January 31, 2023

Volume XIII, Number 31


January 30, 2023

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The Energizer – Volume 109

There is a lot of buzz around clean technology, distributed energy resources (DERs), microgrids, and other technological innovations in the renewable energy and clean transport industries and how these developments can contribute to solving long-standing environmental justice issues. As these innovations develop, energy markets will undergo substantial changes to which consumers and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of DERs, energy storage, emerging technologies, hydrogen, and other innovations driving the energy industry forward. 


On 19 October, BMW Group (BMW) unveiled its plans to invest a total of US$ 1.7 billion in electric vehicle operations in South Carolina as a part of its Electromobility1 Plan. BMW Group will invest US$1 billion to build electric vehicles at its manufacturing hub in Spartanburg, South Carolina, and another US$700 million to build a new high-voltage battery assembly facility in partnership with Japanese manufacturer Envision Automotive Energy Supply Corporation (Envision AESC). The South Carolina Coordination Council for Economic Development has also granted US$65 million to Spartanburg County to assist with project-related costs. 

BMW’s partnership with Envision AESC will allow BMW to locally source its new sixth-generation round lithium-ion battery cells, specifically designed for the next generation of electric BMW vehicles. This updated battery will increase energy density by more than 20%, improve charging speed by up to 30%, and enhance range by up to 30%. BMW notes that the increased efficiency in battery performance will not come at the cost of the company’s commitment to sustainability. BMW’s use of secondary raw materials combined with BMW’s utilization of renewable energy in the production process will reduce average CO2 emissions usually seen in battery cell production by 60%. 

These investments further BMW’s Electromobility Plan, in which BMW hopes to convert at least half of its vehicles to fully electric models by 2030. 


On 26 October, the New Jersey Board of Public Utilities (NJ BPU) selected transmission projects that will provide a transmission solution for offshore wind projects to be located off the coast of New Jersey. PJM Interconnection L.L.C.’s (PJM’s) State Agreement Approach (SAA) allows for one or more states to solicit and bear cost responsibility for transmission projects that will support state public policy goals, such as offshore wind. New Jersey is the first state to utilize the SAA.  

NJ BPU made its selections from 80 proposed projects submitted by 13 developers. The total estimated cost of the upgrades is US$1.08 billion. The largest of the selected projects is the Larrabee Tri-Collector Solution jointly proposed by Mid-Atlantic Offshore Development LLC and Jersey Central Power & Light Co. (JCP&L) at an estimated cost of US$504 million. This project includes onshore upgrades consisting of (1) construction of a new substation adjacent to the existing JCP&L Larrabee substation, and (2) upgrade of existing rights-of-way to distribute the energy to three existing points of interconnection. The new substation will allow for interconnection of high-voltage direct current cables to export power from the offshore wind projects at a single land-based point of interconnection. Although these upgrades will be located onshore, NJ BPU recognized that the upgrades could further facilitate development of a future offshore-networked transmission solution, often referred to as a “backbone.” 

It is anticipated that the transmission upgrades selected by NJ BPU will provide transmission capacity for 6,400 MW of offshore wind generation. Until recently, New Jersey had targeted 7,500 MW of offshore wind generation by 2035. However, on 21 September 2022, Governor Phil Murphy signed an executive order that increased this target to 11,000 MW by 2040. NJ BPU plans to initiate a second SAA process to explore additional transmission solutions that could accommodate this increased offshore wind target.  


On 28 October, NextEra Energy (NextEra) announced that it has agreed to spend US$1.1 billion to acquire renewable natural gas (RNG) facilities that convert waste in landfills to methane and hydrogen to be used to generate electricity. NextEra will purchase over 30 RNG facilities from Energy Power Partners. The transaction is expected to close in early 2023.

NextEra is already one of the largest wind and solar energy producers in North America, and this acquisition marks what the energy company considers “a large step forward” in its RNG strategy. According to NextEra, this major investment is a result of the incentives provided under the recently passed Inflation Reduction Act, wherein projects like these RNG facilities now qualify for investment tax credits.2 


1 Electromobility is the concept of using electric circuits comprised of rechargeable energy storage systems, power electronic converters, and other associated connectors and wiring for transporting people and goods with a view to support sustainable development.

2 For more information about the Investment Reduction Act, please see our K&L Gates summary of the New Opportunities for the Energy Industry at https://www.klgates.com/Welcome-to-the-Tax-Credit-Revolution-New-Opportunities-for-the-Energy-Industry-in-the-Inflation-Reduction-Act-8-18-2022.

Olivia C. Ashé also contributed to this article.

Copyright 2023 K & L GatesNational Law Review, Volume XII, Number 313

About this Author

Buck B. Endemann, KL Gates, energy infrastructure lawyer, remediation projects attorney

Buck Endemann is a partner in the firm’s San Francisco office, where he is a member of the energy practice group. He provides comprehensive counseling on energy, infrastructure and remediation projects, including advice on air, water and waste compliance issues, and represents clients in related litigation. 

Mr. Endemann has extensive experience on the commercial, land use, and regulatory aspects of renewable energy and infrastructure projects throughout the Western United States, with an emphasis on California. He has a particular expertise...

Matt Clark Associate Seattle Environment, Land and Natural Resources

Matthew Clark is an associate in the Seattle office of K&L Gates in the environment, land and natural resources practice group. Mr. Clark’s practice focuses on litigation, regulatory compliance, and transactions involving energy and infrastructure, environmental permitting, natural resource development, and land use.


Nathan Howe is an associate at the firm’s Newark office. He is a member of the power practice group, and has represented clients in electric regulatory matters before the Federal Energy Regulatory Commission (FERC), the New Jersey Board of Public Utilities (NJBPU), and other state regulatory agencies, in proceedings such as utility rate filings, mergers, contract disputes, rulemakings, and programs proposed by utilities.  He assists clients in all phases of these proceedings, including discovery, settlement, evidentiary hearings, and written submissions, from inception to resolution, as...

 Natalie J. Reid Associate Seattle Environment, Land and Natural Resources

Natalie Reid is an associate at the firm’s Seattle office. She is a member of the environment, land and natural resources practice group.


David Wang is an associate at the firm’s Seattle office. He is a member of the Energy, Infrastructure, and Resources/Power practice group.

Prior to joining the firm, David clerked for the Honorable Dario Borghesan of the Alaska Supreme Court, where he drafted opinions and memoranda on a wide range of civil and criminal matters. During law school, he was a member of the Jessup International Law Moot Court team, helping the team qualify for the competition’s international rounds in consecutive years. He also served as a legal writing tutor and participated in the school’s...

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