Chicago-based Exelon has approached the U.S. Federal Energy Regulatory Commission (FERC), suggesting it would keep operating two gas-fired power plants and the LNG import facility in Everett between 2022 and 2024, if it gets permission to collect about $1 per month from all electricity customers in New England. The Mystic gas-fired power plants are some of the largest generators in New England, but they are not economical in the current market environment.
Painting a bleak picture of the planet’s climate, the International Energy Agency (IEA) has warned if countries limit their clean energy efforts to their nationally determined contributions (NDCs) in the Paris Agreement, this will set us on a path consistent with about 2.7°C warming by 2100. Yet, as the adage goes, “that which is measured, improves,” says IEA Climate Change Policy Analyst, Caroline Lee, so there is hope that natural gas and renewables will help turn the tide towards more sustainable electricity supply.
Beginning June 1, New England will become the first US grid operator to fully integrate demand-response (DR) resources into its daily energy dispatch and reserve processes. The ISO estimates that about 408 MW of DR will be available which will participate in real time in the energy markets. Pay-for-performance incentives will be in effect starting June 1. With this instrument, the ISO is confident to meet peak summer demand.
Federal financial interventions and subsidies in U.S. energy markets have been in a steep decline over the past five years. According to the U.S. Energy Information Administration (EIA), federal monies spent in energy markets nearly halved in the period 2013-16, falling from $29.3 billion in the 2013 fiscal year to $15.0 billion in FY2016.
Michigan Public Service Commission (MPSC) has approved DTE Electric’s certificates of necessity filing to build a 1,100 Gigawatt gas-fired power station in St. Clair County at a cost of nearly $1 billion. Construction will now start in early 2019, DTE said, aiming to get the plant commissioned by 2022.
Urging for quick action to smarten up electricity transmission networks, Enel CEO Franceso Starace has criticised the lack of support from regulators and policy makers. The need for digitalisation “is very difficult for regulators to understand,” he said at an industry conference in Berlin, but “if you forget the networks, dear ministers, they will not carry on.” For utilities, transiting from fossil fuels to renewables, the grids are seen as a “very sexy part” of the value chain but needed a lot of investment.
Unfazed by Ukraine’s vocal protest, permitting is advancing quickly for Nord Stream-2 AG to build a second pipeline through the Baltic Sea. Finland has just given the green light for pipe laying in its Exclusive Economic Zone (EEZ), all German permits are on the table, but final approval under the Finish Water Act is still pending. Gazprom, the main project sponsor, is now pushing to start construction, stressing the pipeline will “deliver the additional gas required by Europe at a competitive price.”
Initial optimism of global LNG suppliers that South Korea’s new electricity policy might lead to higher demand growth has been replaced by the recognition that more needs to be done for natural gas to replace coal and nuclear in Korea's power generation mix. The 13th Long-term Natural Gas Supply Plan for 2018 to 2031, released by the Government on April 5, anticipates LNG demand to reach 40.5 million tons (Mt) by the end of the forecast period, up just 3 Mt from 2017-levels.
California Independent System Operator (CAISO) has approved a proposal by Pacific Gas and Electric Company (PG&E) to provide a 'clean energy alternative' that will replace a decades-old fossil power plant in the city of Oakland. A Request for Offers (RfO) will be launched shortly, inviting distributed energy providers to propose appropriate solutions. Depending on the exact resource mix, the solicitation will result in 20MW to 45MW of capacity.
Tax credit extensions for renewables in the 2018 US Budget Bill, passed in mid-February, are expected to shape funding for clean energy technologies. The bill raises the existing so-called “45Q” tax credit for storing CO2 permanently underground from $22 today to $50 in 2026. According to IEA Energy Technology Analysts Simon Bennett and Tristan Stanley, this could “provide the first significant stimulus to carbon capture for several years.”
Despite posting a veto threat on twitter, US President Donald Trump on Friday night signed the $1.3 trillion spending bill that passed Congress just after midnight. In an improvised news conference, Trump stressed he “will never sign another bill like this again.” The omnibus spending bill limits federal spent on energy but it avoids drastic cuts, still granting grants the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) a total of $43.2 billion – almost $9 billion above the budget requested by the White House.