In recent posts, we have discussed how Order 841 issued by the Federal Energy Regulatory Commission (“FERC”) on February 15, 2018 is expected to create new opportunities for the expansion of grid-scale (“in front of the meter”) energy storage. Order 841 is intended to encourage deployment of energy storage by addressing participation of energy storage resources in wholesale electricity markets operated by Regional Transmission Organizations (“RTOs”) and Independent System Operators (“ISOs”).
By Kevin Fink
On July 18, 2018, the U.S. Congress House Committee on Energy and Commerce held a hearing to assess the progress being made by federal and state governments to promote the role of energy storage in the U.S. electrical system. A panel of five witnesses – an executive from the California Independent System Operator (“CAISO”); a partner at an energy and environmental economic consulting firm; and executives from E.ON, Fluence Energy, and Duke Energy – were present to testify and answer questions of the legislators.
By Jeffrey Karp
As discussed in our posting covering continuing challenges to rebuild Puerto Rico’s electrical grid, the Puerto Rico Electric Power Authority (“PREPA”) has inhibited the recovery and redevelopment of the Island’s energy system. On July 25, 2018, the U.S. Congress House Committee on Natural Resources held an oversight hearing to discuss the “Management Crisis at the Puerto Rico Electric Power Authority and Implications for Recovery.” A panel of five witnesses – Bruce Walker (U.S. Department of Energy, Assistant Secretary of the Office of Electricity), Eduardo Bhatia (Puerto Rico Senate Minority Leader) and three energy and infrastructure advisors and consultants – were present to testify and answer legislators’ questions. Puerto Rico’s Governor Ricardo Rosselló also was invited, but chose not to attend.
By Kevin Fink
Sullivan counsel recently participated in the “Grid Scale Energy Storage Summit,” part of the expansive Hydrovision International conference held at the end of June in Charlotte, North Carolina. For the first time on an international scale, the Summit brought together both energy storage and hydropower experts from around the world for the purpose of debating, among other things, the future role of hydropower in the mix of energy storage options.
In the nine months since Hurricane Maria, substantial progress has occurred in bringing Puerto Rico’s power grid back online. Some consumers with access to solar microgrid systems regained power as soon as a few days after the storm, while others who relied on traditional energy sources had to wait for the power grid to be repaired. Solar microgrid systems are unique; they offer solar-powered electricity in parallel with the traditional energy grid but can also disconnect from the grid in times of crisis and provide solar-powered energy to a smaller subset of consumers.
By Jeffrey Karp and Kevin Fink
As previously discussed, offshore wind is well-developed outside the United States. In Europe, the first offshore wind facility was installed in 1991, and a record 3,148 MW of capacity was added in 2017. In comparison, the first and only operating offshore wind farm in the U.S. is Block Island, a 30 MW facility off the coast of Rhode Island, which began operation in 2016. While the U.S. lags behind European wind energy leaders, Northeast states have sought to facilitate large scale offshore wind development by setting goals and awarding contracts to offshore lease areas. These recent activities have been met with optimism and promise; however, there still are challenges beyond initially securing leases that must be met before offshore wind projects in the U.S. are successfully implemented from start to finish.
OVERVIEWThe United States has produced clean, renewable electricity from hydropower for more than 100 years. Today there are approximately 2,500 domestic dams and pumped-storage facilities that provide roughly 100 gigawatts (“GW”) of electricity. In addition, there are more than 80,000 non-powered dams, i.e., existing structures that could produce power, with the potential capacity of 12 GW. New England’s non-powered dams potential capacity is 243 mega watts (“MW”). Many of the 80,000 non-powered dams could be converted to produce hydropower at relatively low cost and within a relatively short timeframe. See U.S. Department of Energy, An Assessment of Energy Potential at Non-Powered Dams in the United States (2012).
Despite the new administration’s efforts to rollback Obama Era environmental regulations, most businesses in the U.S. are maintaining their commitments to sustainability. According to Lucid’s 2017 Sustainability Outlook Report, only 5% of private companies surveyed expect to decrease their commitment to sustainability programs in 2017, while 74% expect no change and 21% expect an increase in their commitments. Growing concern about climate change have presented companies with the opportunity to lead the way by increasing their sustainability efforts. Major companies are taking the threat of climate change more seriously, and already are developing solutions to reduce their greenhouse gas (GHG) emissions.
President Trump is spearheading a government-wide roll back of Obama Era climate initiatives. The president and his EPA Administrator, Scott Pruitt, have delivered a one-two punch. They both have denied the impact of human activity on climate change, while seeking to resurrect the moribund fossil fuel sector. In March 2017, the President issued a wide-ranging “Energy Independence” Executive Order requiring review and reconsideration of any rule that might burden development of domestic energy sources, particularly oil, gas, coal and nuclear energy. After much drama, in June 2017, President Trump fulfilled a campaign promise to withdraw the United States from the Paris Climate Accord (“Accord”). Moreover, in seeking to implement the new Administration’s energy independence strategy, government departments and agencies are pursuing delay or repeal of regulations aimed at curbing greenhouse gas (“GHG’) emissions, most notably EPA’s targeting for elimination the Clean Power Plan rule (“CPP”).