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MHPS, Magnum Will Build 1-GW Renewable Energy Storage Facility in Utah

June 3, 2019

Mitsubishi Hitachi Power Systems (MHPS) and Magnum Development, the owner of a large and geographically rare underground salt dome in Utah, have teamed to develop a massive project that could store up 1,000 MW of renewable energy year-round and provide it to variability-challenged Western power markets.

The companies this week signed a memorandum of understanding (MoU) to develop the $ 1 billion Advanced Clean Energy Storage (ACES) project in Millard, in central Utah, MHPS CEO Paul Browning told POWER on May 30. The project has the backing of Utah Gov. Gary Herbert (R), who lauded the project for its potential to “put Utah on the map as the epicenter of utility-scale storage for the Western U.S.”

A Rare Opportunity

ACES will comprise a series of facilities above and within the Magnum Salt Dome, a geologic formation that was tectonically developed from a bedded salt deposit, and which seismic mapping suggests measures at least one mile thick and about three miles wide.…

POWER Notebook: Duke Energy Sells Renewable Assets in $1.25 Billion Deal

April 27, 2019

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Duke Energy this week said it has a definitive agreement to sell a minority interest in part of its commercial renewable energy portfolio owned and operated by its affiliate, Duke Energy Renewables, to the John Hancock Infrastructure Fund and John Hancock Life Insurance Company. Duke in an April 24 release said the interest is valued at about $ 1.25 billion.

Duke said the deal includes 49% of 37 operating wind, solar, and battery storage assets, and 33% of 11 operating solar assets across the U.S. John Hancock’s interest will represent about 1.2 GW of power generation capacity after the deal is closed. John Hancock will also have the right to acquire a minority interest in certain additional wind and solar projects in the future, providing a potential source of future growth capital to Duke Energy.

“We look forward to working alongside John Hancock as we continue providing clean and affordable energy to our customers across the country,” said Rob Caldwell, president of Duke Energy Renewables. …

Sempra Energy Exits U.S. Renewables Sector

April 25, 2019

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Sempra Energy on April 22 marked its complete exit from the U.S. renewables business as it completed the sale of 724 MW of operating wind generation and battery assets to American Electric Power (AEP) for $ 1.05 billion.

The San Diego–headquartered utility holding company, which says it has the largest U.S. customer base, said the move is consistent with a strategy to pay down debt and redeploy capital to support the growth of Sempra Energy in North America.

The transaction on Monday is the latest in a series of divestitures over the past year to raise $ 2.5 billion in proceeds. As Sempra Energy CEO Jeff Martin noted in a February fourth quarter earnings call, it stems from a “deep strategic process” led by the company’s board to exit fossil-fired generation as well as renewable generation that began as early as 2014.

“[I]t’s very important to make sure we’re doing all the right things to advance the clean energy transition, but it’s also important that we’re doing that in a way which is thoughtful around price, diversity of supply in a balanced energy program,” Martin said.…

Energy Secretary Wants to Fast-Track U.S. LNG Export Projects

March 11, 2019

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Exports of liquefied natural gas (LNG) from the U.S. continue to rise, as the use of natural gas for power generation increases in countries such as China, South Korea, Japan, and Mexico. Data from the U.S. Department of Energy (DOE) shows that four U.S. LNG export facilities combined to ship 483 LNG cargoes in 2018, a whopping 84% increase from the 262 export cargoes in 2017.

Energy Secretary Rick Perry, in a March 11 interview with CNBC at CERAWeek in Houston, Texas, talked about the importance of LNG as the U.S. competes globally in the energy sector. “Whether it’s our technology on the renewable side, whether it’s small modular reactors in the nuclear field, obviously the fossil fuels as well. But all of it plays a role,” Perry told CNBC’s Brian Sullivan. “America is a leader in the energy sector, all of those sectors, not just in the fossil fuel side. Obviously, that’s really changed with our ability to deliver [LNG to] 34 countries, now five continents of LNG.…

States Take Lead with Plans for 100% Carbon-Free Energy

March 7, 2019

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Minnesota and Wisconsin recently joined the list of states aiming for a 100% clean-energy future, while some Illinois lawmakers are pushing for not only carbon-free power, but also 100% renewable energy.

Minnesota Gov. Tim Walz (D) was the latest to announce a set of policy proposals designed to lead his state’s electricity sector to 100% clean energy by 2050. “Climate change is an existential threat,” Walz said in a statement on March 4. “We must take immediate action. If Washington won’t lead, Minnesota will.”

Xcel Energy, Minnesota’s largest utility, has already publicly committed to generate 100% of its electricity from clean energy by 2050. Xcel operates three nuclear reactors in Minnesota—the dual-unit 1,100-MW Prairie Island facility and the single-unit 671-MW Monticello plant. Nuclear power fits the bill as a carbon-free source, but none of the three units is currently licensed to operate beyond 2034.

In neighboring Wisconsin, Gov. Tony Evers (D) also wants to require his state’s utilities to be carbon-free by 2050.…

Prepare for More Distributed Energy Resources [PODCAST]

February 7, 2019

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Paul DeCotis, senior director in West Monroe Partners’ Energy and Utilities practice, was a guest on The POWER Podcast. West Monroe, in partnership with Greentech Media, conducted a survey of more than 1,700 utility customers, 140 utility executives and managers, and more than two dozen regulators in major markets across North America. Its findings were released in a report titled Planning for a Distributed Energy Future.

Interestingly, 92% of survey respondents said they had distributed energy resources (DERs) on their system, up from 80% when the survey was conducted three years ago. However, DeCotis noted during the podcast that DERs are not yet universally economical throughout the U.S.

“Not all states and regulatory jurisdictions handle DERs the same. It’ll be a few years before we see very significant DER penetrations uniformly across the country,” DeCotis said. “DERs still need substantial backup generation because utilities have the obligation to serve load and be the provider of last resort, so the industry will develop cautiously in some parts of the country until regulations become more certain and incentives become more mature,” he added.…