Market Analysis Insights
Texas is an energy powerhouse. It dwarfs nearly every other state in total production on both a British thermal unit (BTU) and kilowatt-hour (kWh) basis. Yet the Energy Reliability Council of Texas (ERCOT) is reportedly facing a looming problem of shrinking capacity reserve margins thanks to peak electricity load growth outpacing new capacity additions.
Oftentimes, larger institutions do not finance small renewable energy and energy efficiency projects due to their lack of scale and higher risk profile. But, this is exactly the niche community development financial institutions (CDFIs) are filling by making it possible for small developers, businesses, and underserved homeowners to finance clean energy projects.
Arizona Public Service (APS) changed how it selects new generation supply with a March 2012 filing; it will no longer use "least cost" as the dominant factor. Instead, it will diversify and distribute its generation eggs in many baskets.
Karlynn Cory (NREL), Wilson Rickerson (Meister Consultants Group), Benjamin Miethling (Meister Consultants Group)
Germany may have found the secret sauce that encourages new geothermal projects: policies that directly support drilling and financing the power plant—by lowering investor risks.
Many individuals want to get into the driver's seat by securing solar photovoltaic (PV) power—but how do you get into the pole position? By using Community Solar.
Reposted with permission from Greentech Media.
Eric Wesoff: June 5, 2012
Think "Moon Shot" in getting solar to $1 per watt installed—with a new competition to address solar financing
Good data can be hard to come by. Let's take solar production data. According to the Energy Information Administration (EIA), solar electricity production facilities— including photovoltaic (PV) and concentrating solar power (CSP) — produced a total of roughly 1,800 GWh in 2011 .
The investment tax credit (ITC), production tax credit (PTC), and 1603 Treasury cash grant get a lot of attention for their importance in spurring renewable energy project development. But they have a less-prominent sister incentive: new markets tax credit (NMTC).
The wind and solar industries are continuing to mature, stakeholders are getting savvier about the risks and rewards inherent to these markets, and more capital is being invested to deploy these technologies than ever before.
Renewable energy-related asset securitization has been gaining a lot of traction lately as a number of key stakeholders from both the private and public sectors have been stepping up their collaborative efforts (including NREL's finance team).