Solar PV & Wind MA competitive auction price cap $0.17/kWh. Bid prices expected to be 30-40% below the ceiling. 400 MW in queue for the SREC II incentive program. Must be complete by March 31, 2018. Very low PPA prices for wind and solar plus storage: (1) Solar + Storage = $36/MWh (2) Wind + Storage = $21/MWh 2014 RFP 430 proposals for 238 projects representing 112 GW. Wind and solar 358 bids representing 101 GW. 2013 RFP 55 proposals. Results: (1) Wind - $18.10/MWh. 42 GW bids, 17 GW awarded (2) Wind + Solar - $19.90/MWh (3) Battery storage - $21/MWh (4) Solar - $29.50/MWh. 30 GW bid, 13 GW awarded. 152 proposals for 75 projects. (5) Wind + Solar + Battery Storage - $30.60/MWh. (6) Solar + Storage - 87 bids, 59 projects.
Storage - 41.8 MW of storage deployed 3Q17, up 46% yoy.
Nuclear - 10 decommissioned, 20 under review for closure.
PURPA - Debate will intensify over rates, contract length
Wholesale Market Reform
US market outlook:
Equity markets likely peak in the first half of 2018.
EU and Japan can outperform the US in 2018.
Business and consumer confidence near 30-year highs.
Hedge Fund leverage highest in 10 years.
Tax change implications for energy companies: (1) Repeal of the corporate AMT (2) 30% cap on deducting interest. (3) Tax rates for corporations fall from 35% to 21% (4) Sales of state credits increase the net yield from 65 cents to 79 cents.