Solar PV business model for residential solar PV. Commoditized hardware and finance. Customer acquisition cost stubbornly high. US goal is installed cost $2/W. In 2016, UE cost was $2/W, US $3-3.50/W.
Solar PV on landfills. Altus Power equity from GS and Blackstone. 10MW solar PV located on NJ landfill and 1.5MW solar PV located on VT landfill. 25-year net- metering contract, where energy sold to utility, city receives credits.
Residential solar $255MM private placement of asset-backed notes. CS provided 2 credit facilities totaling $360MM. $80MM asset-backed note securitization. $2BN financing in the last 4 years. Companies that try to sell solar and efficiency together can’t get profitable, and the better play is to have focus. Battery systems are designed primarily for rate arbitrage, and not for backup power. Sunnova is able to deliver 19c/kWh solar+storage, where customers are currently paying the utility around 27c/kWh.
Covanta Rockery South IE Report identifies comparable EfW projects that use gasification. Project moving through financing in the UK.
Green Bond 2017 $150-200BN, 2016 $90BN, a 67% to 120% increase. Green bond issuances in 2017 to set new record volume
Shared savings business model applied to energy storage. Sharp offers to C&I customers a 10-Year Asset Management Service Agreement and Demand Reduction Performance Guarantee. Sharp offers financing for its technology.
Green Charge Networks owned 80% by Engie focused on NY and CA where utility demand charges are high and incentive programs are on offer. 48MWh of battery storage projects at 150 sites. Cut the cost of customer electric bills by up to 30%.
US proposes deep cuts to clean energy funding in 2019. Largely unchanged or increased for energy efficiency 2017 and 2018.
Energy management analytics launched 2016 to propagate energy efficiency. 10- 20% energy savings possible in a single building. Average portfolio savings of 8%. US commercial sector could save over $4BN.
Technology to convert waste heat after combustion to energy using rankin cycle. Annual energy storage capacity will surge to 655 MW in 2018, 2GW in 2021. Energy developers moving into storage. 8MinuteEnergy 1GW energy storage pipeline. Battery revenues expected to exceed $6BN by 2020, 6x increase over 2013. Expect a 25x increase in sales by 2020.
US BEA economic forecast. PWC quarterly economic forecast. SMBC 1Q17 #1 lead arranger. PwC and JLL 1Q17 leading financial advisers. Emission reduction at 190 Fortune 500 companies reported saving $3.7BN. 63% of Fortune 100 companies have clean energy targets. Growing number of companies are setting 100% renewable energy goals. 66% of respondents say organizations will not survive without innovation, only 24% are confident they have what’s needed to be innovative. 37% say their organization has made no, or only minimal, changes to its innovation approach. Coal not expected to make a comeback. 50 gas-fired power projects planned to use Mercellus Shale gas. 60% start-ups fail to become viable companies. Most of the exit opportunities come early, as do the primary causes of startup failure. Customer demand and utility response to increased DER. Utilities offering customers solar+thermal and solar+storage. Since 2008, LCOE of wind has fallen 41%, solar PV 54% and battery storage 73%. In 2015, solar PV average prices are well below ¢5/kWh, with a number of future projects already planned to deliver electricity below ¢3.5/kWh. Cleantech VC investment is biased towards late-stage deals and a few technology areas, with energy efficiency, solar, and transportation attracting more than half of the funding. Battery market in the UK robust. 224 battery projects proposed by 36 bidders resulted in 8 contacts. Distributed energy storage market to reach $8BN in 2026. Energy storage industry has grown to become a $100BN market, projected to reach $250BN by 2040. MA proposes 600MW energy storage by 2025 and will announce energy storage plans. CT supports energy storage but no executed PPAs in recent RFP. Lithium-ion systems sell for an average of $350/kWh. By 2020, expected to cost $217/kWh. Eos volume price of $160/kWh for delivery in 2017 and $95/kWh in 2022. Needs an inverter (DC to AC). Siemens offers inverters. Eos raised $23MM to scale its technology, $23MM in 2015 and $27MM in 2 previous funding rounds. Energy storage software M&A. Technology agnostic: