Energy Finance Report

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.

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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

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.

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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.

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

Are YieldCos Insulated from the Looming ITC Stepdown?

Posted by Jeffrey Karp on 8/7/15 6:15 AM

Co-author Morgan Gerard

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Topics: Structured Transactions & Tax, Distributed Energy, YieldCo, Renewable Energy

SunEdison/Vivant Deal a Harbinger of Things to Come?

Posted by Jeffrey Karp on 7/24/15 11:58 AM

SunEdison and Vivant, two of the largest players in the residential solar market, announced this week that the former agreed to purchase the latter for $2.2 billion. Some of the basic deal terms include:

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Topics: M&A, YieldCo, Solar Energy, Renewable Energy

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

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