Project Finance NewsWire

February 2021


Tax credits for carbon capture

The market is showing early signs of a stampede to install carbon capture equipment at power plants and industrial facilities with significant carbon footprints to qualify for tax credits per ton captured.

Cost of capital: 2021 outlook

A group of veteran financiers talks about the outlook for tax equity, bank debt, term loan B debt and project bonds this year.

Proxy generation PPAs

Power purchase agreements that settle based on “proxy generation” are becoming more common for wind and solar projects.

Negotiating hydrogen contracts

No single template has emerged yet for contracts to sell green hydrogen, but the issues and possible approaches to them are becoming clear.

Expected changes in renewable energy policies

A 180-degree turn in US policy will accelerate the transition to renewable energy. The FERC chairman and the CEOs of two large renewable energy trade associations talk about what policy changes to expect.

New trends in 2021

Four of the industry’s big thinkers talk about what new trends they see in the year ahead.

Partnership flips

At least 14 recurring issues are coming up in partnership flip transactions to raise tax equity for renewable energy projects.

COVID-19 and business interruption claims

A test case before the British Supreme Court has cleared the way for companies that have suffered economic losses due to COVID-19 to collect on business interruption insurance policies.

Environmental update

Biden is moving quickly to undo Trump policies and implement new ones that focus on climate change.


Clean energy bill next up

Clean energy and infrastructure will take center stage after the US Congress clears a $1.9 trillion COVID relief bill. The COVID bill is expected to move through Congress by March 15.

Spiraling shipping costs

Spiraling shipping costs and container shortages threaten to delay construction and increase project costs. Shipping costs from Asia to the US West Coast were up 190% year on year through December.

Uighur issues in financings

Uighur issues are starting to play a role in financings. The New York Times reported on January 9 about the possibility that Uighur labor is being used to make polysilicon or solar panels by five suppliers.

Pension plan ESG investments

Pension plans may soon find it easier to make ESG investments. After only several hours in office, the Biden administration took steps to roll back recent Trump administration limits on ESG investments.

SK batteries barred

Battery manufacturer SK Innovation will be barred from importing battery components for 10 years under a US International Trade Commission decision in early February.

Tax insurance premiums

The IRS disallowed deductions claimed by two partnerships on grounds that the insurance was not closely enough related to each partnership’s business to be an “ordinary and necessary” business expense.

Trump bulk-power order stalled

The Trump bulk-power system executive order has been suspended for 90 days as part of a day-one executive order that President Biden signed immediately upon taking office on January 25.

US new capacity forecast

Storage is expected to account for 11% of new capacity additions this year in the United States, reflecting a rapid rise.

California curtailments increase

California wind and solar projects were ordered to cut back electricity deliveries by a little under 4% in 2020, or 1.6 million megawatt hours.

Corporate PPA outlook

Fewer corporate PPAs were signed in the United States in 2020 compared to 2019 after three straight years of increases, as COVID and other factors took a toll.