Our November 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 November:
Illinois HB 2473
Status: Proposed
Organization: Illinois State Legislature
Summary: On November 9, 2023, the Illinois General Assembly enacted HB 2473 to amend the Public Utilities Act and the Nuclear Safety Law of 2004 to facilitate the development of small modular reactors (SMRs) in the state. The bill removes the requirement for a federal license before constructing nuclear power plants and reactors and eliminates the definition of high-level nuclear waste. The bill also requires the Illinois Emergency Management and Office of Homeland Security to adopt rules for regulating SMRs, including decommissioning, emergency preparedness, and fees. The bill authorizes the governor to commission a study on regulatory gaps for SMRs and requires the Agency to lead the research and publish it online. The bill repeals the provision requiring the study on January 1, 2027. The bill also exempts SMRs from the Illinois Nuclear Safety Preparedness Act and the Illinois Nuclear Facility Safety Act.
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Michigan SB 502
Status: Proposed
Organization: Michigan State Legislature
Summary: On November 8, 2023, the State of Michigan Legislature passed SB 502, proposing significant amendments to the Michigan Public Service Commission (MPSC) Act, aiming to reshape the MPSC's approach to regulating utilities in the state. Key provisions of the bill include:
- Requiring the MPSC to conduct proceedings to determine modeling assumptions for integrated resource plans (IRPs) every four years, starting on August 18, 2023.
- Mandating that the MPSC consider the specified goals when evaluating utility applications for rate changes, service modifications, and infrastructure investments.
- Emphasizing the importance of equitable access to energy efficiency programs, ensuring that all residents, regardless of their income or location, can participate in and benefit from energy-saving initiatives.
- Promoting compliance with renewable energy standards, aligning Michigan's energy policies with the state's renewable energy goals, and ensuring that utilities are on track to meet these targets.
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Michigan SB 273
Status: Proposed
Organization: Michigan State Legislature
Summary: On November 8, 2023, the State of Michigan Legislature enacted SB 273 to improve energy efficiency and reduce energy waste in the state. The bill requires electric utilities to achieve a minimum of 1.5% annual electric energy efficiency savings, with an additional incentive goal of 2% and over. Natural gas utilities must also achieve a minimum of 1.5% annual savings. Additionally, the bill creates an energy efficiency resource standard that would set long-term targets and benchmarks for energy efficiency programs and measures. SB 273 establishes an energy efficiency advisory council that would provide recommendations and oversight for implementing and evaluating the energy efficiency resource standard. Furthermore, it allows customers to opt out of paying the surcharge for energy efficiency programs if they demonstrate that they have achieved equivalent or greater savings through their efforts.
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Michigan SB 271
Status: Proposed
Organization: Michigan State Legislature
Summary: On November 8, 2023, the State of Michigan Legislature passed SB 271 to amend the Clean and Renewable Energy and Energy Waste Reduction Act of 2008. The bill requires 60% of the electricity sold by providers in the state to come from renewable energy sources by 2030 and 100% by 2035. Additionally, the bill establishes a renewable energy credit trading program to facilitate compliance with the renewable energy standard. To bolster these initiatives, the bill mandates the creation of a clean energy fund to support the development and deployment of renewable energy initiatives, energy efficiency measures, energy storage systems, and grid modernization projects. Furthermore, the bill requires providers to submit integrated resource plans to the commission every three years that demonstrate how they will meet the renewable energy standard and other state energy policy goals.
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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.
$1.7 Billion Delamar Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Estuary Development Partners, LLC
Region: Nevada
Summary: Estuary Development Partners, LLC submitted a notice of application on November 2, 2023, to the Public Utilities Commission of Nevada for the proposed Delamar Solar Project. The Project is a 1,200 megawatt (MW) solar electric generating facility, an up to 4,800 megawatt-hour (MWh) battery energy storage system, an approximately 63-mile 525 kilovolts (kV) generation-tie line, and associated facilities on about 16,654 acres of federally-managed land in Lincoln and Clark Counties, Nevada. The construction will commence in the second quarter of 2026 and will be completed by the fourth quarter of 2028. According to the 2022 Annual Technology Baseline (ATB), solar projects with battery energy storage will cost $1,446 per kW. Based on this value, FG estimates the Project will cost $1.735 billion.
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$654 Million Orc Solar 1 Project
Type: Generation - Solar
Status: Proposed
Organization: Painted Desert Energy
Region: New Mexico
Summary: Painted Desert Energy submitted filings on November 16, 2023, to the New Mexico Public Regulation Commission for the proposed Orc Solar 1 Project. The Project is an up to 400 megawatt (MW) nameplate capacity solar energy facility, which includes an up to 200 MW AC-coupled battery energy storage (BESS) facility in Cibola County, New Mexico. The construction is estimated to begin in 2024 and be put into operation by December 31, 2025, or June 29, 2026, at the latest. According to the 2022 Annual Technology Baseline (ATB), solar projects with battery energy storage will cost $1,635 per kW. Based on this value, FirmoGraphs estimates the Project will cost $654 million.
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$357 Million Hanson Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Hanson Solar, LLC
Region: Texas
Summary: Hanson Solar, LLC, a subsidiary of Cypress Creek Renewables Holdings, LLC will construct the proposed Hanson Solar Project. The Project is a solar facility with 396 megawatts (MW) of alternating current and attached battery storage to be located in Coleman County, Texas. The construction will commence in the first quarter of 2027 and is expected to enter commercial operation by December 2027, costing $356.8 million.
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$300 Million 12 Mile Solar Project
Type: Generation - Solar
Status: Proposed
Organization: 12 Mile Solar, LLC
Region: Texas
Summary: 12 Mile Solar, LLC, a subsidiary of Avangrid Renewables, LLC will construct the proposed 12 Mile Solar Project. The Project is a solar facility with 360 megawatts (MW) of alternating current in Schleicher County, Texas. The construction will commence in Q3 2027 and is expected to enter commercial operation in the first quarter of 2029, costing $300 million.
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$282 Million Boxcar Solar South Project
Type: Generation - Solar
Status: Proposed
Organization: Boxcar Solar South, LLC
Region: Texas
Summary: Boxcar Solar South, LLC, a subsidiary of EDF Renewables, Inc., will construct the proposed Boxcar Solar South Project. The Project is a solar facility with 350 megawatts (MW) of alternating current to be located in Ellis County, Texas. The construction will commence in January 2027 and is expected to enter commercial operation in December 2028, costing $282.45 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 November:
- On November 2, 2023, Exxon Mobil Corporation announced the closing of an acquisition of Denbury Inc. in an all-stock transaction valued at $4.9 billion. Under the terms of the agreement, Denbury shareholders will receive 0.84 shares of ExxonMobil for each Denbury share.
- On November 9, 2033, Global Partners LP entered into an asset purchase agreement with Motiva Enterprises LLC, to acquire 25 liquid energy terminals along the Atlantic Coast, in the Southeast and in Texas. Global has agreed to purchase the terminals, with a shell capacity of 8.4 million barrels, for $305.8 million in cash.
- On November 13, 2023, as part of its development as an integrated power player, TotalEnergies Paris signed an agreement with TexGen, a U.S.-based company, to acquire for $635 million three gas-fired power plants with a total capacity of 1.5 GW in Texas.
What We Are Reading
Here are some recent articles our team has been reading:
- Kentucky PSC partly approves PPL’s $2.1B plan to retire coal, add gas, solar and storage
- Texas voters approve $10B energy fund, with most going to build gas-fired power plants
- FERC approves PJM’s Exelon-oriented $796M transmission plan over Maryland objections
- America’s power statement on kentucky public service commission’s decision to approve the closure of coal power plants
- Air rules could close 8.6GW of Texas coal plants
- Wisconsin coal plants are closing, but ratepayers are still on the hook
- Biden announces $3.9B for grid modernization as climate report warns of ‘insufficient’ adaptation
- Energy Department offers $3.5B for battery manufacturing
- Western Maryland coal-burning power plant to retire in 2024, becoming state’s last to announce closing
- Ørsted, Eversource install New York’s first offshore wind turbine
- Equinor-BP’s 2.1-GW offshore Empire Wind project receives federal approval
- Invenergy in talks with utilities, other companies for capacity on Grain Belt transmission line
- Eco Material Technologies and Rainbow Energy Center Announce Coal Creek Station as First Fully Circular Power Plant
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 2024
|
Name Organization |
Name Meeting Key |
Date Start |
Date End |
|
Energy Storage North America |
ESNA Energy Storage North America and Intersolar North America Conference and Expo |
2024-01-17 |
2024-01-19 |