At LevelTen, we want important news and information concerning renewable transaction infrastructure (RTI), power purchase agreements, and new sustainability commitments to be easily accessible to everyone. Each week, we assemble the stories that matter most in our “RTI Weekly” newsletter, which you can subscribe to here. We’ve collected January's biggest stories below.
Renewable Energy News
Biden Considering Modified Solar Tariff Extension
The White House is considering an extension of Trump-era solar tariffs, implemented in 2018, which levy a 30% duty on solar component imports for a period of four years (dropping to 15% in year four). With the tariffs set to expire on February 6, the Biden Administration is looking to modify the tariffs to support both union-produced solar component manufacturing in the U.S., as well as the need to supply U.S. solar developers with affordable PV components at the volumes necessary to meet clean energy goals. While the White House is considering extending the tariffs, sources report that it would raise the threshold at which the tariffs kick in from 2.5 GW to 5 GW, and would exclude bifacial solar panels. (Reuters)
New York Government Announces Major Offshore Initiative
New York State Governor Kathy Hochul (D) has announced that the state will launch its third major offshore wind procurement, with the intent of securing at least 2 GW of new projects. The state will also invest $500 million in infrastructure to develop an offshore wind supply chain that will bolster New York’s long-term ambitions of becoming a major hub for offshore wind development in the U.S. Hochul also unveiled plans to decarbonize building construction and school bus fleets, and to fund electrification of low-income homes as New York works to become a carbon-neutral economy by 2050. (Utility Dive)
LevelTen Energy Q4 PPA Price Index Reports Show Renewable PPA Prices Rising Across North America and Europe
The Q4 2021 LevelTen Energy PPA Price Index Reports for North America and Europe are now available for free download. As North American renewable projects battle through developmental headwinds amid ballooning demand for clean energy, available renewable supply is tightening and applying upward pressure on PPA prices. In Europe, ongoing macroeconomic and regulatory issues, including Europe’s energy crisis, supply chain constraints, inflation, rising commodities costs, interconnection challenges, and government auctions are all contributing to reduced PPA supply and rising prices. (PV Tech, LevelTen Energy)
U.S. DOE to Support Transmission Build-Out
The U.S. Department of Energy plans to leverage public-private partnerships, permitting and planning authority, and approximately $20 billion in financing to help reduce barriers to high-voltage transmission projects across the U.S. The “Build a Better Grid” initiative will work to upgrade and expand the existing transmission system to improve grid resilience and enable the cost-effective integration of renewables. According to the DOE, needed investments include significant capacity increases for existing infrastructure, new technology to increase line efficiency, and the construction of new lines to connect distant grid regions and bring renewable electricity to population centers. The Department has suggested the U.S. will need to expand its transmission system 60% by 2030, and by as much as 300% by 2050 to meet climate goals. (Utility Dive)
FERC Orders PJM to Stop ‘Adder’ Mechanism for Capacity Market
The U.S. Federal Energy Regulatory Commission (FERC) has ordered the PJM Interconnection to stop the use of its “adder” mechanism in its approach to calculating the cost of new entry (CONE) for its capacity market. The mechanism adds 10% to capacity costs, with the intention of accounting for fuel cost risks — though the U.S Court of Appeals for the District of Columbia Circuit said FERC failed to adequately explain the need for the adder when it was originally approved in 2019. Advocates of removing the adder believe its removal will put downward pressure on clearing prices for PJM’s capacity market, which will help accelerate the retirement of older fossil fuel plants and send signals to fossil developers that they should reduce PJM investments. FERC Chair Richard Glick stated the move helps counteract an “obsession” with increasing power plant revenues during the Trump Administration, and stressed the importance of “going back to basics” to determine just and reasonable measures for assuring grid reliability. (Utility Dive)
PPA Signings
Verizon Announces Several New Renewable Deals
Verizon has announced several renewable PPAs which in total represent more than 900 MW of clean energy capacity. Four 15-year agreements have been signed with developer Leeward Renewable Energy for the capacity from the 200 MW Blackford Wind project in Indiana, the 200 MW Horizon Solar project in southern Texas, the 160 MW White Wing Ranch Solar project in southwest Arizona, and an unnamed wind project which will total 80 MW of capacity upon completion. Verizon’s PPAs also include a 15-year agreement with Duke Energy Sustainable Solutions for 180 MW of capacity, and two 15-year agreements with developer Lightsource BP for approximately 90 MW of renewable capacity. (renews.biz, Solar Industry)
Salt River Projects Signs Arizona Wind Deal
Arizona utility Salt River Project has entered into a PPA with a subsidiary of NextEra Energy Resources for electricity supply from the 161 MW Babbitt Ranch wind farm, located north of Flagstaff. (renews.biz)
Meta Enters Iowan Wind Agreement
Meta (formerly Facebook) has entered into a PPA with developer Apex Clean Energy for the entire generating capacity from the 225 MW Great Pathfinder Wind project in Iowa’s Boone and Hamilton counties. (Data Center Dynamics)
Octopus Secures Trio of Offtakers for Northern European Wind PPAs
Developer Octopus Renewables has announced three PPAs with offtakers Eesti Energia, insulation materials manufacturer Owens Corning, and paper products producer Kimberly-Clark (whose Octopus PPA we covered in November). Eesti Energia is entering a 5-year PPA with Octopus for a total of 1.4 TWh of supply from a wind farm in western Finland, while Owens Corning will offtake 1,500 GWh of supply from the 48 MW Ljungbyholm wind farm in Sweden’s southern Kalmar municipality. (renews.biz)
Great River Energy Seals North Dakota Wind Deal
Minnesota-based electric utility Great River Energy has entered into a PPA with developer Apex Clean Energy for 400 MW of capacity from a wind project being built in North Dakota’s McLean County. (North American Wind Power)
Recent Sustainability Commitments
Panasonic Group Outlines Sustainability Roadmap
Panasonic Group has committed to reaching net-zero CO2 emissions across its operating companies by 2030, in addition to goals related to increasing product efficiency and targeting value chain decarbonization leading up to 2050. (PR Newswire)
Nokia Joins RE100, Announces Renewables Goal
Finnish telecommunication company Nokia has joined the RE100 and will work to move to 100% renewable electricity to power its operations by 2025. (Globe NewsWire)
Maersk Ups Emissions Targets
Shipping giant Maersk has announced more aggressive emissions reductions targets, and will now work to reach carbon neutrality by 2040 (10 years sooner than originally planned), and has expanded that target to cover Scope 3 emissions. (Bloomberg)
Baltimore Announces Carbon Neutrality Target
The City of Baltimore has announced it will work to reduce carbon emissions 30% by 2025 and 60% by 2030 as it works to achieve a 100% reduction in net emissions or full carbon neutrality by 2045. (Smart Energy Decisions)
Citi Announces Financing Goals
Citibank has announced goals of reducing financed emissions from energy-sector investments 29%, in additional to a 63% reduction in financed emissions from power-sector investments, by 2030. (Citi)
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