Report Identifies Bottlenecks That Keep Energy Storage Projects From Being Built
May 23, 2023
by Peter Maloney
APPA News
May 23, 2023
Most energy storage projects are not built because of interconnection bottlenecks, according to a new report.
The report, The Interconnection Bottleneck Why Most Energy Storage Projects Never Get Built, was prepared by the Applied Economics Clinic on behalf of Clean Energy Group and found that local interconnection processes have not kept up with rising interest in and incentives for energy storage resources.
“Nationally, almost all of the projects waiting in interconnection queues are for solar, wind and storage projects,” Todd Olinsky-Paul of Clean Energy Group, said in a statement. “The wait to interconnect is so long that many projects drop out and never end up being built. Those that don’t drop out due to long wait times can face enormous costs for distribution grid upgrades, which makes projects uneconomic. This poses a barrier to energy storage deployment and hinders the ability of states to meet clean energy and decarbonization goals.”
The report synthesized information gathered in 11 interviews with stakeholders in interconnection policy debates conducted by the Applied Economics Clinic between August 2022 and January 2023.
The report used Massachusetts as a case study because the state provided an instructive example because of its advanced energy storage targets and incentive programs, advanced decarbonization and clean energy goals, and the steps the state has begun to take to address interconnection issues.
Interconnection barriers have already had negative impacts in Massachusetts, the report’s authors said, noting that, at the end of 2022, the state’s interconnection queue had 2,321 megawatts of proposed solar capacity, 429 MW of standalone storage capacity, and 868 MW of hybrid capacity. In comparison, the state had 1,195 MW of existing solar capacity in 2021 and 181 MW of storage capacity.
The report said interconnection problems are not unique to a single state or region and noted that at the national level a recent Lawrence Berkeley National Laboratory study found 1.9 million MW of solar, storage, and wind resources waiting in transmission interconnection queues. So, while the Applied Economics Clinic-Clean Energy Group report focused on Massachusetts, the report’s authors said the lessons learned are broadly applicable.
The report’s authors recommended that stakeholders, such as independent system operators, regional transmission operators, and the Federal Energy Regulatory Commission:
- create interconnection processes that take a systemic view of applications rather than examining interconnection applications and grid upgrades in isolation;
- continuously iterate interconnection processes to build in regular improvements, examine effectiveness, and coordinate stakeholders to tackle ad hoc coordination;
- integrate solutions on multiple fronts simultaneously, and
- spread distribution system upgrade costs over a broader set of stakeholders than just the projects applying for interconnection.
Overall, the report’s recommendations aim to tackle the core problems of interconnection, such as bottlenecks arising from deciding who should pay for system upgrades, not making system upgrades proactively, and not considering storage or related control technologies adequately. “It is likely that a combination of solutions is needed, as smaller process-related changes will not overcome the main interconnection barriers on their own,” the report’s authors said.
Senate Democrats Unveil Permitting Reform Discussion Draft
May 22, 2023
by Paul Ciampoli
APPA News Director
May 22, 2023
A group of U.S. Senate Democrats recently introduced a permitting reform discussion draft, the fourth major permitting reform proposal in the Senate this year.
The proposal – the Promoting Efficient and Engaged Reviews (PEER) Act — was put forward by Senate Environment and Public Works (EPW) Committee Chairman Tom Carper (D-DE) and Senators Brian Schatz (D-HI), Sheldon Whitehouse (D-RI), Tina Smith (D-NM), Chris Murphy (D-CT), and Alex Padilla (D-CA).
The three other permitting reform proposals are EPW Committee Ranking Member Shelley Moore Capito’s (R-WV) Revitalizing the Economy by Simplifying Timelines and Assuring Regulatory Transparency (RESTART) Act, the Spur Permitting of Underdeveloped Resources (SPUR) Act from Senate Energy & Natural Resources (ENR) Committee Ranking Member John Barrasso, and the Building American Energy Security Act of 2023 from ENR Chairman Joe Manchin (D-WV).
A section-by-section of the PEER Act and factsheet note that proposal is primarily concerned with improving the permitting process for projects that “address climate change or its impacts.”
While it includes a two-year environmental review process guideline and shortens the statute of limitations on National Environmental Policy Act litigation from six to three years, in general, it does not include the same level of reforms to NEPA as the other Senate proposals.
The PEER Act includes language on transmission that would direct the Federal Energy Regulatory Commission to establish regional and interregional transmission planning and cost allocation processes that account for a broad set of benefits, including meeting decarbonization goals and supporting renewable energy, requiring a minimum amount of transfer capacity between transmission planning regions, and broadly expanding FERC’s authority to site and permit certain high voltage transmission lines.
Bureau of Ocean Energy Management Completes Environmental Analysis for N.J. Offshore Wind Project
May 22, 2023
by Paul Ciampoli
APPA News Director
May 22, 2023
The Bureau of Ocean Energy Management has completed its environmental analysis of the proposed Ocean Wind 1 wind project offshore New Jersey, it said on May 22.
Ocean Wind LLC proposes to construct up to 98 wind turbine generators and up to three offshore substations within its lease area.
At its closest point, the Ocean Wind 1 project will be at least 13 nautical miles southeast of Atlantic City, New Jersey. Export cables are anticipated to make landfall in Ocean County and Cape May County, New Jersey.
If all 98 wind turbine generators are approved for installation, the estimated capacity range will be from 1,215 to 1,440 megawatts.
If approved, Ocean Wind 1 will be the third commercial-scale offshore wind project located on the U.S. Outer Continental Shelf approved by the Biden-Harris administration.
A notice of availability for the final environmental impact statement for Ocean Wind LLC’s proposed wind energy facility will be published in the Federal Register on May 26, 2023.
The final EIS analyzes the potential environmental impacts of the activities laid out in Ocean Wind LLC’s Construction and Operations Plan. The final EIS is available on BOEM’s website.
BOEM plans to issue a Record of Decision on whether to approve the proposed project this summer. The Record of Decision is the conclusion of the National Environmental Policy Act EIS process.
Federal Energy Regulators Approve NERC Work Plan Tied to Inverter-Based Resources
May 19, 2023
by Paul Ciampoli
APPA News Director
May 19, 2023
The Federal Energy Regulatory Commission on May 18 approved a work plan submitted by the North American Electric Reliability Corporation related to inverter-based resources.
In the order, FERC approved the work plan filed by NERC in compliance with FERC’s November 17, 2022, order requiring NERC to develop a work plan to identify and register owners and operators of IBRs connected to the bulk power system that are not currently required to register with NERC but that, in the aggregate, have a material impact on the reliable operation of the BPS.
In the work plan, NERC proposed to modify its rules of procedure to include a new registered entity function composed of owners of IBRs interconnected to BPS.
The work plan reflected initial parameters for this new class of entity that owns/operates IBRs.
Specifically, the function would include IBRs that: (1) have an aggregate nameplate capacity of less than or equal to 75 MVA and greater than or equal to 20 MVA interconnected at a voltage greater than or equal to 100 kV; and (2) have aggregate nameplate capacity of greater than or equal to 20 MVA interconnected at a voltage less than 100 kV. NERC also offered a timetable for identifying and registering these IBR owners and operators.
The American Public Power Association, Edison Electric Institute, Large Public Power Council, and Transmission Access Policy Study Group filed joint comments on the work plan, expressing general support for NERC’s approach.
The groups urged FERC, however, to refrain from accepting particular registration thresholds or language set out in the work plan, given its preliminary nature and the need for further NERC stakeholder discussion on important issues raised by NERC’s proposal.
They also argued that NERC’s timetable omitted a number of necessary steps, including an allocation of time to revise NERC reliability standards to address the expanded registration of IBR owners and operators. The groups also cited the need to revise NERC’s definition of the Bulk Electric System, given the inextricable link between the BES definition and NERC’s registration criteria.
In the order, FERC approves the work plan and timetable.
The order also addresses a number of issues raised by the trade groups and other commenters. For example, FERC confirmed that it is “not making a determination on the substance or direction of the registration approach that NERC will develop.”
The Commission said that it “appreciate[s] that commenters, both supporting and opposing NERC’s work plan, raise various issues regarding the potential approach, scope, and detail of NERC’s IBR registration plan. We decline to address these matters in this order.”
FERC said that it will address such substantive issues when NERC formally files to implement its proposal, and, in the meantime, the Commission urged interested parties to raise any concerns in the NERC stakeholder process.
However, contrary to the position of APPA and the other groups, FERC declined to require NERC to consider changes to the BES definition as part of the work plan. The Commission also rejected the groups’ position that the work plan timeline should be modified to provide time for reliability standard revisions.
Argonne National Laboratory Offers Technical Assistance for Climate Resilience Planning Efforts
May 19, 2023
by Paul Ciampoli
APPA News Director
May 19, 2023
Argonne National Laboratory is offering no-cost technical assistance for electric utilities to enhance climate resilience planning efforts.
Through this yearlong collaborative effort, participating utility members will learn about climate science, deploy climate risk analytical tools, and develop internal capabilities needed to begin crafting a climate resilience plan.
Argonne is actively seeking a geographically diverse set of utilities to participate in this effort.
According to Argonne, members of the cohort are expected to engage in monthly virtual meetings, coordinate internally to assess the utility’s climate risk using the tools discovered through the monthly learning series, and provide constructive feedback on materials developed throughout the cohort process.
Cohort members will also be asked to engage with internal and external subject matter experts to understand key assets and risks to the utility.
If you are interested in participating in this cohort, contact Ashton Raffety at araffety@anl.gov at Argonne.
EPA Issues Proposed Rule Tied to Disposal of Coal Ash
May 19, 2023
by Paul Ciampoli
APPA News Director
May 19, 2023
The U.S. Environmental Protection Agency on May 17 issued a proposed rule that would require the safe management of coal ash disposed of in areas that are currently unregulated at the federal level. This includes inactive power plants with surface impoundments that are no longer being used and historical coal ash disposal areas at power plants with regulated coal ash units.
Because this proposal applies to legacy contamination or inactive units that no longer support current power plant operations, it is not expected to affect current power plant operations, EPA said.
EPA is also proposing to establish groundwater monitoring, corrective action, closure, and post-closure care requirements for all coal combustion residuals management units — regardless of how or when that CCR was placed — at regulated CCR facilities.
EPA is also proposing several technical corrections to the existing regulations, such as correcting certain citations and harmonizing definitions.
A pre-publication version of the proposed rule is available.
Proposed Rule Responds to Appeals Court Opinion
The proposed rule is in response to the August 21, 2018, opinion by the U.S. Court of Appeals for the District of Columbia Circuit (Utility Solid Waste Activities Group, et al v. EPA) that vacated and remanded the provision that exempted inactive impoundments at inactive facilities from the April 17, 2015 CCR rule.
The proposed rule was published in the Federal Register on Thursday, May 18, with a 60-day public comment period, beginning May 18- July 17, 2023. There are two public hearings, one in-person on June 28 and a virtual hearing on July 12.
APPA’s initial review of the proposed rule is that it will have significant implications for the public power utilities, especially for CCR units that closed before the 2015 CCR became effective. APPA said it also has concerns about the proposed requirement to identify “CCR management units.”
North American Electric Reliability Corporation Warns of Summer Reliability Issues
May 18, 2023
by Peter Maloney
APPA News
May 18, 2023
Two-thirds of North America is at risk of energy shortfalls this summer during periods of extreme demand, according to the latest summer reliability report from the North American Electric Reliability Corporation.
The 2023 Summer Reliability Report found that while there are no high-risk areas and resources are adequate for normal summer peak demand, the number of areas identified as being at elevated risk has increased.
If summer temperatures spike, seven areas — the Western United States, the Southwest Power Pool and the Midcontinent Independent System Operator, the Electric Reliability Council of Texas, the SERC Reliability Corporation Central area, and New England and Ontario — may face supply shortages during higher demand levels, the report found.
In the Midcontinent Independent System Operator region the risk of being unable to meet reserve requirements at peak demand this summer is lower than in 2022 due to additional firm import commitments and lower peak demand forecast, however, wind generator performance during periods of high demand will be a key factor in determining whether there will be sufficient electricity supply on the system to maintain reliability, the North American Electric Reliability Corporation report said.
Reserve margins have fallen in the Southwest Power Pool as a result of increasing peak demand and declining anticipated resources, the report said. And, like the Midcontinent Independent System Operator, the energy output of Southwest Power Pool’s wind generators during periods of high demand will be a key factor in determining whether there is sufficient electricity supply on the system, the North American Electric Reliability Corporation report said.
Compared with last summer, the reserve margin outlook has also fallen in the SERC Reliability Corporation central area. Forecasted peak demand has risen by over 950 megawatts while growth in anticipated resources has been flat, the North American Electric Reliability Corporation report said. The region is expected to have sufficient supply for normal peak demand, but demand-side management or other mitigations can be expected for above-normal demand or high generator-outage conditions, the report said.
Resources are expected to be sufficient to support normal peak demand in the Western Interconnection of the United States, however, wide-area heat events could expose the Northwest, Southwest and California-Mexico areas of the Western Electricity Coordinating Council to the risk of energy supply shortfalls because each area relies on regional transfers to meet peak demand in the late afternoon to evening hours when output from the area’s solar resources diminish, the North American Electric Reliability Corporation report said.
Entities in the Western Electricity Coordinating Council are planning to install over 2 gigawatts of battery energy storage, which could help reduce energy risks from resource variability, but wildfires could limit electricity transfers and result in localized load shedding, the report said.
In New England, resources are projected to be lower than in 2022 but to still be sufficient for meeting operating reserve requirements at normal peak demand though the region may have to obtain emergency resources or non-firm supplies from neighboring areas during more extreme demand or low resource conditions.
In Ontario, a planned nuclear outage for refurbishment has reduced the electricity supply in the province. In addition, load growth is contributing to a constrained transmission network during high-demand conditions that may not be able to deliver sufficient supply to the Windsor-Essex area in the southwest of the province. The province could, therefore, see a “significant increase” in reliance on imports this summer under both normal peak and extreme demand scenarios, the report said.
The Electric Reliability Council of Texas region is experiencing strong growth in both resources and forecasted demand, having added over 4 gigawatts of new solar nameplate capacity since 2022, the North American Electric Reliability Corporation report said. In addition, load reductions from dispatchable demand response programs have grown by over 18 percent to total 3,380 megawatts.
Peak demand in the Electric Reliability Council of Texas region has risen by 6 percent as a result of economic growth, nonetheless, resources are adequate to meet average summer peaks, but dispatchable generation may not be sufficient to meet reserves during an extreme heatwave that is accompanied by low winds, the report said.
Generation owners and grid operators will also face new challenges this summer because of the Environmental Protection Agency’s Good Neighbor Plan, finalized on March 15, that requires that downwind states meet Clean Air Act requirements to reduce pollution that contributes to ground level ozone. The rules will restrict power plant emissions and limit the operation of coal-fired generators in 23 states, including Nevada, Utah, and several states in the Gulf Coast, Mid-Atlantic, and Midwest, the report said.
Supply chain and other issues could also affect reliability this summer, the North American Electric Reliability Corporation said. In particular, difficulties obtaining sufficient labor, material, and equipment as a result of broad economic factors has affected preseason maintenance of transmission and generation facilities in North America, causing some owners and operators to delay or cancel scheduled maintenance activities, such as in the Southeast and the Western Interconnection areas.
And while winter precipitation is expected to improve the water supply for hydroelectric generation in parts of the West, low water levels on major reservoirs remain a concern for electricity generation in the West. In particular, Washington’s Grand Coulee Dam and the Hoover Dam on the Arizona-Nevada border remain at historic low levels, which could potentially limit hydroelectric energy output.
In addition, many parts of North America now experience elevated temperatures that extend beyond the summer months into periods when equipment owners and operators historically scheduled outages for maintenance, the report said, noting that there could be resource constrains during shoulder months as unseasonable temperatures coincide with generator unavailability.
In the report, the North American Electric Reliability Corporation recommended that grid operators and generation owners review their seasonal operating plans and for communicating and resolving potential supply shortfalls.
Stakeholders should also employ conservative generation and transmission outage coordination procedures commensurate with long-range weather forecasts and engage state or provincial regulators and policymakers to prepare for efficient implementation of demand side management mechanisms, the North American Electric Reliability Corporation said.
Bureau of Land Management Advances Major Southwest Transmission Project
May 18, 2023
by Paul Ciampoli
APPA News Director
May 18, 2023
The Department of the Interior’s Bureau of Land Management on May 18 announced a record of decision that advances the SunZia Southwest Transmission Project that will carry up to 4,500 megawatts of primarily renewable energy from New Mexico to markets in Arizona and California.
The SunZia Southwest Transmission Project consists of two planned 500-kilovolt transmission lines located across approximately 520 miles of federal, state and private lands between central New Mexico and central Arizona.
The permitted route originates at a planned substation in Torrance County, New Mexico, and terminates at the existing Pinal Central Substation in Pinal County, Arizona. The project traverses Lincoln, Socorro, Sierra, Luna, Grant, Hidalgo, Valencia, and Torrance counties in New Mexico and Graham, Greenlee, Cochise, Pinal, and Pima counties in Arizona.
The BLM completed the review period for this project — from the Notice of Intent to the Record of Decision released on May 18 — in less than two years.
This is one of the final steps the BLM needs to take before the project proponent can formally break ground.
Traverse City Light & Power Lineworkers Help to Rescue Bear from Tree
May 17, 2023
by Paul Ciampoli
APPA News Director
May 17, 2023
Lineworkers from Michigan public power utility Traverse City Light & Power recently helped to rescue a bear from a tree by successfully working with a city biologist to tranquilize the bear and bring it safely down from the tree.
Daren Dixon, Operations Manager for Traverse City Light & Power, told Public Power Current that reports came in of a black bear roaming streets of Traverse City’s Central Neighborhood on the morning of May 14. City police responded to the reports and the bear wound up climbing a tree.
Along with the police, officials from the city’s Department of Natural Resources Department and firefighters were onsite.
Dixon received a call that morning indicating that the Traverse City streets department needed help from the utility and asking for the utility to bring a bucket truck to get a DNR biologist closer to the bear to tranquilize it.
Traverse City Light & Power Lead Lineman Josh Patzer and Apprentice Lineman James Johnson responded with a bucket truck.
“We used the bucket to bring the biologist up closer to the bear. The biologist had to use four darts to tranquilize the bear, who was fighting the sleep due to noise from the crowd and surrounding areas,” Dixon said.
Mattresses were borrowed from a neighbor, a county commissioner, to put under where the bear was falling asleep, he noted.
Johnson and a biologist then tried get the bear down from the tree. “The apprentice wanted to put a running bow on the bear, but the biologist indicated that he was concerned about going around the bear’s chest for breathing purposes,” Dixon noted.
With the line around the animal’s abdomen, the biologist and Johnson dislodged the animal’s paw from the tree and the bear fell from about 30 feet but landed on the mattresses.
The DNR loaded the bear into a specialized cylindrical holding crate and relocated the bear about 60 miles away from the city.
Clarksville, Arkansas, Signs Agreement with Company to Design, Construct Hydrogen Power Plant
May 17, 2023
by Paul Ciampoli
APPA News Director
May 17, 2023
The City of Clarksville, Arkansas, has signed an agreement with Syntex Industries to design and construct a hydrogen power plant.
The facility will generate over 500 MW and support Clarksville’s economic development by providing low-cost and renewable electricity to energy-intensive businesses, the city said.
The power plant, which will be the first “hydrogen hub” in Arkansas, will create over 100 full-time positions and is expected to break ground by the end of 2023, with limited power production ramping up in 2025. The new facility will employ over 100 full-time positions when completed in 2026.
“Syntex has been working with Clarksville to develop methods to store excess renewable energy and regenerate it on demand. Recent technical developments and federal tax incentives have opened the door at last,” said Clarksville Mayor David Rieder. “This project offers the infrastructure to support our growing economy and bring new high paying ‘ecodustrial’ jobs to the area.”
To help public power utilities understand the potential — and the limitations — of hydrogen, and why they should get involved, the American Public Power Association developed Understanding Hydrogen: Trends and Use Cases.