Power Generation and Supply Market Recap, October 2023

Our October 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 October:

California SB 410: Powering Up Californians Act

Status: Effective

Organization: California State Legislature 

Summary: On October 7, 2023, the California Legislature passed the Powering up Californians Act, which aims to speed up the connection of clean energy projects to the electric grid. The act mandates the California Public Utilities Commission (CPUC) to set reasonable targets and deadlines for utilities to energize new customers and upgrade existing services. The act requires utilities to report their performance and take remedial actions if they fail to meet the targets. The act allows a ratemaking mechanism to track and recover energization project costs. Moreover, the act is expected to help the state achieve its climate, air quality, and equity goals by facilitating the transition from fossil fuels to renewable and zero-carbon energy sources.

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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.

$1.4 Billion Clyde Solar Project

Type: Generation - Solar 

Status: Proposed

Organization:  Sawtooth DevCo, LLC

Region: Nevada

Summary: Sawtooth DevCo, LLC submitted filings on October 9, 2023, to the Public Utilities Commission of Nevada for the Clyde Solar Project. The Project is a 1,000 megawatts (MW) solar electric generating facility, up to 500 kilovolts (kV) transmission line, battery energy storage, and ancillary facilities on approximately 6,850 acres of land in Humboldt County, Nevada. The construction will commence in mid-2027 and is expected to be completed in 2029. According to the 2022 Annual Technology Baseline (ATB), Solar projects with battery energy storage will cost $1,352 per kW. Based on this value, FirmoGraphs estimates the Project will cost $1.352 billion.

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$500 Million Rolling Plains Solar Project

Type: Generation - Solar 

Status: Proposed

Organization: Rolling Plains Solar, LLC

Region: Texas

Summary: Rolling Plains Solar, LLC, a subsidiary of Core Solar, LLC, will construct the proposed Rolling Plains Solar Project. The Project is a solar facility with 500 megawatts (MW) of alternating current on approximately 12,200 acres of privately owned land in Baylor County, Texas. The construction will commence in 2027 and is expected to enter commercial operation in the fourth quarter of 2028, costing $500 million.

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$480 Million Panther Grove 2 Project

Type: Generation - Wind

Status: Proposed

Organization: Panther Grove 2, LLC

Region: Illinois

Summary: Panther Grove 2, LLC submitted filings on October 13, 2023, to the Federal Energy Regulatory Commission for the proposed Panther Grove 2 Project. The Project is a 400-megawatt (MW) wind-powered electric generation facility in Woodford County, Illinois. The construction will commence on December 31, 2024, and is expected to enter commercial operation on or before January 18, 2027. According to the 2022 Annual Technology Baseline (ATB), onshore wind Projects will cost $1,206 per kW. Based on this value, FirmoGraphs estimates the Project will cost $480 million.

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$316 Million Oliver Wind IV Energy Center

Type: Generation - Wind

Status: Proposed

Organization: Oliver Wind IV, LLC

Region: North Dakota

Summary: Oliver Wind IV, LLC, a subsidiary of NextEra Energy, Inc., submitted filings on September 28, 2023, to the North Dakota Public Service Commission for the Oliver Wind IV Energy Center project. The Project will generate approximately 200 megawatts (MW) of electricity from about 73 turbines on about 22,291 acres of land in Oliver County, North Dakota. Oliver Wind IV expects the Project to commence construction in May 2024 and to be placed in service by December 2024, costing $316 million.

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$240 Million Templeton Wind Project

Type: Generation - Wind

Status: Proposed

Organization: Templeton Wind Energy Center, LLC

Region: Indiana

Summary: Templeton Wind Energy Center, LLC, a subsidiary of NextEra Energy, Inc., submitted filings on September 27, 2023, to the Indiana Utility Regulatory Commission for the Templeton Wind Project. The Project will generate approximately 200 megawatts (MW) of electricity from about 75 turbines on about 20,000 acres of land near Oxford and Otterbein in Benton County and Tippecanoe County, Indiana. The construction will commence in Q2 2025 and is expected to be completed by Q4 2025. According to the 2022 Annual Technology Baseline (ATB), onshore wind projects will cost $1,206 per kW. Based on this value, FirmoGraphs estimates the Project will cost $240 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 October:

• On October 10, 2023, Cordia, a leading provider of safe, reliable, and sustainable energy solutions, announced that it has signed a binding agreement to acquire three microgrids and district energy systems in Allegheny County, Pennsylvania, from Essential Utilities, Inc. The acquisition is valued at $165 million.
  
  
• On October 17, 2023, Capital Power Corporation announced that it had executed an agreement to acquire a 50.15% ownership interest in the Frederickson 1 Generating Station from Atlantic Power & Utilities for US$100 million (CAD$137 million). The other 49.85% is owned by Puget Sound Energy.
  

What We Are Reading

Here are some recent articles our team has been reading:

• SolarBank Commences Major Construction on 3.7 MW Geddes Project - Largest Project to Date to be Owned by SolarBank
• Texas PUC begins work to attract advanced nuclear reactors, in and out of ERCOT market
• Dominion Energy Proposes New Solar Projects for Virginia Customers
• Ameren Missouri to add 4.7 GW of renewables by 2036
• BP deploys first Archaea modular renewable natural gas plant at Rumpke landfill
• Demolition of retired Lansing power plant underway
• Green Mountain Power proposes energy storage for all Vermonters
• Duke to launch innovative ‘tariffed on-bill’ energy efficiency program in 2024
• DOE selects 7 hydrogen hubs for $7B funding opportunity
• Avangrid Subsidiaries NYSEG and RG&E’s Reliable Energy New York Plan Approved by State: Plan Allows for Critical Investments Necessary for Safety, Reliability, and the Transition to the Clean Energy Future
• In trying to close its coal power plant, Austin encounters obstacles to going green
• DOE announces ‘largest-ever investment in America’s grid,’ giving $3.5B across 44 states
• BOEM Releases Draft Wind Energy Area in the Gulf of Maine for Public Review and Comment
• Clearway starts up 482MW California solar-storage plant
• FERC directs NERC to draft reliability standards for wind, solar and storage
• US utility Xcel Energy looks to replace coal with 1.2GW wind
• DOE Announces $18.5 Billion In Energy Savings and Celebrates First Year Results of Better Climate Challenge
• Utility Group Grid North Partners Plans 19 Transmission Projects in Minnesota
• New Mexico approves early closure agreement for Xcel’s coal-fired Tolk power plant
• DOE issues draft plan for speeding up, improving grid interconnections
• Three Rivers Energy dedicates new $1.3 billion power plant near Morris
• After tepid first auction, BOEM announces 4 new Gulf of Mexico offshore wind areas
• Biden-Harris Administration Announces $1.3 Billion to Build Out Nation’s Electric Transmission and Releases New Study Identifying Critical Grid Needs

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 October and November 2023