 324 rule</a>. The rule specifies rights and responsibilities of both the project developer as interconnection customer and the utility. The recent flood of interconnection requests has caused project developers to complain about lengthy timelines, inflexible procedures, and missed deadlines by utilities.</p><p>To address these concerns, the Maine legislature recently enacted the distributed generation interconnection reform act, Public Laws of 2023 chapter 307. <a href="https://legislature.maine.gov/legis/bills/display_ps.asp?LD=327&snum=131">Introduced as LD 327</a>, the law as enacted requires the PUC to appoint an interconnection ombudsman to assist people seeking state-jurisdictional interconnection of solar resources and energy storage systems. The interconnection ombudsman's duties include tracking interconnection disputes, facilitating their efficient and fair resolution, reviewing utility policies to assess opportunities to reduce disputes, convening stakeholder groups, and reporting. The position must be funded by interconnection fees or sources other than general ratepayer funds, and the PUC must make a good faith effort to appoint the ombudsman within 12 months of the law's effective date.</p><p>The law also requires the PUC to adopt interconnection rules that prioritize interconnection of solar resources and energy storage systems owned by customers of investor-owned transmission and distribution utilities and used to serve an on-site load. It also requires the PUC to convene an interconnection working group. </p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-13297188189974207852023-06-29T08:04:00.003-04:002023-06-29T10:01:46.492-04:00Maine enacts law to develop clean energy on PFAS-contaminated lands<p>The Maine legislature has taken a significant step to promote the economic reuse of agricultural land contaminated by perfluoroalkyl and polyfluoroalkyl substances (PFAS) through the development of renewable energy projects. A newly enacted law will require state regulators to solicit proposals for renewable energy projects, with a primary preference given to projects located on PFAS-contaminated agricultural land. The law could help Maine address challenges arising from farmland contamination with PFAS, while promoting renewable energy development. </p><p>Importantly, the law represents a new wave of Maine energy contracting policy, because it requires the procurement of both energy and renewable energy credits (RECs), rather than one or the other. By mandating the acquisition of both energy and RECs, the law has potential to enable Maine consumers to truly say they consumed renewable power specifically from these projects, as a result of these contracts.</p><p>An Act to Promote Economic Reuse of Contaminated Land Through Clean Energy Development was <a href="https://legislature.maine.gov/legis/bills/display_ps.asp?PID=1456&snum=131&paper=&paperld=l&ld=1591">introduced as LD 1591</a>, a bipartisan bill sponsored by Senator Stacy Brenner with co-sponsors including Representative Zeigler, Senators Bennett, Black, Carney, LaFountain, and Pouliot, and Representatives Boyle, Campbell, and Hall. In a statement, <a href="http://www.mainesenate.org/sen-brenner-introduces-legislation-to-promote-renewable-energy-on-pfas-contaminated-land/#:~:text=LD%201591%20would%20promote%20the,Maine%27s%202021%20retail%20electricity%20sales.">Senator Brenner noted that PFAS chemicals have been found on at least 56 Maine farms in high amounts</a>, limiting or effectively ending their agricultural production. </p><p>In response, the sponsors proposed a bill that called for the Maine Public Utilities Commission to solicit proposals to sell power from renewable projects on contaminated agricultural lands. Following amendment by the Joint Standing Committee on Energy, Utilities and Technology, the law was enacted by the Maine legislature as <a href="https://legislature.maine.gov/legis/bills/getPDF.asp?paper=SP0622&item=3&snum=131">Public Laws of 2023 chapter 321</a>, and signed by Governor Mills on June 26, 2023. </p><p>In its final form, the law requires the PUC to conduct one or more competitive solicitations for contracts for energy and renewable energy credits from new renewable energy projects. The law requires the PUC to direct Maine's investor-owned transmission and distribution utilities to enter into contracts to purchase power and RECs from selected projects. The law prescribes procurement of amounts equal to at least 5% of Maine's retail electricity sales in 2021, plus additional amounts to cover any unused contracting capacity under a previously enacted procurement law. </p><p>The law requires the PUC to select only projects that will benefit ratepayers, to give primary preference to projects located on contaminated land, with secondary preference for projects that minimize use of forested land and uncontaminated farmland. Contracts can be for up to 20 years, or longer if the PUC finds this prudent. Projects combined with grid-connected energy storage systems are also eligible but must promise that the storage system will remain stationary and under the same ownership throughout the contract term. Combined projects must also submit a separate generation-only bid.</p><p>A critical distinction of this law is its explicit requirement that proposals and contracts include both "energy and renewable energy credits", rather than offering either/or options. RECs represent the environmental attributes associated with a given megawatt-hour of electric energy and are crucial for tracking renewable energy under Maine's renewable portfolio standard. The holder of a REC generally may make claims about their use of renewable electricity, which effectively uses up the REC. The same claims can't be made if the REC is sold separately to someone else. </p><p>Other recent Maine contracting programs generally have not required the sale of both energy and RECs. Nearly all contracts awarded under these programs have been for energy and not for RECs. Project developers selling their energy under these Maine programs typically sell their RECs separately to buyers in southern New England states who will use the RECs for compliance with their own state's renewable energy laws. As a result, these other Maine contracting programs don't generally directly result in renewable energy supply to Maine consumers. </p><p>By contrast, the recently enacted clean energy development on contaminated land act requires contracts to be for both energy and RECs. It requires the PUC to adopt a process to assign the procured RECs to a standard-offer service provider to satisfy its own renewable portfolio standard requirements. While the details of that process will be specified by rule, the law contemplates that the procured RECs will enable Maine consumers to claim they consumed renewable energy as a result of contracts awarded under this program, unlike some of Maine's other recent energy contracting programs.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-45529647902368153082023-06-27T11:53:00.004-04:002023-06-28T10:37:58.219-04:00Maine enacts Beneficial Electrification Policy ActThe Maine legislature has enacted a law promoting beneficial electrification. The Beneficial Electrification Policy Act, chapter 328 of the Public Laws of 2023, gives Maine new tools to reduce carbon emissions from the state's heating, transportation, and other sectors, by promoting electrification through heat pumps, electric vehicles, and other measures.<div><br /></div><div>Maine law requires the <a href="https://legislature.maine.gov/statutes/38/title38sec576-A.html">state to achieve specified reductions in its statewide net and gross annual greenhouse gas emissions over time</a>. Gross annual emissions must drop to at least 45% below the 1990 gross level by 2030, falling to at least 80% below the 1990 level by 2050. Net annual greenhouse gas emissions may not exceed zero from 2045 on.</div><div><br /></div><div>Separately, Maine's <a href="https://www.mainelegislature.org/legis/statutes/35-a/title35-Asec3210.html">renewable portfolio standard law includes both goals and mandates that increasing portions of retail sales electricity must come from renewable resources</a> over time. Statutory goals include that 80% of retail sales electricity in the State will come from renewable resources by 2030, and 100% by 2050. Enforceable mandates already require retail suppliers to cover increasing percentages of their retail sales with renewable energy certificates (RECs) from various classes of resource; for 2023, the total RPS mandate percentage exceeds 50%, rising to 84% by 2030.</div><div><br /></div><div>Maine has already largely decarbonized its electric power sector. <a href="https://www.maine.gov/dep/news/news.html?id=8474333">According to the Maine Department of Environmental Protection</a>, "Annual CO2 emissions from fossil fuel combustion in the electric power sector have decreased by 91 percent since they peaked in 2002 largely by replacing high carbon fuels with lower carbon energy sources, primarily natural gas and renewable sources."</div><div><br /></div><div>Even though the electric sector has largely cleaned up its act, heating and transportation continue to account for the bulk of fossil fuel use in Maine and associated carbon emissions. Transportation alone accounted for 49 percent of Maine's CO2 emissions from fossil fuel combustion in 2019. Technologies like heat pumps and electric vehicles have potential to displace these fossil fuel uses, in ways that can reduce both carbon emissions and consumer costs -- a concept termed beneficial electrification.</div><div><br /></div><div>Building on <a href="https://energypolicyupdate.blogspot.com/2019/08/maine-considers-beneficial.html">Maine's original beneficial electrification law enacted in 2019</a>, the Beneficial Electrification Policy Act defines "beneficial electrification" as:</div><div><blockquote><div>electrification of a technology or process that results in reduction in the use of a fossil fuel, including electrification of a technology or process that would otherwise require energy from a fossil fuel, and that provides a benefit to a utility, a ratepayer or the environment, without causing harm to utilities, ratepayers or the environment, by improving the efficiency of the electricity grid or reducing consumer costs or emissions, including carbon emissions.</div></blockquote></div><div>Sponsored by Senator Nicole Grohoski, and co-sponsored by Representatives Steven Foster and Chris Kessler, the bipartisan <i>An Act to Enact the Beneficial Electrification Policy Act</i> was introduced in the 131st Maine Legislature as LD 1724. Following legislative debate, the bill was enacted into law and signed by Governor Janet Mills on June 26, 2023.</div><div><br /></div><div>The new law includes several measures supporting beneficial electrification. It requires the Public Utilities Commission to advance beneficial electrification in order to achieve the emission reduction and renewable energy goals of the State, reduce energy costs to consumers and provide economic and climate benefits for all ratepayers. It also authorizes the Governor's Energy Office to petition the Public Utilities Commission to procure energy from renewable resources to achieve Maine's emission reduction and renewable energy goals and to meet reasonably expected growth in electric demand. According to the regional grid operator ISO New England, <a href="http://energypolicyupdate.blogspot.com/2023/05/new-england-electric-demand-projected.html">demand for power will increase by 23% over the next decade to account for increasing electrification of heating and transportation</a>.</div><div><br /></div><div>The law also requires the Efficiency Maine Trust to include a 3-year beneficial electrification plan for end uses of energy as part of the Trust's triennial planning process, including all beneficial electrification measures that are cost-effective and reliably reduce electricity rates over the life of the measures.</div><div><br /></div><div>In addition to requiring the Public Utilities Commission to report annually on its activities under the new law, the Beneficial Electrification Policy Act also directs the Commission to conduct a study on how to cost-effectively provide consumer financing of beneficial electrification products, including products for energy efficiency, home or business energy storage, electric vehicle charging equipment and other distributed energy products. The law requires the study to include consideration of methods including, but not limited to, on-bill financing by standard-offer service providers or competitive electricity providers. It requires the Commission to report back to the legislative energy committee by January 5, 2024.</div><div><br /></div><div><br /></div>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-29904166282240219702023-05-11T11:48:00.004-04:002023-05-11T11:49:51.331-04:00New England power plant air emissions increased in 2021<p>New England's power plants collectively emitted greater amounts of key air emissions in 2021 than in the year before, according to a report by the region's electric grid operator. Factors included the weather, decreases in power imported from outside the region, and increased reliance on coal and oil-fired generation.</p><p>The <a href="https://www.iso-ne.com/static-assets/documents/2023/04/2021-air-emissions-report.pdf">2021 ISO New England Electric Generator Air Emissions Report</a> provides "a comprehensive analysis of New England’s native electric generator air emissions (nitrogen oxides [NOX], sulfur dioxide [SO2], and carbon dioxide [CO2]), along with CO2 emissions associated with imported energy, and a review of relevant system conditions." </p><p>New England has significantly reduced the air emissions associated with its electric power sector over the past decades. According to the report, total average air emissions from "native generation" (in-region) have decreased overall during the 10-year span from 2012 through 2021: NOx by 39%, SO2 by 87%, and CO2 by 20%. The report credits the decline in emissions over this period to "shifts in the regional generation mix, with imports and wind generation offsetting decreases in coal-fired generation." </p><p>Looking farther back to cover the 20-year span from 2001 through 2021, NOx emissions fell by 80%, SO2 emissions fell by 99%, and CO2 emissions fell by 41%. Summarizing these two decades of change, ISO-NE says, "The increased use of highly efficient natural-gas-fired generators, mandated use of lower-sulfur fuels, retirements of coal- and oil-fired generation, increasing amounts of wind and solar generation, and higher net energy imports have all contributed to the trend."</p><p>But on a year-over-year basis, emissions increased in 2021 relative to 2020 according to the grid operator. For native generation, NOx emissions grew by 2.9%, SO2 emissions grew by 12.2%, and CO2 grew by 7.8%. </p><p>ISO-NE attributes the region's recent backsliding on emissions to several factors, including increased demand for native generation (due to a 20% reduction in imports), weather (warm summer, cold winter), and "the resource mix":</p><blockquote><p>Coal- and oil-fired generation had year-over-year increases of 281% and 53%, respectively. Resources fueled by coal or oil produced more power than usual during colder weather in January and February 2021, and production by oil-fired resources also increased during hot weather in June and August. These resources, which have higher emission rates than plants fueled by natural gas, often contribute generation during peak energy demand periods in the summer, or when winter heating demand limits the availability of natural gas or drives up its price.</p></blockquote><p>The <a href="http://energypolicyupdate.blogspot.com/2023/05/new-england-electric-demand-projected.html">grid operator expects continued growth in demand for electricity</a>, as transportation and heating increasingly become powered by electricity.</p><p><br /></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-85861298896886842702023-05-08T15:30:00.003-04:002023-05-09T16:29:13.042-04:00New England electric demand projected to grow by electrifying heating and transportation<p>The operator of New England's electricity grid projects that demand for power will increase by 23% over the next 10 years "<a href="https://isonewswire.com/2023/05/01/next-decade-will-see-steady-increase-in-new-englands-electricity-use-2023-celt-report-predicts/">due to accelerating electrification of the heating and transportation sectors</a>." State and federal policymakers are promoting "beneficial electrification", the replacement of carbon-emitting fossil fuel uses with lower-carbon-intensity electricity as a power source. The trend has potential to significantly <a href="http://energypolicyupdate.blogspot.com/2020/01/transportation-tops-maine-GHG-emissions.html">decarbonize the region's transportation and heating sectors, which collectively emit many times more greenhouse gases than the region's electric power sector</a>.</p><p>ISO New England's <a href="https://www.iso-ne.com/system-planning/system-plans-studies/celt/">2023–2032 Forecast Report of Capacity, Energy, Loads, and Transmission (CELT Report)</a> presents the grid operator's perspective on the region's power system, including a long-term forecast for energy consumption and peak demand. To prepare the forecast, ISO-NE first develops a gross long-term forecast for electricity demand, based on factors including economic forecasts and weather data -- and increasingly on projections for the electricity needed to power electric vehicles and <a href="http://energypolicyupdate.blogspot.com/2023/02/heat-pumps-in-maine-give-lowest-cost.html">air-source heat pumps that are being added to the grid</a>. ISO-NE then backs out its projection of energy efficiency and behind-the-meter solar photovoltaic production, to yield a net forecast.</p><p>According to the latest CELT report, gross annual electricity use is expected to grow by 2.4% annually over the 10-year period, while net annual use is expected to grow by 2.3% annually. EVs are expected to account for 13,961 GWh of grid demand in 2032, while heating electrification is expected to account for 7,334 GWh of demand that year. </p><p>In terms of peak demand, <a href="http://energypolicyupdate.blogspot.com/2023/03/new-england-ev-growth-predicted-by.html">ISO-NE expects significant growth in EV use</a>, with transportation electrification is forecast to contribute 3,420 MW to the winter peak in 2032-2033. Heating electrification is forecast to contribute another 2,965 MW to the winter peak under average weather in 2032-2033, or 4,033 MW under colder-than-average weather. </p><p>For comparison, in 2021 <a href="https://www.eia.gov/electricity/state/maine/">Maine's total net summer generating capacity was 5,026 MW</a>, according to U.S. Energy Information Administration data. In other words, electrifying transportation and heating is projected to add more load to the region's grid than all of Maine currently consumes.</p><p><br /></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-15808341561763569932023-04-11T12:26:00.003-04:002023-04-11T12:29:58.304-04:00Quack: the New England solar duck curveThe New England wholesale electricity grid set a new record for low demand on Sunday, April 9, 2023, <a href="https://isonewswire.com/2023/04/11/new-england-again-sets-record-for-low-demand-on-regional-power-system/">according to grid operator ISO New England</a>. Moderate temperatures and the Easter holiday contributed to setting a record low demand of 6,814 megawatts, as did significant electrical production from behind-the-meter solar resources on the sunny afternoon. The result is the "duck curve" familiar from California and other regions with increasing amounts of behind-the-meter solar, a phenomenon now increasing in both depth and frequency in New England, with important implications for electric system engineering and planning.<div><br /></div><div>According to ISO-NE, <a href="https://isonewswire.com/2021/04/22/a-queue-and-a-curve-signs-in-new-england-of-a-greener-grid-this-earth-day/">New England now increasingly experiences the "solar duck curve"</a>, as growing amounts of solar generation depress demand for grid power on sunny days, driving the need for other fast-ramping resources to come online to meet consumer demand as the sun sets. The "duck curve" name comes from traditional graphs depicting how behind-the-meter solar affects demand for grid electricity, such as this one prepared by ISO-NE for the Easter 2023 record low: <div><br /></div><div><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEiKeTG0J2a3XK-1317WxhzpGjqNBsRPckpmjWoE0ZVjN-aWEGCzM596umFX5fzbAZIJ9HE96c652cYCyMkS0qTAaaPgc1ZMBPZGLZSHNPPglQ_adqwzJU7yKyv8qJFyb0mIRGmePO-Bxc0VbrrhymrLWseEp16THrMTyyllruq7ppXRuxvj4F-HOqea"><img alt="" data-original-height="762" data-original-width="1134" height="269" src="https://blogger.googleusercontent.com/img/a/AVvXsEiKeTG0J2a3XK-1317WxhzpGjqNBsRPckpmjWoE0ZVjN-aWEGCzM596umFX5fzbAZIJ9HE96c652cYCyMkS0qTAaaPgc1ZMBPZGLZSHNPPglQ_adqwzJU7yKyv8qJFyb0mIRGmePO-Bxc0VbrrhymrLWseEp16THrMTyyllruq7ppXRuxvj4F-HOqea=w400-h269" width="400" /></a></div><br />Historically, demand for electricity peaked during the midday and evening, and was lowest at night. While underlying consumer demand for power is changing somewhat, change is occurring even faster for the wholesale power system, as growing amounts of behind-the-meter solar photovoltaic (PV) generation reduce the need for other power plants to operate while it's sunny. <a href="https://isonewswire.com/2018/05/03/a-regional-first-new-englanders-used-less-grid-electricity-midday-than-while-they-were-sleeping-on-april-21/">ISO-NE reported first seeing the "duck curve"</a> indicating grid demand was lower in the afternoon than overnight on April 21, 2018. At the time, solar power exceeded 2,300 megawatts for the first time. </div><div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi1llNwWlnsH0BxigL3AqyHjPIPwSeSpJ3rEG-eLO04ulIajn_zf6aipohYr47lC8ruF6TKVQUeIGX6qhc1DY2OdTgiORLXqGq6YwP0ZDtuWrRbFWH7heIfca1ZdctnYOpehgU5K6kPJ5w-aP1XVBIlUfO7mlRKwM-ziaXG4xKoa7rdwCJI2d0PZTTp" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="456" data-original-width="536" height="340" src="https://blogger.googleusercontent.com/img/a/AVvXsEi1llNwWlnsH0BxigL3AqyHjPIPwSeSpJ3rEG-eLO04ulIajn_zf6aipohYr47lC8ruF6TKVQUeIGX6qhc1DY2OdTgiORLXqGq6YwP0ZDtuWrRbFWH7heIfca1ZdctnYOpehgU5K6kPJ5w-aP1XVBIlUfO7mlRKwM-ziaXG4xKoa7rdwCJI2d0PZTTp=w400-h340" width="400" /></a></div></div><div>In 2018, the grid operator could see what was coming next:</div><blockquote><div>ISO New England’s system operators will remember April 21 as a milestone for electricity demand in New England, with these dramatic midday dips expected to crop up more often as more solar comes on line. Mike Knowland, ISO Forecast and Scheduling Supervisor, notes, “We were expecting this to happen at some point as more behind-the-meter solar gets installed in New England and the weather conditions were just right. While this kind of dip in demand is new for New England, it’s a common occurrence in California.” </div></blockquote><div>More behind-the-meter solar continued to be added to the system. By April 2021, ISO-NE reported that solar power had reduced grid demand enough to produce the duck curve 26 additional times, like this example from March 27, 2021. </div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgafCTOxNCg5u6D9TpCtcQLdwXiJiAfu5DqjclulCZ1hdH6M12RlhWcXrBHnsQRAgUUhJsOVLMxlW0reXQe0LpDn_eV2wFacdtpgZ_IHMyl6UnDpbKfERZlbXgKkzf8aC8qhnPw76mz2bbkWNrtFLfmKQ1u4h0O6fpJAJcvuZ4L1Sc47o-_s3-KzG5N" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="580" data-original-width="1060" height="219" src="https://blogger.googleusercontent.com/img/a/AVvXsEgafCTOxNCg5u6D9TpCtcQLdwXiJiAfu5DqjclulCZ1hdH6M12RlhWcXrBHnsQRAgUUhJsOVLMxlW0reXQe0LpDn_eV2wFacdtpgZ_IHMyl6UnDpbKfERZlbXgKkzf8aC8qhnPw76mz2bbkWNrtFLfmKQ1u4h0O6fpJAJcvuZ4L1Sc47o-_s3-KzG5N=w400-h219" width="400" /></a></div></div><div>Prior to April 2023, the region's <a href="i">previous record low occurred on May 1, 2022</a>, when mild temperatures, sunny skies, and a Sunday combined to yield a grid demand of 7,580 megawatts, which was then the lowest demand for grid electricity on record in New England since ISO-NE began operating the system in 1997. For the 2022 record low, ISO-NE estimated that behind-the-meter solar resources produced over 4,000 megawatts of electricity, while grid demand dropped below 7,600 megawatts. On May 5, 2012, the grid operator said that New England had already seen nearly as many “duck curve” days, during which demand from the bulk power system is at its lowest in the afternoon hours and not overnight, in 2022 as in all previous years combined. </div><div><br /></div><div>By the end of 2022, ISO-NE had tallied 45 duck-curve days for the year, more than the previous four years' combined total. The grid operator has said that this "points to the growing contribution of BTM PV to New England's energy mix -- particularly in the spring, when solar production is at its strongest."</div></div><div><br /></div><div>Behind-the-meter solar continues to be installed across New England. For the April 2023 low, ISO-NE estimates even greater production from behind-the-meter solar generation, exceeding 4,500 megawatts throughout much of the afternoon. This changes the shape of the duck curve. Comparing duck curves over time, the depth of the "belly" of the duck is trending upward, as larger amounts of behind-the-meter solar resources come online (and come offline). In addition to deepening the duck's belly, the frequency of duck-curve days is expected to continue to increase; according to the grid operator, the region is on pace to set another new record for the number of duck-curve days in 2023.</div>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-13315802328757768132023-03-29T13:47:00.003-04:002023-03-29T13:47:16.792-04:00Coal declined, gas and renewables grew in 2022<p>U.S. electricity generation resource portfolios continued to shift in 2022, with natural gas and renewables increasing their shares of total electric power generation, as coal's share continued to decline, according to data released by federal energy regulators.</p><p>The U.S. Energy Information Administration tracks national electric power generation, among other energy metrics. According to EIA, in 2022 the U.S. electric power sector produced 4,090 million megawatt-hours (MWh) of electric power. The greatest fraction of this power came from natural gas, whose contribution increased from 37% of U.S. generation in 2021 to 39% last year.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgeUdxSDOEO3IkeNz2piK710hPVgILetqbQ_sbGvZAN4YuAVd3LHM6G6q8zsjPftIUrwlSBc9CKMBO14dZrgrvtiB4pV1_ZNBIe7HqpSnBqzSFSME944EIdkya4tx5IkcyDDpiSXCtV8YSeAQQNnWKFNruqbtEcT12JkZvA9WA_Hbtnrqwn_1DXYg-c" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="281" data-original-width="609" height="185" src="https://blogger.googleusercontent.com/img/a/AVvXsEgeUdxSDOEO3IkeNz2piK710hPVgILetqbQ_sbGvZAN4YuAVd3LHM6G6q8zsjPftIUrwlSBc9CKMBO14dZrgrvtiB4pV1_ZNBIe7HqpSnBqzSFSME944EIdkya4tx5IkcyDDpiSXCtV8YSeAQQNnWKFNruqbtEcT12JkZvA9WA_Hbtnrqwn_1DXYg-c=w400-h185" width="400" /></a></div><br /><br /><p></p><p>Renewables continued to grow, led by gains from wind and solar whose combined share of total generation increased from 12% in 2021 to 14% last year. EIA notes that utility-scale solar capacity grew from 61 gigawatts (GW) in 2021 to 71 GW in 2022, while wind grew from 133 GW to 144 GW. Hydropower (6%), and biomass and geothermal (each less than 1%) resource contributions remained stable year-over-year.</p><p>Meanwhile, coal-fired power generation continued to decline, decreasing from 23% in 2021 to 20% in 2022. This continues a general trend of declining U.S. electricity generation from coal, which historically fueled most electric power generation, but which was displaced by natural gas in the last decade. Natural-gas-fired power plants typically emit less than half as much carbon dioxide per unit of electricity generation as compared to coal-fired plants. Many coal-fired plants have retired or are facing increased economic pressures to retire, while other coal plants have seen less use. Nuclear power's contributions also decreased slightly last year, falling from 20% in 2021 to 19% in 2022. The Palisades nuclear power plant retired in May 2022.</p><p><br /></p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-87520216244378874832023-03-20T15:23:00.001-04:002023-03-20T15:26:48.497-04:00US retail electric choice holds steady, per EIA<div>Over a quarter of eligible residential electricity consumers participated in their state’s retail choice program in 2021, <a href="https://www.eia.gov/todayinenergy/detail.php?id=55820">according to the U.S. Energy Information Administration</a>. At the national level, participation in state retail choice programs has remained stable from 2019 to 2021, at about 26% of eligible U.S. customers participated in their state’s retail choice program, or 13.2 million U.S. residential electric customers.</div><div><br /></div><div>How consumers buy electricity at retail is generally a matter of state law. Under the traditional system of vertically integrated utilities, a customer is served by a utility that provides both electricity supply and delivery service, and customers have no choice as to who serves their load. Most consumers nationwide are served by traditional utilities that both generate or purchase power and deliver it to their customers.</div><div><br /></div><div>But some jurisdictions have restructured their electricity sectors, to give customers retail choice, meaning the customer can choose which provider they want to have supply their energy for delivery by the local utility acting as a "wires company". According to EIA, today 13 states and the District of Columbia have active statewide or districtwide retail choice programs for residential customers. The states include California, Connecticut, Delaware, Illinois, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, and Rhode Island. In addition, Texas has a mandatory retail choice program; and Michigan, Nevada, Oregon, and Virginia have limited forms of retail choice programs (mostly for non-residential electric customers).</div><div><br /></div><div>According to EIA, participation by residential retail customers in retail choice programs grew from 2015 through 2019, and has remained stable at 26% through 2021.</div><div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjYNvuKHq4N7p1s05PeTQaMcDkpMwKwp2VnmdAYLyT3dQdhFYvrspMuLaHafF_JpfpqY6TssgKl8_GCYEDpDR_ugtRs1W0PaOiI--zVFNufyoVZrac3aXUWuKrRS2lXzL4rvniN-iIDR9KADcSRrl8nT8XA_dfjyP1Ffw1S5C2vd3s8VN_nWYW5hSRl" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="281" data-original-width="609" height="148" src="https://blogger.googleusercontent.com/img/a/AVvXsEjYNvuKHq4N7p1s05PeTQaMcDkpMwKwp2VnmdAYLyT3dQdhFYvrspMuLaHafF_JpfpqY6TssgKl8_GCYEDpDR_ugtRs1W0PaOiI--zVFNufyoVZrac3aXUWuKrRS2lXzL4rvniN-iIDR9KADcSRrl8nT8XA_dfjyP1Ffw1S5C2vd3s8VN_nWYW5hSRl" width="320" /></a></div><br />Retail choice is generally a matter of state law. Laws vary by state, and can change over time, as can the degree to which customers choose to participate in retail choice programs where they are offered. For example, participation among Ohio residential customers increased from 45% in 2015 to 50% in 2021, while participation by Massachusetts residential consumers increased from 22% to 49%. </div><div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEihViW-73D32-9-LWN5W7DJ38lTgnI2r25raMceM2qnbLPo50oHioP3uJ-s497AyBG6cQWDAcXkihLMSUNZ0yHUIYRBm2Jdh1eUSZgou7N6lXOQZuOX4CXYLkgxeVY-6nhZYolg17Lt10s9XyL8p7etT8w9tpcAGWYa25KWOfWI6IDO04SeZkAJxSjt" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="422" data-original-width="609" height="222" src="https://blogger.googleusercontent.com/img/a/AVvXsEihViW-73D32-9-LWN5W7DJ38lTgnI2r25raMceM2qnbLPo50oHioP3uJ-s497AyBG6cQWDAcXkihLMSUNZ0yHUIYRBm2Jdh1eUSZgou7N6lXOQZuOX4CXYLkgxeVY-6nhZYolg17Lt10s9XyL8p7etT8w9tpcAGWYa25KWOfWI6IDO04SeZkAJxSjt" width="320" /></a></div></div><div><br /></div><div>California launched its first Community Choice Aggregator (CCA) program in 2010, allowing local governments to buy power from retail suppliers on behalf of community residents, who have an option to opt-out if they don't want to participate in the program. Under the CCA system, participation in California grew from 2% in 2015 to 30% in 2021.</div><div><br /></div><div>On the other hand, other states like Illinois and Connecticut have seen declines in residential retail choice participation rates, with Illinois dropping from 57% in 2014 to 31% in 2021, and Connecticut falling from 42% in 2013 to 24% in 2021.</div>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-90164958405728493392023-03-13T07:03:00.001-04:002023-03-13T07:03:00.185-04:00New England EV growth predicted by electric grid operator<p>New England is poised for significant growth in electric vehicle (EV) use through 2030, according to a draft forecast by the region's electric grid operator. </p><p>According to the <a href="Draft CELT 2023 Transportation Electrification Adoption Forecast">draft ISO New England Inc. Load Forecast Committee 2023 CELT Transportation Electrification Adoption Forecast</a> released in February 2023, various federal and state policies incentives promote EV adoption, as do economic and environmental concerns, though their impacts on EV adoption in New England remain uncertain. For example:</p><p></p><ul style="text-align: left;"><li>The <a href="https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/">federal Inflation Reduction Act</a> creates tiered incentives for consumers to buy new personal light-duty EVs, which must meet increasingly strict vehicle assembly and domestic-material sourcing requirements, as well as incentives to buy used EVs or commercial light, medium, and heavy-duty EVs.</li><li>U.S. <a href="https://www.epa.gov/cleanschoolbus">Environmental Protection Agency’s (EPA) Clean School Bus Program</a> has $5 billion available over the next five years (FY 2022-2026) through the Bipartisan Infrastructure Law, to replace existing school buses with zero-emission and low-emission models. This money is available to school entities through EPA and state programs like <a href="https://www.maine.gov/doe/transportation/cleanbus">the Maine Department of Education's Maine Clean School Bus Program</a>.</li></ul><p></p><p>As part of its mission to forecast regional energy demands, ISO-NE prepares a transportation electrification forecast to forecast the energy and demand impacts associated with the uptake of electric vehicles (EVs) within selected categories of vehicles: light-duty personal vehicles, light-duty fleet vehicles, medium-duty delivery vehicles, school buses, and transit buses.</p><div><a href="https://www.iso-ne.com/static-assets/documents/2023/02/transfx2023_draft.pdf">ISO-NE's latest draft transportation electrification adoption forecast</a> includes two adoption scenarios that reflect different assumptions about the pace and extent of transportation electrification within each state: a theoretical “Full Electrification” adoption scenario (intended to represent an upper bound based on state emissions goals and associated EV adoption targets) and a projected "Draft CELT 2023" adoption scenario (intended to reflect the likely pace and level of EV adoption over the next 10 years given the current understanding of individual state goals, policies, and programs, as well as uncertainty in the timing of goal achievement and extent to which electric vehicles will be utilized to accomplish goals).</div><div><br /></div><div><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEivIpPgsPaJ6Z5EDT23B6CbG0tBTMS1XyknJ2sFI6-T6qnJ_EoDU8dTjToxa5GKBeJNfeuRqsZKIT6C5Jw8Bpsg9NEgkce0TZIO8AKSN44oEntdVVlrlOYP909ZSvkjW4F6358_izXbQRgs5iG0mszkyA5ak6zuEQgFWSn7MQdBDkkdf3UcUr_Zd2Eg"><img alt="" data-original-height="604" data-original-width="1074" height="225" src="https://blogger.googleusercontent.com/img/a/AVvXsEivIpPgsPaJ6Z5EDT23B6CbG0tBTMS1XyknJ2sFI6-T6qnJ_EoDU8dTjToxa5GKBeJNfeuRqsZKIT6C5Jw8Bpsg9NEgkce0TZIO8AKSN44oEntdVVlrlOYP909ZSvkjW4F6358_izXbQRgs5iG0mszkyA5ak6zuEQgFWSn7MQdBDkkdf3UcUr_Zd2Eg=w400-h225" width="400" /></a></div><br />For personal light-duty EV adoption, the draft forecast projects an increasing pace of EV adoption over the ten-year period through 2032. For example, it projects that 2023 will see 85,901 of these EVs added, while 2032 will see an incremental 468,679 EVs added to the stock, for a 10-year total of 2,724,923 personal light-duty EVs added from 2023 through 2032. This is a <a href="https://www.iso-ne.com/static-assets/documents/2022/04/final_2022_transp_elec_forecast.pdf">significant increase from ISO-NE's prior 10-year forecast</a>, which projected that 1,521,796 of these EVs would be added between 2022 and 2031.</div><div><br /></div><div>ISO-NE's latest forecast shows similar growth in other categories of EVs, including flight light-duty (projecting that a cumulative total of 240,713 will be added regionwide by 2032), medium duty-delivery (3,352), school bus (6,505), and transit bus (833). Within each category of EV, ISO-NE's model provides state-specific annual data. For example, ISO-NE's forecast projects that Massachusetts will hew close to the "Full Electrification" scenario, contributing more than half the total number of personal EVs, while New Hampshire will lag relative to "Full Electrification" in the forecast.</div><div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgb6q22INXBkJb1fXv9QbHQ2K238lp1XLocRKddXj4Xe_S5mtBxKN-IWAvgHcNTKI0vz8VBhvc-UsXmq0WlbdHHw1hIw5g1CL7hy_FlUG2qQ4gh4hyzKLl_qVwit_sgYlRJ0eT7Fp4lS0OzvIi5NsFS03XGmfy-FD7ozJvNO95nl0Q1q04VQtfWIrd4" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="601" data-original-width="1069" height="225" src="https://blogger.googleusercontent.com/img/a/AVvXsEgb6q22INXBkJb1fXv9QbHQ2K238lp1XLocRKddXj4Xe_S5mtBxKN-IWAvgHcNTKI0vz8VBhvc-UsXmq0WlbdHHw1hIw5g1CL7hy_FlUG2qQ4gh4hyzKLl_qVwit_sgYlRJ0eT7Fp4lS0OzvIi5NsFS03XGmfy-FD7ozJvNO95nl0Q1q04VQtfWIrd4=w400-h225" width="400" /></a></div><br /></div><div><br /></div><div>By 2032, ISO-NE now projects about 3,000 MW of winter transportation electrification demand, with nearly 1,600 gigawatt-hours of transportation electrification energy per month by 2033, and accounting for up to about 9% of monthly regional gross electric energy consumption from the grid.</div>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-12980479100877704282023-03-10T10:40:00.003-05:002023-03-10T10:59:05.696-05:00FERC sets New England gas-electric forum for June 2023U.S. utility regulators have scheduled a <a href="https://www.ferc.gov/news-events/events/2023-new-england-winter-gas-electric-forum-06202023">second New England Winter Gas-Electric Forum, to be held this June in Portland, Maine</a>, to continue discussions from a forum held last fall regarding the electricity and natural gas challenges facing the New England region. According to the Federal Energy Regulatory Commission, the objective of the June 20, 2023 forum is "to shift from defining electric and natural gas system challenges in the New England Region to discussing potential solutions, including both infrastructure and market-based solutions."<div><br /></div>New England's wholesale electricity price is strongly influenced by the price of natural gas. The federal government, New England's regional electricity grid operator, and states like Maine have all found that <a href="http://energypolicyupdate.blogspot.com/2023/02/new-england-electric-prices-increase.html">recently increased energy costs in New England are a result of higher natural gas prices</a>. Beyond price impacts, electric system reliability can depend on ensuring that natural gas-fired power plants can access adequate amounts of fuel. <div><br /></div><div>On September 8, 2022, FERC convened a forum in South Burlington, Vermont, to discuss the electricity and natural gas challenges facing the New England region. According to <a href="https://www.ferc.gov/news-events/events/new-england-winter-gas-electric-forum-09082022">FERC's public notice for the September 2022 forum</a>, its purpose was "to bring together stakeholders in New England to discuss the challenges faced historically during New England winters and discuss the stakeholders’ differing expectations of challenges for future winters. The objectives of the forum are to achieve greater consensus or agreement among stakeholders in defining the electric and natural gas system challenges in New England and identify what, if any, steps are needed to better understand those challenges before identifying solutions." </div><div><br /></div><div>At the September 2022 event, lead-off speaker Charles Dickerson, President and CEO of reliability organization Northeast Power Coordinating Council (NPCC) <a href="https://www.ferc.gov/media/transcript-docket-no-ad22-9-000">described the regional context for New England's gas-electric relationship</a>:</div><blockquote><div>The problem in New England is in the wintertime there are only so many gas pipes feeding natural gas into the New England area, and those gas pipes can be constrained. They're going to be constrained for two reasons.
</div></blockquote><blockquote><div>One, they're going to be constrained because of the physics. There's nothing we can do. The pipe is only so big no matter how big we make it, and we're not going to be changing the price of the existing price any time soon I don't believe. So, there's a physical limit to how much gas can flow through those pipes.</div></blockquote><blockquote><div>The other constraint that's on the operators is a policy constraint which made sense, that basically says in periods of very low temperatures, commercial and industrial users of gas needs are going to be supporting it into residential people who need fuel for heating, which makes sense. So if we have a generator that's using natural gas, and we have a pipe constraint, and even if we didn't have the constraint, we would have to curtail the usage of generating facilities that use gas from those pipes, so that residential customers can use them. </div></blockquote><blockquote><div>It begs the question what must be done? I would submit through our review that liquefied natural gas is probably a good path for that until we get through the transition. ...</div></blockquote><div>The next speaker, a director of Operational Performance and Training for regional electricity grid operator ISO New England Inc., continued the discussion:</div><div><blockquote><div>So in terms of close calls we've had a number of close calls over the past couple of decades, primarily as a result of the region's constrained natural gas system, its reliance on imported fuels, and vulnerability to correlated contingencies. So nearly 20 years ago, back in January of 2004, the events first shed light on New England's constrained pipeline and the risk associated with that.</div></blockquote><blockquote><div>Only 10 years later during the polar vortex we saw similar events: constrained pipelines, operational challenges, and in this case reserve deficiencies. Moving forward a little bit closer to today, we've seen more recent issues particularly during the winter of 17-18 where we were only days away from running out of useable fuel in the region.</div></blockquote><blockquote><div>Anybody that was in New England at that time, or had interests in the region, probably remembers this winter.</div></blockquote><div></div></div><div>Another speaker, Commissioner Patrick Woodcock of the Massachusetts Department of Energy Resources, described reliability concerns arising under the status quo including these constraints:</div><blockquote><div>I do think however, what is in my mind is on ISO's description of the 2017-2018 cold snap. And I remember that very well. I remember the frostbite that I got as I was talking to ISO about the depletion of our energy reserves. That was a one in 100 year event and I really do not see market arrangements really being adequate to ensure that generators will make arrangements for that event. </div></blockquote><blockquote><div>And we were really on the cusp if there was another N minus 1 event lost to nuclear power plant. We were at the point where we were going to have to really start talking about contingencies and rolling blackouts in New England. That's what we need to prepare for.</div></blockquote><div>In a <a href="https://www.ferc.gov/media/notice-request-comments-ad22-9-000">follow-up request for public comments</a>, FERC summarized the September 2022 forum's scope as including "the historical context of New England winter gas-electric challenges, concerns and considerations for upcoming winters such as reliability of gas and electric systems and fuel procurement issues, and whether additional information or modeling exercises are needed to inform the development of solutions to these challenges." </div><div><br /></div><div>To continue the discussions, FERC has now scheduled a second forum to be held this June. <a href="https://www.ferc.gov/news-events/news/chairman-phillips-announces-june-2023-new-england-winter-gas-electric-forum">According to Commission chair Willie Phillips</a>, the June 2023 event will focus on what he calls "the Commission’s primary job: ensuring reliability of the grid to continue safe and secure delivery of energy services to consumers." </div><div><blockquote><div>Reliability is Job No. 1. Each winter, natural gas supply constraints during extreme weather places the New England electric grid and its nearly 15 million residents at risk for rolling blackouts ... I believe addressing this risk is urgent and I am hopeful that we can continue the productive discussions from the last forum as we shift our focus to having stakeholders propose potential solutions to address the winter reliability challenges in the region.</div></blockquote><div>The <a href="https://www.ferc.gov/news-events/events/2023-new-england-winter-gas-electric-forum-06202023">Commission has also described the objective of the upcoming June 2023 forum</a> as "to shift from defining electric and natural gas system challenges in the New England Region to discussing potential solutions, including both infrastructure and market-based solutions." </div></div>
Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-56788361776492093382023-03-06T19:08:00.035-05:002023-03-09T12:06:30.937-05:00US added record-low amount of interstate gas pipeline capacity in 2022<p>The least U.S. interstate natural gas pipeline capacity on record was added in 2022, according to the U.S. Energy Information Administration, and nearly all the new capacity was from compressor upgrades, not new pipeline.</p><p>EIA is a division of the federal Department of Energy, whose work includes <a href="https://www.eia.gov/about/">collecting, analyzing, and disseminating independent and impartial energy information</a> to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. EIA's data and analysis includes electricity, natural gas, oil, and other forms of energy commodities and related infrastructure.</p><p>Since 1995, EIA has tracked interstate natural gas pipeline capacity additions. According to EIA's most recent report, in 2022, 897 million cubic feet per day (MMcf/d) of interstate natural gas pipeline capacity was added in the U.S, but <a href="https://www.eia.gov/todayinenergy/detail.php?id=55699">this was the smallest amount of new interstate pipeline capacity for any prior year</a>:</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqiPWiJN8uSNipZXiL0NvDvw2Pn-0kYGdUOAprwLTCSmEyVgs-zOA570aNYXKAFGA2A-gnDSvctWxY4sZfEvjs4KagIfuksBdRReOzNFFoSKb04U8NpWM99Fk3h9PbjPPAKee9A2maaxuZacbmFYPHOSoKEf-SsE4A2Nkt0JalAffgzOOWSw2x35wP/s642/US%20EIA,%20The%20least%20U.S.%20interstate%20natural%20gas%20pipeline%20capacity%20on%20record%20was%20added%20in%202022.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="378" data-original-width="642" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqiPWiJN8uSNipZXiL0NvDvw2Pn-0kYGdUOAprwLTCSmEyVgs-zOA570aNYXKAFGA2A-gnDSvctWxY4sZfEvjs4KagIfuksBdRReOzNFFoSKb04U8NpWM99Fk3h9PbjPPAKee9A2maaxuZacbmFYPHOSoKEf-SsE4A2Nkt0JalAffgzOOWSw2x35wP/w400-h236/US%20EIA,%20The%20least%20U.S.%20interstate%20natural%20gas%20pipeline%20capacity%20on%20record%20was%20added%20in%202022.JPG" width="400" /></a></div><br /><p>According to EIA's State-to-State Capacity Tracker, which contains information on the capacity of natural gas pipelines that cross state and international borders, only five new interstate natural gas projects came online in 2022, and these focused primarily on upgrading compressor stations, "with only one project adding a relatively small amount of new pipe."</p><p>EIA says interstate capacity additions were low in 2022 for two primary reasons: more growth in intrastate capacity (not captured in its interstate data), and less overall capital expenditures by oil and natural gas companies.</p><p>EIA notes that in prior years, interstate pipeline capacity was added from looping and compressor station projects designed to accommodate growing production in Appalachia. While these types of projects were the most common for developing new interstate pipelines, all of the planned projects are now mostly completed. </p><p>Since 2017, about 70% of the growth in natural gas production has come from wells in the Permian and Haynesville regions which are near liquefied natural gas (LNG) export terminals sited on the Gulf Coast. EIA also notes growth in intrastate projects, including in Texas and Louisiana where intrastate projects, rather than interstate projects, have increased takeaway capacity and connected natural gas production to LNG export terminals. According to EIA:</p><blockquote><p>Building large-scale, commercial natural gas pipelines that cross state boundaries involves a number of contractual, engineering, regulatory, and financial requirements. These requirements may involve more coordination and can take longer to complete compared with intrastate pipeline projects.</p></blockquote><p>EIA has previously noted <a href="https://www.eia.gov/petroleum/weekly/archive/2021/211215/includes/analysis_print.php">decreased capital expenditures by oil and gas companies</a> since 2019.</p><p><a href="http://energypolicyupdate.blogspot.com/2023/03/maine-electricity-cost-increases-driven.html">State utility regulators</a> as well as the regional grid operator ISO New England have found that <a href="http://energypolicyupdate.blogspot.com/2023/02/new-england-electric-prices-increase.html">constraints on interstate natural gas pipeline infrastructure drive up the price of electricity</a> for New England consumers.</p>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0tag:blogger.com,1999:blog-9121836870164599938.post-90109704541809357812023-03-01T16:05:00.004-05:002023-03-01T16:05:47.710-05:00Maine electricity cost increases driven by natural gas pricing<p>Maine's increased electricity costs in the past year were yet again driven by increases in the cost of natural gas, according to the most recent annual report from Maine utility regulators.</p><p>The Maine Public Utilities Commission regulates electric, gas, telephone, and water utilities, as part of <a href="https://www.mainelegislature.org/legis/statutes/35-a/title35-Asec101.html">a regulatory system intended by statute to achieve multiple purposes</a>, including to ensure safe, reasonable and adequate service, to assist in minimizing the cost of energy available to the State’s consumers, to ensure that the rates of public utilities subject to rate regulation are just and reasonable to customers and public utilities and to reduce greenhouse gas emissions to meet the greenhouse gas emissions reduction levels.</p><p>The Commission issues various reports, including an annual report to the Legislature presenting an overview of the Commission's work in the prior calendar year. The <a href="https://www.maine.gov/mpuc/sites/maine.gov.mpuc/files/inline-files/2022%20Annual%20Report%20Final%20Version_0.pdf">Commission's most recent annual report, released in February 2023, covers the 2022 calendar year</a>.</p><p>According to the 2022 report, wholesale electric energy costs nearly doubled year-over-year, driven by increased natural gas pricing:</p><p></p><blockquote>Wholesale electricity market costs to Maine consumers for the period December 2021 to November 2022 were $1,067,263,891. This is approximately a 77% increase from the $603,233,815 market costs the year prior. Between the two periods, wholesale energy costs increased 86% and capacity costs increased by 29%. The increased electricity costs were driven by the highest natural gas costs the region has experienced since 2014.</blockquote><p>These recent gas-driven price increases continue a trend established in prior years, <a href="https://www.maine.gov/tools/whatsnew/attach.php?id=6668253&an=1">as the 2021 report shows</a>:</p><blockquote><p>Regional wholesale energy prices in the ISO-NE Real-Time market during the 12-month period ending October 31, 2021 averaged $40.7/MWh, about 71% higher than prices during the prior 12-month period. From December 2020 – February 2021, prices averaged $52/MWh, which is about 73% lower than the prior winter period.</p></blockquote><div>According to the 2021 report, with respect to supply rates, "The increases reflect prevailing energy market conditions, including those in the regional electric power market in which prices are strongly influenced by natural gas." The report documents increases in other energy products: between October 2020 and October 2021, natural gas prices increased by 94.8%, and heating oil prices increased by 121.7%; by comparison, between November 2020 and November 2021, wholesale electricity prices increased by 126.3%.</div><div><br /></div><div>The Maine PUC's findings align with recent reports from regional grid operator ISO New England Inc., which concluded that <a href="http://energypolicyupdate.blogspot.com/2023/02/new-england-electric-prices-increase.html">increased energy costs in New England throughout 2021 and 2022 were driven by high natural gas prices</a>.</div>Todd Grisethttp://www.blogger.com/profile/13493808805105483563noreply@blogger.com0