Generator Cites Texas PUC Action in Decision to Develop a New Peaking Plant
February 18, 2023
by Paul Ciampoli
APPA News Director
February 18, 2023
Independent power producer Calpine earlier this month said it was starting development efforts for a new approximately 425-megawatt peaking plant next to its Freestone Energy Center in Freestone County, Texas.
“These development efforts are warranted in light of the Public Utility Commission’s recent adoption of a framework for implementing a Performance Credit Mechanism designed to incent new generation,” Calpine said in a news release.
In January, the Texas PUC voted unanimously to adopt a PCM electric market design option and a set of guiding principles for implementation to strengthen reliability, accountability, and affordability of the Electric Reliability Council of Texas electric grid.
The Commission said it would defer implementation of all elements of the PCM until the 88th Texas Legislature has an opportunity to review the PCM and its guiding principles and provide guidance or direction based upon the market design option’s merits.
Calpine said that because the final design and implementation of the PCM will likely take a couple years, “we also are encouraged that the PUC and ERCOT will be developing ‘bridge’ solutions to create near-term incentives for building new dispatchable generation. Regulatory certainty on PCM will be critical as Calpine continues to move this project forward.”
Douglas County PUD Moves Into Phase Two of Green Hydrogen Project
February 17, 2023
by Peter Maloney
APPA News
February 17, 2023
Douglas County Public Utility District in Washington State is moving ahead with the second phase of its green hydrogen project.
Specifically, Douglas County PUD Commissioners Ronald Skagen, Aaron Viebrock and Molly Simpson recently approved the purchase of a second 5-megawatt electrolyzer. Delivery of the second electrolyzer is expected to take 24 months.
Douglas PUD recently signed a contract with IMCO General Construction for phase one of its hydrogen production and fueling facility being built in Baker Flats. Site preparation, underground utilities and storage tank installation are complete at the site. Production of hydrogen is scheduled for June 2024.
The Baker Flats facility has capacity to accommodate up to 80 MW of green hydrogen production.
Douglas PUD said the additional hydrogen production capacity would create more opportunities for the utility to balance the integration of renewables resources, variable seasonal pricing, and fish water quality concerns at its Wells Hydroelectric Project. In addition, increased efficiencies will reduce generator unit maintenance costs, which translates to better rates and reliability for our customer owners, the utility said.
“There is a high demand for green hydrogen,” Gary Ivory, Douglas PUD general manager, said in a statement. “Our Wells Hydroelectric Project also positions us to take advantage of the state and federal incentives to advance green hydrogen opportunities in our region.”
Douglas PUD recently received a $5 million tax credit for equipment being installed at the hydrogen production facility as a result of an expansion of tax credits for hydrogen equipment.
“Douglas PUD is in a unique position to shape the policies being crafted around green hydrogen for the benefit of our customers,” Ron Skagen, Douglas PUD commission president, said in a statement. “We appreciate the legislatures’ support of the Pacific Northwest Hydrogen Associations hydrogen hub application.”
Douglas PUD serves 17,000 customer-owners with reliable power and internet service and owns an 840-MW hydroelectric project on the Columbia River.
Vermont Joins Group Developing Proposal to Become a Regional Hydrogen Hub
February 14, 2023
by Peter Maloney
APPA News
February 14, 2023
Vermont has become the seventh state to sign on to develop a proposal for a Northeast Clean Hydrogen Hub.
Vermont joins Connecticut, Maine, Massachusetts, New Jersey, New York, and Rhode Island, along with 100 clean hydrogen ecosystem partners, in their efforts to develop and submit a proposal to the Department of Energy to compete for $8 billion in funding to become one of up to 10 regional clean hydrogen hubs designated under the federal Regional Clean Hydrogen Hubs program included in the bipartisan Infrastructure Investment and Jobs Act.
The seven states and their partners will continue to focus on the integration of renewables, such as onshore and offshore wind, hydropower, photovoltaic solar power, and nuclear power into clean hydrogen production, and the evaluation of clean hydrogen for use in transportation, including for medium- and heavy-duty vehicles, heavy industry, and power generation applications.
The Northeast Clean Hydrogen Hub partners have committed to collaborate with the New York State Energy Research and Development Authority (NYSERDA), New York Power Authority (NYPA), and Empire State Development (ESD) on proposal development to advance clean hydrogen projects.
Partnering states will also coordinate with their respective state entities to help align the collaborative’s efforts with each state’s climate and clean energy goals.
Those include:
- Connecticut’s Global Warming Solutions Act goal of reducing greenhouse gas emissions 80 percent by 2050
- Massachusetts’ goal of reaching net-zero carbon emissions by 2050
- New Jersey’s Global Warming Response Act goal of reducing greenhouse gas emissions 80 percent by 2050
- Maine’s statutory goals to achieve carbon neutrality by 2045 and reduce gross greenhouse gas emissions by at least 80 percent by 2050
- Rhode Island’s commitment to achieving 100 percent renewable electricity by 2033 and
- Vermont’s Global Warming Solutions Act goal, which requires the state to reduce greenhouse gas pollution 80 percent below 1990 levels by 2050
A report available to members of the American Public Power Association offers details on where the emerging hydrogen market is in the U.S. and globally, what is driving the growing interest in hydrogen and what obstacles are preventing hydrogen technology from being able to scale-up. The report is available here.
Department of Energy Announces Funding Availability for Geothermal Energy Pilot Projects
February 13, 2023
by Paul Ciampoli
APPA News Director
February 13, 2023
The U.S. Department of Energy on Feb. 8 announced a funding opportunity of up to $74 million for up to seven pilot projects that will test the efficacy and scalability of enhanced geothermal systems.
“Through this investment, DOE hopes the research and development from the findings would demonstrate the growth and ultimate potential for geothermal energy to provide reliable, around-the-clock electricity to tens of millions of homes across the country,” DOE said.
This is DOE’s first funding opportunity for geothermal energy since the launch of the Enhanced Geothermal ShotTM , part of DOE’s Energy EarthShots Initiative, which seeks to cut the cost of geothermal energy 90% by 2035.
Geothermal energy currently generates about 3.7 gigawatts of electricity in the United States, but a new analysis shows it could provide 90 gigawatts of firm, flexible power to the U.S. grid by 2050, as well as heating and cooling solutions nationwide. This substantial geothermal energy potential is, however, largely inaccessible with conventional geothermal technologies, DOE said.
Applications for the pilot demonstrations will be accepted over multiple rounds. First-round letters of intent are due March 8, 2023, and first-round applications will be due July 7, 2023.
DOE is providing a voluntary Teaming Partner List where interested parties can provide contact information and their expertise for use in forming partnerships in order to help a broad and inclusive range of interested entities apply.
Click here for additional details on the funding opportunity.
Chelan County Public Utility District, Puget Sound Energy Enter Hydropower Contract
February 10, 2023
by Paul Ciampoli
APPA News Director
February 10, 2023
Puget Sound Energy and Chelan County Public Utility District on Feb. 7 executed a contract for hydropower from the PUD’s two projects on the Columbia River.
The 20-year contract will increase Puget Sound Energy’s carbon-free resources toward its future renewable energy goals, as well as contributes flexible capacity to identified needs in Washington State, Chelan and Puget Sound Energy noted.
The contract was negotiated over the past 18 months and includes both carbon-free energy attributes provided by hydropower as well as flexible capacity to help PSE meet peak energy needs during high customer usage times.
The competitively priced contract provides Puget Sound Energy with 25% of the output from the PUD’s Rock Island and Rocky Reach hydropower projects from 2031 to 2051. Its current contracts with Chelan PUD, expiring in 2026 and 2031, provide a portion of the output from the two Columbia River projects.
Chelan PUD offers a mix of short-term market-based and long-term cost-based products. Both types of contracts are based on selling a “slice” of Chelan’s hydropower output.
The value of hydropower has increased as a carbon-free renewable source of energy, Chelan and Puget Sound Energy said. Those environmental attributes are in demand as companies look to satisfy new regulatory requirements through Washington State’s Climate Commitment Act and Clean Energy Transformation Act.
Department of Energy Announces Funding Availability for Geothermal Energy Pilot Projects
February 9, 2023
by Paul Ciampoli
APPA News Director
February 9, 2023
The U.S. Department of Energy on Feb. 8 announced a funding opportunity of up to $74 million for up to seven pilot projects that will test the efficacy and scalability of enhanced geothermal systems.
“Through this investment, DOE hopes the research and development from the findings would demonstrate the growth and ultimate potential for geothermal energy to provide reliable, around-the-clock electricity to tens of millions of homes across the country,” DOE said.
This is DOE’s first funding opportunity for geothermal energy since the launch of the Enhanced Geothermal ShotTM , part of DOE’s Energy EarthShots Initiative, which seeks to cut the cost of geothermal energy 90% by 2035.
Geothermal energy currently generates about 3.7 gigawatts of electricity in the United States, but a new analysis shows it could provide 90 gigawatts of firm, flexible power to the U.S. grid by 2050, as well as heating and cooling solutions nationwide. This substantial geothermal energy potential is, however, largely inaccessible with conventional geothermal technologies, DOE said.
Applications for the pilot demonstrations will be accepted over multiple rounds. First-round letters of intent are due March 8, 2023, and first-round applications will be due July 7, 2023.
DOE is providing a voluntary Teaming Partner List where interested parties can provide contact information and their expertise for use in forming partnerships in order to help a broad and inclusive range of interested entities apply.
Click here for additional details on the funding opportunity.
Texas Could Tap Oil and Gas Industry Know-How to Fuel Geothermal Growth: Study
February 7, 2023
by Peter Maloney
APPA News
February 7, 2023
A new study explores the potential for geothermal energy in Texas and discusses how it could be rapidly developed using existing oil and gas industry technology.
The study, The Future of Geothermal in Texas: The Coming Century of Growth & Prosperity in the Lone Star State, was conducted by the University Lands Office, and the International Energy Agency and researchers at Texas universities, the University of Texas at Austin, Southern Methodist University, Rice University, Texas A&M University, and the University of Houston.
If the Texas oil and gas industry were to drill 15,000 geothermal wells each year for four years, it would provide the energy equivalent of all oil and gas used for electricity and heat production in Texas today, the study found.
At a depth of 10 kilometers or less, just about every point on earth has sufficient heat for power generation, the report noted.
The transfer of existing know-how and technology from the oil and gas industry could reduce the cost of geothermal development between 20 to 43 percent in the coming years, the report found.
Almost 80 percent of oil and gas entities interviewed for the report said they already have a geothermal strategy in place or in development, and almost 70 percent noted that there is no geothermal related technical challenge that the oil and gas industry cannot solve.
The report’s authors also noted that there may be non-technical challenges that may be unsolvable by industry, including regulatory and permitting issues, legal uncertainty, social license issues, and a lack of funding for pilot projects and essential research.
The report called for the convening of geothermal-specific legislative hearings regarding geothermal technologies and applications. The report’s authors also called for greater clarity regarding heat ownership to provide certainty for developers and the establishment of a risk mitigation program for geothermal developers.
At the wholesale power level, the report advocated that a Levelized Avoided Cost of Electricity be incorporated into the Electric Reliability Council of Texas’ valuations.
The report also called for a direct-use geothermal heating and cooling grant program for agriculture and manufacturing and workforce training programs to help transition oil and gas workers into the geothermal industry.
Heartland Energy Intern Will Analyze and Report on Bitcoin Mining Impacts on Public Power
February 6, 2023
by Paul Ciampoli
APPA News Director
February 6, 2023
South Dakota-based Heartland Energy is seeking applications for a summer Intern who will analyze and report on the impacts of bitcoin mining operations on public utilities.
“The successful candidate will work directly with our Operations team, having the opportunity to advance their knowledge and gain experience working in the wholesale power industry,” the job description for the position notes.
Heartland Energy provides wholesale power to public power communities across South Dakota, Minnesota, Iowa and Nebraska. Based in Madison, SD, Heartland Energy also provides a suite of customer service programs including economic development, energy efficiency, cybersecurity and more.
As Heartland Energy is approached with large economic development loads, “we often ask ourselves which customer systems can handle a large addition to their system,” said Nate Jones, Chief Operations Officer at Heartland Energy in response to questions from Public Power Current.
“In addition, it is highly likely that we don’t know the limit that our municipal systems can handle. Many times, we have to respond that our customers wouldn’t be capable of supplying that type of load without significant infrastructure improvements,” he said.
“But in the end, we don’t have any real answers as to what portions of the system would need to be upgraded and what the cost of these upgrades would be. To complicate things further, bitcoin mining operations are looking for short-term deals likely not wanting to pay back lofty infrastructure costs over long periods of time,” Jones said in an email.
Heartland Energy hired a consultant “to tell us what our municipal systems were/are potentially capable of for load additions without the need to add a substation or make major upgrades. For example, perhaps Customer A can handle a 2 MW load addition, but this same load would push Customer B to a breaking point,” he said.
The internship was designed to fill in the gaps for Heartland for those customers that it didn’t have data for. “The intern would be doing data gathering on the following pieces of information and performing a simple analysis (power system study) to determine the headroom on each system.”
He said that ideally, the intern would collect the following information:
- One-Line Diagram of substation(s) (with equipment nameplate information, etc.)
- Electric distribution system map (with circuit locations, conductor sizes, etc.)
- Existing system loading information pertaining to the circuits/substations
- Transmission feed(s) and alternate feed(s) and any limiting factors here
Heartland could then send this information to its consultant to analyze and put together a cost matrix for Heartland.
Jones said that the intern will deliver a final report to Heartland Energy at the conclusion of his or her internship.
“We like all of our interns to deliver an end of the summer presentation and report to staff and our Board,” he noted.
DOE Funding Opportunity Targets Clean Hydrogen Technologies
January 31, 2023
by Peter Maloney
APPA News
January 31, 2023
The Department of Energy recently announced up to $47 million in funding to accelerate the research, development, and demonstration of affordable clean hydrogen technologies.
The funding, which is being administered by the DOE’s Hydrogen and Fuel Cell Technologies Office, is focused on the research, development, and demonstration of hydrogen delivery and storage technologies, as well as affordable and durable fuel cell technologies.
Clean hydrogen, which is produced with zero or near-zero emissions, can play a role in reducing emissions from some of the hardest-to-decarbonize sectors of the economy, including industrial and chemical processes and heavy-duty transportation, but while hydrogen technologies have come a long way, costs and other challenges to at-scale adoption need to be addressed for clean hydrogen to realize its full potential, the DOE said.
The DOE said the fuel cell projects should focus on applications for heavy duty trucks that have the potential to reduce carbon dioxide emissions and eliminate tailpipe emissions that are harmful to local air quality.
The DOE said those efforts will work in concert with hydrogen-related activities funded by the Bipartisan Infrastructure Law, including the Regional Clean Hydrogen Hubs and an upcoming funding opportunity for research, development, and demonstration projects to advance electrolysis technologies and improve the manufacturing and recycling of critical components and materials.
Last February, the DOE announced two requests for information to collect feedback from stakeholders to inform the implementation and design of the infrastructure law’s Regional Hydrogen Hub and the Electrolysis and Clean Hydrogen Manufacturing and Recycling Programs.
The DOE said the aim of the funded projects is to reduce costs, enhance hydrogen infrastructure, and improve the performance of hydrogen fuel cells in order to advance the goal of the agency’s Hydrogen Shot program, which is to reduce the cost of clean hydrogen to $1 per kilogram within a decade.
Achieving those cost reductions will accelerate the use of clean hydrogen across multiple sectors and strengthen the nation’s energy security while supporting the Biden administration’s goals of a 100 percent clean electric grid by 2035 and a net-zero emissions economy by 2050, the DOE said.
The DOE said it would provide financial assistance awards in the form of cooperative agreements, and the estimated performance period for each award would be approximately two to four years.
The DOE is encouraging applicant teams that include stakeholders within academia, industry, and national laboratories across multiple technical disciplines, as well as teams that include representation from diverse entities such as minority serving institutions, labor unions, and community colleges.
Department of Energy Report Examines Geothermal Energy Potential
January 31, 2023
by Peter Maloney
APPA News
January 31, 2023
An analysis recently released by the Department of Energy updates the potential of enhanced geothermal systems in the United States. It was prepared by DOE’s National Renewable Energy Laboratory.
The report, Enhanced Geothermal Shot Analysis for the Geothermal Technologies Office, was released on Jan. 25.
The United States has more than 5 terawatts of heat resources. The goal of significantly expanding EGS deployment by cutting costs 90 percent to $45 per megawatt-hour by 2035 is ambitious but is achievable with technology advances, according to NREL’s analysis.
The Enhanced Geothermal Shot Analysis builds on DOE’s 2019 GeoVision report that found the potential for 60 gigawatts of geothermal capacity by 2050.
The latest analysis from NREL includes modeling assumptions reflecting recent technology advances and uses updated estimates of EGS resource potential. Those findings indicate that by 2050 the total amount of installed domestic geothermal capacity could reach 90 GW.
Geothermal energy currently generates about 3.7 gigawatts of electricity in the United States.
There is the potential for EGS deployment throughout the U.S. West, as well as in several states east of the Mississippi River, including Mississippi, West Virginia, Virginia, and Pennsylvania, by 2050, NREL said in its analysis.
The Bipartisan Infrastructure Law supports EGS with $84 million for four pilot EGS demonstration projects that will provide information about EGS in different geographies and geologies.
DOE’s Office of Science recently announced $200 million for DOE’s national laboratories to conduct Energy Earthshots research, including three EGS topics.