Power Generation and Supply Market Recap, June 2021

By FirmoGraphs Staff
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Our June 2021 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:

Nevada Passes Clean Energy Bill Requiring State to Join RTO

Status: Effective

Organization: Nevada State Legislature

Summary: On May 29, 2021, the Nevada State legislature passed Senate Bill 488. The bill proposes speeding up the construction of an enormous transmission project, increasing investments for electric vehicle infrastructure, and requiring the state to join a regional transmission organization (RTO) by 2030. Gov. Steve Sisolak signed the bill on June 10, 2021.

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Maryland SB 65 - A Bill Relating to RPS - Tier 2 Renewable Sources, Qualifying Biomass, and Compliance Fees

Status: Effective

Organization: Maryland State Legislature

Summary: On May 30, 2021, the Maryland State Legislature passed a bill relating to altering renewable energy portfolio standards for 2021 through 2030. The Bill will also extend eligibility of Tier 2 renewable sources for purposes of the renewable energy portfolio standard. The Bill became effective on June 1, 2021.  

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U.S. State of Texas Coal Combustion Residuals (CCR) Permit Program

Status: Effective

Organization: Environmental Protection Agency (EPA)

Summary: On June 1, 2021, EPA approved the Texas partial CCR state permit program. The Texas partial program enables the Texas Commission on Environmental Quality (TCEQ) to implement rules proclaimed under its solid waste statute related to CCR activities in non-Indian country, as well as to issue permits (called “registrations” in Texas) and to impose permit violations. 

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Governor Abbott Signs ERCOT Reforms, Power Grid Weatherization Legislation Into Law

Status: Effective

Organization: Texas State Legislature

Summary: On June 8, 2021, Texas's Governor Greg Abbott signed Senate Bills 2 and 3 to reform the Electric Reliability Council of Texas (ERCOT) and improve the reliability of the state's power grid. The bills require ERCOT and the Texas Railroad Commission to inspect power generation, natural gas, and transmission facilities to be sure they have been weatherized to handle extreme weather. The failure to properly weatherize the facilities could result in penalties of up to $1 million.

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Advancing North Carolina's Economic and Clean Energy Future with Offshore Wind

Status: Effective

Organization: North Carolina State Legislature

Summary: On June 9, 2021, Governor Roy Cooper issued an Executive Order reaffirming North Carolina's dedication to offshore wind power as the state turns to a clean energy economy. The Executive Order highlights the economic and environmental benefits of offshore wind and establishes offshore wind development goals for the state of 2.8 GW by 2030 and 8 GW by 2040. In addition, North Carolina is directing actions through this Order to help secure the jobs and economic development associated with offshore wind development on the East Coast, which is expected to total around $140 billion over the next 15 years. 

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HB 2021 - A Bill Relating to Clean Energy

Status: Proposed

Organization: Oregon State Legislature

Summary: On June 20, 2021, the Oregon State legislature passed a law that requires the state's biggest utilities to terminate greenhouse gas emissions from their electricity supply by 2040. Greenhouse gas emissions connected with electricity sold to Oregon consumers need to be decreased 80% below baseline emissions levels by 2030, 90% by 2035, and 100% by 2040. The bill awaits the signature of Gov. Kate Brown.

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Oregon HB 3375 - A Bill Relating to Floating Offshore Wind Energy

Status: Proposed

Organization: Oregon State Legislature

Summary: On June 23, 2021, the Governor signed a bill that establishes the goal of planning for development of up to 3GW of floating offshore wind energy projects within federal waters off the Oregon Coast by 2030. The Bill will take effect on the 91st day after the legislature’s adjournment, which occurred June 26.

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Clean Energy Future through Innovation Act of 2021

Status: Proposed

Organization: U.S. House

Summary: On June 24, 2021, U.S. Representatives introduced the Clean Energy Future through Innovation Act of 2021. The Act proposes to advance the innovation of clean energy technologies and decrease emissions from the power sector while maintaining affordable and reliable electrical service. The Act would invest in energy innovation and infrastructure, including carbon capture, advanced nuclear, renewables, efficiency, and storage. After a decade of creation, it establishes a technology-neutral clean energy standard that would reduce CO2 emissions by 80% by 2050. 

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Ohio Senate Passes Polarizing Energy Bill 

Status: Proposed

Organization: Ohio State Legislature

Summary: On June 29 2021, the Senate passed revised Senate Bill 52, governing wind warms and solar facilities, which had previously been passed by the House of Representatives. The bill would make it easier for residents and officials to block renewable projects proposed for their counties. Gov. DeWine has yet to sign the bill.

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Notable Projects

Firmographs Power Market Recap

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

$155 Million Gum Swamp Solar, LLC 80-MWAC Solar Facility

Type: Solar Generation                                          

Status: Proposed

Organization: Gum Swamp Solar, LLC

Region: North Carolina

Summary: This is one of at least five proposed solar photovoltaic generation facilities in North Carolina for which subsidiaries of Pine Gate Renewables LLC submitted Certificate of Public Convenience and Necessity Applications to the North Carolina Utilities Commission on May 14, 2021. Each facility is expected to come on line by May 1, 2024 and have a generating capacity of 80 MW AC. Their expected total construction cost is approximately $770 million. Pine Gate plans to sell the power from them to Duke Energy Progress, pursuant to long-term power purchase agreements. The application for this facility was filed by Gum Swamp Solar, LLC, which plans to build it in Scotland County and estimates it will cost approximately $154.5 million to construct. Pine Gate develops, builds, owns and operates utility-scale solar farms across the United States. Pine Gate’s CEO is Ben Catt.

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$139 Million Ashland-Ironwood Transmission Line Relocation Project

Type: Transmission                                           

Status: Proposed

Organization: Northern States Power Company

Region: Wisconsin

Summary: On May 26, Northern States Power Company, doing business as Xcel Energy, made a joint application to Wisconsin’s Public Service Commission and Department of Natural Resources for a Certificate of Public Convenience and Necessity that would allow it to rebuild and relocate two existing transmission lines that run between Xcel’s Gingles Substation southeast of Ashland, Wisconsin, and its Ironwood Substation in Ironwood, Michigan. The lines are roughly 35 miles long and located within the reservation of the Bad River Band of Lake Superior Chippewa Indians. Line W3351 is 88 kV and line W3316 is 115 kV. The application contains five route alternatives, all of which contemplate relocating and rebuilding the lines along the 34.5 kV W3606 and 34.5 kV W3607 corridors. The proposed project would also involve rebuilding the 34.5 kV W3606 and 34.5 kV W3607 lines, which are in poor condition, as well as relocating a segment of the W3606 line. Xcel estimates that the project would take approximately two years to complete, with construction beginning in the second quarter of 2024 and the lines being in service by the fourth quarter of 2026. Xcel estimates that the project would cost from $131 million to $139 million, depending on the route selected for it.

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$480 Million Atrisco Solar Generation and Energy Storage Project

Type: Solar Generation and Energy Storage                                       

Status: Proposed

Organization: Atrisco Solar, LLC; Atrisco Energy Storage, LLC

Region: New Mexico

Summary: On April 2, Public Service Company of New Mexico (PNM) filed with the New Mexico Public Regulation Commission for approval of the decertification and abandonment of its leases of 114 MW of generation capacity in the Palo Verde Nuclear Generating Station. In the filing, PNM also seeks approval of 2 proposed purchased power agreements (PPAs) and 3 proposed energy storage agreements (ESAs) to replace the generation capacity it will lose by decertifying and abandoning the leases. One proposed PPA and 1 proposed ESA are with 2 related entities that plan to build a co-located solar generation facility and solar energy storage facility west of Albuquerque. The PPA and ESA would have 20-year terms and provide power at $19.13/MWh and storage capacity at $6.68/kW-month. The solar facility would have a 300 MW generation capacity and be built by Atrisco Solar, LLC and the storage facility would have 150 MW of 4-hour storage capacity and be built by Atrisco Energy Storage, LLC. The Atrisco Energy Storage Facility must be charged from the co-located solar facility for 5 years after beginning commercial operation to receive the full benefit of the Investment Tax Credit (ITC), which reduces the cost of the ESA. PNM expects construction on the facilities to begin upon the commission’s approval of the PPA and ESA, which PNM is seeking by no later than October 1. PNM expects both facilities to begin commercial operations on June 1, 2023. 

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$190 Million Jicarilla Solar Generation and Energy Storage Facility Project

Type: Solar Generation and Energy Storage                                    

Status: Proposed

Organization: Jicarilla Solar Energy Center I, LLC; Jicarilla Energy Storage Center I, LLC

Region: New Mexico

Summary: In the filing referenced in the previous project description, PNM seeks approval of a proposed PPA and a proposed ESA with 2 related entities that plan to build a co-located solar generation facility and solar energy storage facility in Rio Arriba County on the Jicarilla Apache Nation. The PPA and ESA would have 20-year terms and provide power at $14.89/MWh and storage capacity at $7.65/kW-month. The solar facility would have a 150 MW generation capacity and be built by Jicarilla Solar Energy Center I, LLC and the energy storage facility would have 40 MW of 4-hour storage capacity and be built by Jicarilla Energy Storage Center I, LLC. The storage center must be charged from the solar facility for 5 years and 60 days after beginning commercial operation to receive the full benefit of the ITC, which reduces the cost of the ESA. PNM expects construction on both facilities to begin upon the commission’s approval of the PPA and ESA, which PNM is seeking by no later than October 1. PNM expects both to begin commercial operations on June 1, 2023. 

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$320 Million Sky Ranch Solar Generation and Energy Storage Facility

Type: Solar Generation and Energy Storage                                       

Status: Proposed 

Organization: Sky Ranch Solar, LLC; Sky Ranch Energy Storage, LLC

Region: New Mexico

Summary: PNM on February 8 applied to the New Mexico Public Regulation Commission for approval of 2 PPAs and an ESA related to its contract to supply renewable energy to a data center that Facebook, Inc. is building in Los Lunas. PNM asked the commission to approve the agreements by June 1 so that Facebook wouldn’t have to pause construction on the data center. After a June 16 commission hearing on the project, commission staff recommended on June 21 that the ESA be rejected. The commission hasn’t ruled on the matter. The largest PPA and the ESA are with Sky Ranch Solar, LLC and Sky Ranch Energy Storage, LLC, 2 subsidiaries of NextEra Energy Resources, LLC that plan to build a co-located solar generation facility and energy storage facility in Valencia County. The PPA and ESA would be for 20 years and provide power at $20.64/MWh and storage capacity at $6.60/kw-month. The Sky Ranch Solar generation facility would have a generation capacity of 190 MW and the Sky Ranch Energy Storage facility would have 100 MW of 4-hour storage capacity. The storage facility must be charged from the solar generation facility for the first 5 years and 60 days of its commercial operations to receive the full benefit of the ITC, which reduces the cost of the ESA. NextEra expected the facilities to begin commercial operations on Dec. 31, 2023, although that was prior to the PNM staff issuing its recommendation.

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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 May:

What We Are Reading

Reading News and Market Updates

Here are some recent articles our team has been reading:


Meeting Planner

Meeting Planner

Organizations have shifted their event strategies during the COVID-19 pandemic.  We are tracking these changing meeting plans.  

Meetings in July and August 2021

Early Birds Registration

 

 

 

Tags: US Power