Bring On the Magic Ball

Good morning and happy Friday,

This week, the Department of Treasury proposed new “technology-neutral” federal tax credits for electric generation projects that eliminate GHGs – even if they use fossil fuels . And the DOE awarded $50k apiece to 24 companies competing to remove CO2 directly from the atmosphere.?

Meanwhile, a new analysis from Wood MacKenzie finds that “China is now producing almost two thirds of global supply for wind turbines, solar panels and batteries,” data that’s sure to come up in relation to First Solar’s tariff petition currently before the International Trade Commission.

And as K Street finds itself amidst an onslaught of lobbying related to critical minerals , EPRI says data center power use could double to 9% of US electricity by 2030, and Brian Deese, who helped design the IRA, writes in The Atlantic that it’s time to tackle The Next Front in the War Against Climate Change (utility reform).

Read on for more.

Once Morro Unto the Breach

Energy storage is essential to the clean energy transition, and indeed California will need almost 42 GW of storage capacity by 2045 if it’s to meet its goal of using 100% clean electricity that year. Yet a proposed 600 MW project is encountering local opposition from folks who say their town isn’t the right place for it. Here’s why both sides are charged up:

• The city of Morro Bay, CA bills itself as a “seaside getaway” and invites visitors to “come get salty.” It’s also home to a large fossil fuel generating station that was decommissioned in 2014 – but the facility’s three 450-foot smokestacks still loom large.?
• Texas-based Vistra Power wants to build a battery energy storage facility on the site, which has pre-existing interconnection infrastructure. In exchange, Vistra would demolish the old plant and its stacks , which would save the city at least $2 million , in addition to the project creating jobs and enhancing grid reliability .?
• Many residents fear the project could harm tourism and present safety concerns, particularly fires such as those that have occurred at Vistra’s Moss Landing facility , although a recent report found the project presents “no significant risk to the community .” A measure opposing the project is on the ballot this fall ; Vistra may be able to fall back on AB 205 , which gives the California Energy Commission authority to step in on permit review.??

??The Takeaway?

Lots to sort out. While the situation in California may be more acute than in other parts of the country, a recent webinar explored ways to address the 540 GW bottleneck of energy storage interconnection requests nationwide . Meanwhile in ERCOT, one study found that batteries saved Texas consumers $683M during a 2-day January freeze , while another found that batteries are paradoxically boosting the use of natural gas in the Lone Star State. Once Morro unto the breach, dear friends!

Come ‘n GET It

Back in April, we told you about advanced reconductoring (remember the magic ball )? This week the DOE launched the Federal-State Modern Grid Deployment Initiative to spur advanced conductors and grid-enhancing technologies (GETs), which many view as “the lowest hanging fruit for adding capacity to the grid at the least cost.” Here’s what’s on the line:

• Traditional transmission lines, which use wires made of steel and aluminum, can cause fires or outages if overloaded. Advanced conductors have a core made of carbon fiber, surrounded by trapezoidal pieces of aluminum that can handle up to twice as much electricity – thereby providing up to 80% of the “new” transmission needed without having to build any new infrastructure.?
• 21 Democratic-led states across the country have joined the initiative, with many passing supportive legislation this year, and several utilities are already using GETs and advanced conductors: as part of a $33.7 million grant award from DOE’s $10.5 billion Grid Resilience and Innovation Partnerships program, Dominion plans to deploy the world’s largest DLR project, placing the technology on more than two dozen power lines.
• For its part, Lawrence Berkeley National Laboratory has created the Reconductoring Economic and Financial Analysis tool to help utilities and grid planners assess the benefits of reconductoring existing transmission lines, including “the lifetime value of reconductoring projects and potential justifications for projects that cost more.”

??The Takeaway?

Time to get cooking. “We actually need stuff that can cook right now, right away,” White House national climate adviser Ali Zaidi says, and advanced reconductoring fits the bill. A recent FERC ruling makes it possible for utilities to replace lines without lengthy environmental reviews, and the Biden administration wants to upgrade 100,000 miles of transmission lines over the next five years. Bring on the magic ball!

• Heavy Hitter: Entergy Louisiana plans 3 GW solar expansion, citing demand from heavy industry
• Fall Fail: Proposed ballot initiative to repeal Michigan’s new statewide renewable energy permitting law will not make the November ballot
• Inconvenient Truth: Virginia has the biggest data center market in the world. Can it also decarbonize its grid?
• Pick it Up: Advocates see missed opportunities as Virginia lags its neighbors in clean energy manufacturing
• Go, West: CAISO board approves $6.1B transmission plan, with focus on access to clean energy
• Greenwashing? Enviros say MidAmerican Energy’s renewable claims are misleading
• New Study: Sifting through Solar: Land-Use Concerns on Prime Farmland?
• Greener Skies: Airlines are working to create sustainable aviation fuel , but little to no ethanol will qualify for US aviation fuel credit

• IN: Proposed solar farm near Potato Creek State Park drawing protest from residents
• NJ: Orsted to pay $125M for canceled offshore wind projects
• MS: First of three solar projects in Golden Triangle reaches commercial operation
• WA: Massive Horse Heaven project gallops on thanks to support from Gov. Jay Inslee
• VA: Federal judge rejects request to halt Dominion’s offshore wind farm
• VA: Proposed Wolf Hills Solar project in Washington County

Finland Isn’t F’ing Around

Here are a few fun facts about Finland: in addition to being the happiest country in the world (seven years running), Finns have been enjoying saunas for thousands of years (the country has more saunas than cars), and they even have a word for staying home and drinking in your underwear: kalsarik?nnit .

Well, here’s one more for the list: an underground “thermal battery” energy storage facility being built there is bigger than the Empire State Building , making it “about ten times” larger than its nearest rival, according to Jukka Toivonen, CEO of Varanto, the company constructing it.

In any event, at a maximum capacity of 90 GWh, it’s damn big – large enough to store “as much power as a typical 1 GW nuclear plant generates in nearly four days.”

The facility will use three pressurized caverns 100 m below the city of Vantaa, which sits just north of Helsinki. The system will use hot water heated to as much as 140 degrees, a 600 km underground district heating network, and heat exchangers in the city’s buildings “to keep homes and offices warm in winter.”

The facility’s boilers will use waste heat from the district system as well as excess renewable energy, and its operations will be coordinated using AI. It’s scheduled to come online in 2028, and if it can stay on budget, it should cost about 80% less than achieving the same capacity with batteries ($217 million vs. $1.08 billion). We’ll kalsarik?nnit to that!