Welcome to Grid Brief! Here’s what we’re looking at today: Siemens Gamesa considering closing factories in its wind division, Gov. Newsom signs an interconnection bill, Holtec takes the formal first step in restarting its Palisades nuclear power plant, and more.

Siemens Considers Wind Factory Closures

Siemens Gamesa, the world’s biggest offshore wind turbine manufacturer, is consider closing some of its 79 sites and 15 factories.

“The German power equipment supplier is struggling with far-reaching quality issues at its onshore wind turbine division as well as potentially loss-making offshore contracts, which have caused its shares to more than halve since June,” report Reuters. “The measures, which are likely to cause fresh layoffs, are aimed at providing long-term relief for Siemens Gamesa by outsourcing production of some key components, such as blades, in order to raise margins, the people said.”

The company has racked up $2.3 billion in charges relates to its quality problems.

The closures/hibernations will likely trigger a round of layoffs. The wind division is also seeking relief by outsourcing some of its component production.

Newsom Signs Interconnection Bill

California’s Governor Gavin Newsom signed a new bill to aid the state’s electrification goals by speeding up customer interconnections, which currently take six months to a year.

“SB 410, known as the Powering Up Californians Act, directs the California Public Utilities Commission to set average and target time periods for grid connections and upgrades,” reports Utility Dive.

The Environmental Defense Fund and other organizations believe the bill will hasten the adoption of electric vehicles.

“Delays in connecting new electric vehicle chargers to the grid jeopardize the ease of access required to propel the transition away from fossil fuels,” Katelyn Roedner Sutter, EDF’s California state director, said. “These new requirements on utilities to develop the infrastructure to support this change and the accompanying growth in energy demand will prove vital.”

Pacific Gas & Electric, a utility that once opposed the SB 410, told Utility Dive that the bill “rightfully addresses the urgent need to fund the capacity and energization work necessary to power the state’s electrification goals.”

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Holtec Formally Initiates Palisades Restart Process

Holtec, which acquired Michigan’s Palisades nuclear power plant when its previous owner retired it, has begun the formal process for restarting the 800 MW plant.

Holtec has filed re-authorization documents with the Nuclear Regulatory Commission.

“Our licensing submittal is a significant step in exploring the potential for Palisades to continue contributing to the region’s energy and economic needs, while adhering to the highest safety and regulatory standards,” Jean Fleming, Holtec International Vice President of Licensing, Regulatory Affairs and Probabilistic Safety Analysis said in a statement. “This licensing submittal is the first of a series of submittals intended to return Palisades to full operation.”

According to Holtec’s press release, Palisades will employ 600 people and create substantial wealth for the surrounding area. When Palisades was in operation, it provided $10 million in property taxes to Van Buren County.

Conversation Starters

• Israel has cut power to Gaza. “The Israeli government has ordered its state-run electricity company to halt power supply to the Gaza Strip days after Palestinian militant group Hamas launched a surprise attack on the country,” reports Oilprice.com. “The Israeli prime minister's office has revealed that the security cabinet has approved several steps to destroy military and governmental capabilities of Hamas and Islamic Jihad ‘for many years,’ including cutting fuel and electricity supplies as well as entry of goods into the Israel-occupied landlocked territory.”

• Texas proposes new oil and gas waste storage rules for the first time in 40 years. “Oil and gas producers use aboveground storage ponds to store everything from excess fracking fluid and wastewater that is a byproduct of drilling to lubricants for drills and other liquids and solids,” reports E&E News. “Some of the rule changes were mandated through laws passed in the past few years by the Texas Legislature, including measures requiring the Railroad Commission to adopt rules governing where pits can be located, updating definitions for what constitutes a drill cutting, and making new rules to encourage waste recycling.”

• Australian LNG workers set to strike again. “Workers at Chevron Corp.’s liquefied natural gas facilities in Australia gave notice Monday to resume strikes from Oct. 19, a move that threatens to disrupt supplies and send prices higher,” reports Bloomberg. “Union members intend to begin new industrial action at the company’s Gorgon and Wheatstone plants, Chevron said in a statement. Workers are required to give seven working days notice before stoppages commence.”

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