Energy Management

At a Glance: Solar and Wind Power by Country

Wind and solar generate more than a tenth of the world’s electricity. This infographic, published by VisualCapitalist.com, provides a country-by-country look at the expansion of wind and solar generation over the past decade. The site has also published this illustration of wind power generation by state. 5/18/2022

OMA Energy Committee Focuses on Impact of Volatile Markets

On May 11, the OMA Energy Committee held its Q2 meeting, sponsored by OMA Connections Partners Constellation, Go Sustainable Energy, and Vistra Energy. Nearly 60 members attended either in person or online. Highlights of the meeting included:

• An overview of current energy market trends;
• An examination of recent growth in U.S. liquified natural gas exports, which has added to the energy costs of U.S. manufacturers; and
• A review of current state legislation that would negatively impact Ohio’s electric customers, including House Bill 317.

The OMA will conduct its in-person Ohio Manufacturers’ Energy Conference on Sept. 8 at the Quest Conference Center in Westerville. Registration details will be forthcoming. 5/11/2022

Energy Roundup: Higher Electricity Prices Expected

OMA staff members are tracking the following energy-related developments:

• The U.S. average gasoline price continues to climb, hitting $4.41 on May 12, according to AAA. (Here’s the average price in Ohio.)
• The U.S. average diesel price has surpassed $5.60, according to the Energy Information Administration.
• U.S. natural gas prices have increased considerably since February, reaching more than $7.60 per MMBtu as of May 12.
• The American Petroleum Institute says the U.S. needs a long-term energy strategy while the petroleum industry deals “with the same issues that a lot of other industries are dealing with,” including labor and supply shortages.
• Based on recent utility auction results, Ohioans who aren’t currently utilizing a contract will likely spend considerably more on electricity this summer, according to reports.

The U.S. Department of Commerce’s investigation into potential solar tariff circumvention could threaten the Biden administration’s decarbonization efforts, according to U.S. Department of Energy officials. 5/12/2022

Report: Grid Operators Warn of Electricity Shortages

Some electric grid operators, including in parts of the Midwest, are warning that power-generating capacity is struggling to meet demand, according to a story by The Wall Street Journal (subscription), as well as other publications.

The Journal says the increased risk of electricity shortages comes “as traditional power plants are being retired more quickly than they can be replaced by renewable energy and battery storage.” The story makes no mention of PJM, the regional transmission organization that coordinates the movement of wholesale electricity for Ohio. 5/9/2022

Industrial Advocate Urges Protection of Natural Gas Supply

Even though the U.S. is producing near record amounts of natural gas today, world events are driving great volatility in the natural gas markets. International demand for U.S. natural gas is soaring, driving up prices and threatening supply.

To ship natural gas across oceans, it must first be converted to liquified natural gas (LNG) and shipped via tanker. The process is capital intensive and new facilities are being built in the U.S. to respond to anticipated market opportunity.

The Industrial Energy Consumers of America (IECA) has called for a “consumer safety valve” to protect domestic customers from the market power of LNG country buyers, citing a recent spike in Australian natural gas prices. The IECA notes that U.S. natural gas prices in April more than doubled from a year earlier. Register for the OMA Energy Committee meeting on Wednesday, May 11 for more on this topic. 5/5/2022

Energy Roundup: FERC Chair Expresses Cost Concerns About Agency’s Transmission Plans

Among the energy-related developments the OMA is tracking are the following:

• Weeks after the Federal Energy Regulatory Commission (FERC) proposed controversial reforms to regulate how transmission lines are paid for and planned, the FERC chairman now says the agency should consider establishing an independent monitor to help oversee the build-out of the power grid and protect consumers.
• The U.S. Department of Energy has announced $3.1 billion in funding to expand domestic production of advanced batteries to help meet the Biden administration’s goal of having electric vehicles comprise half of all U.S. vehicle sales by 2030.
• Despite calls to phase out the use of coal, this infographic shows coal-fired electricity generation reached all-time highs globally last year, with China comprising 54% of the world’s coal electricity generation.

Meanwhile, the Energy Information Administration reports that the Appalachia region — which includes portions of Ohio — was largely responsible for helping the U.S. reach a monthly record for natural gas production last December. 5/5/2022

FERC to Require Gas Pipelines to Calculate Climate Costs?

In late March, the Federal Energy Regulatory Commission (FERC) proposed that natural gas infrastructure projects would need to account for their impact on climate change and environmental justice. Such a requirement would seem to exceed the agency’s authority. (Companies that want to build new interstate gas pipelines and gas export terminals must first win FERC’s approval.)

The State of the Ohio (along with many others) has filed comments critical of the proposal, referring to it as “the most significant regulatory encroachment upon individual liberty and state sovereignty in American history.” The American Petroleum Institute, an OMA member, also expressed strong concern.

OMA Chief Energy Counsel Kimberly Bojko, partner at the Carpenter Lipps & Leland law firm, is still reviewing the FERC documents and applicable law, but believes that FERC’s proposal to regulate emissions and environmental impacts may exceed the agency’s statutory jurisdiction.

Members are invited to learn more about this development and join the discussion at the May 11 meeting of the OMA Energy Policy Committee. Register today. 4/28/2022

FERC’s Troubling Transmission Proposal

A new proposal by the Federal Energy Regulatory Commission (FERC) would provide state utility regulators a major role in regional transmission planning, as well as determining how to share the costs of new transmission facilities.

The Electricity Transmission Competition Coalition — a national organization committed to increasing competition in electricity transmission infrastructure — says the proposed rule signals the FERC “has lost its way” by siding with the “monopoly power of incumbent electric utilities … instead of protecting consumer ratepayers.” 4/27/2022

Energy Roundup: Ohio Is Prime for Hydrogen Industry

Among recent energy-related developments the OMA is tracking are the following:

• Due to its energy resources, Ohio is an optimal location to develop the hydrogen industry, according to a new study commissioned by JobsOhio and the Stark Area Regional Transit Authority.
• The Public Utilities Commission of Ohio (PUCO) earlier this month concluded its energy efficiency workshops. It will continue to gather stakeholder comments on energy efficiency programs through May 23.
• U.S. crude oil inventories are 16% below this time last year, and about 16% below the five-year average for this time of year, federal data show.
• Federal data show China processed record amounts of crude oil in 2021 to meet rising domestic consumption of petroleum products.

The Energy Information Administration has released its forecast for summer fuel prices. Here’s a look at the latest average gasoline prices in all 50 states as the U.S. average is still well above $4 a gallon. 4/27/2022

OMA’s Energy Roundup

The following are energy-related developments that the OMA is tracking:

• The U.S. Department of Energy and intelligence agencies are warning energy companies about the discovery of malicious cybertools that could gain “full access” to electricity and natural gas control systems.
• New data show U.S. energy prices have soared 32% over the past year (shown by this chart), including 11% in March. Gasoline prices are up nearly 50% and oil prices are up 70%.
• High energy prices are causing substantial reductions in global stockpiles of key industrial metals — including aluminum, copper, nickel, and zinc — according to reports.
• FERC has shut down challenges to its proposed, climate-related natural gas pipeline policies, which are getting another look from the agency.
• West Virginia’s U.S. Sen. Joe Manchin (D) is putting pressure on the Biden administration to resurrect and rebrand the canceled Keystone XL pipeline.

Meanwhile, National Association of Manufacturers President and CEO Jay Timmons recently called President Biden’s plan to release oil from the Strategic Petroleum Reserve “a very temporary fix” that “doesn’t deliver the long-term energy security that America deserves.” 4/14/2022