RECAP: MEPS Infrastructure 2023
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Midwest Energy Policy Series 2023

Infrastructure

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The 2023 Midwest Energy Policy Series on Infrastructure took place on April 25th in the beautiful conference center at Polsinelli on the Plaza in Kansas City Missouri. Policymakers, energy industry leaders, and other stakeholders came together both in person and virtually to discuss current energy infrastructure challenges and explore ways to improve the Midwest region's energy infrastructure. In addition to the knockout line up of expert presentations and interactive sessions attendees had the opportunity to network and engage with fellow leaders in the energy policy sector. See below for a full recap of the Infrastructure event and don't miss the next session in the series: Energy Efficiency, on August 28th in Columbia

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 ENERGY BANK, BIL & IRA

Speakers

  • Joe Boland, Missouri Environmental Improvement and Energy Resources Authority

  • Martin Hyman, Senior Energy Advisor at the Missouri Division of Energy

Session highlights

  • Missouri is ahead of other states in the pursuit of a greenbank as the state has the statutory authority to do so.

  • Inflation Reduction Act

    • Section 60103 - Greenhouse Gas Reduction Fund ($27 Billion)

    • $7 Billion for Zero-Emissions Technology Competition (Rooftop Solar)

    • $20 Billion General and Low-Income Assistance Competition.

    • $7 Billion Solar for All Competition

    • $14 Billion National Clean Investment Fund Competition

    • $6 Billion National Clean Communities Investment Accelerator Competition

  • Objectives of the Greenhouse Gas Reduction Fund

    • Reduce emissions of greenhouse gasses and other air pollutants

    • Deliver benefits of greenhouse gas- and air pollution reducing projects to American communities, particularly low-income and disadvantaged communities

    • Mobilize financing and private capital to stimulate additional deployment of greenhouse gas- and air pollution- reducing projects

  • Missouri Energy Infrastructure bank

    • Hope to utilize IRA funding

    • Intend to play a broad role in financing energy projects, including energy resource development, energy efficiency improvements, deployment of renewable energy sources, and improve resilience for critical infrastructure

LARGE POWER USERS

Speakers

  • Geoff Marke, PhD, Chief Economist at Missouri Office of Public Counsel

  • Stephanie Bell, JD, Partner at Ellinger Bell

Session highlights

  • Many US companies are making renewable energy commitments.

    • Walmart, Bloomberg, Sprint, Staples etc….

  • The production of Bitcoin requires a large amount of energy to the point where the industry for Bitcoin accounts for energy usages that exceed that of many countries.

  • Projected capacity statistics reveal how far the US has to come in order to meet renewable energy/ net-zero goals.

  • Missouri doesn’t feature in the top-15 states for either wind or solar generation

    • Projections indicate that Missouri will have to increase wind and solar generation by:

      • Wind 2.435 GW (2022) - 230 GW (2050)

    • Solar 0.428 GW (2022) - 110 GW (2050)

  • Collaboration is needed between:

    • Companies

    • Customers

    • Localities

    • States

  • Missouri Public Service Commission has the statutory authority to enact tariffs to attract large power users to the state.

    • SIL and MKT special tariffs to attract data centers to the state.

Energy Storage Projects

Speaker

  • Josh Campbell - Missouri Energy Initiative

Session highlights

  • The U.S has a need to increase the supply of energy storage systems in order to facilitate the growth in renewable energy generation.

  • Currently we import the majority of the materials used in energy storage systems and there is a need to onshore this.

    • Both the raw minerals excavation and the raw mineral processing

  • Missouri is well positioned to become a domestic supply chain hub for energy storage systems.

    • Missouri has a plentiful supply of many of the minerals used in battery storage systems

      • Legislative action is needed to allow for the minerals to be removed from the ground.

      • Currently permitting times in the U.S are far longer than similar countries

    • Missouri's location makes the state a great fit due to:

      • Geographical location

      • Transportation infrastructure

    • Missouri is home to many great institutions and programs to produce the required workforce

ENVIRONMENTAL IMPACT REQUIREMENTS 

Speakers

  • Caleb Arthur - Sun Solar

  • Jennifer Campbell - MO Department of Conservation

  • Jason Humphrey - Evergy

Session highlights

  • Environmental impact requirements relating to solar

    • Utility scale solar regulations

    • Ground mount solar regulations

    • impact assessments 

    • Policies relating to stormwater and drainage

    • Policies relating to wetlands

    • Policies relating to endangered species in the solar industry

      • Missouri has many native species that make the growth of both solar and wind generation problematic

    • Policies relating to cultural review

  • Solar energy has the potential to provide a significant source of renewable energy. However, it is important that solar installations are done in an environmentally responsible manner. Regulations and environmental impact assessments play a critical role in ensuring that solar installations have minimal impact on the environment.

  • By following these regulations and implementing mitigation strategies, we can continue to expand our use of solar energy while protecting the environment for future generations.

  • Evergy currently produces ~4,400 MW of electricity by renewable means

    • Evergy has plans to expand its production capacity of wind, solar and storage technologies over the coming years while phasing out non renewable energy sources.

EESS GENERATION
VS RESOURCE

Speakers

  • Arjun P. Ramadevanahalli - Morgan, Lewis & Bockius

  • Jamie Charles - Sunnova

  • Miles Evans - EPRI

Session highlights

  • Various FERC rulemakings and administrative issuances have focused on issues relevant to energy storage since at least 2011.

  • Order No.841

    • Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators.

  • Order No.2222

    • Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators.

  • Emerging Issues

    • Qualifying Facility (QF) status under the Public Utility Regulatory Policies Act of 1978 (PURPA)

      • QFs fueled by renewable energy cannot exceed 80 MW

    • FERS’s Broadview Decision

      • Hybrid solar-plus-storage facility with a nameplate capacity above 80 MW limit can qualify as QF if its output to the grid does not exceed that cap.

  • Need for Energy Storage

    • Energy storage is an enabler for a low-carbon future. As more renewables are installed, it will be needed to help provide grad stability and reliability.

    • A substantial amount will be needed: 123-680 GWs of new energy storage is projected for the U.S. by 2050.

    • Energy storage comes in a variety of types and durations, and we will benefit from a portfolio of reliable technologies.

  • There are a number of tax credits available for standalone storage facilities in the U.S.

  • The COVID-19 pandemic put a strain upon many of the materials used in energy storage systems which drove the cost up.

MISO & SPP 

Speakers

  • Andy Witmeier - MISO

  • Casey Cathey - SPP

Session highlights

MISO

  • The long range transmission planning effort is increasing the ability to add and transfer carbon-free flexible  resources throughout the system.

    • Tranche 1 - approved earlier this year, identified an 18 - project, $10.3 billion portfolio of transmission investment in the North and Central regions.

    • Tranche 2 - Will address additional needs in these subregions.

    • Tranche 3 - Will identify and address South Region needs…

    • Tranche 4 - Will be focused on the North/ South interface, which could free up any remaining capacity surplus in the South region.

  • Continued process improvements will help balance the resource mix and ensure reliability as more traditional resources are retired.

  • MISO continues working on reforms to align fleet capabilities with system needs.

SPP

  • Requests pending in the current GI quote.

    • Battery/ Storage - 151 requests - 22 GW

    • Hybrid - 71 requests - 14.5 GW

    • Solar - 226 requests - 48.7 GW

    • Thermal - 21 - 3.6 GW

    • Wind - 130 - 30 GW

  • Majority of projected retirements are coming by way of coal and gas.

  • Developing systems to improve resiliency to help cope with extreme winter storms.

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