RPS have initially increased GHG emissions, then reduced emissions over time.
CO proposes 50% energy from renewables by 2026. CA 100% by 2045.
$1.8 BN geothermal power project allows for recovery of 91% L-Ion from brine. 76,000 TPY L-Ion.
C&I attempting to physically rather than financially meet 100% RE goals.
Guaranteed but not shared savings on energy efficiency. Saves building owners $0.40-$0.60/SF, boosts net profit $5-10/SF.
Thermal power once installed will need carbon capture to reduce carbon emissions.
Oil and Gas
Top 15 oil and gas companies account for 58% of remaining oil and gasreserves. Own just 30% of developed renewable energy assets.
Proposed changes that might lead to lower CO2 emissions with storage. Presently,adding storage increases CO2 emissions. New GHG rules expected 2019.
MA has a goal of 1 GW energy storage by 2025. There are 19 MWs of energy storage facilities participating in the New England markets and 800 MW proposed.
No "hard-and-fast models yet" for storage finance.
Market expects Fed to further increase rates regardless of market activity. Sensor as a Service. Microgrid as a Service. Energy as a Service offered in partnership with the incumbent utility. PE middle market funding through 3Q 2018 of $311.7 BN total deal value across 2,171 deals. $88.1 BN total capital raised (19.5% YTD increase) across 99 funds. Sound sustainability standards lower the cost of capital. Leading project finance lenders MUFG, SMBC, ING, SocGen, BNP and CA. Tax credits disallowed for (i) mobile solar PV platforms where seller and buyer were closely relatedand (ii) pass-through entities where costs were inflated. 8,700 Opportunity Zones created a $6 TN opportunity. Electrolysis of water to create hydrogen and oxygen. Volume Firming Agreements in lieu of PPA. Corporate agreements + insurance. Corporate PPA 3.5 GW YTD 2018.
Energy as a Service offered in partnership with the incumbent utilities. Debt from SBA-funded EIP that has also financed CHP and microgrids.
Expect long delays in placing solar PV on landfills.
Energy storage faster, smarter, cheaper, and more reliable than fossil fuel generators. It can provide more services than previously expected:
(1) it can operate in standalone mode;
(2) it has grid-forming capability, and;
(3) can provide frequency control by acting as a virtual generator.
194 M&A deals YTD 2018 in IndoorAg sector, 130 in 2017. Volume Firming Agreements in lieu of PPA. Corporate agreements + insurance. Corporate PPA 3.5 GW YTD 2018. 152 companies of various sizes have made a commitment to go 100% renewable. Carbon tax proposed on C&I and residential. Majority of emissions in industry and in the residential and commercial sector are entirely unpriced. Carbon pricing gap highest for industry, residential and commercial sectors.
M&A of operating clean energy projects that qualified for ITC after the 5-year standstill.
REAP finance of $5.7 MM ME wood pellet project.
Landfill gas project development at NH closed landfills.
Storage at the centre of Asia transition to renewable energy.
Storage investment 1H18 $1.5 BN, 2x 2017. $16.7 BN to install conventional battery factories. $42 BN of facilities are expected to be operational by 2022. After 2025 new technologies likely to enter market. Lithium-ion dominates in the short-term.
Hydrogen as a form of storage for renewable energy on a large scale.
New York State has 500 MW storage in development. Target 1,500 MW by 2025.
2017 utility demand response 18 GW. Residential storage capacity additions grew 202% from 2016 to 2017, C&I 9%.
CA 3GW BTM energy storage by 2026. Extends SGIP 5 years.
Flow batteries 14% efficient targeted to be 25%.
Macquarie raising debt for 50 MW portfolio of storage projects in CA.
10 MW solar + 6.5 MWh storage in the Carribean. Islands fossil-fuel free by 2020.
Microgrid project finance outlook.
Roll-up of technology providers to microgrids. Targets C&I, hospital and schools.
Most microgrids are C&I, universities and military. Located in the Northeast and CA. Biggest barrier to entry is low cost power.
Expect economic growth to taper in 2019, stall 2020. Energy major’s have forecast $100/bbl oil since mid 2018. Most countries can accelerate GPD growth by reducing emissions. 34% rise in methane released from overall energy production over the past 25 years. 2017 VC investment into agtech $1.9 BN across 238 deals. IndoorAg investment peaked in 2017 with $346 MM across 37 deals. IndoorAg produce box subscription service. 500 IndoorAg projects globally in development. 50% of the indoor grow operations in the US are in urban areas. EVs are expected to reach price parity with internal combustion engine vehicles by 2025