Energy Finance and M&A

Solar PV & Wind
LT provides energy production insurance for solar PV. Brings liquidity to $500 BN solar energy industry that is expected to grow to $1 TN.
Solar PV located at abandoned mines.
Corporate PPA up 19% in 2017 to 2.8 GW.
 
Thermal Power
FERC 3-year capacity contract good for installed thermal generation
 
Energy Storage
Energy storage project cost $1.25/W.
MA 600 MW energy storage by 2025. 4-hour Storage.
Solar + Storage as a Service = $1/day. 2017 CA storage increased almost 250%, 25.6 MW of behind-the-meter energy storage.
Energy storage ISO-NE 13 GW pipeline, # 2 behind CA.
Combined heating and cooling through standalone units. Savings up to 40%.
 
Oil & Gas
RNG production candidates: 8,000 farms, 17,000 wastewater facilities, and 1,750 landfills. Fewer than 20 US pipeline-quality RNG operations.
LNG breakeven oil price $45/bbl.
 
Latest News
Fed rate rise 25 bps to 1.75%. Expect 3 rate hikes in 2018. Primer on US power supply. PE raised $2.3 TN from 2007 through 2017 in over 2,120 funds. VC raised $292 BN. Median hold time 4-5 years. Publicly-traded companies declined from 8,000 to 4,400. IPO declined 10% p.a. Energy developer market knowledge:

• s205 – Tax equity share of capital structure fall from 40-50% to 30-40%.
• Coverages - 7 lenders issue term sheets at 1.10x or 1.15x DSCR on P50 revenue
• Hedge - Solar Revenue Put

US energy demand fell 2.5%. Energy mix 2017:

• Natural Gas - Fell 7.7%
• Coal - Fell 2.5%
• Wind and Solar - Grew 13.4%