News and Analysis
More States Commit to Carbon-Free Electricity Goals
February 4, 2022The Energy Information Administration (EIA) reports that as of the end of 2021, 31 states had renewable portfolio standards (RPS) or clean energy standards (CES) — requirements that electricity be generated by renewable resources or carbon-free technologies. Some states are relying on nuclear energy or natural gas fitted with carbon-capture sequestration technology to reach their clean energy goals.
Ohio currently has an 8.5% alternative energy resource standard that is to be achieved by 2026. 2/1/2022
At a Glance: Nuclear Power Across the Globe
February 4, 2022More than half the carbon-free electricity generated in the U.S. comes from nuclear power. Visual Capitalist has published this infographic, which illustrates nuclear power generation worldwide. While nuclear technology produces just 4.3% of the world’s electricity, more than 30% of that total is generated in the U.S. 1/31/2022
EIA Forecasts Stable Natural Gas Prices for 2022
January 28, 2022The Energy Information Administration is forecasting that the natural gas spot price at the U.S. benchmark Henry Hub will average $3.79 per million British thermal units (MMBtu) in 2022, slightly less than its 2021 average of $3.91/MMBtu. The EIA expects natural gas prices to drop in 2023, averaging $3.63/MMBtu, as growth in production outpaces growth in domestic demand and exports.
Meanwhile, when it comes to increasing Ohio’s oil and natural gas output, producers here are taking a “wait and see” approach as tensions rise between Russia and Ukraine. 1/26/2022
Former FirstEnergy Lobbyist Resigns From PUCO Council
January 28, 2022Gov. Mike DeWine has replaced two members of the council that selects nominees for the Public Utilities Commission of Ohio (PUCO). One of the council members, Michael Koren, was the longtime chair of the group and a lobbyist for FirstEnergy.
According to Cleveland.com (subscription), Koren, who lobbied for passage of the scandal-tainted House Bill 6, submitted his resignation Jan. 25, citing medical reasons.
“Even with Koren’s departure, three other members of the 12-member PUCO nominating council have ties to HB 6,” the Plain Dealer notes. “Other current members of the nominating council have been vocal HB 6 opponents, including attorney Kim Bojko, energy counsel for The Ohio Manufacturers’ Association.”
Meanwhile, federal prosecutors have told news media that the HB 6-related public corruption trial of former Ohio House Speaker Larry Householder could occur sometime this fall. 1/27/2022
Biden Administration Ramps Up Clean Energy Activity
January 28, 2022The Biden administration recently issued its first clean energy loan guarantee, according to reports. The U.S. Department of Energy (DOE) program will guarantee up to $1 billion in loans to help a Nebraska company scale up production of clean hydrogen to convert natural gas into commercial products used in manufacturing.
DOE also recently announced the establishment of the Office of Clean Energy Demonstrations, which will distribute funds authorized by the 2021 infrastructure law to support clean energy technology projects at businesses and in communities. 1/25/202
Study: Distributed Energy Resources Bring Lower Energy Costs
January 21, 2022Distributed energy resources (DERs) are small-scale units of power generation that operate locally and are connected to a larger power grid. According to a survey conducted by OMA Connections Partner NRG, 80% of companies that deploy DERs say their company has benefited from reduced energy costs.
Other benefits of DERs include protection from volatile energy prices, on-site generation when the grid goes down, improved energy efficiency, and the ability to meet emission reduction targets. For more insight, read this blog post and check out NRG’s study of businesses that are already using DERs. 1/19/2022
EIA: Renewable Growth Will Reduce Need for Gas-Fired Generation
January 21, 2022Growth in electricity generating capacity from wind and solar is expected to reduce the share of total power generated from natural gas over the next two years — from 37% last year to 34% by 2023 — according to the Energy Information Administration. Total generation from wind and solar is estimated to grow to 17% in 2023 from 13% in 2021. 1/18/2022
Customers Continue to Subsidize Coal Power Plants
January 14, 2022In an interview with Cleveland.com, Gov. Mike DeWine this week indicated he doesn’t support the OVEC subsidy in Ohio law. The Plain Dealer notes that even without DeWine’s support of the coal-plant subsidies, there currently isn’t enough support in the state legislature to repeal them.
According to this OMA analysis of the OVEC subsidies, Ohio electric customers are spending nearly a billion dollars to subsidize the Clifty Creek Power Plant in Indiana. The U.S. EPA has denied this facility a coal ash pond permit and proposed that its owners cease receipt of waste within 135 days.
The move raises questions about the plant’s viability. Even if it ceases to operate and generate power, Ohio customers will still be paying a rider (on power bills) as a result of the corrupt House Bill 6, enacted in 2019. 1/13/2022
Preparing for the Shift to Electric Vehicles
January 14, 2022Electric vehicle (EV) purchases in the U.S. rose for the fifth straight year in 2021. But according to reports, with EVs comprising just 4% of new sales, there’s a long way to go to reach the Biden administration’s target of EVs being 50% of new sales by 2030. Congress’ recent authorization of $5 billion to fund construction of 862,000 new EV charging stations nationwide could reduce consumer hesitancy.
In its latest manufacturing and energy industry outlook, OMA Connections Partner RSM highlights the EV goals of all major auto manufacturers. The firm says original equipment manufacturers and their suppliers should continue to invest in technology to better predict and respond to supply chain and manufacturing shifts as the industry continues to move to EVs. 1/13/2022
2021 Brought Higher Electricity Prices Across U.S.
January 14, 2022Average wholesale prices for electricity across the U.S. were considerably higher in 2021 largely due to increased natural gas prices, according to the Energy Information Administration (EIA). The EIA says electricity prices during the second half of 2021 averaged between 37% to 97% higher than the second half of 2020.
Natural gas use at Ohio power plants accounts for more than one-third of the state’s natural gas consumption. 1/11/2022