April 2021's Power Generation & Supply Market Recap is a snapshot of the data and information we curate. We share industry drivers, notable projects, recent mergers and acquisitions, interesting reads, and updates on upcoming meetings and conferences.
Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following this month:
HB 1381 Indiana Wind and Solar Systems
Organization: Indiana State Legislature
Summary: On April 1, 2021, the Indiana Senate Utilities Committee approved House Bill 1381. The bill deals with setting default standards for wind and solar systems. The bill is expected to become effective on July 1, 2021.
Replacing Subsidies for Fossil Fuels with Incentives for Clean Energy Production
Organization: U.S. Treasury Department
Summary: On April 7, 2021, the U.S. Treasury Department released details of the "Made in America" tax plan proposal for the increase of the taxes that would replace subsidies for fossil fuel companies with incentives for the production of clean energy. The Department's estimation is that elimination of subsidies for fossil fuel companies would boost government tax receipts by more than $35 billion in the coming decade.
Governor Cuomo Announces $25 Million Energy Management Program to Increase Energy Efficiency in Commercial Office Space, Reduce Greenhouse Gas Emissions, and Create Healthy Workplaces
Organization: New York State Department of Public Service
Summary: On April 15, 2021, New York State Governor Andrew M. Cuomo issued an announcement regarding the $25 million Real Time Energy Management + Tenants Program. The goal of the program is to lessen greenhouse gas emissions by increasing energy efficiency in commercial spaces as office and building capacity begin to increase during the COVID-19 economic recovery. The program is open through 2024.
SJI Announces Comprehensive Clean Energy and Sustainability Plan
Organization: South Jersey Industries Inc. (SJI)
Summary: On April 19, 2021, South Jersey Industries Inc. (SJI) issued a comprehensive clean energy plan and a timeline to achieve carbon-neutral operations. Through its plan, SJI set the goals to achieve a 70% carbon reduction of operational emissions and consumption by the year 2030, achieve 100% carbon reduction by 2040, and commit at least 25% of annual capital expenditures on sustainability projects.
El Paso Electric Seeks Approval for Advanced Meter Deployment Plan
Organization: El Paso Electric Company/PUC of Texas
Summary: On April 26, 2021, El Paso Electric filed an application with the Public Utility Commission of Texas for approval of an advanced metering system (AMS) deployment plan, AMS surcharge and non-standard metering service fees. This will lead to setting the foundations for grid modernization.
N.H. PUC Issues Order on Electric Renewable Portfolio Standard
Organization: New Hampshire Public Utilities Commission
Summary: On April 21, 2021, the New Hampshire Public Utilities Commission released the electric order about decreasing the New Hampshire Renewable Portfolio Standard Class III requirement for compliance year 2020 to 2% from the previous 8%.
West Virginia Gov. Justice Signs Wind and Solar Reclamation Bonding Program
Organization: West Virginia Legislature
Summary: On April 26, 2021, West Virginia Governor Jim Justice signed a bill to initiate a reclamation bonding program for wind and solar facilities in the state. The minimum bond value would be $150,000 and exclude facilities with a capacity less than 0.5 MW.
We track notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.
90MW Bluebird Solar Project
Type: Solar Generation
Organization: Bluebird Solar, LLC
Scale: 90 megawatts (MW)
Summary: On March 24, 2021, Bluebird Solar, LLC filed a Notice of Intent to file an application for a Certificate of Construction for about 90 MW solar facility. The Bluebird Solar Project will consist of 700 acres of solar photovoltaic panels and associated racking, 28 inverters, and a project substation transformer. The cost of this project is yet to be determined.
$10.4 Million Waiau Unit 10 Projects
Type: Wind Generation
Organization: Hawaiian Electric Company, Inc
Summary: On March 31, 2021, the Hawaiian Electric Company, Inc. filed an application for approval to commit funds in excess of $2.5 million for the Waiau Unit 10 projects currently estimated at $10.4 million. The subject Projects are important for the continued stable operation of WIO, which is one of two 50MW CT units on the Company’s system. The replacement of these parts includes the following projects: Turbine Blade Replacements - replacement of 276 rotating turbine blades in three rows, turbine rotor replacement - replacement of the turbine rotor which serves to hold the rotating turbine blades onto the turbine shaft, and the replacement of rotating and stationary compressor blades, which includes replacement of 2,084 rotating and stationary blades in 17 stages. Construction for all three projects is scheduled to take place during a planned unit outage from August through December 2023.
$950 Million Regional Energy Access Expansion
Type: Gas Project
Organization: Transcontinental Gas Pipe Line Company
Summary: On March 26, 2021, the Transcontinental Gas Pipe Line Company (Transco) filed with the Federal Energy Regulatory Commission an application for a certificate of public convenience and necessity to construct, install, modify, operate and maintain its Regional Energy Access Expansion. Transco also filed an application for an order permitting and approving abandonment of certain existing and less energy-efficient compression facilities. The Project will enable Transco to provide an additional 829,400 dekatherms per day (“dt/day”) of firm transportation service to serve incremental natural gas supply needs beginning with the 2023/2024 winter heating season. Transco estimates that the proposed facilities will cost around $950 million.
Site Permit Amendment to a $160 Million Northern Wind Repower Project
Type: Wind Project
Organization: Northern Wind Energy Redevelopment, LLC
Scale: 120 megawatts (MW)
Summary: In April of 2021, the Northern Wind Energy Redevelopment, LLC, subsidiary of ALLETE Clean Energy (ACE), requested a site permit amendment that will allow Northern Wind to decommission all 65 existing turbines from the Chanarambie Wind Farm and Viking Wind Farm and replace them with up to 45 new turbines. The new turbines will increase the combined nameplate capacity from 97.5 MW to up to 120.12 MW. The combined repowered facility will be collectively known as the Northern Wind Project. The Project will not require a certificate of need because the Project has the original Chanarambie and Viking GIAs and will utilize the additional signed Rock Aetna GIA with Midcontinent Independent System Operator (MISO) for the additional capacity of the Project that will be delivered to the electrical transmission system. The Project is located within County in Cameron and Chanarambie Townships. Northern Wind will decommission the existing turbines, construct the new turbines, own, and operate the Project.
Miami Fort GT Generation Substation Separation Project
Type: Transmission Project
Organization: Duke Energy Ohio, Inc
Scale: 138 kilovolts (kV)
Summary: On April 16, 2021, Duke Energy Ohio, Inc. filed Pre-Application Notification Letter for a Construction Notice for the Miami Fort GT Generation Substation Separation Project with the Ohio Power Siting Board. The project involves expanding the substation on Duke Energy Ohio property or existing easements and includes expanding the existing substation perimeter fencing, equipment reconfiguration to accommodate new equipment inside the substation for more efficient and reliable operations. The Project also involves the installation of foundations, a 138-kilovolt (kV) ring bus, and a new control building that will be located within the expanded substation area. One new above-ground steel monopole will replace an existing wood structure and will be located to the east of the existing wood pole location. The 138-kV transmission line will be strung from the new ring bus to the relocated steel monopole structure located adjacent to the outside of the substation fence. The expansion of the substation will begin in June 2021 and transmission line construction will begin February 2022 with an anticipated completion and in-service date of March 31, 2022, pending approval of this Construction Notice. The Project value is currently unknown.
The following M&A transactions in the Power Generation and Supply Industry stand out in the month of April:
- On April 1, 2021, Energy Capital Partners announced the purchase of a 50% stake in Terra-Gen.
- On April 1, 2021, Leeward Renewable Energy announced the acquisition of a 10-gigawatts solar project platform from First Solar.
- On April 9, 2021, EDPR agreed to sell a 55% stake in a 405MW wind portfolio in Illinois.
- On April 19, 2021, NextEra agreed to acquire four wind farms from Brookfield Renewable for $733 million.
- On April 22, 2021, Southern Power acquired the 118 MW Glass Sands Wind Facility.
- On April 26, 2021, Leeward Renewable Energy agreed to acquire 580 MW wind and solar projects in Indiana.
- On April 28, 2021, Stem merged with Star Peak Energy Transition Corp in a deal worth $1.35 billion.
What We Are Reading
Here are some recent articles our team has been reading:
- Alliant Energy proposes $515 million solar developments; MGE buys into wind farm
- White House will seek law to require carbon-free power from U.S. utilities
- Is The U.S. Finally Embracing Tidal Energy?
- J-Power to convert Virginia coal plant to solar-plus-storage facility
- More than half of Iowa's power now comes from wind, as state nears 6,000 turbines
- Wells Fargo Joins Duke Energy, NextEra to Expand Solar Use in NC
- Joppa coal, natural gas plant to retire in 2022 as Vistra focuses on a cleaner energy future
- Dominion Energy North Carolina proposes new clean energy programs
- DOE advances SuperTruck initiatives with $162M for decarbonizing cars, trucks and ORVs
- N.Y. Gov. Cuomo Announces More Than $455 Million in Energy Efficiency Upgrades at 18 CUNY Campuses
- Wisconsin PSC approves six new solar generation facilities, 675 MW from Wisconsin Power and Light
- New York unveils plans for more than 20 large-scale renewable energy projects
- DTE Energy adds three wind parks, more than 400 MW of clean energy to Michigan
- Texas on track to add record solar power capacity by end of 2022
Organizations have shifted their event strategies during the COVID-19 pandemic. We are tracking these changing meeting plans.
Meetings in May and June 2021
- API - International Oil Spill Conference - 2021, May 10 - May 14, 2021
- IEEE - PES - International Electric Machines & Drives Conference - 2021, May 17 - May 20, 2021
- EEI - Business Diversity Virtual Conference - 2021, May 18 - May 19, 2021
- AGA - Financial Forum - 2021, May 19 - May 20, 2021
- AFPM - International Petrochemical Conference - 2021, May 23 - May 25, 2021
- ACEEE - Energy Efficiency Finance Forum - 2021, May 25 - May 26, 2021
- AWEA - Cleanpower Conference and Exhibition - 2021, Jun 7 - Jun 10, 2021
- APPA - National Conference - 2021, Jun 20 - Jun 23, 2021
- IEEE - PES - Transportation Electrification Conference and Expo - 2021, Jun 21 - June 25, 2021
Early Birds Registration
- Event: ICMA - National Brownfields Training Conference - 2021
Dates: Sep. 27 - Sep. 30, 2021
Date for Early Registration: May 3, 2021
- Event: IEEE - PES - Transportation Electrification Conference and Expo - 2021
Dates: Jun. 21 - Jun. 25, 2021
Date for Early Registration: May 15, 2021
- Event: ACEEE - National Conference on Energy Efficiency as a Resource - 2021
Dates: Oct 19 - Oct 21, 2021
Date for Early Registration: Jun 1, 2021