Project Finance NewsWire

June 2019

IN THIS ISSUE

Opportunity zones and renewable energy

Opportunity zones have been something of a disappointment so far to renewable energy developers. Developers have been looking at them as a possible way to raise equity for their projects.

Covariance risk: What it is and how to manage it

Project sponsors, banks and tax equity investors in transactions with hedges may be overlooking some risks that wind projects are bearing. Each risk should be borne by the party best able to manage it.

How storage will grow

Energy storage is a solution to a range of problems. Different “use cases” are getting traction. Storage has not yet reached a tipping point in the United States, but adoption is accelerating.

US solar financing update

Senior executives of four solar companies talked at the annual Solar Energy Industries Association finance workshop in New York this spring about the state of the market.

Physical fixed-volume hedges

Norton Rose Fulbright holds internal training sessions for lawyers in its projects group. The following is from a session in mid-June about physical fixed-volume hedges.

Environmental update

US economic growth is causing carbon dioxide emissions from sources like factories, planes and trucks to surge.


IN OTHER NEWS

Offshore wind and state laws

Offshore wind projects more than 12 miles offshore are less likely to be subject to state laws after a US Supreme Court decision in mid-June.

Nuclear abandonment loss allowed

An abandonment loss can be claimed on a cancelled nuclear power plant, even though the utility plans to pursue recovery of its costs through a rate increase.

Electricity data points

Strong growth in natural gas production in the US will keep downward pressure on natural prices in 2019 and 2020.