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.
O&M key to successful deployment of thermal power projects.
Annual global energy storage market will be 8.6 GW and 21.6 GWh by 2022.
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