This Week's Energy & Utilities Brief - Week 3 of February
No fluff roundups for Energy & Utility professionals
Good morning Thursday, we are getting close to that Friday afternoon relief!
⚡Here are the need-to-knows from our industry this week.⚡
P.S. share with your coworkers who care to be informed :-)
Key Takeaways
White House Claims Authority Over FERC
Executive order mandates independent agencies submit regulations for OMB review.
Creates uncertainty for 15 planned FERC regulations.
Transformer Supply Crisis Deepens
Lead times extended from 4-6 weeks to 3 years.
Manufacturers investing $600M in new capacity to meet 16% demand growth by 2030.
Load Growth Accelerating
AEP projects 8.6% annual growth through 2027.
Commercial sales (including data centers) to increase by 23.9% this year.
New Jersey Customers Face 17-20% Bill Increases
Record-setting PJM capacity auction prices drive substantial rate hikes starting June 2025.
Transformer Standardization Proposed
Industry considers standardizing specifications across 80,000+ transformer types to enhance manufacturing efficiency.
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Regulatory & Policy Updates
White House Claims Authority Over FERC, Other Independent Agencies
Executive Order Issued: February 18, 2025
Implications:
Requires FERC and other agencies to align regulations with presidential priorities.
DOJ plans to challenge tenure protections for agency members under the Humphrey’s Executor precedent.
Pennsylvania Governor Sues Over Frozen IRA Funding
Lawsuit Filed: February 13, 2025
Details:
Claims federal agencies are unlawfully restricting access to $3.1 billion in funding.
Affects Solar for All program and other renewable initiatives.
Joined by Kentucky Governor and 22 state attorneys general.
Industry Innovation Spotlight
Carrier Unveils Data Center Strategy & Growth in Q4 HVAC Sales
Q4 2024 Performance:
6% year-over-year sales growth.
11% organic increase in HVAC sales.
Sales Projections for 2025:
$1 billion in data center sales.
Innovative Solutions:
End-to-end integrated battery heat pump solutions with utilities.
Automated controls to utilize stored energy during peak hours.
Market Focus: Double-digit growth in North America residential and mid-teens in commercial HVAC.
CBRE Selects EVPassport for Major Charging Infrastructure Rollout
Agreement Details:
Deploy 3,600+ EV chargers across 600+ U.S. sites.
Focus on multifamily and hospitality properties.
Survey Insights:
54% of CBRE’s 2024 survey respondents prioritize EV charging in building selection.
Infrastructure Model: Infrastructure-as-a-service option for property owners.
Previous Partnerships: CBRE’s May 2024 agreement with EV+ for 10,000 commercial properties.
Market Movements
AEP Projects 8.6% Annual Electric Sales Growth
Drivers: Expansion of data centers and industrial facilities.
Projections:
Commercial sales up by 23.9% this year.
Additional $10 billion needed beyond current capital plans.
Initiatives: Early site permits for SMRs and fuel cell purchases from Bloom Energy.
Biogas Investment Surges by 40% in 2024
Highlights:
17% increase in new facilities.
95% of new projects producing Renewable Natural Gas (RNG).
Future Outlook: Potential development of 15,000 additional biogas sites in the U.S.
Sustainability Corner
US ‘Needs More Storage’ to Ensure Grid Reliability
SEIA Goals:
10 million distributed energy storage installations by 2030.
700 GWh of grid-connected capacity.
Impact: Critical for integrating renewables and enhancing grid resilience.
Transformer Standardization Challenges
Current Status: Over 80,000 transformer types complicate manufacturing and integration.
Policy Recommendations:
Federal support for design standardization.
Workforce training initiatives to meet sustainability goals.
Outcome: Enhanced efficiency and reduced environmental impacts in renewable projects.
Operations & Maintenance Watch
Transformer Supply Bottleneck Threatens Power Stability
Current Inventory: 60-80 million distribution transformers in the U.S.
Aging Infrastructure: 55% over 40 years old, with demand projected to increase 260% by 2050.
Solutions:
Standardizing transformer designs.
Federal policy and funding for expanded production.
Virtual transformer reserve proposals.
PG&E Seeks Expansion of California’s Wildfire Insurance Fund
Current Fund: $21 billion for wildfire victim compensation.
Initiatives:
Implemented three public safety power shutoffs in early 2025.
Proposal for a new system connecting large load customers.
Impact: Potential 1-2% reduction in customer bills per gigawatt of data center demand added.
Financial Health: Credit rating improvements remain unlikely in the near term.
Thanks for reading ^_^
- Parker