Solar PV panel trade case win by the US might increase prices. More than 90% of solar installations in the U.S. use imported panels. Will raise the price of panels from 35 cents/W to 78 cents. Panels account for about 40% of the cost of solar farms.
Arguments to keep PURPA: (1) Diversity of generation and (2) Generation in situ.
States with attractive energy efficiency incentives include NY, MA, RI, VT, DC and CA.
There were 15-20 Energy as a Service providers of ESAs in 2012 representing about $100-150 MM with a pipeline of $500 MM.
Energy efficiency financing options.
Federal Emergency Preparedness regulation post-Katrina for energy efficiency has another year to become mandatory.
Energy as a Service developer Enchanted Rock diversified into nursing homes.
Engie acquires Talen Energy as a Service companies. Expand Energy as a Service to customers in the technology, healthcare, commercial/office, industrial, and institutional sectors.
Thermal power projects considering adding storage. DRAX considering adding 200 MW battery storage and converting coal-fired power to 3.6 GW gas-fired power. Endesa is also considering thermal + storage. Presently storage assumed to have 97% capacity factor. GE and SCE built first thermal + storage in early 2017.
Battery manufacturing facility to be built in Alabama. Might reduce future battery cost. Battery prices are one of the most critical determinants in EV pricing.
Behind-the-meter energy storage accounts for 42% of deployments (GTM).
Natural gas price 12-month forecast $3/mmbtu Henry Hub (Bloomberg, Goldman Sachs).
Corporate debt 507% of internal funds. High-yield bond spread of 367 bps. Corporate debt above 500% internal funds indication of a correction. Diversity of power supply has impact on GDP. 27% power price increase associated with the less efficient diversity case causes a decline of real U.S. GDP of 0.8%, equal to $158 BN. Energy and environment experience greatest revenue volatility (Moody’s). Debt/EBITDA range for energy companies 3.5x (Moody’s). Leveraged loan issuance in the US is on track to hit a record this year (S&P). Toshiba signs $17.7 BN deal with Bain, Apple contingent on regulatory and legal hurdles. Westinghouse $4 BN offer from Blackstone and Apollo. Others bids will likely materialize. Apollo $800 MM DIP financing. DIP Financing levels highest in 8 years. $7.6 BN in 13 deals. Fewer new companies are forming than ever before. New businesses that do get started are often located in thriving communities with educated workers. Energy prices increase on storage and geopolitical concerns. O&G companies returning cash to shareholders that otherwise would be available for E&P (Moody’s). Default rate indication 7-10%. NRG retained advisors for a possible sale of NRG Yield. Expected interest on Softbank Vision Fund co-investment 7%. No mention of ROI that would include interest and capital growth. Clean energy driver of employment: