Our May 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 May:
EPA Proposes New Carbon Pollution Standards for Fossil Fuel-Fired Power Plants to Tackle the Climate Crisis and Protect Public Health
Status: Proposed
Organization: U.S. Environmental Protection Agency (EPA)
Summary: On May 11, 2023, the EPA put forth new carbon pollution standards for coal and natural gas-fired power plants, aiming to safeguard public health, reduce harmful pollutants, and generate up to $85 billion in climate and public health benefits over the next twenty years. The proposed regulations for coal and new natural gas power plants would prevent approximately 617 million metric tons of carbon dioxide (CO2) emissions by 2042. This is equivalent to the yearly emissions from 137 million passenger vehicles, or about half the cars in the United States. The EPA estimates that these standards' net climate and health benefits, applied to new gas and existing coal-fired power plants, could amount to $85 billion by 2042. The proposed regulations include strengthening the New Source Performance Standards (NSPS) for newly built fossil fuel-fired stationary combustion turbines and establishing emission guidelines for existing fossil fuel-fired steam generating units and large, frequently used fossil fuel-fired stationary combustion turbines. The EPA's analysis suggests that the proposed standards for existing gas-fired plants and the third phase of the NSPS could result in up to 407 million metric tons of CO2 emission deductions.
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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.
$8 Billion SunZia Wind Project
Type: Generation - Wind
Status: Proposed
Organization: SunZia Wind PowerCo LLC
Region: New Mexico
Summary: SunZia Wind PowerCo LLC submitted filings on March 29, 2023, to the Federal Energy Regulatory Commission for the SunZia Wind Project. The Project is a wind facility representing over 3,500 megawatts (MW) of renewable energy in Torrance, Lincoln, and San Miguel Counties, New Mexico. It will also include a 550-mile 525 kilovolts (kV) transmission line between central New Mexico and south-central Arizona, which can transport 3,000 MW. The construction started in January 2023 and is expected to be completed in January 2026, costing $8 billion.
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$2.7 Billion Southern Spirit Transmission Project
Type: Transmission Line
Status: Proposed
Organization: Southern Spirit Transmission LLC
Region: Mississippi
Summary: Southern Spirit Transmission LLC submitted filings on February 14, 2023, to the Mississippi Public Service Commission for the Southern Spirit Transmission Project. The project is a high voltage direct current (HVDC), 525 kilovolts (kV) transmission line that includes a converter line connected to a converter station in Choctaw County, Mississippi. The construction will commence in 2025 and is expected to be completed in December 2026, costing $2.7 billion.
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$1.3 Billion Line 945 Electric Transmission Structure Replacement Project
Type: Transmission Line
Status: Proposed
Organization: New York State Electric & Gas, Corp
Region: New York
Summary: New York State Electric & Gas, Corp submitted filings on February 22, 2023, to the New York Public Utilities Commission for the Line 945 Electric Transmission Structure Replacement Project. The proposed Project is located within the Town of Dryden, Tompkins County, New York (NY); towns of Harford, Lapeer, and Willet, Cortland County, NY; and the Towns of German, McDonough, Preston, and Norwich, Chenango County, NY. The Project is for the maintenance and replacement of specific structures to maintain the integrity of the primarily overhead 47.12 miles 115 kilovolts (kV) electric transmission line. The project started on March 1, 2023, and is expected to be completed in December 2024, costing $1.3 billion.
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$689 Million Wilmarth – North Rochester – Tremval Transmission Project
Type: Transmission Line
Status: Proposed
Organization: Northern States Power Company
Region: Minnesota
Summary: Northern States Power Company submitted filings to the Minnesota Public Utilities Commission for the proposed Wilmarth – North Rochester – Tremval Transmission Project. The project consists of a new 345 kilovolts (kV) transmission line between the Wilmarth Substation in Mankato, Minnesota, and the Mississippi River. Construction will commence in October 2023 and is expected to be completed in June 2028, costing $689 million.
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$670 Million Southwest Atlanta Energy Storage Project
Type: Energy Storage, BESS, Stand-alone
Status: Proposed
Organization: Southwest Atlanta Energy Storage, LLC
Region: Georgia
Summary: Southwest Atlanta Energy Storage, LLC submitted filings on April 3, 2023, to the Georgia Federal Energy Regulatory Commission for Southwest Atlanta Energy Storage. The proposed Project Interconnection Customer’s Generating Facility located in Fulton County, Georgia, is an Energy Storage Resource (ESR) utilizing inverters with alternating current (AC)-connected batteries, with an interconnection service amount of 600 megawatts (MW) at the Point of Interconnection. The total nameplate capacity of the generating facility is 692.3 megavolt amperes (MVA) of battery capacity. Construction started on June 1, 2023, and is expected to be completed on November 30, 2025. According to the 2021 Annual Technology Baseline (ATB) data from the National Renewable Energy Laboratory (NREL), energy storage projects will cost $1,119 per kilowatt (KW). Based on this value, FirmoGraphs estimates the project will cost $670 million.
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Notable M&A
The following M&A transactions in the Power Generation and Supply Industry stand out in the month of May:
- On May 2, 2023, Crescent announced that it entered into a definitive purchase agreement to acquire operatorship and incremental working interest in its existing Western Eagle Ford assets from Mesquite Energy, Inc. for total consideration of $600 million in cash, subject to customary purchase price adjustments.
- On May 22, 2023, Chevron Corp. announced that it entered into a definitive agreement with PDC Energy, Inc. to acquire all of the outstanding shares of PDC in an all-stock transaction valued at $6.3 billion. Based on Chevron’s closing price on May 19, 2023, and under the terms of the agreement, PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. The total enterprise value of the transaction, including debt, is $7.6 billion.
What We Are Reading
Here are some recent articles our team has been reading:
- Portland General Electric to add 400 MW of battery storage at 2 sites in partnership with NextEra, Eolian
- Dominion Energy projects adding up to 9 GW of gas-fired capacity in Virginia to bolster reliability
- Public Service Company of Oklahoma’s Fuel-Free Power Plan approved to add nearly 1,000 MW to generation mix
- EPA proposes rules that could require utilities to clean up ‘legacy’ coal ash ponds, landfills
- WHAT THEY ARE SAYING: Biden-Harris Administration Announces Largest Investment in Rural Electrification Since the New Deal
- AEP RELEASES 2023 CORPORATE SUSTAINABILITY REPORT
- Xcel Energy plans major solar expansion in Midwest, with new arrays, solar purchases and retiring coal operations
- Hawaiian Electric finalizes short, long-term plan to decarbonize whole energy system by 2045
- California ISO Approves $7.3 Billion Investment in Transmission
- MidAmerican requests modification to 2,042 MW wind, 50 MW solar addition plans in Iowa
- Hawaiian Electric proposes to repower Waiau Power Plant
- DOE Launches New Energy Earthshot to Decarbonize Transportation and Industrial Sectors
- Duke Energy to resubmit plan to close Gallagher coal station basins
- Constellation Energy in Deal to Buy NRG’s Stake in South Texas Nuclear Project
- US battery storage capacity increased by 52% year over year, to 10.8 GW by the end of Q1
- Texas plan to provide generators with incentives worth up to $1B annually heads to Gov. Abbott
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 June and July 2023
|
Name Organization |
Name Meeting Key |
Date Start |
Date End |
|
Edison Electric Institute |
2023-06-11 |
2023-06-13 |
|
|
Renewable Fuels Association |
RFA International Fuel Ethanol Workshop & Expo |
2023-06-12 |
2023-06-14 |
|
IEEE Power & Energy Society |
IEEE - PES Transportation Electrification Conference And Expo |
2023-06-21 |
2023-06-23 |
|
American Council for an Energy-Efficient Economy |
2023-07-11 |
2023-07-13 |
|
|
IEEE Power & Energy Society |
2023-07-16 |
2023-07-20 |
Early Bird Registration
- Event: ACEEE Behavior, Energy, and Climate Change
Dates: November 12-15, 2023
Deadline for Early Registration: July 31, 2023