Project Finance NewsWire

June 2020


Trump bulk-power system order: Market reaction

Market reaction to the Trump bulk-power system order has been mixed. Some tax equity investors and lenders moved quickly to require sponsors to fund any future costs to replace foreign adversary equipment ...

Corporate VPPAs: Risks and sensitivities

Eighty-two percent of power purchase agreements signed with US corporate offtakers in 2019 were “virtual” PPAs that do not involve physical delivery of electricity.

Financing storage

Although the coronavirus pandemic is expected to trim global storage installations by almost 20% according to some analysts, 2020 should still be a record-breaking year for new storage projects in the US.

State of the tax equity market

Many renewable energy developers are having a hard time raising tax equity this year. A number of mainstream investors are no longer writing term sheets. Even investors who are still doing deals are turning ...

Rights to block bankruptcy filings in doubt

A federal bankruptcy court decision in May has called into question the validity of certain “bankruptcy-remote” structures frequently used by businesses, particularly in project financing.

The virus, the bear and the cost of capital

Three lenders and the managing partner of a private equity fund talked in late May about how coronavirus and the economic downturn are affecting the cost capital for the US power sector ...

Evolving Middle Eastern power market

The Middle East power market, particularly in the Gulf Cooperation Council, is currently undergoing a transformation as the region shifts to more renewable energy.

Solar securitizations and the Federal Reserve

The New York Federal Reserve Bank confirmed informally by email in late May that it is not prepared to use one of its new lending windows to maintain liquidity in private debt markets to finance ...

Environmental update

A new Trump executive order in early June directs federal agencies to waive required reviews of environmental impacts from proposed infrastructure projects to be built during the COVID-19 pandemic.


Utility partnership flips

Utilities continue to get private rulings from the IRS about different ways to engage in the renewable energy sector.

Massachusetts property taxes and net metering

A Massachusetts property tax exemption for wind and solar projects does not apply to the extent net metering credits earned by the project are sold to entities, like schools and local governments...

STARS: Wells Fargo transaction struck down

A structured finance transaction was partly rejected by a US appeals court. Three other banks that engaged in similar transactions have gone to court to defend the hoped-for tax results in the transactions.