One State Generates Much, Much More Renewable Energy Than Any Other – and It’s Not California

At-a-Glance

A new batch of data about the country’s electricity generation shows the increasing dominance of one state as the clean energy leader. No, it’s not California. It’s Texas. For more, read One State Generates Much, Much More Renewable Energy Than Any Other – and It’s Not California.

Key Takeaways

  • Texas has produced more gigawatt-hours of electricity from renewable sources than any other state for several years running, thanks largely to wind energy.
  • In 2022, Texas generated 136,118 gigawatt-hours from wind and utility-scale solar, most of it from wind. The runner-up was California with 52,927 gigawatt-hours, most of it from utility-scale solar, according to the Energy Information Administration.
  • If we include all renewable energy – like hydropower, biomass, and others – then Texas is still the leader with 138,538 gigawatt-hours, followed by Washington, whose 91,148 gigawatt-hours mostly came from hydropower, and then California, which also has a lot of hydropower, with 89,473 gigawatt-hours.
  • If we include all carbon-free electricity sources, including renewables and nuclear, the leader is again Texas, with 180,145 gigawatt-hours, followed by Illinois with 124,055 gigawatt-hours, most of it from nuclear.
  • Another important part of the conversation is rooftop solar. Add small-scale solar to the state totals, Texas would still be ahead, but the lead wouldn’t be quite so big. California dominates in small-scale solar with 23,094 gigawatt-hours, which is about seven times the number from Texas.

Path to 100% Perspective

The latest data on electricity generation in the U.S., while encouraging, shows that there is much work to be done if the country is to achieve 100% renewable energy. Passage of the Inflation Reduction Act (IRA) in August 2022 could be the spark that is needed and act as a key driver in the energy transition. The most important element of the IRA is its tax credits, which have a history of being effective. Tax credits lower the upfront capital investment cost of clean power and incentivize renewable electricity production. This will encourage companies to invest increasingly in clean energy technologies and technologies accelerating the progress to the net-zero goal.

Uncovering the Hidden Value of Reciprocating Engines in Today’s Energy Markets

At-a-Glance

Electric utilities could be missing out on millions of dollars in value by using outdated grid modeling techniques. It is critical for a company to determine the optimum asset mix in order to remain competitive throughout the energy transition. Reuters, in collaboration with Wärtsilä, developed a report to outline the limitations of traditional grid modeling in the United States, explore how reciprocating engines capture value, and explain strategic pathways to a renewable energy transition. For more, read Uncovering the Hidden Value of Reciprocating Engines in Today’s Energy Markets.

Key Takeaways

  • A recent analysis by Ascend Analytics shows the use of hourly dispatch modeling for grid planning vastly underestimates the value of flexible grid resources such as batteries and utility-scale reciprocating internal combustion engines (RICE). This is due to the use of normalized weather inputs that fail to capture real-life grid conditions with significant levels of variable renewable energy and failing to drill down to the five-minute level where much of the variability occurs.
  • As variable generation sources increasingly dominate U.S. grids, flexible assets such as batteries and RICE units are better suited to compensate for the gaps in renewable output because they can operate only when necessary. However, since these flexible assets act on sub-hourly timeframes, the value they provide to the grid is not captured in traditional daily or hourly models.
  • According to the Ascend study, RICE units appeared to be the most expensive of three dispatchable gas technologies when using an hourly model. The use of five-minute modeling shows the opposite to be true: RICEs deliver greater value than competing technologies, providing ratepayers with a lower cost solution in a world of growing renewable generation and pricing volatility.
  • Due to the variable nature of renewable resources, sub-hourly pricing volatility is set to increase dramatically across U.S. electric grids. A move to more granular production models will assist regulators and network planners in selecting technologies, like RICE units, that are best suited to increasingly volatile pricing conditions.

Path to 100% Perspective

The research outlined in the white paper clearly demonstrates the need to update resource planning models to account for real-time, five-minute variability in high renewable systems. It shows that commonly used methodologies for grid planning in the United States may result in suboptimal outcomes for ratepayers.

Following passage of the 2022 Inflation Reduction Act, the United States is about to unleash new levels of variable renewable energy generation. Consequently, there is an urgent need for regulators to be made aware of the shortcomings of traditional hourly and weather-normalized modeling in forecasting current energy system dynamics. Without regulatory pressure to use more granular models, there will be little incentive for U.S. electric utilities to embrace sub-hourly models. This will lead to increasingly suboptimal results and rising costs for ratepayers, while electric utilities invest millions in assets that are poorly equipped to operate in a low-carbon energy world. Given the forecasted rate of increase in renewables on the grid, the shift to capture these fundamental dynamics is one that cannot wait.

How Are The Leading Countries Faring On The Path To Net Zero?

At-a-Glance

In the run-up to the COP27 climate conference in Egypt, more than 80 countries announced pledges to reach net-zero emissions around mid-century. Most Organization for Economic Cooperation and Development (OECD) nations aim to reach net zero by 2050, while developing countries plan to get there a decade or two later. China and India aim to reach net zero by 2060 and 2070, respectively. For more, read How Are The Leading Countries Faring On The Path To Net Zero?

Key Takeaways

  • Wood Mackenzie’s inaugural Global Net Zero Pledges Case Scenario finds that energy-related emissions in the pledges case scenario decline 8% from 2019 levels by 2030 and by 80% by 2050. Global net zero arrives around 2060, taking cumulative emissions to around 750 billion tons of CO2.
  • Compared with the base case, power demand expands by about 40% under the pledges scenario, with green hydrogen the single largest source of incremental growth by 2050.
  • Around 90% of incremental capacity comes from wind, solar, and energy storage. 
  • Low-carbon dispatchable generation becomes critical due to higher wind and solar penetration. Markets shift to investing in ammonia co-firing, hydrogen combustion, and carbon capture and storage to provide flexible generation.
  • Hydrogen production reaches 500 to 630 million tons per annum under the pledges and net-zero scenarios, respectively.

Path to 100% Perspective

The urgency of the climate crisis demands that the power sector pioneers the rapid decarbonization of economies worldwide. According to the International Energy Agency’s 2050 roadmap, there is a viable pathway to a global net zero emissions energy sector by 2050 – but it’s narrow and calls for a transformation in how energy is produced, transported, stored, and used globally. Countries must front-load the transition toward net zero, taking major steps in the next few years to tackle the climate crisis.

Fortunately, power generation is undergoing a rapid transformation toward cleaner energy sources due to huge additions of low-cost renewable electricity. There is also a wide array of potential future fuels, including hydrogen, that can help to phase out fossil fuels in favor of renewable energy. Adding more flexible gas generation that can convert to sustainable fuels and closing inflexible fossil assets will also be key in the final push to decarbonize energy systems.

Pathways to clean power

At-a-Glance

The coming years will see a monumental shift in the way that mining operations are run. With the clock ticking fast and the first net-zero deadline of 2030 steadily approaching, mining companies will need to make drastic changes to their power systems away from diesel and fossil fuels and toward green renewable energy sources. For more, read Pathways to clean power.

Key Takeaways

  • Mining companies are setting ambitious emissions reduction goals, with many of them pledging to reach net-zero greenhouse gas emissions by 2050. To meet these targets, all methods of producing clean energy need to be considered.
  • Wartsila is helping mining companies decide on the ideal power generation mix of green energy technologies using dynamic modeling and energy optimization to create personalized solutions for individual operations.
  • Wartsila enters historical data concerning production and power demand into the PLEXOS modeling tool to create a dynamic simulation of how a mining operation would function using a mix of different green energy types.
  • Once a plan is in place, Wartsila uses its GEMS Digital Energy Platform to identify a starting point in the energy management system to drive the optimal energy mix so decarbonization can happen.
  • The GEMS platform has been used at sites such as B2Gold’s Fekola mine in Mali, where it integrates and optimizes a hybrid energy solution – energy storage technology, a solar array, and a power generator – which led to improved power reliability and reduced emissions, fuel consumption, and operational costs of the mining operations. 

Path to 100% Perspective

The mining industry is looking for ways to improve the carbon footprint of its operations today. Because mining operations are energy intensive, this represents a significant challenge, but decarbonization is possible with a carefully planned approach. Various options are available for making a positive impact on carbon emissions. Renewable energy sources such as wind and solar are increasingly being utilized, but they represent only part of the solution. Energy storage, flexible and efficient power generation, and future carbon-neutral fuels are other available solutions. Using technologies like the GEMS Digital Energy Platform can help mining companies come up with a decarbonization roadmap that makes sense for them and future proofs their assets.

Texas Utility Will Add More Peaking Power

At-a-Glance

The Lower Colorado River Authority (LCRA) said it will build a new 190-MW peaker power plant in central Texas to provide additional dispatchable power to the state’s electric grid. A peaker plant is one that is typically used only for brief periods during times when the demand for power approaches or surpasses the amount of power available. For more, read Texas Utility Will Add More Peaking Power.

Key Takeaways

  • The new plant will be LCRA’s second peaker plant. The first is a 184-MW natural gas-fired facility in Fayette County that was built in 2010.
  • The new facility will have 10 Wartsila 50SG natural gas-fueled reciprocating engines. It is expected to become fully operational in 2025.
  • The new dispatchable peaker plant will support the state’s power grid within minutes, providing a reliable source of power to customers.
  • The LCRA plant is one of several new engine power plants that Wartsila has announced in the Americas. 
    • Engines are becoming more prominent in the American power grids due to their grid balancing and flexible generation capabilities.

Path to 100% Perspective

The energy sector is in the midst of a rapid transformation where flexibility is becoming more important. Flexible engine power plants are a good way to ensure that the lights never go out and decarbonization goals are met, even in extreme weather conditions like those facing Texas in recent years. Flexible thermal balancing power plants, like the LCRA peaker plant, provide firm and dispatchable capacity, ensuring that backup power is available when adverse weather conditions don’t generate enough electricity. These plants also support the integration of renewables, making them an important player in reaching a 100% renewable energy future. Wartsila’s engines can already run on multiple fuels and are ready to be converted to new carbon-neutral or carbon-free fuels when they become commercially available.

CPS Energy board approves plan to phase out coal by 2028

At-a-Glance

CPS Energy’s board of trustees voted 4-1 on January 23 to approve a new energy mix, which will see the municipally owned utility phase out its use of coal by 2028. For more, read CPS Energy board approves plan to phase out coal by 2028.

Key Takeaways

  • Under the approved plan, CPS Energy will shut down one of two remaining coal plants in 2028 and convert the second to a natural gas plant by 2027, which will run indefinitely.
  • The new mix aims to minimize CPS Energy’s reliance on the grid and to ensure it has plenty of dispatchable energy – meaning it can be turned on and off when needed.
  • Known as Portfolio #2, the plan will add roughly 4,928 megawatts of generation capacity to the utility’s portfolio over the next seven years, including 1,380 megawatts from combined cycle natural gas and about 800 from reciprocating internal combustion engines that run on natural gas or diesel.
  • Another 500 megawatts will come from wind, 1,180 from solar, and 1,060 from lithium battery storage.
  • CPS Energy officials emphasize that the utility will revisit the portfolio every two to three years, and Portfolio #2 offers enough flexibility that as cleaner technologies come online, they can be added to reduce CPS Energy’s reliance on natural gas.

Path to 100% Perspective

Utilities in the United States are seeing the value and beginning to invest in flexible gas solutions as part of their portfolios to integrate a growing share of renewables in the most efficient manner. CPS Energy’s plan, which includes fast starting gas power plants, will give the utility a solid and much cleaner portfolio that provides optimized and reliable electricity to its customers. Their plan also sets a precedent for how a Texas utility can accelerate the transition toward 100% renewable energy with hybrid solutions. Including flexible gas assets in the portfolio is now becoming the best and fastest way to integrate renewables and ensure security of supply, regardless of weather conditions.

Solar energy could be key in Puerto Rico’s transition to 100% renewables, study says

At-a-Glance

It’s becoming clearer how Puerto Rico might meet its goal of getting 100% of its electricity from renewable energy sources by 2050. For more, read Solar energy could be key in Puerto Rico’s transition to 100% renewables, study says.

Key Takeaways

  • Last year, the DOE’s National Renewable Energy Laboratory, with funding from the Federal Emergency Management Agency, began studying options to transition the island to 100% renewable energy by 2050.
  • The goals of this two-year, federal government study, called PR100, are to build an electricity system that is more resilient against future storms, to transition away from imported fossil fuels to cleaner sources such as solar and wind, and to make electricity more affordable. 
  • A half-way update on the study was released on January 23. In the report, researchers found there’s a preference among many residents for “distributed energy,” which is generated near where it’s used.
  • As part of the study, four scenarios have been modeled to meet Puerto Rico’s targets – all include more rooftop solar combined with battery storage. The first scenario aligns with the found preference for distributed energy and includes a focus on installing distributed energy, namely solar panels, on buildings where owners could get the financial benefits of generating electricity.
  • The final three scenarios include focusing on critical services like hospitals and fire stations, prioritizing deployment in remote and low-to-moderate income areas to distribute benefits equitably, and installing solar panels on as many other rooftops as possible.

Path to 100% Perspective

Reliable access to power is fundamental to our way of life and our ability to thrive – as individuals, communities, countries, and an interconnected world. The people of Puerto Rico know this full well, having endured widespread power outages due to Hurricanes Maria and Fiona. As the island looks to transition to 100% renewable energy by 2050, it’s best that they heed the four key factors that contribute to the success of renewables and our drive toward a net-zero future: flexibility, efficiency, resilience, and reliability. A focus on increasing solar + storage is a necessary and key first step on their Path to 100%.

Wartsila energy storage systems keep island grid secure

At-a-Glance

Wartsila will supply two 10 MW / 10 MWh energy storage systems consisting of its GridSolv Quantum integrated energy storage system and GEMS Digital Energy Platform software to Caribbean Utilities Company Ltd. (CUC) in the Cayman Islands. The project, which will be CUC’s first energy storage facility, will enable the utility to approximately double its renewable energy capacity on Grand Cayman, the largest of the three Cayman Islands. For more, read Wartsila energy storage systems keep island grid secure.

Key Takeaways

  • The new energy storage facilities will allow CUC to operate its generating assets, including a 5 MW solar farm, in a more efficient manner, reducing fuel costs to electricity consumers.
  • The energy storage systems will also facilitate up to a total of approximately 29 MW of distributed customer-sited renewable energy resources without causing instability to the grid.
  • The systems are expected to provide extensive power system optimization capabilities and the battery will have the ability to react much faster than the existing plant, reducing the risk of customer outages caused by a loss of generation.
  • The systems are expected to become operational in late 2023.
  • Wartsila is no stranger to optimizing island power grids as its GEMS software and GridSolv energy storage systems are being used to manage 4.5 MW of wind energy, 1 MW of solar and 2.5 MW of energy storage on the island of Graciosa in the Azores, and provide 25 MW of energy storage for Bahama Power and Light.

Path to 100% Perspective

Island grids face unique reliability and resiliency challenges before considering the intermittency caused by increased integration of renewables. Places like the Cayman Islands demonstrate how steps are being taken to not only work toward renewable energy goals to reduce carbon emissions, but also to optimize energy generation and improve grid reliability in the face of seasonal variability and extreme weather events

New York’s plan to expand storage capacity to 6 GW by 2030 includes centralized procurement method

At-a-Glance

On December 28, 2022, New York Governor Kathy Hochul announced a plan for how the state will reach 6 GW of energy storage by 2030, representing at least 20% of peak electricity load. For more, read New York’s plan to expand storage capacity to 6 GW by 2030 includes centralized procurement method.

Key Takeaways

  • The proposed plan is projected to reduce projected future statewide electric system costs by nearly $2 billion and the average customer bill would rise by less than 0.05%, or 46 cents a month.
  • The plan calls for 3,000 MW of new bulk storage that would power about one million homes for up to four hours; 1,500 MW of new retail storage to power about 500,000 homes for up to four hours; and 200 MW of residential storage that would power 120,000 homes for up to two hours.
  • The power would be procured through a competitive Index Storage Credit mechanism that officials say will provide some certainty to projects while saving money for consumers.
  • At least 35% of plan funding would support projects to benefit disadvantaged communities and target fossil fuel peaker plant emissions reductions.
  • Electric utilities would also be required to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available in existing markets.

Path to 100% Perspective

New York’s plans to double its energy storage capacity by 2030 is an important step for the state to reach its goal of 100% zero-emission electricity by 2040. In the big picture, a key piece of the 100% emissions-free electricity puzzle will be to deploy significant amounts of long-duration energy storage, especially from 2030 onward. The need to meet daily ramping needs and energy requirements covering a few hours is currently driving the adoption of short duration battery energy storage. After 2030, multi-day and seasonal week-long gaps between supply and demand will require larger quantities of storage capacity. This is where long duration energy storage and sustainable fuels come in. As well as offering green, firm capacity, sustainable fuels can be stored for many months and can release megawatts of power within minutes when needed, when combusted with thermal balancing power plants.

Booming Investment In Renewables Is Set To Continue In 2023 And Beyond

At-a-Glance

Climate tech has come to the fore like never before with its potential to be a safe haven investment in a macroeconomic environment of uncertainty. For more, read Booming Investment In Renewables Is Set To Continue In 2023 And Beyond.

Key Takeaways

  • Clean energy investment significantly accelerated and is expected to surpass $1.4 trillion in 2022, says the World Economic Forum
  • Three-quarters of overall growth in energy investment is attributable to clean energy, which has been growing at an average annual rate of 12% since 2020.
  • Governments across Europe are doing their part to assist in the energy transition in a meaningful way, with the EU accelerating the speed at which permits are given to renewable energy projects.
  • Germany approved plans for each state to allocate a minimum amount of land for onshore wind farms and EU energy ministers backed laws with targets to get 40% of energy from renewable sources by 2030.
  • Deloitte’s Renewable Energy Outlook for 2023 report forecasts that the Inflation Reduction Act’s (IRA) extension of tax credits for renewable energy projects will lead to up to 550 gigawatts of additional clean energy by the end of the 2020s.
  • Private investment in renewables in the U.S. reached a record high of $10 billion in 2022, investment levels that Deloitte forecasts are expected to continue into 2023 as investors are attracted by transparent and predictable returns on mature technologies that are backed by the IRA’s 10-year tax credits.

Path to 100% Perspective

Recent investments in clean energy make it abundantly clear that the renewable revolution is here. Increasing and being consistent in these investments is necessary to realize a 100% renewable energy future. As energy leaders take stock post-COVID and restructure their models, now is a key moment to set clear frameworks for achieving net zero. For most, it’s not about starting from scratch, but understanding where and how to invest to drive future resilience.

Two Partnerships Expand Access To Clean Energy & Transport In The Eastern US

At-a-Glance

A couple of energy projects in the Eastern United States are helping to increase access to clean energy and clean transport, while helping to level the playing field in other ways too. For more, read Two Partnerships Expand Access To Clean Energy & Transport In The Eastern US.

Key Takeaways

  • New York-based Autel Energy is partnering with Legacy Clean Energy (LCE), a minority-owned business in Charlotte, North Carolina, to offer electric vehicle charging solutions for corporations and marginalized communities across the country.
  • In Pennsylvania, Southeastern Pennsylvania Transportation Authority (SEPTA) and Lightsource bp have joined forces with a 25-megawatt solar project now in operation. With the addition of this second solar farm to SEPTA’s statewide portfolio, both companies boast 42 megawatts – rough electricity to fulfill 20% of SEPTA’s total demand.
  • By partnering with Lightsource bp, SEPTA’s Elk Hill Solar 1 project has enabled Pennsylvania to reduce its carbon footprint by 28,000 metric tons of CO2 each year.
  • The solar farm not only contributes to achieving Pennsylvania’s clean energy goals but also increases energy security and diversifies their portfolio. 

Path to 100% Perspective

Engaging private industry in the path to 100% is critical to develop the solutions and innovations needed for decarbonization. These examples show what’s possible when private companies and utilities partner to expand both capacity and access to clean energy. Partnerships like these are needed to accelerate the transition to net zero, meet decarbonization goals, and limit the impacts of climate change.

Generating Change: Wartsila’s Evolution

At-a-Glance

Finnish company Wartsila evolved from humble beginnings as a sawmill into a global marine and energy powerhouse that is today a model of customer value creation, decarbonization, and growth amid uncertainty. Driving that triumph over its 188-year history is a consistent spirit of innovation and flexibility. For more, read Generating Change: Wartsila’s Evolution.

Key Takeaways

  • Since 2010, Wartsila has been focusing on becoming a world leader in balancing and power optimization to help customers achieve decarbonization and transition toward a 100% renewable energy future.
  • In May 2020, Wartsila began work developing a combustion process in its engines to achieve 100% hydrogen fuel combustion. The company expects to launch a power plant design for hydrogen blends in 2022, followed by a concept for pure hydrogen in 2025.
  • In March 2022, Wartsila began operating two Wartsila 34SG engines, a combined output of 11.6 MW, that can run on 3% hydrogen and natural gas blend at Keppel Offshore Marine’s “Floating Living Lab” in Singapore.
  • In addition to hydrogen, other potential renewable fuels are being studied for future applications. In 2022, Wartsila released its Wartsila 32 Methanol engine to the market and it expects to have engine concepts ready for operating with pure ammonia fuel in 2023.

Path to 100% Perspective

Modern and flexible engine power plants are an ideal solution for balancing power, due to their flexibility in fuels and operation profiles. This is needed as batteries alone cannot fulfill the balancing need for fluctuating renewable power sources. Flexible capacity must be ready to start quickly at any time and capable of ramping up and down an unlimited number of times a day. Current Wartsila engine power plants can connect to the grid in 30 seconds and reach full load in just two minutes. In addition, current Wartsila gas engineer power plants can use up to 25 vol% hydrogen blends in natural gas and there is ongoing development for pure hydrogen and other P2X fuels, such as ammonia, methane, and methanol. As part of the strong green hydrogen boom, Wartsila is planning several hydrogen projects with partners and customers ranging from utilizing hydrogen blends in existing assets to a P2X2P plant in collaboration with partners.