Wind and Solar
US wind investment 1H18 $17.5 BN, 31% increase over 1H17.
Wind energy project cost $1,600/kW in 2016. Interior US accounted for nearly 90% of incremental capacity.
Energy storage demand response incentivesin NY. Pilot program expected to be expandedinto other New England states.
Microgrid as a Servicefor C&I customers, hospitals, universities, and remote areas. Market valued at $775 MM in 2015 expected to be $2.2 BN by 2022.
Data Centers candidates for microgrids. 6 projects representing 437 MW.
Duke Energy Microgrid as a Service for corporate customers. 3GW storage, solar and wind projects.
PE 2Q18 2,247 dealscompleted totaling $263.9 BN. 50 funds raised $32.1 BN in 2Q. 2,974 PE funds seeking $945 BN of capital. Uninvested capital committed by investors $1.09 TN. Buyout EBITDA multiples 2017 10.2x, YTD 2018 9.5x. Buyout debt levels averaged about 5.7x EBITDA in May. 2009 3.7x, 2007 6.05x. Institutional investors $85 TN in AUM and expect $110 TN by 2020. 1% of asset allocated to infrastructure. 35-50% infrastructure investment will need to come from the private sector. Energy efficiency LCOE2.8c/kWh. $40 MM 130,000 SQ FT indoor farm. 3 project located in CT and TX, future sites in CA, the Midwest, GA and OK. 13 cities representing 80 MM people and around 60,000 buses signed the C40 Fossil Fuel Free Streets Declaration, pledging to purchase only zero-emissions buses from 2025 forward. Energy production insurancefor flow batteries. LaaS energy production insurance, shared savings contracts, 75% savings on lighting cost. Maintains systems for 5 years. If all lights in the US were switched to LED by 2030, the energy savings would be 20x all the solar power generated in the US. Free EV charginguses advertising model.
Energy storage overtakes gas-fired power as a compliment to wind and solar. Energy storage deployment.
$350 BN market for renewables and distributed energy resources through 2030. Avoids 3.5 BN tons of CO2 emissions.
EaaS could grow to a $221 BN global business by 2020.
Deal flow 1H18 for VC and PE at new highs. Over 1,500 deals. 2Q18 $23 BN invested in over 1,400 deals. First round 35% deals. PJM LCOE. Northeast represents 7 of the Top 10 (8 of 11) states in the US with the most expensive power. Lucrative era for agtech companies has arrived. IndoorAg Industry could be worth $25 BN by 2025.
Virtually every automaker is investing into battery pack production.
Energy storage in 2016 was able to deliver about 5 GWh. By 2030, it is expected to double six times to about 300 GWh.
Bank loan finance for NE merchant power project. Family offices and hedge funds are starting to buy into IndoorAg. Expect 7 MM EVs by 2025, result in around $6 TN in investment. Electrification of transport could result in growth of 80 TWh/year. EV expected to replace fossil fuel power vehicles. UK ban on new petrol and diesel car sale in 2040proposed to move forward. Generate hydrogen from water using solar. Hydrogen produced used in fuel cellsto generate power. Water cleaning technology that uses bugs to separate metals from water. Industrial synthesis of hydrogen, syngas, methanol and diesel could become competitive with fossil fuelswithin the next two decades. US southeast power project LCOE:
(1) Biomass $84/MWh to $133/MWh.
(2) Wind $55.6/MWh.
(3) Solar $57.4/MWh.
L-Ion battery projects secure PPAs to provide storage in the short term.
50% new car sales will be electric by 2040.
75% spent batteries will be reused and recycled to harvest raw materials by 2025.
Closed-loop cycle for solar energy can increase storage up to 50 days. Stored chemical energy could be converted directly into electrical energy.
EV buses expected to account for 80% fleet by 2040.
Corporate ESG programs. 3 indoor farms planned for ME and FL. Presold 100% of inventory for 10 years. Proposal to have wood pellets qualify as a renewable fuel.