Project Finance NewsWire Archive

Project Finance NewsWire | February 2020 | Norton Rose Fulbright

Written by Admin | February 2020

IN THIS ISSUE

Cost of capital: 2020 Outlook

A group of industry veterans talked in late January about what to expect in the year ahead for tax equity, bank and term loan B debt and project bonds in a widely heard conference call.

Expanded reviews of US in-bound investments

The US government will vet more foreign investments in US companies and assets starting February 13.

Lending to hedged wind and solar projects

Quasi-merchant projects that sell into the spot electricity market and use hedges to put a floor under the electricity price are becoming more common, particularly in ERCOT where power purchase agreements...

Colombia: Opportunities and challenges

Colombia is expected launch a third renewable energy auction in 2020.

Reading the market

A group of investors and the CEO of one of the most successful independent power companies had a wide-ranging discussion about the state of the market and where they see opportunities.

Renewables and PJM capacity auctions

The Federal Energy Regulatory Commission is likely to hold a rehearing of its controversial decision in late December to require renewable energy and nuclear generators bidding into PJM capacity auctions...

Renewable project sales: Established tactics and emerging trends

Negotiations around sales of renewable energy projects follow predictable patterns.

DFC replaces OPIC

The Overseas Private Investment Corporation changed in January into the United States Development Finance Corporation.

Power contracts and utility bankruptcies

A US appeals court made it easier in December for long-term power purchase agreements that independent generators sign with utilities to be set aside in utility bankruptcies.

Environmental update

BlackRock, the world’s largest asset manager with $6.8 trillion in assets under management, declared in January that “climate risk is investment risk” and announced that sustainability...


IN OTHER NEWS

Coronavirus: Effect on US wind and solar projects

Coronavirus has led some equipment suppliers who rely on Chinese factories to send force majeure notices that deliveries will be delayed.

Trump budget and renewable energy

The Trump budget delivered to Congress on February 10 would scale back tax incentives for renewable energy.

Tax contest rights

Tax contest rights could be eviscerated if the US government wins a motion it filed in late January in the Alta Wind case.

Unpredictable tariffs

Unpredictable tariffs remain a threat to project economics.

Tax extenders and renewables

The US reversed course and increased tax credits for new wind projects that start construction in 2020 compared to 2019.

Tax equity lawsuits: DC Solar

Eight tax equity investors in the DC Solar deals filed suit in December against the law firms that wrote opinions as well as the accounting firms, appraisers and brokers involved in them.

H-S-R thresholds

H-S-R thresholds for notifying the US government of planned acquisitions have been updated.

Offshore vessels and US taxes

Offshore vessels generate income that will be taxed in the United States if the vessels help with oil and gas or recovery of other natural resources on the US outer continental shelf.

FCPA prosecutions of foreign agents

The Foreign Corrupt Practices Act can be used to prosecute a foreigner who pays a bribe to win a contract outside the United States if the US government can show he is acting as an agent for a US company.

REITs and tax credits

Income from selling tax credits counted as good income for real estate investment trusts.

Complicated foreign tax credits

The United States allows US companies that pay income taxes to other countries on foreign earnings to credit the taxes paid against any US taxes that must be paid on the same income.