An ambitious bill introduced in the Massachusetts’ Senate proposes to accelerate expansion to the state’s renewable energy sector. Along with implementing a market-based system to reduce emissions, the bill also aims to increase the required growth rate of the state’s renewable portfolio from 1% to 3% per year. Specific goals and proposals for solar, wind and energy storage are included in the bill. Continue Reading Massachusetts Bill Aims to Accelerate Renewable Energy Transition
On Monday, the New York State Energy Research and Development Authority (NYSERDA) issued its “Master Plan” to develop the state’s offshore wind resources and establish 2,400 MW of offshore wind generation by 2030. The plan is a component of Governor Andrew Cuomo’s Reforming the Energy Vision (REV) strategy to build clean and affordable energy systems across the state in an effort to achieve New York’s Clean Energy Standard with a goal of 50% renewable generation by 2030. Continue Reading New York Announces Master Plan to Develop 2.4 GW of Offshore Wind
While hydroelectric generation has historically been the largest source of renewable electricity generation, the U.S. Energy Information Administration (EIA) expects wind power to surpass hydro and become the largest renewable generation source sometime in the next two years. 2017 was a relatively wet year with hydro providing 7.4% of total utility-scale generation. But with only a handful of new hydro plant slated to come online in the next two years, hydroelectric generation will depend largely on water runoff and precipitation. Currently, the EIA predicts that hydro will be slightly lower in 2018 and 2019, and will produce 6.5% and 6.6% of utility-scale generation respectively. Although weather also greatly affects wind generation, output forecasts from wind are more dependent on capacity and the timing of new facilities coming online.
The Wind Energy Foundation released a report finding that upgrades and investment in transmission infrastructure is necessary to keep up with corporate demand for renewable energy. As the price of solar and wind energy has fallen, corporate demand for renewable energy has increased to a point that existing transmission lines are inadequate to provide access to such energy. Since 2013, U.S. corporations have committed to buying roughly 9 GW of wind and solar power and in 2016, the Renewable Energy Buyers Alliance set a target of purchasing an additional 60 GW of renewable energy by 2025. According to the report, transmission planners and regulators must approve plans to expand and upgrade transmission lines and FERC must improve their transmission planning process. With much of the renewable energy development taking place in the central U.S., long-distance transmission will be required to provide the renewable energy to major cities on the coasts. The full Wind Energy Foundation report can be found here.
In his State of the State speech on January 3, 2018, New York Governor Andrew Cuomo announced an ambitious, multifaceted clean energy and climate change agenda. The principal objectives are as follows:
- Expand Regional Greenhouse Gas Initiative and Reduce Emissions Equitably From the Highest-Polluting, High Demand “Peaker” Power Plants
- Issue Solicitations in 2018 and 2019 to Develop at Least 800 MW of Offshore Wind Projects and Foster Offshore Wind Industry and Workforce in New York State
- $200 Million Investment to Meet Unprecedented Energy Storage Target of 1,500 Megawatts by 2025 In Order to Increase Transmission of Clean and Renewable Energy
- Create the Zero Cost Solar for All Program for 10,000 Low-Income New Yorkers
- Reconvene Scientific Advisory Committee on Climate Change Disbanded by the Federal Government
- Governor Directs the Establishment of Energy Efficiency Target by Earth Day
- Regulations to Close all Coal Plants to be Adopted
On Monday, the California Public Utilities Commission (CPUC) released its Renewables Portfolio Standard Annual Report announcing that the State is on track to meet its renewables portfolio standard (RPS) requirement of 50% ten years ahead of schedule. The California RPS sets a requirement that 33% of electricity retail sales be served by renewable resources by 2020, and 50% by 2030. But with aggressive investment in renewables the State’s three large investor owned utilities (IOUs) may achieve the 50% goal by the 2020 deadline, ten years early. Continue Reading CPUC: California May Achieve The 50% RPS Goal By 2020, 10 Years Ahead of Schedule
Southern California Edison (SCE) released The Clean Power and Electrification Pathway, a blueprint for California to reduce greenhouse gas emissions and air pollutants. SCE explains that a clean power and electrification pathway is the best approach to meet California’s 2030 and 2050 climate goals, reducing 1990 levels of greenhouse gas emissions by 40 and 80 percent respectively. The plan largely revolves around three economic sectors: electricity, transportation and buildings. By 2030, the plan calls for California’s electric grid to be supplied by 80% carbon-free energy, at least 7 million electric vehicles in California and one-third of space and water heaters in California to be electric powered. Essentially, the plan proposes to produce an electric grid with more carbon-free energy that will supply high-polluting industries. Other pathways to decarbonization, including renewable natural gas and hydrogen, were also analyzed but were determined to be more expensive than the clean power and electrification pathway. For more information, see SCE’s full plan here.
We would like to thank all our clients for choosing Troutman Sanders to represent them in 2016. In 2016, our work spanned 23 states and several countries and accounted for more than 2 gigawatts of installed renewable energy with a value exceeding $5.5 billion.
In “2016 Renewable Energy Market Year in Review and a Look Ahead to 2017,” we reflect on the biggest trends and challenges we observed in 2016 and offer insights into important trends and policy agenda items that will continue to be significant in 2017 and beyond, including:
- Tax Reform
- Federal Tax Credits
- The “Duck Curve”
- Renewable Portfolio Standards
- Energy Storage / Battery Storage
- Public Utility Regulatory Policies Act of 1978 (PURPA)
- Resurgence of Natural Gas-Fired Generation
- Commercial Power Purchase Agreements
- Proxy Revenue Swaps
- Foreign Investment
- Community Choice Aggregation
- Federal Policy
To view the complete newsletter, click here.
With New Federal Administration, States Betting Bigger on Renewables
Nearly 1 in 10 States have launched proposals directing utilities to procure anywhere from 50% to 100% of their power from renewable energy resources by mid-century. Currently 29 states and the District of Columbia have renewable portfolio standards (RPS) in place. Several states, however, have introduced even more aggressive proposals likely in reaction to the fact that new federal requirements are not likely to be promulgated (e.g., the Clean Power Plan).
Some States Move All In For 100% Renewables
In 2015, Hawaii became the first state to adopt a 100% RPS designed to completely decarbonize its power portfolio. Over the next thirty years Hawaii’s RPS will ramp up with incremental requirements starting with 30% renewable generation by 2020 and ultimately achieving 100% renewable generation by 2045.
In recent weeks, state law makers in Massachusetts and California have introduced legislation to require 100% renewable energy output. In Massachusetts, a bill would require the state to get all of its electricity from renewable sources by 2035, and ultimately meet all of its heating, cooling and transportation needs through renewable sources by 2050. Continue Reading With New Federal Administration, States Betting Bigger on Renewables
On February 13, 2017, a bipartisan coalition of 20 US governors published a letter imploring President Donald Trump to support the renewables industry. The group highlighted the wide impact the industry has across the nation, employing hundreds of thousands of Americans and transforming low-income and rural communities. The Governors highlight four ways in which Congress and the Trump administration could help the renewables industry.
First, grid modernization and transmission development. The Governors argued that any national infrastructure package should provide significant funding for grid modernization to address the electrical transmission challenges created by large expansions of renewable generation across the country. To implement and streamline the grid modernization process, the governors suggested that the administration create a state-federal task force to work with FERC and the National Laboratories. Continue Reading Bipartisan Governors Push Trump to Support Renewables in Infrastructure Planning