POWERnews

The Department of Energy on Monday conditionally offered California solar company BrightSource Energy more than $1.37 billion in loan guarantees to support construction and start-up of three utility-scale concentrated solar power plants (CSP) in the Mojave Desert of southeastern California.

A draft bill being circulated by Sen. Lindsey Graham (R-S.C.) seeks to create a federal clean electricity standard that could require utilities to supply 13% of electricity from “clean” sources by 2012, reach 25% in 2025, and 50% in 2050.

President Barack Obama on Tuesday offered to conditionally guarantee $8.33 billion in loans for Southern Co.’s project to build two AP1000 nuclear reactors at the Alvin W. Vogtle Electric Generating Plant in Burke, Ga. The pledge marks the first federal nuclear loan guarantee, and it could boost construction of the first U.S. nuclear plant in more than 30 years. More commitments are on the way, the Energy Department said.

BP America, Caterpillar, and ConocoPhillips have pulled out of the U.S. Climate Action Partnership (USCAP), an alliance of business and environmental groups that has been pushing for cap-and-trade legislation.

An executive order issued by Arizona’s Governor Jan Brewer, a Republican, directs the state’s Department of Environmental Quality not to adopt rules under the Western Climate Initiative’s (WCI’s) cap-and-trade program without legislative authorization—but it stops short of withdrawing the state from the coalition that plans to implement a regional emissions trading program by January 2012.

The Arkansas Supreme Court is scheduled on April 15 to hear oral arguments in Southwestern Electric Power Co.’s (SWEPCO’s) appeal of a court decision that took away a permit to build the 600-MW John W. Turk Jr. coal-fired power plant in Hempstead County—the nation’s first ultrasupercritical project.

The first of two new supercritical 615-MW coal-fired units at the $2.3 billion Oak Creek power plant have come online, We Power said last week. Construction continues to complete the second 615-MW unit, and it is expected to be commercially operational later this year.

Ohio-based power company FirstEnergy Corp. last week announced it plans to buy Pennsylvania’s Allegheny Energy in a $4.7 billion deal. The stock-for-stock transaction—valued at $8.5 billion—is expected to create one of the largest U.S. utilities.

Executives from U.S. wind, biomass, geothermal, hydropower, and solar industry groups on Tuesday jointly called on Congress to enact tax incentives, a federal renewable energy standard (RES), and comprehensive legislation—measures they said would accelerate growth in those energy sectors.

The week brought important policy and technology news concerning carbon capture and storage (CCS) from around the world. President Barack Obama unveiled a task force to make “clean coal” a reality as the European Union struck a major deal with member states for CCS funding. Caterpillar joined the FutureGen Alliance, and Siemens Energy said it would conduct a feasibility study for a novel postcombustion CCS system in West Virginia.

Calpine Corp. last week received final approval to build its long-delayed 600-MW Russell City Energy Center in the City of Hayward, Calif. The Prevention of Significant Deterioration (PSD) permit issued by the Bay Area Air Quality Management District (BAAQMD) puts limits on the natural gas–fired power plant’s carbon emissions.

Despite some powerful drivers, nuclear power faces too many barriers compared to other means of generating electricity, and that means that a significant expansion of nuclear power is unlikely to occur before 2030, the Centre for International Governance Innovation (CIGI), a Canadian think tank, said in a report on Thursday.

French nuclear giant AREVA on Monday said it had acquired 100% of Ausra, a major U.S.-based provider of large-scale concentrated solar power (CSP) plants. The acquisition marks AREVA’s foray into solar power. The company already has major offshore wind and biomass ventures.

Investigative efforts continue into the cause and origin of Sunday’s catastrophic explosion that killed five workers and injured 27 others at Kleen Energy System’s natural gas–fired plant being built at a remote location in Middletown, Conn.

Exelon Corp. last week said it intends to join the FutureGen Alliance, a consortium developing a 275-MW integrated gasification combined cycle power plant with carbon capture in Matoon, Ill.

The Secretariat of the United Nations Framework Convention on Climate Change (UNFCC) on Monday said it had received pledges from 55 countries to limit and reduce greenhouse gas (GHG) emissions by 2020. The international climate change body said the countries together accounted for about 78% of global GHG emissions from energy use.

The Securities and Exchange Commission (SEC) last week voted to approve interpretive guidance that calls for disclosure of climate-related business risks. These include the anticipated impact of climate change on assets and financial risks associated with compliance costs for existing and pending regulations.

The Brazilian government granted an environmental license to the controversial 11,000-MW Belo Monte hydroelectric dam in the Amazon rainforest on Monday in hopes that the $17 billion project will help the country cope with growing demand.

President Barack Obama emphasized the role of nuclear power, offshore oil and gas exploration, and carbon capture and sequestration (CCS) in his first State of the Union speech last week. The proposed $28.4 billion Fiscal Year 2011 budget for the Energy Department released by the White House this week could provide a much-needed boost to these and other measures.

The Supreme Court last week refused to review a February 2009 ruling by a federal court that blocked the Federal Energy Regulatory Commission (FERC) from asserting its power to override transmission decisions made by states.

A technical study released by the Energy Department’s National Renewable Energy Laboratory (NREL) last week shows that shifting 20% or more of the Eastern Interconnection’s electrical load to wind energy by 2024 is technically feasible, but it would require significant expansion of the transmission system and system operational changes.

The Federal Energy Regulatory Commission (FERC) last week said it would take a fresh look at regulatory policies to integrate variable renewable energy resources such as wind, solar, or non-storage hydro generating plants into the nation’s power grid while maintaining power system reliability.

Westar Energy has agreed to spend approximately $500 million to significantly reduce air pollution from a Kansas power plant and pay a $3 million civil penalty under a Clean Air Act settlement with the Environmental Protection Agency (EPA) and the Justice Department. The company has also agreed to spend $6 million on environmental mitigation projects.

The Environmental Protection Agency (EPA) on Monday set the new one-hour standard for nitrogen dioxide (NO2)—formed from vehicle and power plant and other industrial emissions—at a level of 100 parts per billion (ppb). The agency said it would also retain the existing annual standard of 53 ppb.

The Southern California Public Power Authority (SCPPA), which represents 11 municipal utilities, today announced it would undertake what it called the “nation’s first cost-effective, utility-scale distributed energy storage project.” The 53-MW project will use several rooftop ice-storage units from Ice Energy to reduce the state’s peak electrical demand by shifting as much as 64 GWh of on-peak electrical consumption to off-peak periods every year.

A Texas district judge has reversed an order from the state’s Public Utilities Commission (PUC) to award billions of dollars in transmission projects relating to Competitive Renewable Energy Zones (CREZ), ruling that the regulatory agency should suspend the process until the PUC adequately weighs the costs and benefits to electric customers.

French oil company Total last week inaugurated what it is calling Europe’s first end-to-end carbon capture, transportation, and storage demonstration facility in Lacq, southwestern France. The €60 million project uses oxycombustion carbon capture technology developed by Air Liquide.

Europe added a total of eight new wind farms consisting of 199 offshore wind turbines—and a combined nameplate capacity of 577 MW—to the grid last year, according to a newly released report from the European Wind Energy Association (EWEA).

A decision by the Florida Public Service Commission to reject a request by Florida Power & Light (FPL) to raise rates by $1.3 billion last week has prompted the company to suspend activities on several major projects in the state’s energy infrastructure—including a new nuclear plant. The company said the state’s denial of its request was “further evidence of a deteriorating regulatory and business environment.”

A letter posted on the California Energy Commission’s web site last week reveals that the state had urged the Environmental Protection Agency (EPA) to slow down implementation of rules governing greenhouse gas emissions from stationary sources because it would create a “huge administrative burden.”