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 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.
Tapping equity in the London market
London listings are being used by some investment managers to raise capital to invest in US renewable energy assets.
Pension investments bring new opportunities and some challenges
Care must be taken in cases where pension funds invest directly in US renewable energy projects to avoid turning the projects into “plan assets.”
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.
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.
As frustrating as trying to get a COVID vaccine
Callers to the Internal Revenue Service with tax questions have roughly only a one in 11 chance of getting through currently, according to the IRS.