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Natural gas-fired generation has been undercutting coal on price for years, but that was largely because of the higher efficiency of combined cycle plants. Now, for the first time, gas is cheaper than coal as a fuel, the Energy Information Administration says.
EIA’s Short-Term Energy Outlook reported that natural gas will average $2.15/MMBtu in 2024, versus $2.45/MMBtu for coal. If so, it would mark the first time that average annual gas prices were lower than coal since the federal government began collecting energy data in 2001. Coal was slightly cheaper last year ($2.52/MMBtu versus $2.54/MMBtu for gas).
The agency predicts gas’ share of power generation will be 42% this year — the same as 2023 — dropping to 41% in 2025. Coal’s share will drop from 17% in 2023 to 15% in 2024 and 14% in 2025, EIA said.
Globally, however, coal generating capacity grew last year, driven by a wave of new plants coming online in China and a slowing pace of retirements of older plants in the U.S. and Europe.
The dropping price for gas — a consequence of weak consumption following a mild winter — is particularly acute in Texas, where Permian Basin prices have gone negative. Companies are still producing gas as a byproduct because they are getting $85/barrel for oil.
Meanwhile, gas’s future in electric generation continues to be a flashpoint for policymakers. In Wisconsin, NetZero Insider’s Amanda Durish Cook reported last week that the Superior City Council refused to move ahead on zoning changes needed to begin construction of the planned $1 billion, 625-MW Nemadji Trail Energy Center. The council’s vote came after residents expressed concerns over wetland habitat loss, air quality and greenhouse gases.
Virtual power plants are getting more and more attention as an alternative to new fossil fuel generation. NetZero Insider’s Ayla Burnett reported on a study by The Brattle Group and GridLab that found California could save $750 million a year in power costs through increased use of VPPs. By 2035, California’s VPP potential — smart thermostat-based air-conditioning control, behind-the-meter batteries, residential EV charging, grid-interactive water heating, and automated demand response for large commercial buildings and industrial facilities — will exceed 15% of statewide peak demand, the study predicts.
VPPs got a boost from the Maryland legislature last week, which approved a bill enabling VPPs, reports our K Kaufmann. Another bill, the Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act, would require utilities to allow EVs with bidirectional chargers to connect to the distribution grid.
K also weighed in with a story on how the Inflation Reduction Act is driving new clean energy even as interconnection queue backlogs persist. Interconnection requests across the U.S. shot up by 30% in 2023, with close to 2,600 GW of solar, wind and storage waiting to land a spot on the grid.
And our Hugh Morley reports that FERC approved PJM’s involvement in New Jersey’s second offshore wind transmission solicitation. State regulators are evaluating proposals submitted by the solicitation’s April 3 deadline.
All this and more in this week’s resources Intelligence Report:
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Mississippi
When Georgia Pacific closed its paper mill in 2008, it gutted the local Gloster economy. So when the county economic development director learned that the world's largest wood pellet producer was bringing one of the largest new wood pellet operations in the world, he took a moment to let it sink in. In the process, the wood pellet industry has turned parts of rural Mississippi into venues for a climate and public health debate that's traversing the globe, one that people in Gloster are all too familiar with. Mississippi Today
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International
Italian energy giant Eni sees future profits from collecting carbon dioxide and pumping it into natural gas fields that have been exhausted. The New York Times
International
Italian energy giant Eni plans to capture carbon and store it in depleted, offshore natural gas fields The New York Times
Iowa
Legislation that would give landowners a better opportunity to challenge eminent domain requests by carbon dioxide pipeline companies in court was advanced Tuesday by an Iowa Senate subcommittee. Iowa Capital Dispatch
Nebraska
The developer of a carbon-dioxide pipeline and an environmental group have struck a "one-of-a-kind" agreement to ensure "community benefits" from the pipeline as well as support for the project. While similar CO2 pipeline projects in Iowa and the Dakotas have spawned protests and harsh opposition, a peace treaty of sorts has been struck for a $1.5 billion pipeline project that crosses Nebraska. Nebraska Examiner
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International
Global coal generating capacity grew in 2023, driven by a wave of new plants coming online in China that coincided with a slowing pace of retirements of older plants in the United States and Europe. The New York Times
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North Carolina
Duke Energy offering up to $9k for solar plus storage systems to its NC customers under program approved this year Solar Power World
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Minnesota
Minnesota is home to a growing number of networked geothermal systems -- essentially massive ground-source heat pumps providing low-emissions heating and cooling to a group of buildings. Now, state legislators have introduced bills that aim to support further adoption of the technology, which advocates say is a key tool for cutting emissions in the building sector, especially in cold-weather states. Energy News Network
U.S.
A limitless supply of heat exists beneath our feet within the Earth's crust, but harnessing it at scale has proved challenging. Now, a combination of new techniques, government support and the pressing need to secure continuous clean power in an era of climate crisis means that geothermal energy is finally having its moment in the U.S. The Guardian
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Texas
A high-tech chemical company has purchased the last available water in the Nueces River to make hydrogen and ammonia for export. The Texas Tribune
West Virginia
A hydrogen energy plant, part of the multi-billion dollar Appalachian Regional Clean Hydrogen Hub, is slated to be built right behind these Mason County residents' homes. They want answers, and nobody will give them. Mountain State Spotlight
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Oregon
Hydroelectric dams in the Columbia River Basin lauded for providing clean energy might be emitting more greenhouse gases than previously known, according to a new report from the environmental group Tell The Dam Truth. It comes at a time of heightened debate over the future of four Lower Snake River dams and their impact on the survival of endangered salmon and steelhead populations in the basin. Oregon Capital Chronicle
U.S.
After years of heated debates and delays, the world's largest dam removal is underway on the Klamath River across the California-Oregon border. Established in the early to mid-1900s by energy company PacifiCorp, the four dams have stored water and generated electricity for the region. But they've also prevented endangered salmon from reaching critical habitat and breeding grounds, contributing to a 90% decrease in some populations over the last century. Inside Climate News
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International
JP Morgan CEO Dimon supports continued LNG exports - saying it's a geopolitical, environmental boon Fortune
International
Starting in 2030, European natural gas imports will need to show their methane emissions as part of EU's climate rules U.S. News & World Report
Maryland
Freedom Caucus Republicans want to tie emergency funding for Baltimore bridge collapse to lifting LNG study pause Heartlander News
Pennsylvania
Pa. Gov. Shaprio tells Biden that LNG study pause could hurt 2024 reelection chances in 2024. Pa has a huge gas production industry. Financial Times
U.S.
Democrats want no part of GOP effort to tie Ukraine funding to lifting LNG study pause The Hill
U.S.
Environmental groups keep pressure on Biden to hold onto LNG export pause, which has been discussed as a bargaining chip for other legislative goals Natural Gas Intelligence
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Arizona
Rural town in Arizona bans solar plants, but now is facing protests over plans to meet demand with new natural gas The Arizona Republic
International
French President Macron has talked tough on Ukraine, but France is still buying a lot of Russian gas -- 600 million Euros last year. POLITICO Europe
South Carolina
South Carolina lawmakers are advancing sweeping energy legislation that could spur gas-fired development for Santee Cooper and Dominion Energy and Duke Energy utilities, while potentially hampering solar development in the state. Renewable energy developers such as EnergyRe and Pine Gate Renewables want the legislation to require the utilities to acquire the roughly 8 GW of solar that is included in their approved integrated resource plans, with offramps if solar prices increase and the resource is no longer cost effective. Utility Dive
Southeast
A manufacturing buildout is pushing up projected power demand, but critics say clean energy, batteries and grid-responsive data centers can handle the load. Energy News Network
Texas
Permian Basin natural gas prices go negative - still drilling because producers are getting $85/barrel for oil and gas is a byproduct. Still shows too much supply, low consumption after mild winter. MSN
U.S.
Mild winter, gas glut leads EIA to cut price forecast for 2025 natural gas Natural Gas Intelligence
U.S.
Proposing new gas plants to serve growing demand implicitly rejects alternatives as either infeasible, expensive or unconsidered, says Energy Innovation. Utility Dive
U.S.
Natural gas glut in United States has pushed prices very low, but FT notes that in the past that has often led to a response by producers and prices go up Financial Times
U.S.
EIA says natural gas is so cheap that its cost to power plants is lower than coal for first time ever. In prior years, gas plants had beaten coal units due to the efficiency of combined cycle turbines. Western Standard
U.S.
Oklahoma AG files lawsuit on price gouging during Uri against two Texas natural gas cos - Enable Transfer and Symmetry Energy Systems Oklahoman.com
Virginia
Democrats in State Senate/General Assembly come out against Dominion plans for new natural gas plant utility said needed due to new demand growth projections Virginia Mercury
Washington State
A look at how natural gas business will evolve in Washington State with recently passed legislation requiring look at its future with climate targets needing to be met. Columbia Basin Herald
Wisconsin
Years before breaking ground, a proposed $700 million methane gas plant -- envisioned to straddle the Nemadji River in Superior, Wis. -- has polarized local communities. Whereas some tout the Nemadji Trail Energy Center as a generator of jobs and power, others argue that its operation would undermine efforts to preserve nearby wetlands, honor tribal treaty relationships and advance Wisconsin's climate policy goals. Wisconsin Examiner
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U.S.
The Nuclear Regulatory Commision does not fully account for future climate risks in its reactor licensing and oversight processes, the U.S. Government Accountability Office said in a report. NRC officials interviewed by the GAO said they believe current NRC risk assessment processes adequately consider climate risk, but the commission has not made a formal assessment on the question, the report said. Utility Dive
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International
?rsted and Cadeler have signed a long-term lease agreement for a new-build wind farm installation vessel, with ?rsted securing the vessel from 2027 to the end of 2030 for construction projects. Under the agreement, ?rsted will have access to one of Cadeler's new-build A-Class vessels, designed to transport up to six XXL monopile foundations per round trip, says the company. Additionally, the vessels can be converted from foundation installation vessels to turbine generator installation vessels. North American Windpower
International
Ocean Winds, the offshore wind joint venture between EDP Renewables and Engie, has appointed Craig Windram as its new CEO. The appointment, which goes into effect July 1, has been approved by Ocean Winds' board of directors. Recharge
Maine
The Maine House of Representatives has voted to protect sand dunes on Sears Island where the Mills administration has proposed to build an offshore wind terminal. In an 80-65 vote, the House rejected legislation that would have authorized the Department of Environmental Protection to grant a permit to build the terminal on an area of Sears Island that includes a coastal sand dune system. Portland Press Herald
Massachusetts
SouthCoast Wind representatives detailed the offshore wind farm proposal they plan to connect to a substation in Brayton Point, suggesting the site could hold two substations, at a meeting in Swansea. SouthCoast Wind has leased over 127,000 acres of federal waters to build its wind energy farm. It plans to deliver the electricity via undersea cable to a substation in Brayton Point, which will convert the current and feed it into the power grid. The Herald News
New England
New England has a "grand journey" ahead as the region transforms to a clean energy economy, according to ISO-NE CEO Gordon van Welie, who spoke to members of the New England Council gathered at the University of Massachusetts Club in Boston. He discussed the ISO's growing role in encouraging an energy system that's aligned with state climate goals. It won't be easy, he said, but the ISO is on board for the "odyssey" and its challenges. Providence Business First
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International
New analysis finds "quite a big gap" between 51 companies' emissions targets and their plans to actually achieve them. Grist
Puerto Rico
Puerto Rico has 10 times the resources to reach its goal of 100% affordable clean energy by 2050, a two-year study by the National Renewable Energy Laboratory found. The study done in collaboration with an array of government research centres including the Argonne and Lawrence Berkeley national laboratories, aimed to bolster Puerto Rico's law, Act 17, passed in 2019 targeting 100% renewable energy by midcentury. Recharge
U.S.
The U.S. has never had as much wind, solar and hydropower. But experts say it's not enough to meet future electricity demand. E&E News
U.S.
A new report shows wind and solar power account for more of America's energy than ever before. Some states in the Mountain West are helping lead the charge. Nationwide, wind turbines and solar panels generated more than 600,000 gigawatt-hours of energy in 2023, which is enough to power more than 61 million average American homes, according to research group Climate Central. KUNR
U.S.
Solar, battery and wind projects make up 95% of the capacity in interconnection queues, according to Lawrence Berkeley National Laboratory. Utility Dive
Virginia
Dominion Energy Virginia (DEV) is seeking proposals to acquire new solar, onshore wind and energy storage, including up to 3 MW of rooftop solar in urban centers to reduce grid loads. North American Clean Energy
Wisconsin
There's more than one way to go solar in Wisconsin. Rooftop solar may get most of the attention and marketing push, but there's an alternative for homeowners and renters who can't afford to install solar power or don't live in a place where that's possible. The answer could be "green pricing" subscription programs that allow residential customers and small businesses to participate in the renewable energy transition to buy some or all of their power from their utilities' renewable energy resources. Milwaukee Journal Sentinel
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Illinois
Sugar Grove, Illinois, is among the few communities left in the state where solar installers say they've encountered strict limits on panels for aesthetic reasons. Energy News Network
Kentucky
Some 76 households in Lexington are working with the Kentucky Solar Energy Society and Solar Energy Solutions to "solarize Kentucky" using a grant program to get solar power in more homes. Spectrum News 1
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Texas
Column dives into issues solar brings up on Texas grid as policymakers there want more gas Houston Chronicle
Texas
Solar is forecast to displace natural gas in the middle of the day and in the summer on the Texas grid, according to the US Energy Information Administration (EIA). Although wind is still the largest source of renewable power in the state, the installation of new wind slowed in 2023 while solar generation, often paired with battery storage, grew rapidly. In March, solar topped coal's output for the first time in any month. Electrek
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U.S.
The Biden administration on Thursday finalized a rule that cuts costs for developing solar and wind energy on public lands. The rule was expected to cut by 80% fees that are based on how much energy is produced through the year 2035. The Hill
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California
Gas and geothermal plant operator Calpine Corporation will bring 510 MW of its 680 MW capacity battery energy storage system project in California online this summer, with BYD battery units. The 510-MW phase one of the Nova Power Bank will be complete this summer, with an additional 110 MW coming online in autumn and the final 60 MW in 2025, Calpine said. Energy Storage News
International
Mountains could soon store a whole lot of clean energy. These vertically blessed places are ideal spots for a well-established form of energy storage that is getting renewed attention: pumped storage hydropower. CleanTechnica
International
Batteries are likely what most people think about in terms of storing energy for later use, but other technologies exist. Pumped storage hydropower is one common method, albeit one that requires reservoirs at different elevations and is limited by geography. Another approach relies on what is known as thermal energy storage, or TES, which uses molten salt or even superheated rocks. TES shows promise as a low-cost alternative to existing storage technologies, and storing energy in solid particles such as sand provides a ready answer, without geological restrictions. CleanTechnica
International
The noise of battery energy storage system technology has "exploded" as a concern in the last six months, an executive from system integrator Wartsila ES&O said. BESS units primarily emit noise from their cooling systems, but balance of system components like inverters and transformers also produce noise emissions. Growing deployments mean projects are being built nearer to populations and in more population-dense regions, creating potential problems for local acceptance. Energy Storage News
New York
Developers have deployed 396 MW of energy storage capacity and awarded or contracted another 581 MW in New York since the state first set energy storage goals in 2018, the New York Department of Public Service said in an April 1 report. Excluding two pumped-storage hydroelectric facilities that predate the 2018 order, the aggregate energy storage capacity built to date is about 33% of the state's original 2030 target of 3 GW and 65% of the state's interim 2025 target as of March 31. Utility Dive
Pennsylvania
Pennsylvania utilities -- including Duquesne Light, FirstEnergy Pennsylvania, PECO Energy and PPL Electric -- will be able to use energy storage to address reliability on their distribution systems under a policy statement issued April 4 by the Pennsylvania Public Utilities Commission. The PUC rejected a call by Advanced Energy United to provide guidance to utilities on using competitive markets to procure storage assets. Instead, the PUC said it plans to decide who should own the assets on a case-by-case basis, while noting that third parties may own them. Utility Dive
U.S.
NREL has created a cost-estimation tool that evaluates the potential construction and labor costs associated with closed-loop PSH plants in the United States. The tool allows operators to select from a range of system characteristics, accounting for factors such as local geology, labor rates and inflation. NREL said it could help grid planners to provide an accurate picture of how many PSH facilities could reasonably be built over the coming decades and how they could work together with batteries. pv magazine
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Arizona
The SunZia transmission line that would carry wind energy from New Mexico to California has sparked one of the most consequential fights over the development of green spaces for green energy. Inside Climate News
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Maryland
Maryland passes vehicle to grid law, which also includes language to encourage VPPs using other technologies. Energy-Storage.news
U.S.
Grid operators, utilities, state regulators and lawmakers across the country are increasingly exploring the possibilities of virtual power plants. They are seen as a cost-effective way to aid an electric grid that in many parts of the country is increasingly embattled by power plant retirements as well as difficulties building new, cleaner generation and the transmission lines they need -- all at a time when huge projected electric demand increases loom. New Jersey Monitor
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Kentucky
Louisville Gas & Electric and Kentucky Utilities have installed the state's first utility wind turbine.The 165-foot-tall turbine was installed in Mercer County as part of the Renewable Integration Research Facility at the E.W. Brown Generating Station. WDRB.com
Texas
Sonoco Products has agreed to procure 140 MW of electricity annually from a wind farm currently being built by the North American unit of French electric utility Engie SA in Crockett County, Texas. The parties have signed a 15-year virtual power purchase agreement with the contracted volume covering about 52% of the 270-MW plant's expected output. It will come into force once the facility is launched in commercial operation, according to a press release. Renewables Now
Wyoming
Wind energy's supporters, which include communities historically dependent on fossil fuels, say current taxes are a win-win. But some lawmakers are trying to levy new ones that could slow the industry's growth. Inside Climate News
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