The environmental attributes associated with renewable energy projects can be an important part of project economics. Thus, having an opinion on the outlook for the value of these attributes is necessary. Power Advisory models the supply and demand for REC (Renewable Energy Credit) and SREC (Solar Renewable Energy Credit) markets; and we provide price forecasts for as long as 30 years.
Read Full ReportOn April 15th PJM will begin soliciting transmission proposals that would expand its network and identify system improvements to enable the interconnection of New Jersey’s 7,500 MW OSW target. This is the first “market test” in the US where transmission developers will compete for the right to develop the transmission need to realize a state or region’s OSW goals. Transmission developers will submit competing transmission proposals to PJM.
Read Full ReportThe figure below shows the various New York State transmission projects that are being developed to respond to NYSERDA’s Tier 4 RFP. The Tier 4 RFP requires that qualifying RECs, which include incremental hydro at existing dams, be generated in or delivered to NYISO’s Zone J (NYC), with delivery occurring over new transmission facilities. When the Tier 4 concept was originally announced there were only a few eligible transmission projects. See what the prospect of a 25-year contract has engendered.
Read Full ReportOver the past decade, we have witnessed rapid growth in corporate PPAs as companies and institutions seek operational savings and to achieve sustainability objectives. Even in their dramatic growth from the early 2010s, corporate PPAs and the needs they fill for companies have evolved and will continue to do so. Recently, there have been a number of notable changes and advancements made to corporate PPAs foreshadowing additional changes to come.
Read Full ReportLast week, the UK Crown Estates concluded its fourth round of offshore wind (OSW) leasing. The results of this auction offer some potential insight into forthcoming BOEM OSW lease auctions. First of all, the option fees paid to secure leases were at record levels (e.g., up to $214/kW). This is explained in part by the relatively modest amount of capacity covered by the lease areas offered (8 GW) relative to the UK’s OSW ambitions (an incremental 60 GW by 2050).
Read Full ReportEarlier this month there was a compelling presentation by Dr. Stojkovska, Technical Manager Offshore Coordination at National Grid, that reviewed work completed by National Grid identifying the benefits of coordinated development of offshore transmission in the UK. The study estimated that potential savings in transmission investment to be 18% (US$8 billion) with 60 GW of additional offshore wind (OSW) development, with the number of landfalls reduced by 70%.
Read Full ReportOn August 14 and 15, 2020, California’s Independent System Operator (CAISO) directed utilities to initiate rotating outages (i.e., load-shedding) due to constrained grid conditions, which resulted in hundreds of thousands of Californians experiencing rolling blackouts. Subsequently, CAISO, California Public Utilities Commission (CPUC), and California Energy Commission (CEC) jointly released the Preliminary Root Cause Analysis: Mid-August 2020 Heat Storm on October 6, 2020 at the request of Governor Newsom.
Read Full ReportRecent announcements in Texas and Alberta are signalling the coming of age of energy storage – particularly battery energy storage systems (BESS) in North American power markets. This is demonstrated by the increasing amount of large, grid-connected BESS being financed and developed on a merchant basis rather than relying on utility off-take agreements.
Read Full ReportWhen the electric vehicle charger company ChargePoint went public on September 24, 2020 through a reverse merger, there were a lot of investors celebrating the $2.4 billion valuation (enterprise value) that the company achieved. The company had backers from the oil & gas, utilities and automotive industries including US firms Chevron and AEP and European firms Daimler, BMW and Siemens. There was also a wide range of venture capital and private equity investors including GIC and Canada Pension Plan Investment Board.
Read Full ReportWhile the announcement of combined solicitations for 4,000 MW of offshore wind (NYSERDA) and land based renewables (NYSERDA & NYPA) on July 21, 2020 was historic, this is the continuation of a ramp up in renewables procurement in New York State and indicative of what is required for the state to meet its goals established in the Climate Leadership and Community Protection Act. In the last three years, 2017-2019, NYSERDA has contracted about 6,000 MW of large scale renewables. The state’s procurement will not stop in 2020. NYS will continue to be an attractive market for clean energy development offering opportunities for long term contracts.
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