Category — Government Incentives
Earlier this month, the White House announced a Clean Energy Investment Initiative in an effort to spur $2 billion in private sector investments aimed at addressing climate change and reductions in carbon pollution. The Department of Energy will look for ways to partner with private investors to pursue clean energy solutions. Read more about it here.
February 23, 2015 Comments Off
In 2014, we at Troutman Sanders were honored to have represented our clients in some of the most cutting-edge and exciting renewable energy projects in the United States. Our reach spanned 19 states and accounted for approximately 3,000 MWs.
As we enter 2015, we are taking a look back at the biggest trends and challenges we observed during our work in 2014 in the form of a 2014 Troutman Sanders Renewable Energy Market Recap. From the rise of yield cos to the increased use of virtual net metering, 2014 was an exciting year for renewable energy. During 2014, we saw the demand for renewable energy development boom as the incentives landscape continued to change and companies and governments searched for low-cost capital sources to meet their needs with cost-effective and sustainable solutions.
Over the past year, we note that many of our transactions were structured as partnerships, bringing utilities’ tax appetite to the structure. We saw utilities partner with sponsors for long-term tax and cash sharing arrangements not dissimilar to partnership flips, except where the parties have a long-term interest in remaining owners of the project. In 2014 we saw several tax equity partnership transactions in which the tax equity investor retained a significant residual interest in the projects in the post-flip period.
Some other major themes and trends we noticed in 2014 include an uptick in virtual net metering, the rise in project development in the Northeast, growing concern over the “duck curve,” an increased focus on energy storage, significant environmental developments regarding endangered species and wetlands, increased military installations, issues related to the California property tax exclusion for solar projects, and the extension of tax provisions and REIT regulations in general.
Our 2014 Troutman Sanders Renewable Energy Market Recap gives a snapshot of these renewable energy market trends and what the industry has to look forward to in 2015.
January 16, 2015 Comments Off
On July 3, 2014, the U.S. Department of Energy Loans Program Office published a solicitation for Federal Loan Guarantees for Renewable Energy Projects and Efficient Energy Projects. Under the solicitation, eligible projects include Renewable Energy Projects and Efficient Energy Projects that implement “new or significantly improved technology” and “avoid, reduce, or sequester” the emission of greenhouse gases or other air pollutants, as required by the Energy Policy Act § 1703 (42 U.S.C. § 16513). The solicitation makes available $2.5 billion of loan guarantees “plus an additional amount that can be imputed based on the availability of an appropriation for the credit subsidy cost of such imputed loan guarantee authority.” DOE estimates that the total available loan guarantee authority will be “as much as $4 billion…”
July 17, 2014 Comments Off
On April 29, 2014, Washington State Governor Jay Inslee signed an executive order outlining a series of “next steps” to reduce carbon pollution within the state, including the creation of a market based carbon pollution cap program and to work towards eventually eliminating the use of electricity produced by coal. Governor Inslee explained that the executive order is the next step in a course of action set by the state in 2008 when it passed a law that generally required a reduction of state-wide carbon pollution, but did not include specific mechanisms to achieve its carbon reduction goal. [Read more →]
May 19, 2014 Comments Off
In an unprecedented ruling, a judge reviewing whether Xcel Energy should invest in new natural gas generators vs. large solar power arrays concluded Tuesday that solar is a better deal.
If the finding by Administrative Law Judge Eric Lipman is upheld by the state Public Utilities Commission (PUC), Edina-based Geronimo Energy plans to build about 20 large solar power arrays on sites across Xcel’s service area at a cost of $250 million.
“It says solar is coming in a big way to the country and to Minnesota,” Geronimo Vice President Betsy Engelking said of the ruling.
Geronimo’s Aurora Solar Project would receive no state or utility subsidies, but would qualify for a federal investment tax credit. Engleking said it is the first time in the United States that solar energy without a state subsidy has beaten natural gas in an official, head-to-head price comparison.
Read the full article from StarTribune here.
January 3, 2014 Comments Off