Latest news with #IEEFA
Yahoo
a day ago
- Business
- Yahoo
Report: Ratepayers will foot the bill for power transmission project
Jun. 7—MORGANTOWN — Depending on who you ask, NextEra's MidAtlantic Resiliency Link transmission project will either take advantage of West Virginia ratepayers and countryside to power up data centers in Virginia — or it'll be an economic boon to the Mountain State, generating hundreds of jobs and hundreds of millions in tax revenue. The Institute for Energy Economics and Financial Analysis is solidly in the former camp. In a May report compiled by Cathy Kunkel, "West Virginia Ratepayers Footing the Bill for Infrastructure Build Out, " the IEEFA makes the claim that two power transmission projects slated to run through West Virginia on their way to northern Virginia will cost West Virginia ratepayers more than $440 million over the next 40 years despite the demand being almost entirely attributable to data centers. A data center is a physical room, building or facility that houses IT infrastructure for building, running and delivering online applications and services, according to IBM. One of those projects, a billion-dollar transmission line that includes NextEra's MidAtlantic Resiliency Link, is looking at parts of Monongalia and Preston counties as a route for the 105-mile "major highway " of 500-kilovolt overhead transmission lines running from Greene County to Frederick County, Va. The project will require a 200-foot right of way along its entire length and terminate in northern Virginia, which already has the highest concentration of data centers in the world. The power-hungry facilities are being built at an increasingly rapid pace. According to the IEEFA, electricity demand across the 13-state territory under grid operator PJM Interconnection remained relatively flat for nearly two decades. That's changed in the last three years due almost exclusively to the rise of data centers. As of 2023, data centers accounted for more than one-quarter of the electricity consumption in the state of Virginia, based on data presented by IEEFA. One large data center, the report states, can draw as much power as a city. The think tank says the traditional method of cost allocation — spreading the cost of capital investments across the customer base — isn't equitable when capital improvements are being constructed to feed a single customer or a very small group of customers. "As this report explains in greater detail, traditional methods of cost allocation for major new transmission projects in PJM have not yet been reconsidered in light of the new challenges posed by data center demand growth." The Dominion Post reached out to NextEra with three questions: What benefit will West Virginians receive in exchange for the large transmission lines running through rural parts of the state ? What percentage of the power being pulled from Pennsylvania to Virginia will support data centers ? Will residential ratepayers end up subsidizing the construction of this project in any way ? "The MidAtlantic Resiliency Link is one of the transmission projects PJM selected to enhance grid reliability for customers locally and across the region, " NextEra replied in a statement. "While it's part of a regional solution, the local benefits are significant. The [MARL ] would create hundreds of construction and support jobs, which will, in turn, drive significant investment in the local economy, growing existing businesses and attracting new businesses. Importantly, West Virginia is projected to receive an estimated $150-$400 million in taxes over the 40-year life of this project, depending on the length and route of the final transmission line. The [MARL ] would help drive economic development throughout the state." But before any of that comes to pass, a route must be finalized. Some residents in Monongalia and Preston counties have started voicing concerns about the possibility of having the transmission lines run through or near their properties. Property owners in rural, wooded and farming areas fear they'll be forced to give up ground through eminent domain should their land fall in the chosen path. On May 29, the Preston County Commission passed a resolution opposing the MARL project as currently proposed and urging state and federal regulators, as well as NextEra, to halt development of the project through Preston County. Asked whether a similar resolution might come out of Monongalia County, Commissioner Sean Sikora said the commission is doing its due diligence and has reached out to Preston County for a copy of the resolution—but isn't ready to take any kind of public stance on the matter. NextEra has conducted a series of open house-style public meetings in recent weeks to discuss, among other things, the potential routes, and intends to make its choice known to the various state public service commissions this fall. According to the current timeline, the project is to be completed by the end of 2031.
Yahoo
a day ago
- Business
- Yahoo
Report: Ratepayers will foot the bill for power transmission project
Jun. 7—MORGANTOWN — Depending on who you ask, NextEra's MidAtlantic Resiliency Link transmission project will either take advantage of West Virginia ratepayers and countryside to power up data centers in Virginia — or it'll be an economic boon to the Mountain State, generating hundreds of jobs and hundreds of millions in tax revenue. The Institute for Energy Economics and Financial Analysis is solidly in the former camp. In a May report compiled by Cathy Kunkel, "West Virginia Ratepayers Footing the Bill for Infrastructure Build Out, " the IEEFA makes the claim that two power transmission projects slated to run through West Virginia on their way to northern Virginia will cost West Virginia ratepayers more than $440 million over the next 40 years despite the demand being almost entirely attributable to data centers. A data center is a physical room, building or facility that houses IT infrastructure for building, running and delivering online applications and services, according to IBM. One of those projects, a billion-dollar transmission line that includes NextEra's MidAtlantic Resiliency Link, is looking at parts of Monongalia and Preston counties as a route for the 105-mile "major highway " of 500-kilovolt overhead transmission lines running from Greene County to Frederick County, Va. The project will require a 200-foot right of way along its entire length and terminate in northern Virginia, which already has the highest concentration of data centers in the world. The power-hungry facilities are being built at an increasingly rapid pace. According to the IEEFA, electricity demand across the 13-state territory under grid operator PJM Interconnection remained relatively flat for nearly two decades. That's changed in the last three years due almost exclusively to the rise of data centers. As of 2023, data centers accounted for more than one-quarter of the electricity consumption in the state of Virginia, based on data presented by IEEFA. One large data center, the report states, can draw as much power as a city. The think tank says the traditional method of cost allocation — spreading the cost of capital investments across the customer base — isn't equitable when capital improvements are being constructed to feed a single customer or a very small group of customers. "As this report explains in greater detail, traditional methods of cost allocation for major new transmission projects in PJM have not yet been reconsidered in light of the new challenges posed by data center demand growth." The Dominion Post reached out to NextEra with three questions: What benefit will West Virginians receive in exchange for the large transmission lines running through rural parts of the state ? What percentage of the power being pulled from Pennsylvania to Virginia will support data centers ? Will residential ratepayers end up subsidizing the construction of this project in any way ? "The MidAtlantic Resiliency Link is one of the transmission projects PJM selected to enhance grid reliability for customers locally and across the region, " NextEra replied in a statement. "While it's part of a regional solution, the local benefits are significant. The [MARL ] would create hundreds of construction and support jobs, which will, in turn, drive significant investment in the local economy, growing existing businesses and attracting new businesses. Importantly, West Virginia is projected to receive an estimated $150-$400 million in taxes over the 40-year life of this project, depending on the length and route of the final transmission line. The [MARL ] would help drive economic development throughout the state." But before any of that comes to pass, a route must be finalized. Some residents in Monongalia and Preston counties have started voicing concerns about the possibility of having the transmission lines run through or near their properties. Property owners in rural, wooded and farming areas fear they'll be forced to give up ground through eminent domain should their land fall in the chosen path. On May 29, the Preston County Commission passed a resolution opposing the MARL project as currently proposed and urging state and federal regulators, as well as NextEra, to halt development of the project through Preston County. Asked whether a similar resolution might come out of Monongalia County, Commissioner Sean Sikora said the commission is doing its due diligence and has reached out to Preston County for a copy of the resolution—but isn't ready to take any kind of public stance on the matter. NextEra has conducted a series of open house-style public meetings in recent weeks to discuss, among other things, the potential routes, and intends to make its choice known to the various state public service commissions this fall. According to the current timeline, the project is to be completed by the end of 2031.
Business Recorder
4 days ago
- Business
- Business Recorder
Pakistan's lithium battery imports soar, projected to hit 8.75 GWh by 2030: report
Driven by high electricity costs and falling solar prices, the imports of battery storage systems (BESS) have accelerated at breakneck speeds in Pakistan and are projected to rise to 8.75 gigawatt-hours (GWh) by 2030, according to US-based Institute for Energy Economics and Financial Analysis (IEEFA). 'Pakistan imported an estimated 1.25 GWh of lithium-ion battery packs in 2024 and another 400 megawatt-hours (MWh) in the first two months of 2025, a trend that is likely to continue,' IEEFA stated in its latest report titled 'Battery storage and the future of Pakistan's electricity grid'. This could increase to 8.75 GWh, or 26% of the projected peak demand in 2030, 'if business as usual persists,' it said. 'Such a shift could lead to stranded peak generation assets and higher financial losses for the grid,' IEFFA warned. The report found Pakistan's growing adoption of battery storage is supported by lithium-ion battery imports from China. China exports more solar panels to Pakistan than to many G20 nations in 5 years: report 'While solar PV module prices in Pakistan have consistently declined, emulating improving economics in China, the same is not true for BESS because of high taxes and customs duties. The average price of lithium-ion battery packs in Pakistan ranges between $230/kWh and $360/kWh.' However, despite high taxes, solar-battery combinations seem attractive for consumers, with installations continuously increasing, IEEFA said. 'Solar with BESS has a payback period of 3-5 years in Pakistan's residential sector despite a 48% cost increase from surcharges and duties on lithium-ion batteries. The payback period ranges between 4-6 years for the commercial and industrial sectors, depending on battery size or usage requirements,' it found. The report noted that Pakistan's high penetration of rooftop solar generation can provide a strong foundation for large-scale battery storage adoption in a distributed manner. 'If sustained through further fiscal support and regulatory incentives, this could mean minimal investment requirements for new generation assets for the government at a central level,' it added From crisis to clean energy: Pakistan emerges as top solar market in 2024 However, a lack of grid modernisation and strong regulatory support remain key barriers that should be addressed to ensure an efficient energy transition in Pakistan, the report noted. 'Unmanaged BESS growth could destabilise Pakistan's national grid by reducing demand and raising capacity payments. 'Timely investments in grid modernisation, smart metering, and regulatory updates can enable decentralised solar plus BESS configurations, avoiding expensive generation expansion and supporting strategic power planning.'
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
Time of India
28-05-2025
- Automotive
- Time of India
EV two-wheeler sales soared 34x in 4 years, but market share stuck at 4%: Study
New Delhi: Electric vehicle (EV) sales in India have grown rapidly across segments in the last decade, but adoption rates remain modest despite significant fiscal support, a new study by the Institute for Energy Economics and Financial Analysis (IEEFA) has found. The report, From Incentives to Adoption, presents a 10-year review (2014–2023) of government subsidies and policy interventions under FAME-I, FAME-II, Production Linked Incentives (PLI), and state schemes, and assesses their effectiveness across five EV segments. In the electric two-wheeler (E2W) segment, sales jumped from 19,333 units in FY2019 to over 6.5 lakh units in FY2023. However, the adoption rate – the share of electric vehicles in overall two-wheeler sales – was only 4% by the end of 2023. 'FAME-II's higher subsidy intensity (28.65%) compared to FAME-I (14.32%) boosted absolute E2W sales by up to 9 times, but had limited impact on the overall market composition,' the report states. According to Charith Konda, Energy Specialist at IEEFA and one of the co-authors, 'The government should continue offering purchase subsidies to sustain momentum but clearly communicate a phased-down trajectory for the longer term.' In the electric three-wheeler passenger (E3WP) segment, early policy support under FAME-I drove a 10x market multiplier effect. Around 27,000 additional vehicles were directly attributed to subsidies under FAME-I, with total sales reaching 2.67 lakh units by March 2019. The segment, however, matured during the FAME-II period and showed limited incremental impact from later subsidies. The electric three-wheeler cargo (E3WC) category saw a market share rise from 0.03% in 2015 to over 31% by 2023. The study found this growth was largely driven by operating cost advantages rather than central subsidies. A 1% reduction in operating cost led to a 0.563% increase in sales, highlighting the role of business economics in commercial segments. In the electric four-wheeler commercial (E4WC) category, sales improved after FAME-II and PLI schemes were implemented. A one-standard-deviation increase in subsidy intensity led to a 5% rise in sales. However, the adoption rate was still less than 1%. States that implemented incentives saw 211% higher sales growth than those that did not. For electric four-wheelers in the private segment (E4WP), sales grew due to new model launches and consumer demand, but adoption rates remained below 2%. The report highlights the need for continuing support in this segment. The report found that both FAME-I and FAME-II failed to make a statistically significant impact on electric bus (e-bus) adoption. Only 4,766 units were subsidised against a target of 7,262, and the sector continues to face structural barriers such as limited financing access and high upfront costs. 'Coordinated central and state action, pairing targeted purchase incentives, infrastructure rollout, and manufacturing scale-up can help electric cars compete effectively with their counterparts in India's commercial vehicle market,' said Saurabh Trivedi, Sustainable Finance Specialist at IEEFA. The study recommends continued fiscal support, investment in public charging infrastructure, interest rate subvention for buses, and targeted financing support for smaller commercial operators. 'As India transitions from FAME schemes to PM E-DRIVE and other similar initiatives, policymakers must recognise that each EV segment requires tailored intervention,' Konda added. The report draws on panel data of 21,526 observations over 10 years, offering a first-of-its-kind empirical assessment of India's EV subsidy performance using econometric techniques such as difference-in-differences and synthetic control methods.
