Solar costs have fallen 85% between 2008 and 2016 and wind costs fell 36%.
Canadian Solar secures debt and tax equity from Prudential and US Bank for 92MW solar PV power project located in NC. PPA with Duke Energy Progress. Cohn Reznick advised.
Dominion plans more solar in VA. Install at least 5.2GW in the next 25 years and reduce carbon emissions 25% over 8 years.
National Grid and partners build the first community solar PV facility in NYS. Developers eyeing NYC for future community solar PV projects.
Cypress Creek defined path for $0.75/W solar PV. Only goes after markets where it’s possible to standardize the procedure and reach scale. Cypress Creek has the finance, development, EPC, sales, asset management and O&M pieces of the business all in-house, with the flexibility to partner externally. New York 1,400 sites @ 2MW each.
Natural Gas prices are expected to remain below $2.75 in the short term.
ORIX acquired 22% of Ormat for $627MM value the company at about $3BN.
Japan power plant conversions from coal to biomass. 50MW project will burn 200,000 TPY of PKS mainly from Indonesia.
Unlikely coal recovery. 50% of decline caused by low natural gas price.
Energy efficiency investments have the lowest risk and lowest cost.
Oil & Gas
O&G frac companies going public including Liberty Oilfield Services $250MM IPO.
Goldman Sachs acquisition 12% of Riverstone energy PE investor for $500MM value the company at over $4 billion. SPACs created to acquire energy companies including $600MM TPG Pace Energy “blank check” company. Cities taking responsibility for meeting clean energy goals. 27 cities have clean energy mandates including San Antonio, NYC, Atlanta. 2020 target PPA prices for wind $20/MWh, solar $20-30/MWh. S&P green evaluation for clean energy projects expected to lead to higher quality credit ratings. Green bond market 2016 $93BN, expected 2017 $206BN. 70% clean energy ETF beat S&P500. 190 Fortune 500 companies saved $3.7BN in 2016 on 80,000 projects. 211 companies set GHG reduction goals. 240 companies set some combination of GHG reduction, renewable energy sourcing or energy efficiency goals. S&P webcast on Green Evaluations May 4 at 10 a.m. EDT. Private companies created to join the waste management industry. Blue Sage Capital and Tailcreek Capital formed Frontier Waste Management and acquired Access Disposal and K2 Waste.
Duke Energy proposes changes to PURPA rules that effect (1) size, (2) term, (3) competitive bid process, (4) reprice every 3 years and (5) 5-year PPA for 5MW projects. MidAmerican and Xcel plan to add solar PV using avoided cost contracts that sell power at retail rates.
VA allows solar PV on up to 25% of land and sell excess power to utility.
ORIX developing 13 solar PV projects in the US.
Clean energy provided 55% of new capacity in 2016. $241.6BN investment in clean energy. 11.3% energy, up 6.1% from 2006. $113.7BN in 75GW solar PV represents 50% new renewable energy investment, most ever. Solar panel prices fell more than 80% since 2010.
FPL plans to build 2.1GW solar PV in FL, 300MW/year
US power companies will close 8GW of coal-fired power in 2017, closed 13GW in 2016.
MUFG awarded MLA of the Year. $325MM fund for clean energy investment in solar PV, energy efficiency. Potential dampening in long-term power prices. Majority of investor dollars go into 4 technologies (1) solar PV, (2) wind (3) LED lighting and (4) electric cars. Investors building green-power transmission lines. Impediment to energy efficiency market expansion is access to capital. Addressable market for energy storage is $30BN. JPMorgan created the first socially conscious muni bond fund, JPMorgan Municipal Income Fund. Cosan export 2MM TPY of wood pellets to Japan by 2025 helped by proposed rail link.
55MW repowered wind project replaced 569 turbines with 27.
Solar development boom in TX. Solar industry created 51,000 jobs in 2016 to 260,000 jobs, 25% growth in the solar industry.
FL remains slow for solar PV development.
First Solar sold cash equity in 250MW Moapa Solar to Capital Dynamics, kept O&M. Tax equity from GE and GS.
Ameresco 3MW solar PV project located on landfill in MA PPA with City of Pittsfield.
Solar PV tax equity 2017 mostly partnership flips, smaller deals sale-leaseback. Structure 40% TE, 45% Back Leverage & 15% Equity. Cost of debt L+175-275bps, sub-debt 5% and higher. Tax equity capacity sufficient to finance 2017 pipeline. Successful developers selling assets @ NTP generate capital to develop projects.
ID challenges new solar PV.
National Solar Jobs Census.
NTE Energy approved to build 1GW gas-fired generation in NC.
EU CHP 20-25% energy reduction by 2025.
MA Economic + Operating Incentives = MASSave + APS = 20-30% Installed Cost + 2.5-3.5c/kWh
Advanced energy $1.4TN global market, $200BN US market. 2016 US revenues $5BN, solar PV $25BN. Efficiency value directly proportional to gas prices.
Northeast US accounts for 40% of all new CHP installations over the last 5 years.
DOE TAP CHP Screening Tool for quantitative and qualitative analysis.
Oil & Gas
Canada oil sands assets sold by BP ($7.25BN) and COP ($13.3BN).
Westinghouse files for bankruptcy. Renewables upper bound 20% currently 6%. Aquion battery technology viable filed for bankruptcy. National Grid proposes 1.2GW line from Canada to MA. EPA 11,000 landfill sites and 15MM acres potential for hosting solar PV. Pressure on Japan importers to execute WPPAs before tariff price falls October. Tariff for biomass-generated power falls 24 yen to 21 yen/kWh (19 cents). Engie restarts 250,000 TPY wood pellet project located in Australia. Will export pellets to Asia and the EU.