Energy Finance and M&A

Solar and Wind
Wind capital costs falling. Wind target turbine price less than $1/W.
CA requires all new construction have solar PV beginning 2020. Expect reduce residential power use by 50%.
 
Thermal Power
Utility IRPexpects power from gas-fired peakers, limited 3rd party solar, no storage. 
 
Oil and Gas
Biofuels energy hedge of D3 and D5 RINsis not perfect. There is a correlation between hedge contract and RINs exposure that might make hedge attractive. ICE will launch LCFS futures and options contracts. Argus monitors RIN prices. IHS Markithas a pricing, news and analysis service. Expect Carlyle and Sunoco to prevailand released of their RINs obligation.