Archive: 2019

1
Offshore Wind Farms Are Spinning Up in the US—At Last
2
K&L Gates’ Energy Storage Handbook
3
JOIN K&L GATES AT #ESACON19 AND PICK UP THE ENERGY STORAGE HANDBOOK
4
The Energizer – Volume 42
5
Next Massachusetts Offshore Wind Solicitation Ready for DPU Review
6
The Energizer – Volume 41
7
The Energizer – Volume 40
8
Join K&L Gates at #ESACon19
9
The State of Blockchain In Energy? Buck Endemann Shares His Insights
10
Join Us for LSI’s Energy Storage Conference on June 13 & 14 In Seattle, WA

Offshore Wind Farms Are Spinning Up in the US—At Last

By Eric Niller of Wired

On June 1, 2019 the Pilgrim nuclear plant in Massachusetts will shut down, a victim of rising costs and a technology that is struggling to remain economically viable in the United States. But the electricity generated by the aging nuclear station soon will be replaced by another carbon-free source: a fleet of 84 offshore wind turbines rising nearly 650 feet above the ocean’s surface.

In this article from Wired, K&L Gates partner and Practice Group Coordinator for power David Hattery discusses how in recent years, wind turbines and their technologies have become more palatable, and therefore are more accessible, to communities. Because of this, turbines are able to generate more power than ever.

Click here to read the full article.

K&L Gates’ Energy Storage Handbook

Version 4.0 Now Available!

As a courtesy to our clients and friends, the K&L Gates Power practice has updated the Energy Storage Handbook.

This Energy Storage Handbook (Handbook) is designed to be a basic primer on what energy storage is, how it is regulated by federal and state governments, and what sorts of issues are encountered when such projects are financed and developed. While this Handbook is not meant to be a definitive catalog of every energy storage law and issue existing in today’s marketplace, we have endeavored to highlight the most common regulatory and development issues faced by our clients and the industries that we serve. We anticipate continuing to update this Handbook as additional states and stakeholders continue to address the implementation of energy storage resources in the marketplace.

We hope you find it useful and welcome your feedback.

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JOIN K&L GATES AT #ESACON19 AND PICK UP THE ENERGY STORAGE HANDBOOK

K&L Gates is proud to sponsor the Energy Storage Association’s 29th Annual Conference and Expo

K&L Gates welcomes you to join us at #ESACon19. We are excited to be the News Desk Sponsor at this year’s conference. The conference will be held on April 16-18, 2019 at the Phoenix Convention Center in Phoenix, AZ.

K&L GATES HIGHLIGHTS

  • Stop by Booth 526 to meet the team and pick up a copy of the newly released Fourth Edition of our very popular K&L Gates Energy Storage Handbook.
  • Join us at the ESA News Desk where we will be conducting interviews with executives from several companies.
  • Portland Partner Bill Holmes will be a panelist during, “Advanced Contracting in Energy Storage (ACES) Workshop,” where he will present on energy storage project development. The workshop will be held Tuesday, April 16 from 9:00 a.m. – 11:00 a.m. in North 124.
  • Bill will also give a Master Level with Kris Zadlo, Senior Vice President of Invenergy, entitled “Ins and Outs of Energy Storage Agreements,” which will discuss features and pitfalls of long-term energy storage agreements. It will be held on Wednesday, April 17 from 11:30 a.m. – 12:30 p.m. in North 122.

We look forward to seeing you in Phoenix!

The Energizer – Volume 42

A biweekly update on blockchain technology applications, distributed energy resources, and other innovative technologies in the energy sector.

By: Buck B. Endemann, Benjamin L. Tejblum, Daniel S. Cohen, Toks A. Arowojolu, Olivia B. Mora, Abraham F. Johns

There is a lot of buzz around blockchain technology, distributed energy resources (“DERs”), microgrids, and other technological innovations in the energy industry. As these innovations develop, energy markets will undergo substantial changes to which consumer and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of blockchain technology, DERs, and other innovations driving the energy industry forward.

To subscribe to The Energizer, please click here.

IN THIS ISSUE

  • Gazprom Develops Blockchain Platform Prototype.
  • Wien Energie Tests Blockchain for EV Charging Stations and Smart Fridges.
  • Federal Bill to Extend Tax Credits to Energy Storage Introduced.
  • Ameren and Opus One Solutions Announce New Blockchain Project.
  • Pilot Program Tests Blockchain to Improve Cybersecurity of Electricity Infrastructure.

To view more information on these topics in Volume 42 of The Energizer, click here.

Next Massachusetts Offshore Wind Solicitation Ready for DPU Review

By Elizabeth C. Crouse and Michael L. O’Neill

On March 27, 2019, Massachusetts’s three electric utilities submitted a draft of their second offshore wind request for proposals (“RFP”) to the state’s Department of Public Utilities (“DPU”) for review and comment. This second solicitation is a follow-up to the initial RFP under Section 83C of Massachusetts’s 2016 renewable energy mandate that directs its utilities to procure 1,600 megawatts (“MW”) of offshore wind nameplate capacity by June 2027.

The initial solicitation in 2017 resulted in the selection of the Vineyard Wind project to enter negotiations with the utilities. The utilities executed power purchase agreements (“PPAs”) totaling 800 MW of offshore wind capacity with Vineyard Wind. DPU is reviewing those PPAs currently. [1]

Even though DPU has not approved the PPAs for the initial solicitation yet, the utilities have moved forward with the second solicitation because Massachusetts law requires that the second solicitation be issued within 24 months of the first solicitation. The second solicitation contemplates procurement of at least 400 MW of offshore wind capacity, although the utilities will consider proposals ranging between 200-800 MW of capacity. According to this draft RFP, the utilities will consider a larger project proposal if it is “likely to produce more economic net benefits to customers based on the evaluation criteria in the RFP.”

Some of the key bidding requirements and evaluation criteria include:

  • Each bidder must be in possession of development rights for offshore wind generation in a designated federal wind energy area (not closer than 10 miles from an inhabited area) as leased after January 1, 2012;
  • Each bidder must submit at least one bid of a 400 MW project, or explain why it cannot, and can submit its projects in up to two phases;
  • Each bidder must propose a generator lead transmission line;
  • Each proposal for the energy generation and/or associated renewable energy certificates must be less than $84.23 per MW-hour on a nominal levelized basis as calculated based on the first solicitation; and
  • Proposals will be evaluated on direct contract prices and other costs and benefits, including:
    • Direct benefits of any applicable energy storage systems,
    • Impacts on Massachusetts’s greenhouse gas emission rates,
    • Specific investments in supply chain infrastructure, port facilities, workforce and the Offshore Wind Accelerator Fund, and
    • Demonstrated direct benefits to low-income ratepayers.

As proposed, the utilities plan to issue the RFP on May 17, 2019, and expect to receive confidential proposals by August 9, 2019 (with public redacted versions due by August 16, 2019). The utilities plan to select the winner(s) by November 8, 2019, and finalize the PPAs for DPU approval by January 10, 2020.

In comments on the second Section 83C solicitation, several wind developers raised concerns that a timeline that does not permit developers to demonstrate a construction start by the end of 2019 imperils the developers’ ability to qualify for the 12% federal investment tax credit (“ITC”). The production and investment tax credits are currently phasing out for wind, but wind projects that begin construction in accordance with IRS guidance in 2019 may still qualify for the credits at a reduced rate, specifically a 12% ITC or 40% of the maximum production tax credit rate applicable to electricity produced in a relevant year. Many of the commenters indicate that the 12% ITC is more valuable to their projects.

Although the utilities propose to select the winning bidder(s) before the end of 2019, the timeline in the solicitation does not suggest that the utilities and the winners will execute their PPAs and submit them for DPU approval by 2020. Any activity that the developers undertake to begin construction in 2019 based on the unapproved PPA may expose them to the risk that DPU will reject or modify the PPA after a developer has made some expenditures towards the project.

[1] See Offshore Wind Handbook, K&L GATES LLP AND SNC LAVALIN at 19 (2018), http://www.klgates.com/files/Upload/2018-08_OG_Offshore-Wind-brochure.pdf.

The Energizer – Volume 41

A biweekly update on blockchain technology applications, distributed energy resources, and other innovative technologies in the energy sector.

By: Buck B. Endemann, Benjamin L. Tejblum, Daniel S. Cohen, Toks A. Arowojolu, Olivia B. Mora, Abraham F. Johns

There is a lot of buzz around blockchain technology, distributed energy resources (“DERs”), microgrids, and other technological innovations in the energy industry. As these innovations develop, energy markets will undergo substantial changes to which consumer and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of blockchain technology, DERs, and other innovations driving the energy industry forward.

To subscribe to The Energizer, please click here.

IN THIS ISSUE:

  • Ovo Invests in Electron’s Distributed Flexibility Marketplace; Saudi Aramco Launches Blockchain Pilot Program.
  • Puerto Rico Energy Commission Looks to Microgrids to Promote Electric Grid Resilience.
  • The Puerto Rico Energy Public Policy Act: 100% Renewable Energy Electric Grid by 2050

To view more information on these topics in Volume 41 of The Energizer, click here.

The Energizer – Volume 40

A biweekly update on blockchain technology applications, distributed energy resources, and other innovative technologies in the energy sector.

By: Buck B. Endemann, Benjamin L. Tejblum, Daniel S. Cohen, Toks A. Arowojolu, Olivia B. Mora, Abraham F. Johns

K&L Gates is pleased to announce that the Blockchain Energizer has returned from a period of rest and reflection! Recognizing the variety of important emerging technological innovations and structural changes affecting energy markets, we have decided to expand our focus beyond Blockchain to include distributed energy resources, microgrids, and other emerging energy trends — all the technological innovations driving toward a more efficient, more reliable energy system.

To reflect our broader scope, the Blockchain Energizer will be now known as The Energizer. We have expanded the team to include additional K&L Gates attorneys tracking these important developments. The Energizer will still be published about twice a month and the subscription is the same. We appreciate your support and have enjoyed hearing from the many readers who rely on the Energizer for a periodic dose of energy tech! We look forward to continuing to provide timely coverage of increasingly important developments.

To subscribe to The Energizer, please click here.

IN THIS ISSUE:

  • Growing Blockchain Interest in the Oil and Gas Industry.
  • California Mudslides Prompt Push for Montecito Community Microgrid Initiative.
  • New Rules in EV Charging in Pennsylvania.

To view more information on these topics in Volume 40 of The Energizer, click here.

Join K&L Gates at #ESACon19

K&L Gates is proud to sponsor the Energy Storage Association’s 29th Annual Conference and Expo

K&L Gates welcomes you to join us at #ESACon19. We are excited to have the opportunity to meet with you at this renowned conference and expo. The conference will be held on April 16-18, 2019 at the Phoenix Convention Center in Phoenix, AZ.

Read More

The State of Blockchain In Energy? Buck Endemann Shares His Insights

By Sam Mire of the Disruptor Daily

It’s been more than 150 years since the first modern solar power plant was established in Algiers, but we still haven’t effectively harnessed the sun’s energy. Fundamental changes in the energy sector take time.

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Join Us for LSI’s Energy Storage Conference on June 13 & 14 In Seattle, WA

K&L Gates is pleased to participate in Law Seminars International’s upcoming Energy Storage Conference.  K&L Gates’ Portland partner, Bill Holmes, will act as event Co-Chair and Washington DC partner William Keyser will present on “Federal level: FERC Order 841 implementation and other developments in Congress, at the FERC, and at the DOE.”

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