Project Finance NewsWire

February 2021

IN THIS ISSUE

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 section 45Q tax credits.

Cost of capital: 2021 outlook

Many developers struggled during 2020 to find tax equity. Interest rates remain at historic lows. The 30-year treasury bond rate was up 21.8% through February 12 compared to year end 2020. It still stood at...

Proxy generation PPAs

Power purchase agreements that settle based on “proxy genera-tion” are becoming more common for wind and solar projects. Such power contracts are a variation on a type of hedge called a “contract for...

Negotiating hydrogen contracts

Market standards for hydrogen revenue contracts remain malleable. The hydrogen market is set to undergo rapid change and expansion.

Expected changes in renewable energy policies

Investors watch for potential inflection points in markets. Many people will be focused this year on what changes the new Biden administration will make to accelerate deployment of renewable energy and to...

New trends in 2021

The Infocast Projects & Money conference each January is a good leading indicator of how strong a year it will be in terms of deal flow. If the CEOs are out in force, they have time on their hands, and it...

Partnership flips

Partnership flips are used to raise tax equity in the US renewable energy market. They are not the only structure for doing so, but they are the most common, and they are the only way to raise tax equity for...

COVID-19 and business interruption claims

The British Supreme Court cleared the way in mid-January for companies that have suffered economic losses due to COVID-19 to collect on business interruption insurance policies.

Environmental update

As President Biden’s appointees take their places and his nominees move through the Senate approval process, this is how the roster of key players on federal environmental and climate policy has shaped up.


IN OTHER NEWS

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 to move goods from Asia to the US West Coast were up 190% year on year through Decembe

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 made by five Chinese

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 environmental, social

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

Tax insurance premiums may not be deductible. The IRS disallowed deductions claimed by two partnerships on grounds that the insurance was not closely enough related to each

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

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.