Infra By Reconciliation. Yesterday we got our first view into what the White House wants in the second infrastructure bill which is (if it happens) going to pass by reconciliation and will require the vote of every Senate democrat. Highlight that you care about is a 100% clean energy standard and our requested package of renewable energy tax credits. Manchin has been less than committed to a CES though based on the press releases in my inbox yesterday, environmentalists don’t love the definition of CES that’s floating around which may mean that Manchin has been appeased by the broadening of the definition, i.e. clean coal may be considered a CES acceptable generator. First, you need Manchin’s vote to pass anything so maybe activists will be happy with losing while being ideological and second, clean coal isn’t a thing. Based on the uproar about the CES, I wouldn’t be surprised if it’s a red herring. A large swath of the Country already has states with 100% RPS standards and how would a federal government get a CES to be enforced anyways with energy largely regulated at the state level? I’ve always viewed a national RPS to be symbolic at best, focus FERC on strengthening PURPA contracts, speeding up interconnections and expanding pricing signals for storage on both sides of the meter.
Storage Versus Generation. There’s a new market view brewing in my head. I am getting increasingly uncomfortable with the storage replaces X generation. Storage is an enabler of choice, when to produce, when to dispatch and how to dispatch. For generators with land and interconnection, the addition of storage means additional revenue opportunity with a very quick development cycle. When that revenue opportunity crosses over the IRR hurdle, you’ll see an expansion of the build rate happen.
Radical Either Way. David Roberts writes that there is no moderate way to manage policy for the climate crisis. The view is that inaction is the more radical approach than an aggressive attack to counter emissions.
- Axios: Exclusive – White House signals “clean” standard push in budget reconciliation
- Utility Dive: Biden administration, House Dems talk up need for interconnection reform
- Reuters: Biden climate adviser says clean electricity standard needed in infrastructure bill
- Energy Storage News: Large-scale battery storage plant chosen by California community as alternative to gas goes online
- PV-Magazine: GM creates $25 million grant program for EV climate equity
- PV-Tech: KKR partners with Crossover Energy on renewable energy projects
- RMI: Bringing Batteries to the Helm of Grid Services
Opinion
Best, Yann