Our July 2023 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
Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following in June:
House Energy and Commerce Committee Announce Subcommittee Legislative Hearing on Boosting American Leadership in Self-Drive Technology
Status: Proposed
Organization: House Energy and Commerce Committee
Summary: On July 19, 2023, the House Energy and Commerce Committee announced a subcommittee legislative hearing to be held on July 26, 2023, and discuss boosting American leadership in self-driving technology. The hearing will discuss two draft bills: the SELF-DRIVE Act and another act to update and create new safety standards for automated vehicles. The legislation aims to modernize motor vehicle safety standards, establish a uniform regulatory framework for automated vehicles, enhance safety, improve lives and mobility and surpass China in the global competition for the industry.
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L.D. 1895 - An Act Regarding the Procurement of Energy from Offshore Wind Resources
Status: Proposed
Organization: State of Maine Legislature
Summary: On July 27, 2023, the State of Maine Legislature enacted LD 1895, an act relating to the procurement of energy from offshore wind resources in the Gulf of Maine. The bill has the following main objectives:
- To secure contracts for 1,000 MW of commercial floating offshore wind by 2030 and 2,800 MW by 2035, translating to 55 turbines by 2030 and 155 turbines by 2035 if 18 MW turbines are installed.
- To create a Community & Workforce Enhancement Agreement that ensures fair wages, benefits, and training opportunities for workers involved in the offshore wind industry.
- To establish an Offshore Wind Energy Research Consortium to coordinate research and development activities among public and private entities.
- To require the Public Utilities Commission to conduct a competitive solicitation process for offshore wind energy projects and to consider various factors such as price, environmental impacts, economic benefits, and community engagement.
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FERC Transmission Reform Paves Way for Adding New Energy Resources to Grid
Status: Proposed
Organization: Federal Energy Regulatory Commission (FERC)
Summary: On July 27, 2027, the Federal Energy Regulatory Commission (FERC) issued a final rule that aims to improve the transmission grid in the United States by making it easier for new energy resources to connect. The rule addresses several challenges that have hindered the interconnection process, such as delays, uncertainties, inefficiencies, and discrimination. The rule introduces the following reforms:
- A first-ready-first-served cluster study process that prioritizes interconnection requests based on their readiness and requires higher financial commitments from interconnection customers to avoid speculative requests.
- Firm deadlines and penalties for transmission providers who fail to complete their interconnection studies on time, ensuring timely and transparent completion of the process.
- Consideration of advanced transmission technologies, such as power flow control devices and dynamic line ratings, in the interconnection study process, enhancing the grid’s flexibility and capacity.
- Updated modeling and performance requirements for inverter-based resources, such as solar and wind, to ensure their reliability and compatibility with the grid.
The rule is expected to facilitate the integration of more diverse and sustainable energy sources into the grid, such as renewable, distributed, and storage resources. The rule also supports the goals of enhancing the reliability, resilience, and affordability of electricity for consumers. It will take effect 75 days after publication in the Federal Register.
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Notable Projects
FirmoGraphs tracks notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.
$3.5 Billion Bellefield Energy Storage Project
Type: Generation - Solar with Co-located Energy Storage
Status: Proposed
Organization: AES, Corp.
Region: California
Summary: AES, Corp. proposed constructing the Bellefield Energy Storage Project located on approximately 8,300 acres of private land in Kern County, California. The project is approximately 2 gigawatts (GW) in two phases, each with 500 megawatts (MW) of solar and up to 500 MW of four-hour battery energy storage. In addition, a 14-mile transmission line will be constructed connecting the project to the Southern California Edison Windhub Substation. Construction will commence in the third quarter of 2023 and is expected to be completed by 2026. According to the 2022 Annual Technology Baseline (ATB), solar with co-located battery projects will cost $1,729 per kW. Based on this value, FirmoGraphs estimates the project will cost nearly $3.5 billion.
Contact FirmoGraphs to See the Document
$3.2 Billion Propel NY Energy Transmission Project
Type: Power Tran
Status: Proposed
Organization: AES, Corp.
Region: New York
Summary: AES, Corp. will construct the Propel NY Energy Transmission Project, a new 90-mile high voltage electric transmission line and facilities consisting of 3 new underground 345 kilovolts (kV) alternating current tie lines connecting Long Island with the remaining New York Control Area, a 345 kV transmission backbone across western/central Long Island. It will also include construction or modifications at 11 substations.
Contact FirmoGraphs to See the Document
$940 Million HVDC Modernization Project
Type: Transmission line
Status: Proposed
Organization: Minnesota Power
Region: Minnesota
Summary: Minnesota Power submitted filings on June 1, 2023, to the Minnesota Public Utilities Commission for the HVDC Modernization Project that runs from Center, North Dakota, to Hermantown, Minnesota. The project replaces the aging critical infrastructure and modernizes the terminal stations of its 465-mile line. It will also involve the construction of a new St. Louis County 345 kilovolts (kV)/230 kV substation located less than one mile west of the current Arrowhead Substation. The construction will commence in 2024 and is expected to be completed by December 31, 2029, costing $940 million.
Contact FirmoGraphs to See the Document
$818 Million CCL Midscale Trains 8 & 9 Project
Type: Other Natural Gas
Status: Proposed
Organization: Corpus Christi Liquefaction, LLC
Region: Texas
Summary: Corpus Christi Liquefaction, LLC submitted filings on March 30, 2023, to the Federal Energy Regulatory Commission for the CCL Midscale Trains 8 & 9 Project. The project includes two midscale liquefaction trains, capable of liquefying up to approximately 170 Bcf/y11 of domestically produced natural gas export and supporting infrastructure which will be interconnected and operated, on an integrated basis, with the existing LNG storage tanks, control buildings, marine facilities, and other ancillary facilities. The construction will commence in June 2024 and is expected to be completed in December 2031, costing $818 million.
Contact FirmoGraphs to See the Document
$680 Million Anole Battery Energy Storage System
Type: Battery Energy Storage System, Stand-Alone
Status: Proposed
Organization: Anole Energy Storage, LLC
Region: Texas
Summary: Anole Energy Storage, LLC submitted filings on May 9, 2023, to the Texas Public Utilities Commission for the Anole Battery Energy Storage System (BESS) in Dallas County, Texas. The project comprises 49 inverters, each rated at 5.85 megavolt-amperes (MVA) with a total gross capacity of 286.65 MVA. The plant will be dispatched at +/- 242.71 megawatts (MW), measured at the generator terminals. The project is expected to be in service on April 18, 2024. According to the 2022 Annual Technology Baseline (ATB), stand-alone energy storage Projects will cost $2,785 per kW. Based on this value, FirmoGraphs estimates the Project will cost $680 million.
Contact FirmoGraphs to See the Document
Notable M&A
The following M&A transactions in the Power Generation and Supply Industry stand out in the month of July:
- On July 3, 2023, Callon Petroleum Company announced that it closed its previously announced acquisition of Delaware Basin assets from Percussion Petroleum Operating II, LLC and the sale of its Eagle Ford assets to Ridgemar Energy Operating, LLC for $551 million.
- On July 5, 2023, Duke Energy announced it has reached an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC,, a leading middle market infrastructure investor, for an enterprise value of $364 million, inclusive of non-controlling tax equity interests.
- On July 10, 2023, Dominion Energy announced that it concluded a sale process and executed a definitive agreement to sell its 50% noncontrolling limited partner interest in Cove Point LNG, LP, to Berkshire Hathaway Energy, which currently operates the facility and owns a 100% general partner and 25% limited partner interest for 3.5 billion.
What We Are Reading
Here are some recent articles our team has been reading:
- Biden administration approves largest US offshore wind farm off New Jersey coast
- Georgia's new nuclear plant is expected to make a dent in state's carbon emissions
- Duke Energy to sell commercial distributed generation business to ArcLight for $364 million
- Biden-Harris Administration Invests Over $200 Million in States and Tribal Nations to Modernize America’s Electrical Grid
- Texas gets $60 million in federal funds to strengthen power grid against extreme weather
- Wind energy has a massive waste problem. New technologies may be a step closer to solving it
- Florida Power & Light announces 2023 upgrade plans
- New Mexico Supreme Court upholds New Mexico Public Regulation Commission denial of PNM application for abandonment, securitization of Four Corners Coal Plant
- New solar venture to invest up to $1.5B on domestic operation, beginning with Colorado factory
- Department of Energy Launches Prize to Jumpstart Wind Turbine Materials Recycling Industry
- Department of Energy to invest up to $1B in demand-side initiative backing Regional Clean Hydrogen Hubs
- Solar-powered ‘microgrids’ coming to San Diego public buildings as first of 8 projects breaks ground
- DTE Electric agrees to speed Michigan coal plant retirements, renewable and energy storage buildout
- DOE rolls out $200M for grid investments; California will use $67.5M for storage, resilience
- Energy efficiency ‘crucial’ to decarbonization, even with low levels of building electrification: ACEEE
- Solar Alliance signs two contracts totaling $530,000 for commercial solar projects in Tennessee
- AES Indiana plans 200-MW/800-MWh energy storage at retiring coal plant
- Michigan Public Service Commission approves DTE’s landmark clean energy plan
- ‘Vicious cycle’: Heat waves ramp up global burning of fossil fuels
- U.S. railroads say heatwave to reignite coal shipments this year
- B&W Plans to Convert Michigan Coal Plant to Clean Power Generator
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 August and September 2023
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Name Organization |
Name Meeting Key |
Date Start |
Date End |
|
Energy Central |
2023-08-21 |
2023-08-24 |
|
|
Energy Central |
2023-09-05 |
2023-09-07 |
|
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CIBO |
2023-09-11 |
2023-09-13 |
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Smart Electric Power Alliance |
2023-09-11 |
2023-09-14 |
Early Bird Registration
- Event: ACEEE Energy Efficiency as a Resource
Dates: Oct. 16 - Oct. 18, 2023
Deadline for Early Registration: August 18, 2023 - Event: Solar & Storage Finance USA
Dates: Nov. 7 - Nov. 8, 2023
Deadline for Early Registration: August 18, 2023