FERC Nears Interconnection Reform

The Federal Energy Regulatory Commission (FERC) is closing in on reforming the interconnection queue process and setting minimum levels of interregional transfer capacity, according to acting Chairman Willie Phillips.

These reforms are aimed at removing barriers to regional and interregional transmission investment, bolstering reliability during extreme weather, and supporting the development of grid-enhancing technology to beef up capacity on existing lines.

Phillips stressed the importance of reducing delays and litigation by engaging with communities early on in proposed infrastructure projects. He also highlighted the role of regional transmission organizations and independent system operators in fostering diverse generating resources and bringing transparency to transmission planning and operations.

Phillips believes that transmission is the best path to providing reliability to the grid. “One of the best ways that we can maintain reliability and resilience is to make sure that we get power from one part of the country where it’s generated to where it’s needed,” Phillips said according to a story covering the Chairman’s perspective in Utility Dive. “What I recommend is that we be thoughtful, that we be strategic and do this in a way that is efficient, that is sustainable. I think a big part of doing this too, is not just building everything that we can.”

Quebec’s Hydropower Problem

Quebec has been promoting its abundant clean energy to U.S. states for years, but it’s now facing an existential dilemma: it can’t crank out enough electricity from its hydropower dams.

“It’s a dilemma mostly of Quebec’s doing, after landing export deals such as the Champlain Hudson Power Express, Blackstone Inc.’s $6-billion transmission line to feed New York City, and luring manufacturers to the province with low-priced power,” reports Bloomberg. “Hydro-Quebec, the government-owned utility, estimates it needs more than 100 terawatt-hours of additional electricity — more than half its annual generating capacity — to reach the province’s goal of being carbon neutral by 2050. A terawatt-hour can power about 60,000 homes a year.”

Hydropower plays a vital role in Canada's largest province: Hydro-Quebec accounted for about 5% of government-generated revenues in 2022, packing $6 billion in the province’s coffers. Hydro-Quebec has also been vital for New England and New York state’s electricity systems, which have come to rely on clean Canadian imports to replace prematurely shut down nuclear plants.

The export deals that Quebec landed, including the Champlain Hudson Power Express and the New England Clean Energy Connect, could hobble Hydro-Quebec’s ability meet future demand.

US House to Repeal Biden’s Solar Tariff Waivers

The US House of Representatives is set to vote on legislation to repeal the Biden Administration's two-year pause on tariffs of solar panel imports from Southeast Asia.

In June 2022, President Biden announced a tariff exemption for solar panels imported from Cambodia, Malaysia, Thailand, and Vietnam in an effort to boost the US solar industry supply chain.

“However, last week, a U.S. House of Representatives committee voted in favor of restoring the tariffs on the solar panels, with proponents arguing that tariffs on those products would help U.S. solar component manufacturers who have said they cannot compete with cheaper imported products,” reports Oilprice.com.

The solar installation industry in the US counters that the tariffs would impact project timelines and eliminate jobs.

The repeal of the tariff waivers, which could easily pass in the Republican-controlled House, also needs to clear the Democrat-controlled Senate.

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Conversation Starters

1. The Empire State is getting rid of gas. “New York is on the cusp of becoming the first state in the nation to pass a law banning natural gas in most new buildings, according to a handshake agreement that Gov. Kathy Hochul (D) announced she and state lawmakers had reached late Thursday,” reports The Washington Post. “The law would effectively require that most new buildings go all-electric, jettisoning fossil-fuel-burning appliances in favor of heat pumps and induction stoves for heating and cooking. It is part of a national movement, led by climate advocates, to cut greenhouse gas emissions from homes and businesses by ridding buildings of natural gas, heating oil and propane.”

2. Japan plans to send its LNG elsewhere. “Japan's JERA, one of the world's biggest buyers of liquefied natural gas (LNG), expects to divert more of its LNG trade volume to other Asian countries in the long run, as demand weakens at home, an official said. On Friday, JERA reached a fresh LNG purchase deal with a U.S. company and predicted a jump in 2023/24 net profit to 300 billion yen, boosted by lower fuel costs. Its LNG transaction volume came to 37 million tonnes in the 2021/22 fiscal year,” reports Reuters. “Looking ahead, the company's transaction volumes ‘may decline or may stay the same,’ Yukio Kani, JERA's new global chief executive officer and chairman, told Reuters in an interview.”

3. Did an Italian energy company make bank stiffing Pakistan? “Eni SpA earned about $550 million by canceling and then reselling contracted liquefied natural gas promised to Pakistan over the last two years, which exacerbated the Asian nation’s energy shortage, according to an analysis by two nonprofit group,” reports Bloomberg. “The Italian energy major failed to deliver a number of scheduled shipments between late 2021 and early 2023 under a contract to supply one LNG cargo a month, according to Sourcematerial, an investigative nonprofit, and Recommon, an Italian environmental group. During that time, Eni’s LNG ships stopped going to Pakistan and headed to Turkey instead, they said in the joint report.” Eni denies that it benefited from the situation, and all undelivered cargoes to Pakistan were beyond the reasonable control of the firm.”

Crom’s Blessing