Utility scale solar PV trends: (1) Smaller size of 10-20 MW, (2) slowdown in PURPA contracts, and (3) low cost of capital.
Standard Solar 2.5 MW solar PV project portfolio located in MD. It will install, provide O&M and sell power to munis.
New solar PV projects mostly medium to small scale. Iberdrola that had invested in large-scale wind and CSP announced solar PV 30 MW in CO, 20 MW in AZ and 56 MW in OR.
TCPL sells 76 MW solar PV to Axium for $540 MM.
Florida avoided cost rate 3.25 c/W reduced from 10.5 c/W. 250 MW RFP. Storage 30% rebate capped at $2,000/customer or $1 MM annually. Will add 4 MW of solar annually.
NEP acquiring operating wind and solar assets from NEE or about $1.20/W. $812 MM 691 MW acquisition from NEE of: (1) 300 MW Brady Wind, (2) 25% 550 MW Desert Sunlight Solar and (3) 250 MW Javalena Wind.
Wind will exceed coal-fired power in ERCOT after coal retirements.
40 companies raised $330 MM for EEaaS. Sealed "guaranteed energy savings" raised over $5 MM from the New York Green Bank. Demonstration project with National Grid. Opus One manages "distributed energy resources". Added "advanced energy storage systems in buildings". Tagup monitors industrial equipment in real time.
Service model gaining traction while traditional capital intensive models falter.
Generate Capital owns assets, builds projects and takes dividends from energy savings. Avoids traditional PE model generating ROI over 10 years.
3Q17 energy efficiency companies raised $47 MM in 8 equity deals, 2Q17 $29 MM in 6 deals 2Q17. $289 MM was raised by energy efficiency companies in 28 transactions. Efficiency components companies brought in the most funding.
Finance energy storage with sale-leaseback. PNC buys 6 MW storage project, leases it to Engie for 20 years. Engie makes payments from proceeds of 20-year contract.
Energy market innovations specifically renewables + storage compete with conventional power.
City of Gainesville acquires $757 MM biomass power project. Exits 30-year PPA. Effectively buys out PPA.
US high yield seems to be the most vulnerable asset class to a risk-off event. A version of the Phillips Curve is forecasting wages to be growing at over 3% annually a year from now. Might reverse 30-year bond bull market. Yield could be 6% by 2020. CS says we are nowhere near the end of the cycle. This expansion has been quite long by historical standards. However, given how slow the recovery has been, the cycle could end up extending further. While the yield curve has flattened significantly, it has not inverted. GIP acquires Equis Energy for $3.7 BN. Partners PSP and CIC. 180 assets including wind, solar and hydro. CIC buys European warehouse firm Logicor for $14 BN. I Squared Capital will raise $6.5 BN in a new global fund. Energy Hunter $43 MM equity issue led by FBR and Stifel. Sprint and T-Mobile prepare for board decision on merger. SoftBank and other Sprint shareholders could hold close to 40% of the combined company. Over $2 BN was spent globally on operating clean energy assets in 3Q17. $7 BN of renewable energy projects under construction or in development. Slow down in early stage investing to the lowest level in 5 years. Power to gas projects using electrolyzers to produce hydrogen. US projects use hydrogen to produce biogas whereas EU projects only produce hydrogen. $690 BN covenant light loans. ACORE argues for (1) energy assets to be eligible for MLP and (2) extending PTC beyond 2020. Equity markets receptive to clean energy company issuance. Pattern Energy $215 MM equity used to fund 8 projects as well as general corporate purposes. Led by BAML and MS. Indoor farm keys to success (1) long term contracts and (2) proximity to clients. Development of clean energy with 1.9 GW sold to corporates. Alphabet 1.85 GW, Amazon 1.22 GW. GTL company secures 100-acre site in MS for $300 MM refinery. USDA 9003 Phase II in process for $200 MM of debt. 19 MM GPY of fuel. SMBC lender and providing advice. Demonstration project with gasification partner ThermoChem at Envia Energy plant in OK City. Identified sites in the Southeast U.S. that could host plants capable of producing 100 MM GPY. Future of Food discusses the role of indoor farming. There are about 100 robotics startups that claim agriculture as their primary market. Agriculture is among industries with the greatest potential for automation. Agriculture is the least digitized of all major industries