Financings of merchant power projects – power projects without power purchase agreements (PPA) for the sale of power – have made a resurgence in recent years. Today’s market for power hedges has become more effective and robust than the hedging market for merchant projects in the 1990s and early 2000s.

The implications of freshwater shortages on the energy industry can’t be understated. Fuel extraction is water intensive, especially for mining and fracking extraction - for fracked natural gas, about a gallon of water is required to extract one mmbtu. Electric generation from fossil fuels also requires large amounts of water. The average kWh produced from coal-fired electric generation uses a gallon of water, and while natural gas averages less water use, nuclear uses significantly more, while some renewables require no water at all.

With the ink barely dry on EPA Administrator Gina McCarthy's signature, legal challenges have already been filed seeking to block EPA's proposal to regulate carbon emissions from power plants. EPA's rules could be a major boost for clean energy, energy efficiency and demand side management. Businesses and investors in these sectors will benefit from understanding the potential scenarios for these proposals. In an article published in Breaking Energy last week we assess the potential outcomes of the legal challenges and market implications. Click here to read the article.