Searching for opportunities in the Inflation Reduction Act
Companies are scrambling to assess the effects of the Inflation Reduction Act on their projects. The tax equity market will look different. Tax credits after this year can be sold for cash.
FERC and PJM tackle bloated interconnection queues
The Federal Energy Regulation Commission proposed new rules in June to revamp the way interconnection requests are processed, and PJM, the electricity grid in the mid-Atlantic states and parts of the Midwest...
Construction delays and cost increases are forcing renegotiation of power purchase agreements before renewable energy projects can be financed. Wholesale electricity prices jumped 2.5% for wind electricity...
Two competing narratives about hydrogen played out the last two years in the press. One was that hydrogen is being pitched by the fossil fuel community as a way for natural gas to retain longer-term relevance.
The Inflation Reduction Act and DOE loan programs
The Inflation Reduction Act upsizes the existing US Department of Energy loan programs. It also establishes new programs for transmission projects and for revamping existing energy facilities to enable...
The evolving energy storage market
The energy storage market is still in its infancy, but it is evolving rapidly. Portfolios of standalone utility-scale batteries are now being financed of a merchant basis. The market is moving away from...
Battery purchase contracts: Key pitfalls
Anyone developing a battery energy storage project should be prepared to address two main issues.
Current financing challenges
How are tax equity investors and lenders addressing the unusually large number of risks this year? Tangled supply chains and labor shortages are causing delays. Inflation is making projects more expensive to...
Bitcoin mining and electricity
Bitcoin mining consumes a large amount of electricity. Houlihan Lokey calculated when bitcoins are trading for $50,000 a coin, the electricity is effectively converted into bitcoins for $400 a megawatt hour.
Environmental update: August 2022
The Senate majority leader, Chuck Schumer (D-NY), had to agree to a broad outline for a separate permitting reform bill to win support from Senator Joe Manchin (D–WV) for the Inflation Reduction Act.
New tax credits for semiconductors
A new semiconductor tax credit intended to spur construction of new factories may not lead to much tax equity investment.
Right-side, left-side issues in tax equity deals
Right-side, left-side issues are getting more attention in tax equity transactions.
Solar tariff moratorium and Customs detentions
Customs detentions and import tariffs remain obstacles for US solar developers.
Tax equity partnerships that lose money
A tax equity partnership does not have to expect a profit apart from tax credits, a US appeals court said in early August.
Disappointing property tax outcomes
Two property tax cases had frustrating outcomes.