Energy Finance and M&A

​Solar and Wind
55% of new generation was solar. 13% increase over 2017 yoy. Installed solar PV capacity expected to more than double over the next 5 years
PURPA contract challenges continuein IA, MI and OR. Federal cases expected to amend or remove utility obligation to acquire power from QFs.
 
Thermal Power
O&M key to successful deployment of thermal power projects.
 
Energy Storage
Annual global energy storage market will be 8.6 GW and 21.6 GWh by 2022.
 
Latest News
PE company holding time to sale 5 years, current age 3 years. Expect flow of sales. Credit agency key structuring considerations:
(1) Repayment - Cash sweep. 
(2) Over collateralization - Adding projects to the portfolio.
(3) Energy Hedges - Heat rate call options.
(4) DSCR - Strong > 2.5x, > 20% FFO/debt. Weak < 1.5x, < 15% FFO/debt