Welcome to Grid Brief! Here’s what we’re looking at today: the G7 meets on coal power phaseout, MISO’s capacity auction sees huge price increase, and more.

G7 Nations Ponder 2035 Coal Phaseout

G7 leaders are meeting in Italy to discuss a potential coal power phaseout by 2035.

“Diplomatic negotiators for the G7 nations - Italy, the United States, Britain, France, Germany, Canada and Japan - discussed the issue until late on Sunday, with one country still opposing the move, said the source, who asked not to be named,” reports Reuters.

So what will replace coal? According to the sources, much of the talk is about scaling up renewable energy and battery storage. But the Italian government is also pushing for bio-fuels and nuclear to feature in the agreement.

"A contribution from nuclear energy in our energy mix would help Italy a lot in meeting the net zero target by 2050," Italian Energy Minister Gilberto Pichetto Fratin said on Sunday. 

MISO’s Eye-Watering Auction Results

The Midcontinent Independent System Operator released its seasonal capacity auction results last week and the prices were painful.

Summer and spring capacity prices just about tripled respectively to $30/MW-day and $34.10/MW-day across the MISO footprint. Baseload power retirements were the main culprit in the price increases.

“However, prices for MISO zone 5 — served by Ameren Missouri and Columbia, Missouri’s municipal utility — jumped to $719.81/MW-day for the upcoming fall and spring seasons from $15/MW-day and $10/MW-day, respectively, in the previous auction,” reports Utility Dive. “The increase in pricing to the ‘cost of new entry’ was triggered by power plant retirements and planned power plant maintenance that led to expected supply shortfalls, according to MISO.”

The drop in surplus capacity was stark. Overall, summer capacity fell just shy of a third—from 6,482 MW to 4,624 MW—thanks to retirements and a decrease in offers form MISO’s neighbors.

“This year’s results amplify the need and urgency for MISO’s efforts around resource availability and market redefinition as outlined in the Reliability Imperative,” Clair Moeller, MISO’s president and chief operating officer, said.

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Conversation Starters

• WEC Energy to acquire Dallas solar projects. “U.S. electric utility WEC Energy Group said on Monday it will acquire 90% ownership stake in a solar project located near Dallas, Texas for about $459 million. The 300-megawatt solar project Delilah I is developed by Invenergy to generate renewable energy under a long-term power purchase agreement with a global automaker,” reports Reuters. “WEC said the investment is eligible for production tax credits provided under President Joe Biden's Inflation Reduction Act (IRA). Companies and residents are aiming to capitalize on the IRA, as it provides generous tax credits for EVs and clean energy technologies such as wind and solar farms. The project is a part of a five-phase Samson & Delilah solar portfolio. WEC said it already holds a majority interest in a separate phase of the project, Samson I. Commercial operation at the Delilah I project is expected to begin by the end of June.”

• Polysilicon producers to recover from solar downturn. “Polysilicon producers will be the first sector along the solar equipment supply chain to emerge from the downturn plaguing the industry, according to a Chinese producer of the panel ingredient,” reports Bloomberg. “A shakeout in the segment will happen faster than in other areas due to high capital costs for market reentry after activity has been suspended, said Amy Song, a vice president at GCL Technology Holdings Ltd. That will prime surviving companies for a quicker recovery, she said.”

• Vogtle Unit 4 has begun commercial operation. “The new unit, which can produce enough electricity to power an estimated 500,000 homes and businesses, will provide reliable, emissions-free energy to customers for at least 60 to 80 years. Vogtle Unit 3 entered commercial operation on July 31, 2023,” reports PRNewswire. “With all four units now in operation, Plant Vogtle is the largest generator of clean energy in the nation, expected to produce more than 30 million megawatt hours of electricity each year. The plant is operated by Southern Nuclear on behalf of the co-owners including Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities.”

Crom’s Blessing

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