Power Generation and Supply Market Recap, December 2022

By FirmoGraphs Staff
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Our December 2022 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.

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Industry Drivers

Drivers

Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following this month:

Airborne Wind Energy Research and Development Act

Status: Proposed

Organization: House of Representatives 

Summary: On December 6, 2022, the House of Representatives Committee on Science, Space, and Technology introduced the Airborne Wind Energy Research and Development Act. The Act would establish a research program at the Department of Energy (DOE) to harness the advantages, design, and impacts of airborne wind energy generation. 

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Clean Hydrogen and Fuel Cell Research, Development, and Demonstration Act of 2022

Status: Proposed

Organization: House of Representatives 

Summary: On December 6, 2022, the House of Representatives introduced the Clean Hydrogen and Fuel Cell Research, Development, and Demonstration Act. The Act authorizes the Department of Energy (DOE) to improve its Research and Development (R&D) of clean hydrogen and fuel cell technologies. The Act establishes Hydrogen Innovation Center at DOE to focus on fundamental R&D activities and improves the stationary fuels cells technology to achieve more than 80,000 hours of durability. In addition, the Act supports R&D to enhance the use of hydrogen and hydrogen blends in producing cement, fertilizer, iron, steel, chemicals, and energy-dense fuels.

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NJBPU Establishes Competitive Grid Scale Solar Program

Status: Proposed

Organization: New Jersey Board of Public Utilities (NJBPU)

Summary: On December 7, 2022, the New Jersey Board of Public Utilities (NJBPU) established the Competitive Solar Incentive (CSI), which focused on lowering taxpayer costs and incentivizing at least 300 megawatts (MW) of solar annually through 2026. The CSI primarily aims to cover all large solar projects, comprising grid supply projects, non-metered, and non-residential projects greater than 5 MW. The program has five tranches to ensure that a range of solar projects can participate despite having different cost profiles. The first solicitation is expected to occur in early 2023, with the bid deadline being March 31, 2022.

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California’s PUC Decision on Revising Net Energy Metering Tariff and Subtariffs

Status: Proposed

Organization: California Public Utilities Commission (CPUC)

Summary: On December 15, 2022, the California Public Utilities Commission (CPUC) adopted the decision revising the net metering solar tariffs and subtariffs. The approved decision provides retail export compensation aligned with the value behind-the-meter solar energy systems offered to the grid and import rates that encourage solar systems paired with energy storage. According to the CPUC, the average resident installing a solar energy system will save $100 per month, while customers who install solar systems paired with energy storage will save $136 per month in their electricity bills, leading to a 75% drop in monthly electricity bills.

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Notable Projects

Firmographs Power Market Recap

FirmoGraphs tracks notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.

$1 Billion Larrabee Tri-Collector Project

Type: Power Transmission

Status: Proposed

Organization: FirstEnergy, Corp, Jersey Central Power & Light Co., and Mid-Atlantic Offshore Development

Region: New Jersey

Summary: FirstEnergy, Corp, Jersey Central Power & Light Co., and Mid-Atlantic Offshore Development proposed to construct and operate the Larrabee Tri-Collector Project in New Jersey. The Project is a 92.1-mile off-shore transmission line that will provide wind farms with a shared connection point to the mainland. The Project is estimated to have $1 billion worth of investment.

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$431.2 Million Four Corners Solar Center

Type: Solar - Generation

Status: Proposed

Organization: Four Corners Solar Center LLC

Region: New Jersey

Summary: On September 27, 2021, Four Corners Solar Center, LLC, submitted filings to the Federal Energy Regulatory Commission for the Four Corners Solar Center on 3,500 acres in New Mexico. The Project is a ground-mounted solar facility with 400 megawatts (MW) capacity. The construction started in November 2021 and is expected to begin commercial operation by September 2024. According to Power Technology, the Project will cost $431.2 million.

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$350 Million Allegheny Energy Center

Type: Power Generation

Status: Proposed

Organization: Allegheny Energy Center LLC

Region: Pennsylvania

Summary: On November 9, 2022, Allegheny Energy Center, LLC, submitted filings to the Federal Energy Regulatory Commission for the Allegheny Energy Center Project in Elizabeth Township, Allegheny County, Pennsylvania. The Project is a natural gas-fired power plant with 639 megawatts (MW) capacity utilizing one gas turbine and one steam turbine. According to Power Technology, the construction started in January 2022 and is expected to enter commercial operation in 2024, costing $350 million.

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$247.5 Million Arriba Wind Generation Project

Type: Power Generation

Status: Proposed

Organization: Allegheny Energy Center, LLC

Region: Colorado

Summary: On November 11, 2022, Nereo GC Lincoln, LLC, submitted filings to the Federal Energy Regulatory Commission for the proposed Arriba Wind Generation Project in Kit Carson County, Colorado. The Project is an onshore wind facility with 150 megawatts (MW) that could be expanded to 200 MW. It comprises 82 wind turbines rated at 2.82 MW and eight wind turbines rated at 2.52 MW. The construction will commence on May 1, 2023, and is expected to be completed on December 31, 2023. According to Power Technology, the Project will cost $247.5 million.

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Notable M&A

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The following  M&A transactions in the Power Generation and Supply Industry stand out in the month of December:



What We Are Reading

Reading News and Market Updates

Here are some recent articles our team has been reading:


Meeting Planner

Meeting Planner

In this over-digitized age, there is no replacement for face-to-face meetings with your prospects and customers! We track meetings of interest to our customers serving the US power generation and supply industry so you won’t miss upcoming meetings and deadlines. Also, FirmoGraphs has recently implemented a free-of-charge service for tracking notable infrastructure events


Meetings in January and February 2023


Early Bird Registration

Tags: US Power