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States Pressure PJM for More Interconnection

State utility regulators are calling on PJM Interconnection to push forward with proposed generating projects to replace retiring power plants. PJM covers thirteen states on the East Coast and Midwest plus Washington, DC.

The Organization of PJM States Inc. has urged PJM to use a streamlined study process for proposed resources and end the practice of reviewing “dead applications.”

“Such additional efforts will provide a balanced approach to both retaining existing generation as well as furthering the deployment of new generation resources,” OPSI said.

PJM has been under scrutiny recently due to issues with grid reliability and a lack of new power plant replacements. “During Winter Storm Elliott about 47,000 MW in PJM were unexpectedly offline, triggering $1.8 billion in possible penalties and raising questions about the effectiveness of the grid operator’s ‘capacity performance’ framework that penalizes power plant owners for failing to deliver power in emergencies and rewarding those that overperform. The Federal Energy Regulatory Commission has launched an inquiry into PJM’s capacity markets,” reports Utility Dive.

And in February, PJM released a report that warned its capacity margins were on track to shrink due to coal retirements and the strain of adding a glut of renewable energy to its portfolio. At present, PJM has a substantial bottleneck of renewable energy projects in its interconnection queue.

According to OPSI, PJM’s fast-track stakeholder process needs measures like interconnection reforms to help bring generation online. “This clearly indicates that prioritizing a transition to even just a reasonably functioning interconnection process should be prominently front and center on the CIFP agenda,” OPSI said.

Currently, its stakeholders include power generators, transmission owners, utilities, consumer advocates, and state and federal regulators. These stakeholders work together to develop policies, make recommendations, and provide feedback on PJM's planning, operations, and market rules. PJM uses feedback from stakeholders to develop proposals and make decisions.

OPSI isn’t the only group demanding change. Last month, the Union of Concerned Scientists, an anti-nuclear activist organization, joined other groups asking for process reform. The coalition argues PJM’s stakeholder process is dominated by power plant owning companies. They also called on PJM to streamline the process and reduce barriers to new generating resources.

Granholm Gets Behind Mountain Valley Pipeline

The Biden administration has expressed support for the Mountain Valley pipeline, a natural gas project in West Virginia and Virginia. Environmentalists and local landowners object to the MVP.

Energy Secretary Jennifer Granholm said in a letter to the Federal Energy Regulatory Commission that the pipeline and similar projects "will play an important role" in supporting the energy transition.

“Energy infrastructure, like the MVP project, can help ensure the reliable delivery of energy that heats homes and businesses, and powers electric generators that support the reliability of the electric system,” Granholm said.

Sen. Joe Manchin has been vociferous in his support for the MVP.

“First proposed in 2015, the $6.6 billion pipeline has faced a number of legal setbacks over the years and opposition from hundreds of landowners in West Virginia and Virginia,” reports E&E News. “The lead developer, Equitrans Midstream Corp., says the project is intended to address congestion on the natural gas pipeline system by delivering needed gas to mid-Atlantic and Southeastern states.”

MVP has faced challenges since 2017 when it was approved by FERC. Currently, the 4th U.S. Circuit Court of Appeals scuttled a water permit issued by the West Virginia Department of Environmental Protection. The project is also waiting on approval for the Army Corps of Engineers.

Allies Buck America’s G7 Export Ban for Russia

The EU and Japan have opposed a US proposal for G7 countries to impose a complete export ban on Russia, replacing the current sector-by-sector sanctions regime.

“The proposal was made by the US, according to two officials. It comes amid rising frustration in Washington with the existing system riddled with loopholes that allow Russia to continue to import western technology,” reports The Financial Times. “But representatives from Japan and EU countries suggested in a preparatory meeting last week that such a move would not be feasible, according to three people briefed on the discussions.”

The disagreement highlights the famine of new options available to G7 leaders hungry to heap on the economic punishment for Putin. The EU, which is a member of the G7 alongside the US, UK, France, Germany, Italy, Japan and Canada, has also struggled to agree on sanctions against Russia. The bloc requires all of its 27 members to agree on sanctions policy.

“G7 leaders will meet in Hiroshima on May 19 for a three-day summit set to focus on the effects of Russia’s war against Ukraine, economic security, green investments and the Indo-Pacific region,” reports FT.

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Conversation Starters

1. Europe readies for winter. “The European Union launched a scheme on Tuesday for European companies to place orders to jointly buy gas, with the aim of ensuring Europe has enough fuel and avoiding a repeat of last year's record-high energy prices. Companies have until May 2 to register how much gas they want to buy through the EU scheme, which will exclude Russian gas. The platform will then collect offers from global suppliers to match the companies' demand,” reports Reuters. “Matched suppliers and buyers will negotiate gas contracts. The EU will not be involved in these commercial talks. The EU conceived the joint buying scheme after Russia's invasion of Ukraine and subsequent reduction in Russian gas shipments to Europe that drove European energy prices to record levels.”

2. Chinese nuclear rolls onward. “First concrete has been poured for the nuclear island of unit 4 at the Haiyang nuclear power plant in China's Shandong province. It marks the official start of construction of the second of two CAP1000 pressurised water reactors planned as Phase II of the plant,” reports World Nuclear News. “The pouring of concrete began on 22 April and was completed on 24 April. During the continuous operation - which lasted 51 hours and 10 minutes - a total of 5512 cubic metres of concrete was poured, China Nuclear Industry 24 Construction Company said.”

3. Green needs more green in Germany. “Germany is facing a shortfall of about €12 billion ($13.2 billion) in its special climate-protection fund, suggesting the government in Berlin has significantly underestimated the cost of greening Europe’s biggest economy,” reports Bloomberg. “Commitments to climate—protection projects exceed earmarked resources through 2026, according to people familiar with the budget details, who asked not to be identified discussing confidential information.”

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