Aug 20, 2015

California may turn to Mexico for renewables to meet clean energy goals

3 min
Just recently, the The Obama administration and the Environmental Protection Agency (EPA) changed the course of energy production in the United State...

Just recently, the The Obama administration and the Environmental Protection Agency (EPA) changed the course of energy production in the United States with the introduction of the Clean Power Plan, which aims to drastically decrease carbon pollution and curb the damage of climate in the decades to come. Part of the Clean Power Plan involves each state submitting its own plan for decreased emissions and increased renewable energy use, and that may be easier for some states to achieve than others. For those like California who rely heavily on imported energy from out-of-state, could the smartest move be partnering with non-U.S. neighbors like Mexico?

RELATED CONTENT: Step-by-step guide to understanding Obama’s Clean Power Plan

As Oil Price reports, California sources 30 percent of its energy from out of state—and that includes 25 percent of all renewable energy used within California as well. While California is currently doing well for itself as far as renewable energy use, this could change if currently exporting states see an incentive in holding onto the power they generate to further green energy goals within their own borders instead. Moves like this could place California further away from their green energy goals than it is now.

RELATED CONTENT: Changes in taxation between Mexico and the US to be discussed

In addition to ramping up production of its own domestic green energy, this problem could additionally be solved by California looking elsewhere and strengthening its renewable energy partnership with Mexico in Baja California and beyond. As the article reports, California’s currently saturated renewable energy market could soon become a golden opportunity for energy providers:

California gets 25 percent of its power from renewable sources and is on track to meet its 33 percent renewable power target by 2020. Most of which is already accounted for. But with the Clean Power Plan coming hot on the heels of the emboldened Governor Jerry Brown’s new goal of 50 percent renewable power by 2030, California may need to diversify its suppliers, including cross-border sources.


With plenty of land and resources to ramp up production of solar and wind farms, Baja California could find itself in a unique position to supply energy to a California in need—and be rewarded with strong profits for the effort.

RELATED CONTENT: Where is the opportunity in a volatile energy market?

According to Oil Price, Mexican power companies have already begun supplying limited renewable energy to San Diego, but the right partnerships could see that energy exchange expanding throughout the state and even beyond to neighboring states:

“A failure to capitalize on opportunities for cross-border clean energy trade would be a loss for both the U.S. and Mexico. The United States and Canada have the largest integrated energy market in the world, increasing efficiency and renewable energy deployment on both sides of the border. The U.S. and Mexico have a long way to go but increasing renewable power exchanges would be a good place to start.”


With the Clean Power Plan taking effect in 2022, each of the United States has nearly a decade to start solidifying plans for the future—and that includes California. It will be interesting to see where the future takes the state and its thirst for reliable green energy.

[SOURCE: Oil Price]



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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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