Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Sparks

The White House Also Has Some Transmission News

As if one set of energy policy announcements wasn’t enough.

Power lines.
Heatmap Illustration/Getty Images

The Environmental Protection Agency’s power plant rules were not the only big energy policy announcement from the Biden administration Thursday. The White House also announced a bevy of initiatives and projects meant to bolster infrastructure throughout the country.

Transmission arguably sits at the absolute center of the Biden administration’s climate policy. Without investments to move new renewable power from where it’s sunny or windy but desolate and remote to where it’s still and cloudy but densely populated, the Inflation Reduction Act is unlikely to meet its emissions reduction potential. While the most important transmission policy changes will likely come from the Federal Energy Regulatory Commission next month, and possibly permitting reform legislation under consideration in Congress, the White House and Department of Energy are doing what they can with tens of billions of dollars allotted in both the IRA and Bipartisan Infrastructure Law and their power over environmental regulations.

One such pot of money is the Transmission Facilitation Program, which directs funds towards interregional transmission projects. The DOE announced Thursday that one such project, the Southwest Intertie Project-North, would get up to $331 million in funding. The almost-300 mile-long transmission line would connect wind projects in Idaho to the California electric grid. The project was conditionally approved by California regulators in December and would run from Midpoint, Idaho to Robinson Summit in Eastern Nevada, where it could connect to already operating lines that run to Las Vegas and then interconnect with California. The total costs are estimated to run to just over $1 billion.

“We’re building out transmission lines to get clean power from where it's generated to where it's needed,” Secretary of Energy Jennifer Granholm told reporters Wednesday. The project “will increase grid resilience, especially during wildfires, and it'll create over 300 high quality and union construction jobs,” Granholm said.

The other announcements had to do with great bugbear of the energy transition: permitting. Transmission projects can take decades from conception to completion, often featuring years-long reviews, stakeholders negotiations, and lawsuits. Interregional transmission — especially in the Western United States, where much of the country’s best wind and solar resources are (along with energy-hungry populations in California and the Southwest) — often takes place on and across public lands, thus ensuring plans must undergo the federal government’s full gamut of environmental review.

“Right now, it takes about four years, on average, to permit a new transmission project in the U.S., and in extreme cases it can take over a decade,” Granholm said.

To help speed that up, the DOE said it was establishing a new Coordinated Interagency Transmission Authorization and Permits program, which will facilitate consultation across all relevant government bodies, “create efficiencies, and establish a standard two-year timeline for federal transmission authorizations and permits.” This would establish the DOE as “the main point of contact” for transmission developers Granholm said. This constitutes “a huge improvement from the status quo,” she added, “because developers routinely have to navigate several independent permitting processes throughout the federal government.”

Also in the same announcement (yes, it was a big one), the DOE also said it was creating a “categorical exclusion” — essentially an exemption from much of the typically required environmental review — for upgrading existing transmission lines. While there’s no way to avoid building new transmission to connect new projects, existing lines could be become far more efficient, which would go a long way toward handling the expected steep rise in electricity demand.

Blue

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Sparks

The Country’s Largest Power Markets Are Getting More Gas

Three companies are joining forces to add at least a gigawatt of new generation by 2029. The question is whether they can actually do it.

Natural gas pipelines.
Heatmap Illustration/Getty Images

Two of the biggest electricity markets in the country — the 13-state PJM Interconnection, which spans the Mid-Atlantic and the Midwest, and ERCOT, which covers nearly all of Texas — want more natural gas. Both are projecting immense increases in electricity demand thanks to data centers and electrification. And both have had bouts of market weirdness and dysfunction, with ERCOT experiencing spiky prices and even blackouts during extreme weather and PJM making enormous payouts largely to gas and coal operators to lock in their “capacity,” i.e. their ability to provide power when most needed.

Now a trio of companies, including the independent power producer NRG, the turbine manufacturer GE Vernova, and a subsidiary of the construction firm Kiewit Corporation, are teaming up with a plan to bring gas-powered plants to PJM and ERCOT, the companies announced today.

The three companies said that the new joint venture “will work to advance four projects totaling over 5 gigawatts” of natural gas combined cycle plants to the two power markets, with over a gigawatt coming by 2029. The companies said that they could eventually build 10 to 15 gigawatts “and expand to other areas across the U.S.”

So far, PJM and Texas’ call for new gas has been more widely heard than answered. The power producer Calpine said last year that it would look into developing more gas in PJM, but actual investment announcements have been scarce, although at least one gas plant scheduled to close has said it would stay open.

So far, across the country, planned new additions to the grid are still overwhelmingly solar and battery storage, according to the Energy Information Administration, whose data shows some 63 gigawatts of planned capacity scheduled to be added this year, with more than half being solar and over 80% being storage.

Keep reading...Show less
Yellow
Sparks

An Emergency Trump-Coded Appeal to Save the Hydrogen Tax Credit

Featuring China, fossil fuels, and data centers.

The Capitol.
Heatmap Illustration/Getty Images

As Republicans in Congress go hunting for ways to slash spending to carry out President Trump’s agenda, more than 100 energy businesses, trade groups, and advocacy organizations sent a letter to key House and Senate leaders on Tuesday requesting that one particular line item be spared: the hydrogen tax credit.

The tax credit “will serve as a catalyst to propel the United States to global energy dominance,” the letter argues, “while advancing American competitiveness in energy technologies that our adversaries are actively pursuing.” The Fuel Cell and Hydrogen Energy Association organized the letter, which features signatures from the American Petroleum Institute, the U.S. Chamber of Commerce, the Clean Energy Buyers Association, and numerous hydrogen, industrial gas, and chemical companies, among many others. Three out of the seven regional clean hydrogen hubs — the Mid-Atlantic, Heartland, and Pacific Northwest hubs — are also listed.

Keep reading...Show less
Red
Sparks

Why Your Car Insurance Bill Is Making Renewables More Expensive

Core inflation is up, meaning that interest rates are unlikely to go down anytime soon.

Wind turbines being built.
Heatmap Illustration/Getty Images

The Fed on Wednesday issued a report showing substantial increases in the price of eggs, used cars, and auto insurance — data that could spell bad news for the renewables economy.

Though some of those factors had already been widely reported on, the overall rise in prices exceeded analysts’ expectations. With overall inflation still elevated — reaching an annual rate of 3%, while “core” inflation, stripping out food and energy, rose to 3.3%, after an unexpectedly sharp 0.4% jump in January alone — any prospect of substantial interest rate cuts from the Federal Reserve has dwindled even further.

Keep reading...Show less