Energy Finance and M&A

Solar & Wind
First Solar 595 MW module sales agreement with Origis Energy. Enters the large-scale solar PV power boom in Australia, the highest average solar radiation/m2.
Duke Energy acquires 100% of REC Solar.
Gulf Power JV of Harbert Capital and Calpers acquire Enel equity interests in 350 MW wind power as well as Northern Star, Astoria Energy and Desert Sunlight.
Falck Renewables acquires 71 MW solar PV power project located in NC from Canadian Solar. Tax equity from Prudential and US Bank.
Tenaska and Mitsubishi $1 BN solar PV project + pumped hydro project. Brookfield's Poseidon Water proposal for desalinated water.
Tax plan has the potential to materially negatively impact tax equity market.
Credit facilities for residential solar PV while solar PV leases become less popular.
Cape Wind abandoned, unable to secure a long-term PPA for entire generation.
Senate proposes rolling back PURPA.
Top 500 US solar PV developers, 4 from NC in Top 10. Most have executed transactions with Cypress Creek.
Montana approves PURPA contracts 15-years @ 3.7 c/kWh (off-peak 2.8 c/kWh).
 
Thermal
NYC hospital secures 3 MW CCGT. 2 1.5MW units, steam to host HRSG, 2 750-tonne dual stage absorption chillers. NYSERDA-approved vendor.
Commercial CHP market potential increase 4-5% to 2025. Drivers for growth: (i) climate change initiatives, (ii) renewables growth and (iii) abundance of natural gas.
Southern Company sets deadline with Toshiba pending payment.
Energy efficiency reduces capacity prices and demand. A 30% increase in capacity price = 4% increase average energy bill. Generation can be 60% average utility bill.
Alinta Energy acquisition of $1 BN Loy Yang B power project located in Australia.
Eversource acquisition of Aquarion from Macquarie for $1.68 BN. Only US combined power and water utility. Supplies water to CT, MA and NH.
2 WTE projects located in NH. 260 permitted MSW facilities and 6 lined MSW landfills operating in NH. Adequate capacity for disposing of NH’s waste through 2022. Nationally MSW $57 BN business. 4 companies have 50% market share.
Enviva 15-year 650,000 TPY WPPA with a Japanese entity beginning 2022. Demand expected to be up to 7 MM TPY.
 
Storage
PG&E executes 3 PPAs with Enel for 85 MW energy storage. Expected online 2023. Projects developed by Sovereign Energy Storage.
Siemens energy storage project stores excess wind power in rock formation underground. Can heat rocks for up to 24 hours at 600 degrees. 25% efficient initially, 50% planned at 100 MW scale.
 
Oil & Gas
Cheniere "multi-year" LNG sales agreement with OMV of EU details not disclosed. 2015 100 MMcf/day 3-year agreement with EDF CIF EU.
China has invested $160 BN in energy M&A.
Energy company oil and gas production on the rise but not profits.
Dominion Energy Cove Point LNG feed gas into project for sale to Shell.
Total signs 10-year LNG transportation agreement with CMA.
Repsol sale of $4.4 BN interest in Gas Natural representing 20% of the company.
 
Latest News
M&A involving US businesses should set a new record high in 2018. M&A’s latest surge is typical for the very mature phase of the business cycle. EnCap Investments raised $7 BN in its EnCap Energy Capital Fund XI. Controlled Environment Agriculture ripe for robotics intervention. Yet to see robotics vendors specifically targeting high-tech hydroponic business.