NEW ENGLAND GRID NEEDS: New England’s grid operator warned that the region will need to invest nearly $1 billion in its electric transmission infrastructure per year through 2050 to avoid capacity shortfalls and handle the rising power demand—especially as wind and solar make up a rising share of its energy mix.
Takeaways: The report modeled for several different demand scenarios through 2050. The low end of 51 GW could be achieved only if the region kept online some stored fuels like natural gas and oil—which is almost a certain impossibility, given the emissions reduction targets passed by several of the six states in the New England ISO. The high end is around 57 GW peak demand, which is almost 150% higher than New England’s highest-ever winter peak load amount.
The 57 GW peak-demand scenario would necessitate an additional $26 billion in investments by 2050, according to the report.
Where the money is going: The report says that further investment is necessary in the New England grid, stressing that the funds should be directed toward battery storage and other “demand-shifting technology” that can help consumers reduce consumption during the time of day when the grid is most strained.
Why it matters: The report comes as New England states have moved to embrace renewable energy and clean power generation. Both Maine and Massacusetts are targeting 100% renewable energy by 2050, and Massachusetts, seeks to reduce emissions from its power grid by 53% compared to 1990 levels by 2025, and 70% by the end of the decade.
Imports from other nearby grids will also be more difficult to obtain: New York, for example, which is part of a separate power grid but often supplies New England’s grid in the event of capacity shortages, is separately targeting 70% renewable energy by 2030—largely through an embrace of offshore wind projects which have been mired by supply chain setbacks and rising costs.
Broader grid threats: The report comes at a time when grids across the country are under heightened strain from extreme weather, which has placed record-high demand on power grids—increasing the need for further investments and more reliable sources of power nationwide.
The North American Electric Reliability Corporation, or NERC, said in its most recent Winter Reliability Assessment that more than two-thirds of the U.S. is at risk of power outages during winter storms. Reliability concerns are also on the rise during summer months as well.
More recent data has underscored these concerns: A study prepared this week for the group America’s Power, a trade group representing U.S coal interests, found that PJM, the nation’s largest grid operator that services 13 states and the District of Columbia, is at heightened risk of blackouts due to the retirement of coal- and fossil fueled-generation by 2028.
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E&C REPUBLICANS PROBING FERC ON LOWER SNAKE RIVER DAMS: House Energy and Commerce Committee leadership is pressing the Federal Energy Regulatory Commission on whether it was involved in the Biden administration’s commitment to help restore depleted salmon populations in the Columbia River Basin – a move Republicans are arguing would lead to the dismantling of four hydroelectric dams in the Lower Snake River.
Some background: In December, the Biden administration announced it would spend more than $1 billion over the next decade to help repair the affected ecosystems within the Basin, siding with local environmental and tribal groups in their decades-long push to protect salmon and other native fish. While the deal stopped short of calling for the breach of the Snake River dams, it sparked backlash from Republicans – who argued that the agreement will create a path to dismantling the infrastructure.
In a letter sent Wednesday to FERC Chairman Willie Phillips and other commissioners, E&C Chairwoman Cathy McMorris Rodgers and subcommittee Chairman Jeff Duncan questioned whether FERC was a part of conversations with the White House on the commitment, and asked for its analysis of the decision in how may it affect grid reliability and energy prices.
Key quote: “We are concerned that the Biden administration failed to consider the impact of dam breaches on electric reliability when conducting its secret negotiations. The Federal Energy Regulatory Commission (FERC) should have been involved in these discussions in order to ensure misguided policies do not further undermine grid reliability. The lower Snake River dams provide over 3,000 MW of affordable nameplate capacity that communities in the western United States depend on for reliability and resource adequacy.”
A leaked copy of the draft agreement said that the government is willing to build clean energy projects to help offset the hydropower generated by the dams. The plan ignited outcry from House Republicans, who held a hearing last month scrutinizing the decision.
The letter is requesting answers from the FERC commissioners by March 6. Read that here.
RIVIAN ANNOUNCES LAYOFFS AMID TOUGH MARKET: Electric vehicle manufacturer Rivian announced that it would be cutting its personnel by 10% as it faces economic headwinds that are rippling across the EV sector.
The announcement came as the company released its fourth quarter and full year financial report, in which it pointed to economic uncertainties and inflation informing their expectations for the year. Rivian expects to build just 57,000 vehicles this year – which is in line with last year’s production, but falls short of market expectations of 80,000 units. The personnel cut will also be its third cut in the last year and a half.
“We firmly believe in the full electrification of the automotive industry, but recognize in the short-term, the challenging macro-economic conditions,” CEO and founder RJ Scaringe said in a written statement.
Why this matters: This announcement underlines the struggles the company is having with increasing production amid a slowdown in the EV market. The company, however, will be unveiling a new demo of a midsize platform, the R2, in March. Read the announcement.
HERE’S A WILD ONE – YAKUZA BOSS CHARGED WITH NUCLEAR TRAFFICKING: A member of the Japanese mafia was charged with trafficking nuclear materials, a New York District Attorney office announced Wednesday.
According to a press release from the attorney’s office in the Southern District, Takeshi Ebisawa, a leader with the Yakuza Transnational Organized Crime Syndicate, was allegedly conspiring with a network of associates to traffic nuclear materials from Burma to Iran for the development of a nuclear weapons program.
During the course of the investigation, Ebisawa had shown samples of nuclear materials to a DEA undercover agent, who had posed as a narcotics and weapons trafficker. The samples, which included uranium and weapons-grade plutonium, were seized by Thai authorities and given to U.S. investigators.
“The defendant stands accused of conspiring to sell weapons grade nuclear material and lethal narcotics from Burma, and to purchase military weaponry on behalf of an armed insurgent group,” said Assistant Attorney General Matthew Olsen in a written statement. “It is chilling to imagine the consequences had these efforts succeeded, and the Justice Department will hold accountable those who traffic in these materials and threaten U.S. national security and international stability.”
Ebisawa, along with another co-conspirator, faces eight different counts of charges ranging from international trafficking of nuclear materials to money laundering. The defendant could face life in prison if convicted of specific charges. The pair were set to be arraigned today around noon. More info on that here.
EU NATIONS ARGUE GERMAN GAS LEVY PLAYS INTO RUSSIAN RELIANCE: Four European Union member states are warning that a German tax on gas undermines energy security in the bloc and could boost reliance on Russia – at a time where the region is looking to reduce its reliance on the country’s supplies, Bloomberg reports.
In a document obtained by Bloomberg, Austria, Czech Republic, Hungary, and Slovakia argue the levy — which is meant to help cover the costs of refilling – would make gas more expensive. Germany had introduced the fee at the height of Europe’s energy crisis in 2022, after Russia reduced its flows to the region and Germany had to spend billions of euros to refill its reserves.
The levy has been extended until March 2027 and has been raised several times since it was introduced. LNG from Germany is one of the main routes the bloc sees as helping to compensate for a shortfall in reduced supply coming from Russia.
However, the four countries objecting to the levy are the most exposed to any reduction in supplies through Ukraine, which still accounts for around 14 billion cubic meters of gas to the EU.
“The increased transit costs disproportionately affect the Central and Eastern European region, making it more difficult for member states in this area to access gas imports from Western Europe,” according to the paper, which is expected to be presented at the March 4 meeting of energy ministers. “This could force some member states to rely more heavily on gas imports from Russia, potentially increasing their geopolitical dependencies and undermining all efforts to diversify energy sources.” More on that here.
RUNDOWN
The Hill Banks backpedal on climate amid federal scrutiny, anti-ESG pressure
Bloomberg The US isn’t recycling nearly enough cardboard and paper
