Energy Storage

Connecticut Targets Deployment of 1,000 MW of Energy Storage to all Electric Customers by 2030

In a victory for the energy storage industry, the Connecticut Senate has passed a bill targeting deployment of 1,000 MW of energy storage by December 31, 2030. The bill also establishes interim targets of 300 MW by December 31, 2024 and 650 MW by December 31, 2027. Pursuant to the legislation, the Public Utilities Regulatory Authority (“PURA”) must initiate a proceeding by January 1, 2022, to develop and implement programs and associated funding mechanisms to interconnect energy storage resources with the electric distribution system. The energy storage programs implemented by PURA must include rate design incentives designed to avoid or defer investment in traditional electric distribution system capacity upgrades. Moreover, PURA’s program must achieve the following objectives: 1) provide positive net present value to ratepayers; 2) provide multiple benefits to the grid, including resilience, ancillary services, and leveling peaks in demand; 3) foster sustained, orderly development of state-based energy storage industry; and 4) maximize value from participation of energy storage in capacity markets.

 

Clean Energy Stands to Win Big with Biden Administration’s Proposed Infrastructure Plan

On March 31, 2021, President Biden released his $2 trillion infrastructure plan (the “Infrastructure Plan”) intended to target grid modernization, energy efficiency, and renewable energy development as part of the Administration’s ongoing effort to achieve a net-zero emissions power sector by 2035, and net-zero economy by 2050. In response to the recent Texas power crisis, the Infrastructure Plan proposes a $100 billion investment to modernize the electric grid with at least 20 GW of high-voltage capacity power lines. The Biden Administration also proposes creation of a Grid Deployment Authority at the Department of Energy to leverage existing rights-of-way and support creative financing tools to encourage high-voltage transmission lines.

The Infrastructure Plan proposes a 10-year extension and phase down of an expanded direct-pay investment tax credit and production tax credit for clean energy generation and storage. The Biden Administration also proposes creation of an Energy Efficiency and Clean Electricity Standard (EECES) aimed at cutting electricity bills and electricity pollution, increasing competition in the market, incentivizing efficient use

Green Power and the 2020 California Blackouts

This week, California experienced its first blackouts in nearly 20 years. On August 19, the California Independent System Operator (“CAISO”) issued another state-wide flex alert, calling on the public to reduce energy use to prevent rotating power outages. As the state’s heat wave enters its seventh day, the temperature in California today will again reach dangerous levels and will continue to strain the system. While the exact cause of the recent blackouts is under investigation, Assemblyman Jim Patterson pointed to the unreliability of renewable power and the state’s reduced dependence on natural gas.

CAISO called the events this week a “perfect storm,” caused by the heat wave and corresponding spike in demand, simultaneous loss of some sources of power, and inability to import out-of-state electricity. When the sun sets, electricity generated by solar facilities drops, removing thousands of megawatts of solar power from the system while demand, fueled by the record-breaking heat, remains high.

Despite allegations that renewables are unreliable, there is no indication

Powering America Hearing on Transmission Infrastructure Development: FERC Isn’t Batting 1000

On May 10, 2018, the House Energy Subcommittee held a hearing on the state of electric transmission infrastructure, particularly focusing on transmission planning, the efficacy of Order No. 1000 and the future of the transmission grid.  Important take-aways from the hearing included:

  • Consensus that Order No. 1000 has not worked to incentivize transmission infrastructure development in the way that was intended, and particularly, has not resulted in development of interregional transmission projects.
  • The Commission and Congress should rethink transmission incentives, including considering how to best incentivize new technology and whether performance-based incentives might be appropriate.
  • Significant offshore wind generation is coming to the East Coast; we need to think about how to best support its interconnection.

Six witnesses testified on the state of transmission infrastructure.  Former FERC Commissioner Tony Clark, now a senior advisor at the law firm of Wilkinson Barker Knauer LLP, discussed the white paper he recently issued, considering the status and efficacy of Order No.

Welcome to the Energy Infrastructure Blog!

Welcome to the Energy Infrastructure Blog – EI Blog, for short – Pierce Atwood’s new blog that will provide information and analysis on the key policy and legal issues relevant to energy infrastructure policy, development, and finance in New England and beyond.  Pierce Atwood has assembled a team of legal practitioners from diverse practice areas who focus on all aspects of developing, buying, and selling energy infrastructure projects, and who also recognize that understanding both the fundamentals and trends in this ever-changing area is essential for developers, investors, policymakers, and interested members of the public.  We look forward to sharing our insights with you. 

Why an energy infrastructure blog – and why now?

We may not always think about it, but the mixed generation fleets, as well as the electricity transmission and distribution network that “keep the lights on” throughout New England are integral parts of everyone’s everyday lives.  Policymakers, lawyers, and