Energy Finance Report

Discussing the Investment Tax Credit- Panel at MDV-SEIA’s Solar Focus

Posted by Jeffrey Karp on 11/23/15 10:37 AM

I moderated a panel at MDV-SEIA’s Solar Focus event to discuss what is arguably the hottest, most impactful topic in the solar space today – the Investment Tax Credit (ITC), and specifically, its scheduled step-down at the end of calendar year 2016.

The ITC is a controversial topic. Arguably, and while this is probably not a popular opinion among readers of this page, the 30% ITC may have run its (very successful!) course. Hardware and install prices have plummeted in recent years. Traditional capital markets are being accessed through bond offerings and YieldCos. Even stodgy holdout utilities in the southeast are becoming more active in the solar space. More solar has been built in recent quarters than any other generation type.

And yet . . . solar remains a small part of the overall generation mix, and many states, including those with great insolation numbers, remain untapped markets. Some have estimated that up to one hundred thousand jobs might be in jeopardy if the step-down occurs. An ongoing 30% ITC would make it easier for many states to comply with their potential Clean Power Plan (CPP) obligations. The U.S. is arguably at the cusp of a real shift in its energy mix that might be delayed, if not derailed, if the credit is not extended.

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Topics: Energy Policy, Structured Transactions & Tax, Energy Finance, Legislation, Distributed Energy, YieldCo, Solar Energy

Reforming the Energy Vision (REV) Round Table Discussion

Posted by Jeffrey Karp on 9/25/15 9:51 AM

New York’s Reforming the Energy Vision (REV) proceeding has the potential to change the way the electric industry functions in that state and beyond. The Empire State’s vision, which includes delegating distribution duties to utilities, reserving generation opportunities for third parties and shifting to a more renewable-focused generation mix, will change how business is done there while also potentially providing a template for other jurisdictions preparing for life under the EPA’s Clean Power Plan.

However, there are hurdles to overcome. Customers will not tolerate a reduction in reliability or resiliency. Nor will the benefits of clean generation be as joyously embraced if higher costs are the result. Outdated technological capabilities, security issues, job displacement and shareholder issues all create concerns that need to be addressed. That said, tremendous opportunities could exist for technology providers, generation platforms, financiers and others if the current vision of REV is implemented. Microgrid and cutting edge renewables are being promoted. Grid and demand management technologies will be in high demand, and legislative and financial support for projects will continue to ensure a favorable development environment for those with projects.

Please join the Sullivan & Worcester, LLP Energy Finance Team on October 1st live in our New York offices, or by dial-in, as we host a roundtable discussion on the REV proceeding and the unique business opportunities it could present. Panel participants include industry experts with unique perspectives on REV such as former New York Public Service Commission Commissioner Bob Curry, Mike Pantelogianis of Investec, Sarah Carson Zemanick of Cornell University and Jay Worenklein of US Grid Company. Interested parties can register here.

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Topics: NY REV, Energy Policy, Energy Finance, Legislation, Distributed Energy, Energy Management

Can the Clean Power Plan Achieve Its Carbon Emission Reduction Goal Through Increased Renewable Energy Development?

Posted by Jeffrey Karp on 9/22/15 10:41 AM

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Topics: Utilities, Carbon Emissions, Energy Policy, Structured Transactions & Tax, Energy Efficiency, Power Generation, Microgrid, Energy Finance, Legislation, Distributed Energy, Energy Management, Renewable Energy

Nevada Solar Update: Senator Harry Reid Takes On Warren Buffet’s Berkshire Hathaway in Net Metering Debate

Posted by Jim Wrathall on 9/8/15 8:00 AM

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Topics: Utilities, Energy Policy, Legislation, Distributed Energy, Solar Energy, Renewable Energy

Offshore Wind Has Come to the U.S.; EPCs Can Help It Gain Momentum

Posted by Jeffrey Karp on 8/27/15 10:08 AM

Co-authors Jim Wrathall, Van Hilderbrand and Morgan Gerard

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Topics: Utilities, Energy Policy, Structured Transactions & Tax, Power Generation, Energy Finance, Legislation, Wind

Is the Tide Turning for Offshore Wind in the United States?

Posted by Van Hilderbrand on 8/6/15 11:58 AM

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Topics: Carbon Emissions, Energy Policy, Power Generation, Energy Finance, Legislation, Distributed Energy, Renewable Energy, Wind

Energy Policy Modernization Act Quiet on Renewables

Posted by Jeffrey Karp on 7/24/15 11:15 AM

Both the Senate and the House made progress on their respective updates to 2005’s Energy Policy Act this week. The general press has focused mainly on the fact that the long-term ban on oil exports was not lifted (which doesn't necessarily mean a lift of the ban is dead). However the absence of support for renewable distributed energy resources was equally stark in the eyes of renewable energy advocates.

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Topics: EPMA, Energy Efficiency, Energy Finance, Legislation, Distributed Energy, Solar Energy, Renewable Energy

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The Energy Finance Report analyzes developments in energy finance as well as provides updates and perspectives on market trends and policies.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

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