Energy Finance Report

Renewables Can Play a Big Role in Puerto Rico's Fresh Start

Posted by Jeffrey Karp on 6/27/17 11:23 AM

This article originally appeared on Recharge.

Read More

Topics: Energy Finance, Renewable Energy, Energy Investment, Puerto Rico, Power Purchase Agreements, Renewable Energy Portfolio Standards

Opportunities Abound in the U.S. Offshore Wind Market

Posted by Jeffrey Karp on 5/30/17 12:52 PM

Offshore wind projects have taken root in America. The country’s first operating offshore wind farm, in Block Island, Rhode Island, began contributing energy to the power grid in December 2016. Now, more than 23 offshore wind projects — collectively expected to produce 16,000 MW of power — reportedly are being planned. Thus, opportunities abound for developers, contractors, and investors in the U.S. offshore wind market.

Read More

Topics: Energy Finance, Renewable Energy, Energy Investment, Energy Project Finance, Offshore Wind, Wind Energy, Energy Project

2015 Year in Review - Renewable Energy in the U.S.

Posted by Jeffrey Karp on 12/23/15 3:33 PM

Co-author Morgan M. Gerard

Despite the low price of oil throughout the year, 2015 may have been an inflection point for renewable energy as a competitive generation source in the U.S. Deutsche Bank has noted that renewable sources, like solar, have reached, or will soon reach, grid parity with fossil fuel sources in many states. As non-fossil energy has become more economically viable, the industry has responded by standardizing and streamlining project processes, and by accessing financing vehicles like yieldcos and public bonds. Despite growth, the past year has also been a tumultuous one full of unexpected developments and policy shifts including the COP 21 agreement and the Clean Power Plan (CPP), and the formation of intriguing grassroots coalitions, like the green tea party. All of these developments were, of course, set against the specter of a potential step-down of the Investment Tax Credit (ITC), and its surprising last-minute revival. The following is a breakdown of some of the major developments impacting renewables in 2015.

Read More

Topics: NY REV, Energy Policy, Energy Finance, Distributed Energy, YieldCo, Solar Energy, Renewable Energy, Wind, COP21, Renewable Energy 2015, Distributed Energy Resources, CPP, Green Tea Party, Net Metering, Net Energy Metering, NEM, DG, Energy Project Finance, Renewable 2015, Green Energy, Green Energy 2015, Solar Energy 2015, DER, Offshore Wind, Clean Power, clean power plan, Georgia Solar, 2015, energy, Wind Energy, Energy Project, Green 2015, California DRP

Is Preparing for an ITC Stepdown the Same as Preparing to Fail?

Posted by Jeffrey Karp on 12/11/15 3:12 PM

The scheduled stepdown of the solar Investment Tax Credit (ITC) from 30% to 10% at the end of 2016 has become a bit of a political football among the pro-solar crowd. Even mentioning the possibility of a stepdown occurring can lead to accusations of negativity from extension advocates. However, despite the negative connotations of discussing the ITC in the context of a decline rather than an extension, it would behoove participants in the solar markets to at least consider what life at 10% could mean to them. That is particularly true after a whirlwind of a week in Washington that, if anything, has made the fate of the ITC murkier than ever.

Read More

Topics: Energy Policy, Energy Finance, Solar Energy, Renewable Energy, ITC, Investment Tax Credit

Managing Grid Security in a Distributed Energy Environment

Posted by Jeffrey Karp on 11/24/15 10:49 AM

Historically, utilities have shouldered the burden of mitigating the security risks inherent in energy generation, distribution and transmission. The utilities were, and continue to be, well-placed to do so as they benefit from historical knowledge, existing relationships with regulators and grid operators, large and highly-trained workforces and, perhaps most importantly, the ability to rate base. Although the nature of risks has evolved over the years, with terror threats and privacy concerns added to the list of conventional risks like weather events, traditional utilities have been up to the task with a few noteworthy exceptions.

However, the traditional model of energy generation and distribution is in midst of an evolution that, arguably, could be more impactful to the U.S. grid than deregulation has been. Even in competitive generation markets, retail interaction with customers has been handled almost exclusively by the utility as an energy aggregator with the ability to rate base. Places like New York are now serving as the test labs for alternate models as regulators there have been shifting their gazes toward distributed generation models where smaller, independent entities would drive power supply through resources co-located, or else located in proximity, with end users.

Read More

Topics: Utilities, NY REV, Power Generation, Microgrid, Energy Finance, Distributed Energy, Energy Management, Solar Energy, Renewable Energy

Discussing the Investment Tax Credit- Panel at MDV-SEIA’s Solar Focus

Posted by Jeffrey Karp on 11/23/15 10:37 AM

I moderated a panel at MDV-SEIA’s Solar Focus event to discuss what is arguably the hottest, most impactful topic in the solar space today – the Investment Tax Credit (ITC), and specifically, its scheduled step-down at the end of calendar year 2016.

The ITC is a controversial topic. Arguably, and while this is probably not a popular opinion among readers of this page, the 30% ITC may have run its (very successful!) course. Hardware and install prices have plummeted in recent years. Traditional capital markets are being accessed through bond offerings and YieldCos. Even stodgy holdout utilities in the southeast are becoming more active in the solar space. More solar has been built in recent quarters than any other generation type.

And yet . . . solar remains a small part of the overall generation mix, and many states, including those with great insolation numbers, remain untapped markets. Some have estimated that up to one hundred thousand jobs might be in jeopardy if the step-down occurs. An ongoing 30% ITC would make it easier for many states to comply with their potential Clean Power Plan (CPP) obligations. The U.S. is arguably at the cusp of a real shift in its energy mix that might be delayed, if not derailed, if the credit is not extended.

Read More

Topics: Energy Policy, Structured Transactions & Tax, Energy Finance, Legislation, Distributed Energy, YieldCo, Solar Energy

Are Seesaw Share Prices Impacting YieldCo Buying Power?

Posted by Jeffrey Karp on 11/12/15 11:57 AM

YieldCos have been hammered lately, both in the stock market (though things have recently been picking up) and in the press. The reasons are myriad with theories addressing MLP values, rising interest rates, negative public statements from management teams, a slowing Chinese economy, lower oil prices, capital constraints and YieldCo disassociation from parents entities all being floated as potential reasons for recent losses in shareholder value.

Read More

Topics: Energy Policy, M&A, Structured Transactions & Tax, Power Generation, Energy Finance, Distributed Energy, YieldCo, Solar Energy, Renewable Energy

Roundtable Discussion: Distributed Energy Opportunities in the Mid-Atlantic

Posted by Jeffrey Karp on 11/11/15 10:34 AM

As energy infrastructure is adapted to achieve greater energy efficiency and resiliency to combat threats from storms to terrorism, distributed generation (DG) has emerged as an opportunity for investors and developers who want to play a part in the modernization.

On November 5, 2015, Sullivan and Worcester and SEIA co-hosted a roundtable discussion to explore DG opportunities in the D.C., Maryland, Virginia and Delaware region. The panel was comprised of industry experts with diverse perspectives, and included Maryland PSC Commissioner Anne Hoskins, Dana Sleeper of MDV-SEIA, Anmol Vanamali of the DC Sustainable Energy Utility, Bracken Hendricks of Urban Ingenuity and Rick Moore of Washington Gas (WGL).

Read More

Topics: Energy Policy, Energy Efficiency, Energy Finance, Distributed Energy

Mid-Atlantic: Distributed Energy Opportunities

Posted by Jeffrey Karp on 11/3/15 11:58 AM

The Mid-Atlantic region (Maryland, Delaware, Virginia and the District of Columbia) is currently at the forefront of discussions regarding the next generation of distributed electricity markets. Notable developments pushing the region into the spotlight recently include M&A activity, creativity on the part of public service commissions, local innovations in PACE finance, and increasing flexibility on the part of local utilities.

Read More

Topics: Water Energy Nexus, Utilities, Water, Carbon Emissions, Energy Security, Thermal Generation, Energy Policy, M&A, Structured Transactions & Tax, Energy Storage, Energy Efficiency, Power Generation, Microgrid, Energy Finance, Distributed Energy, Energy Management, Solar Energy, Renewable Energy, Wind, Oil & Gas

Avoiding Distressed Sale Situations in Solar

Posted by Jeffrey Karp on 11/3/15 7:26 AM

The word on the street is that completion risk heading into the scheduled, dreaded investment tax credit (ITC) step down is already becoming an issue for solar developers. In short, there is a general fear on the part of market participants that solar projects currently in development won’t meet the IRS’s qualifications for being placed in service before the end of 2016, when the ITC is scheduled to decline from 30% to 10%. This would make many projects in the current environment economically unviable.

Read More

Topics: Energy Policy, Structured Transactions & Tax, Energy Finance, Distributed Energy, Solar Energy, Renewable Energy

Sullivan

About the Blog


The Energy Finance Report analyzes developments in energy finance as well as provides updates and perspectives on market trends and policies.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

Subscribe to Blog

Recent Posts

Posts by Topic

see all