Advanced Energy Perspectives

One of the big stories over the last year has been the rapid growth of leading companies executing direct power purchase agreements for renewable energy, as well as energy storage and fuel cells. The American Wind Energy Association’s recently released 2014 U.S. Wind Industry Annual Market Report adds some detail to the story, noting that over 23% of the wind power contracts signed in 2014 were with corporate buyers and other non-utility groups, including universities, military installations, and units of government. In total, these contracts between wind developers and commercial and industrial, governmental, and educational institutions totaled more than 1700 MW in 2014. 

A pair of deals in the first weeks of the new year suggest that 2015 may be “The Year of the Yieldco.” Earlier this month, Pattern Energy, a leading independent power company (and AEE Member), closed on a public offering that raised $351 million, close on the heels of a deal last month with Tokyo-based Green Power Investment Corp. for rights to a 1 GW pipeline of development projects in Japan. Sol-Wind Renewable Power, a New York-based company that owns a portfolio of solar generation assets, also recently announced an IPO targeted to raise $174 million. These developments show that what Bloomberg New Energy Finance has called the “emerging phenomenon” of yieldcos is not just emerging - it’s here.

On October 22, the New York Green Bank announced its first round of transactions. When Governor Andrew Cuomo announced the $1 billion bank last year, it was touted as an innovative way to combine the goals and resources of the state’s public and private sectors.

“We will leverage public dollars to attract private sector investment into building a new clean energy economy that will help make our state greener and create jobs,” Cuomo said in a statement. The bank will use “limited state resources to drive investment into critical areas of the economy.”

Advanced energy finance is an ever-expanding field with many players, including government agencies, private investors, and international financial institutions. Our periodic Finance updates will help you understand and navigate this complex infrastructure. Read previous energy finance updates here.

DOE Issues Draft Innovative Renewable Energy and Energy Efficiency Solicitation; Up to $4 billion in Loan Guarantees to be made Available

The U.S. Department of Energy last month issued a draft solicitation for loan guarantees for innovative renewable energy and energy efficiency projects to help commercialize technologies that may be otherwise unable to obtain full commercial financing. When finalized, the solicitation is expected to make as much as $4 billion in guarantees available for U.S.-based projects.

Advanced energy finance is an ever-expanding field with many players, including government agencies, private investors, and international financial institutions. Our periodic Finance updates will help you understand and navigate this complex infrastructure.