Bank goes green with Bullfrog Power

DOE Office of Fossil Energy safeguards energy security via the Strategic Petroleum Reserve, domestic critical minerals from coal byproducts, and carbon capture to curb CO2, strengthening resiliency amid shocks and supporting U.S. manufacturing and defense.

Key Points

A DOE program advancing energy security through SPR stewardship, critical minerals R&D, and carbon capture.

✅ Manages the Strategic Petroleum Reserve for emergency crude supply

✅ Develops domestic critical minerals from coal and mining byproducts

✅ Deploys carbon capture, utilization, and storage to cut CO2

The global economy has just experienced a period of unique transformation because of COVID-19. The fact that remains constant in this new economic landscape is that our society relies on energy; it’s an integral part of our day-to-day lives, even as U.S. energy use has evolved over time. According to the U.S. Energy Information Administration, approximately 80 percent of energy consumption in the United States comes from fossil fuels, so having access to a secure and reliable supply of those energy resources is more important than ever for national energy security considerations today. Below are three examples that highlight how our work at the U.S. Department of Energy’s Office of Fossil Energy (FE) helps ensure the Nation’s energy security and resiliency.

(1) Open crude oil reserves to respond to crises

FE has overall program responsibility for carrying out the mission of the Strategic Petroleum Reserve (SPR), the world’s largest supply of emergency crude oil. These federally-owned stocks are stored in massive underground salt caverns along the coastline of the Gulf of Mexico. The SPR is a powerful tool U.S. leaders use to respond to a wide range of crises, including energy crisis impacts on electricity and fuels, involving crude oil disruption or demand loss.  When the COVID-19 pandemic hit, the oil markets crashed and crude oil demand dropped drastically across the world. U.S. oil producers turned to the SPR to store their oil while broader energy dominance constraints were becoming evident in practice. This helped alleviate the pressure on producers to shut in oil production and proved to be a critical asset for American energy and national security.

(2) Use the Nation’s abundant coal reserves to produce valuable materials

Critical materials, including rare earth elements, are a group of chemical elements and materials with unique properties that support manufacturing of most modern technologies. They are essential components for critical defense and homeland security applications, green energy technologies, hybrid and electric vehicles, and high-value electronics. While these materials are not rare, they are hard to separate and expensive to extract. The United States relies heavily on imports from China. To reduce U.S. dependence on foreign sources, FE has a research and development program aimed at producing a domestic supply of critical materials from the Nation’s abundant coal resources and associated byproducts from legacy and current mining operations. Many of the technologies being developed can also be used to separate critical minerals from other mining materials and byproducts. Tapping into these resources has the potential to create new industries and revitalize coal communities and the workforce in coal-producing regions.

(3) Decrease carbon emissions for a cleaner energy future

FE is committed to balancing the Nation’s energy use with the need to protect the environment, and has a comprehensive portfolio of technological solutions that help keep carbon dioxide (CO2) emissions out of the atmosphere. For example, amid high natural gas prices that reinforce the case for clean electricity, the Department has been investing in carbon capture, utilization, and storage technologies for over a decade. These technologies capture CO2 emissions from various sources, including coal-fired power plants and manufacturing plants, before they enter the atmosphere. Several of these cutting-edge technologies have been deployed at major demonstration sites, supported by clean energy funding that aims to benefit millions. Three of these projects—Petra Nova, Archer Daniels Midland, and Air Products & Chemicals—have captured and injected over 10.8 million metric tons of CO2. The success of these projects is paving the way toward a cleaner and more sustainable American energy future.

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UK EV Per-Mile Taxes are reshaping road pricing and vehicle taxation for electric cars, raising fairness concerns, climate policy questions, and funding needs for infrastructure and charging networks across the country.

Key Points

They are per-mile road charges on EVs to fund infrastructure, raising fairness, emissions, and vehicle taxation concerns.

✅ Propose tax relief or credits for EV owners

✅ Consider emission-based road user charging

✅ Invest in charging networks and road infrastructure

As the UK continues its push towards a greener future with increased adoption of electric vehicles (EVs) and surging EV interest during supply disruptions, a growing number of electric car drivers are voicing their frustration over the current tax system. The debate centers around the per-mile vehicle taxes that are being proposed and implemented, which many argue are unfairly burdensome on EV owners. This issue has sparked a broader campaign advocating for a more equitable approach to vehicle taxation, one that reflects the evolving landscape of transportation and environmental policy.

Rising Costs for Electric Car Owners

Electric vehicles have been hailed as a crucial component in the UK’s strategy to reduce carbon emissions and combat climate change. Government incentives, such as grants for EV purchases and tax breaks, have been instrumental in encouraging the shift from petrol and diesel cars to cleaner alternatives, even as affordability concerns persist among many UK consumers. However, as the number of electric vehicles on the road grows, the financial dynamics of vehicle taxation are coming under scrutiny.

One of the key issues is the introduction and increase of per-mile vehicle taxes. While these taxes are designed to account for road usage and infrastructure costs, they have been met with resistance from EV drivers who argue that they are being disproportionately affected. Unlike traditional combustion engine vehicles, electric cars typically have lower running costs compared to petrol or diesel models and, in many cases, benefit from lower or zero emissions. Yet, the current tax system does not always reflect these advantages.

The Taxation Debate

The crux of the debate lies in how vehicle taxes are structured and implemented. Per-mile taxes are intended to ensure that all road users contribute fairly to the maintenance of transport infrastructure. However, the implementation of such taxes has raised concerns about fairness and affordability, particularly for those who have invested heavily in electric vehicles.

Critics argue that per-mile taxes do not adequately take into account the environmental benefits of driving an electric car, noting that the net impact depends on the electricity generation mix in each market. While EV owners are contributing to a cleaner environment by reducing emissions, they are also facing higher taxes that could undermine the financial benefits of their greener choice. This has led to calls for a reassessment of the tax system to ensure that it aligns with the UK’s climate goals and provides a fair deal for electric vehicle drivers.

Campaigns for Fairer Taxation

In response to these concerns, several advocacy groups and individual EV owners have launched campaigns calling for a more balanced approach to vehicle taxation. These campaigns emphasize the need for a system that supports the transition to electric vehicles and recognizes their role in reducing environmental impact, drawing on ambitious EV targets abroad as useful benchmarks.

Key proposals from these campaigns include:

1. Tax Relief for EV Owners: Advocates suggest providing targeted tax relief for electric vehicle owners to offset the costs of per-mile taxes. This could include subsidies or tax credits that acknowledge the environmental benefits of EVs and help to make up for higher road usage fees.

2. Emission-Based Taxation: An alternative approach is to design vehicle taxes based on emissions rather than mileage. This system would ensure that those driving high-emission vehicles contribute more to road maintenance, while EV owners, who are already reducing emissions, are not penalized.

3. Infrastructure Investments: Campaigners also call for increased investments in infrastructure that supports electric vehicles, such as charging networks and proper grid management practices that balance load. This would help to address concerns about the adequacy of current road maintenance and support the growing number of EVs on the road.

Government Response and Future Directions

The UK government faces the challenge of balancing revenue needs with environmental goals. While there is recognition of the need to update the tax system in light of increasing EV adoption, there is also a focus on ensuring that any changes are equitable and do not disincentivize the shift towards cleaner vehicles, while considering whether the UK grid can handle additional EV demand reliably.

Discussions are ongoing about how to best implement changes that address the concerns of electric vehicle owners while ensuring that the transportation infrastructure remains adequately funded. The outcome of these discussions will be critical in shaping the future of vehicle taxation in the UK and supporting the country’s broader environmental objectives.

Conclusion

As electric vehicle adoption continues to rise in the UK, the debate over vehicle taxation becomes increasingly important. The campaign for fairer per-mile taxes highlights the need for a tax system that supports the transition to cleaner transportation while also being fair to those who have made environmentally conscious choices. Balancing these factors will be key to achieving the UK’s climate goals and ensuring that all road users contribute equitably to the maintenance of transport infrastructure. The ongoing dialogue and policy adjustments will play a crucial role in shaping a sustainable and just future for transportation in the UK.

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EU-UK Coal Power Decline 2020 underscores Covid-19's impact on power generation, with renewables rising, carbon emissions falling, and electricity demand down, revealing resilient grids and accelerating the energy transition across European markets.

Key Points

Covid-19's impact on EU-UK power: coal down, renewables up, lower emissions intensity and reduced electricity demand.

✅ Coal generation down 25.5% EU-UK; 29% in March 10-April 10 period

✅ Renewables share up to 46%; grids remained stable and flexible

✅ Electricity demand fell 10%; emissions intensity dropped 19.5%

Coal based power generation has fallen by over a quarter (25.5%) across the European Union (EU) and United Kingdom (UK) in the first three months of 2020, compared to 2019, as a result of the response to Covid-19, with renewable energy reaching a 43% share, as wind and solar outpaced gas across the EU, according to new analysis by the technology group Wärtsilä.

The impact is even more stark in the last month, with coal generation collapsing by almost one third (29%) between March 10 and April 10 compared to the same period in 2019, making up only 12% of total EU and UK generation. By contrast, renewables delivered almost half (46%) of generation – an increase of 8% compared to 2019.

In total, demand for electricity across the continent is down by one tenth (10%), mirroring global demand declines of around 15%, due to measures taken to combat Covid-19, the biggest drop in demand since the Second World War. The result is an unprecedented fall in carbon emissions from the power sector, with emission intensity falling by 19.5% compared to the same March 10-April 10 period last year. The analysis comes from the Wärtsilä Energy Transition Lab, a new free-to-use data platform developed by Wärtsilä to help the industry, policy makers and the public understand the impact of Covid-19 on European electricity markets and analyse what this means for the future design and operation of its energy systems. The goal is to help accelerate the transition to 100% renewables.

Björn Ullbro, Vice President for Europe & Africa at Wärtsilä Energy Business, said: “The impact of the Covid-19 crisis on European energy systems is extraordinary. We are seeing levels of renewable electricity that some people believed would cause systems to collapse, yet they haven’t – in fact they are coping well. The question is, what does this mean for the future?”

“What we can see today is how our energy systems cope with much more renewable power – knowledge that will be invaluable, aligning with IAEA low-carbon insights, to accelerate the energy transition. We are making this new platform freely available to support the energy industry to adapt and use the momentum this tragic crisis has created to deliver a better, cleaner energy system, faster.”

The figures mark a dramatic shift in Europe’s energy mix – one that was not anticipated to occur until the end of the decade. The impact of the Covid-19 crisis has effectively accelerated the energy transition in the short-term, even as later lockdowns saw power demand hold firm in parts of Europe, providing a unique opportunity to see how energy systems function with far higher levels of renewables.

Ullbro added: “Electricity demand across Europe has fallen due to the lockdown measures applied by governments to stop the spread of the coronavirus. However, total renewable generation has remained at pre-crisis levels with low electricity prices, combined with renewables-friendly policy measures, crowding out gas and fossil fuel power generation, especially coal. This sets the scene for the next decade of the energy transition.”

These Europe-wide impacts are mirrored at a national level, for example:

• In the UK, renewables now have a 43% share of generation, following a stall in low-carbon progress in 2019 (up 10% on the same March 10-April 10 period in 2019) with coal power down 35% and gas down 24%.
• Germany has seen the share of renewables reach 60% (up 12%) and coal generation fall 44%, resulting in a fall in the carbon intensity of its electricity of over 30%.
• Spain currently has 49% renewables with coal power down by 41%.
• Italy has seen the steepest fall in demand, down 21% so far.

An industry first, the Wärtsilä Energy Transition Lab has been specifically developed as an open-data platform for the energy industry to understand the impact of Covid-19 and help accelerate the energy transition. The tool provides detailed data on electricity generation, demand and pricing for all 27 EU countries and the UK, combining Entso-E data in a single, easy to use platform. It will also allow users to model how systems could operate in future with higher renewables, as global power demand surpasses pre-pandemic levels, helping pinpoint problem areas and highlight where to focus policy and investment.

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Siemens Gamesa SG 14-222 DD advances offshore wind with a 14 MW direct-drive turbine, 108 m blades, a 222 m rotor, optional 15 MW boost, powering about 18,000 homes; prototype 2021, commercial launch 2024.

Key Points

A 14 MW offshore wind turbine with 108 m blades and a 222 m rotor, upgradable to 15 MW, targeting commercial use in 2024.

✅ 14 MW direct-drive, upgradable to 15 MW

✅ 108 m blades, 222 m rotor diameter

✅ Powers about 18,000 European homes annually

Siemens Gamesa Renewable Energy (SGRE) has released details of a 14-megawatt (MW) offshore wind turbine, as offshore green hydrogen production gains attention, in the latest example of how technology in the sector is increasing in scale.

With 108-meter-long blades and a rotor diameter of 222 meters, the dimensions of the SG 14-222 DD turbine are significant.

In a statement Tuesday, SGRE said that one turbine would be able to power roughly 18,000 average European households annually, while its capacity can also be boosted to 15 MW if needed. A prototype of the turbine is set to be ready by 2021, and it’s expected to be commercially available in 2024, as forecasts suggest a $1 trillion business this decade.

As technology has developed over the last few years, the size of wind turbines has increased, and renewables are set to shatter records globally.

Last December, for example, Dutch utility Eneco started to purchase power produced by the prototype of GE Renewable Energy’s Haliade-X 12 MW wind turbine. That turbine has a capacity of 12 MW, a height of 260 meters and a blade length of 107 meters.

The announcement of Siemens Gamesa’s new turbine plans comes against the backdrop of the coronavirus pandemic, which is impacting renewable energy companies around the world, even as wind power sees growth despite Covid-19 in many markets.

Earlier this month, the European company said Covid-19 had a “direct negative impact” of 56 million euros ($61 million) on its profitability between January and March, amid factory closures in Spain and supply chain disruptions. This, it added, was equivalent to 2.5% of revenues during the quarter.

The pandemic has, in some parts of the world, altered the sources used to power society. At the end of April, for instance, it was announced that a new record had been set for coal-free electricity generation in Great Britain, where UK offshore wind growth has accelerated, with a combination of factors — including coronavirus-related lockdown measures — playing a role.

On Tuesday, the CEO of another major wind turbine manufacturer, Danish firm Vestas, sought to emphasize the importance of renewable energy in the years and months ahead, and the lessons the U.S. can learn from the U.K. on wind deployment.

“I think we have actually, throughout this crisis, also shown to all society that renewables can be trusted,” Henrik Andersen said during an interview on CNBC’s Street Signs.

“But we both know ... that that transformation of energy sources is not going to happen overnight, it’s not going to happen from a quarter to a quarter, it’s going to happen by consistently planning year in, year out.”

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Alberta Electricity Market Reforms aim to boost grid reliability and efficiency through a day-ahead market, transmission policy changes, clearer pricing signals, AESO oversight, and smarter siting near existing infrastructure to lower consumer costs.

Key Points

Policies add a day-ahead market and transmission fees to modernize the grid and improve reliability.

✅ Day-ahead market for clearer pricing and scheduling

✅ Up-front, non-refundable transmission payments by generators

✅ AESO to draft new rules by end of 2025

The Alberta government is implementing significant electricity policy changes to its electricity market to enhance system reliability and efficiency. These reforms aim to modernize the grid, accommodate growing energy demands, and align with best practices observed in other jurisdictions.

Proposed Market Reforms

The government has outlined several key initiatives:

• Day-Ahead Market Implementation: Introducing a day-ahead market is intended to provide clearer pricing signals and improve the scheduling of electricity generation. This approach allows market participants to plan and commit to energy production in advance, enhancing grid stability.

• Transmission Policy Revisions: The government proposes reforms to transmission policies, including the introduction of up-front and non-refundable transmission payments from new power generators. These payments would vary based on the proximity of new generators to existing transmission lines with available capacity. As part of a broader market overhaul, this strategy encourages the development of power plants in areas where existing infrastructure can be utilized, potentially reducing costs for consumers and businesses.

Government's Objectives

Minister of Affordability and Utilities, Nathan Neudorf, emphasized that these changes are necessary to meet growing energy demands and modernize Alberta’s electricity system. The government's goal is to create a more reliable and efficient electrical system that benefits both consumers and the broader economy.

Industry Reactions

The proposed reforms have elicited mixed reactions from industry stakeholders amid profound sector change across Alberta:

• Renewable Energy Sector Concerns: The Canadian Renewable Energy Association (CanREA) has expressed concerns about the potential for punitive market and transmission changes, and some retailers have similarly urged caution. They advocate for policies that support the integration of renewable energy sources and ensure fair treatment within the market.

• Regulatory Oversight: The Alberta Electric System Operator (AESO) is tasked with preparing restructured energy market rules by the end of 2025. This timeline reflects the government's commitment to a thorough and consultative approach to market reform.

Implications for Consumers

The Alberta government's proposed market changes aim to enhance the reliability and efficiency of the electricity system by considering measures such as a Rate of Last Resort to provide additional stability. By encouraging the development of power plants in areas with existing infrastructure, the reforms seek to reduce costs for consumers and businesses. However, the success of these initiatives will depend on careful implementation and ongoing engagement with all stakeholders to balance the diverse interests involved.

Alberta's proposed electricity market reforms represent a significant step toward modernizing the province's energy infrastructure. By introducing a day-ahead market and revising transmission policies, the government aims to create a more reliable and efficient electrical system and promote market competition more effectively. While these changes have generated diverse reactions, they underscore the government's commitment to addressing the evolving energy needs of Alberta's residents and businesses.

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SDG&E Mitsubishi Power Energy Storage adds a 10 MW/60 MWh BESS in Pala, boosting grid reliability, renewable integration, and flexibility with EMS and SCADA controls, LFP safety chemistry, NERC CIP compliance, UL 9540 standards.

Key Points

A 10 MW/60 MWh BESS for SDG&E in Pala that enhances grid reliability, renewables usage, and operational flexibility.

✅ Emerald EMS/SCADA meets NERC CIP, IEC/ISA 62443, NIST 800-53

✅ LFP chemistry with UL 9540 and UL 9540A safety compliance

✅ Adds capacity, energy, and ancillary services to CA grid

San Diego Gas & Electric Company (SDG&E), a regulated public utility that provides energy service to 3.7 million people, has awarded Mitsubishi Power an order for a 10 megawatt (MW) / 60 megawatt-hour (MWh) energy storage solution for its Pala-Gomez Creek Energy Storage Project in Pala, California. The battery energy storage system (BESS) will add capacity to help meet high energy demand, support grid reliability and operational flexibility, underscoring the broader benefits of energy storage now recognized by utilities, maximize use of renewable energy, and help prevent outages during peak demand.

The BESS project is Mitsubishi Power’s eighth in California, bringing total capacity to 280 MW / 1,140 MWh of storage to help meet California’s clean energy goals with reliable power to complement renewables, alongside emerging solutions like a California green hydrogen microgrid for added resilience.

Mitsubishi Power’s Emerald storage solution for SDG&E includes full turnkey design, engineering, procurement, and construction, as well as a 10-year long-term service agreement, aligning with CEC long-duration storage funding initiatives underway. It is scheduled to be online in early 2023.

The project will repower an existing energy storage site. It will employ Mitsubishi Power’s Emerald Integrated Plant Controller, which is an Energy Management System (EMS) and Supervisory Control and Data Acquisition (SCADA) system with real-time BESS operation and a monitoring/supervisory control platform. Mitsubishi Power leverages its decades of technology monitoring and diagnostics to turn data into actionable insights to maximize reliability, a priority as regions like Ontario increasingly rely on battery storage to meet rising demand. The Mitsubishi Power Emerald Integrated Plant Controller complies with North American Electric Reliability Corporation critical infrastructure protection (NERC CIP) standards and meets the highest security certification in the energy storage industry (IEC/ISA 62443, NIST 800-53) for maximum protection from cybersecurity risks and vulnerabilities.

For added physical safety, Mitsubishi Power’s solution employs lithium iron phosphate (LFP) battery chemistry, aligning with BESS adoption in New York where safety and performance are critical. Compared with other chemistries, LFP provides longer life and superior thermal stability and chemical stability, while meeting UL 9540 and UL 9540A safety standards.

Fernando Valero, Director, Advanced Clean Technology, SDG&E, said, “SDG&E is committed to achieving net-zero greenhouse gas emissions by 2045. We are increasing our portfolio of energy storage assets, including virtual power plant models, to reach this goal. These assets enhance grid reliability and operational flexibility while maximizing our use of abundant renewable energy sources in California.”

Tom Cornell, Senior Vice President, Energy Storage Solutions, Mitsubishi Power Americas, said, “As more and more renewables come online during the energy transition, BESS solutions are essential to support a reliable and stable grid. We look forward to providing SDG&E with our BESS solution to add capacity, energy, and ancillary services to California’s grid. Mitsubishi Power’s Emerald storage solutions are enabling a smarter and more resilient energy future for our customers in California and around the globe, with projects like an energy storage demonstration in India underscoring this momentum.”

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