Federal Energy Regulatory Commission (“FERC”) members on June 19, 2018, affirmed their commitment to regional energy market stability. Their remarks came in response to a leaked Trump administration draft plan and President Trump’s own June 1, 2018 public statement that Secretary of Energy Rick Perry “take immediate steps” to prevent coal and nuclear plant closures.

Such a directive could mean a policy of requiring regional grid operators to buy electricity from selected coal and nuclear plants, which, in turn, could undermine the current power markets developed with FERC assistance over recent decades. “Avoidance of any significant distortion in organized markets would very much be a concern of ours that we would keep an eye on as we proceeded with the rate matter,” said FERC Chairman Kevin McIntyre in response to a leaked draft plan from the White House. “I don’t see any reason why any of that should interfere with our ongoing consideration of the grid resilience issues and the very good input we’ve gotten on those issues.” Continue Reading White House Memo May Indicate Future Coal and Nuclear Subsidies

Introduction

The emerging trend of energy private equity (“EPE”) funds is revolutionizing the renewable energy field, as renewable energy joins leveraged buyouts, venture capital and hedge funds as asset classes that institutional investors and high net worth investors are using to deploy their capital in a diversified manner, with the added “social good” of investing in a sustainable energy future. Sophisticated energy sponsors are increasingly eschewing the traditional project finance structure, in which capital stacks are created for each deal, in favor of a private equity fund structure in which committed capital is deployed by the sponsor in accordance with a specified investment strategy.  From the sponsors’ perspective, the goal is the “holy grail” of all private equity sponsors – permanent capital.  This trend can be seen as further evidence of renewable energy maturing as an asset class within the larger investment world.  Since this trend is so new, the terms of EPE funds vary tremendously.  However, some common terms are summarized below. Continue Reading A Revolution Coming in Renewable Energy Finance: The Emergence of Energy Private Equity Funds