Renewable Energy Focus
Bloomberg - Oct 20
Acquisitions in the solar industry will accelerate as manufacturers and developers prepare for the expiration of a tax credit that’s helping drive an installation boom in the U.S. At the recent Solar Power International conference in Las Vegas, Michael Horwitz, who leads energy technology investment banking at Robert W. Baird & Co. in San Francisco, said that he expects a wave of consolidation that will result in about 6 to 12 large solar conglomerates that will be able to beat utility prices for power. The federal investment tax credit, which reimburses 30 percent of development costs for solar projects, underpins the industry’s financing models. When that drops to 10 percent at the end of 2016, some companies will struggle to remain competitive.
Breaking Energy - Oct 29
Whether scorched birds are a major issue at the Ivanpah Solar Electric Generating System in California is a matter of dispute. But the “power tower” solar plant and its owners, NRG Energy, Google, and BrightSource Energy, might have an even more fundamental problem on their hands: generating adequate electricity. The Mojave Desert plant, built with the aid of a $1.6 billion federal loan guarantee, kicked off commercial operation at the tail end of December 2013, and for the eight-month period from January through August, its three units generated 254,263 megawatt-hours of electricity, according to U.S. Energy Information Administration data. That’s roughly one-quarter of the annual 1 million-plus megawatt-hours that had been anticipated.
PV Tech - Oct 31
Hanergy Thin Film Power is setting up a product development business with a research center to be established in Silicon Valley. The Chinese manufacturer and project developer will establish seven new units in total as part of a new Product Development Group, according to a statement made to the Hong Kong Stock Exchange. The organization will be led by Hanergy Thin Film Power chairman Li Hejun.
SFGate.com - Oct 25
Some electric utilities, worried that the rapid spread of solar power could cut their profits, want to jump into the business themselves, and solar companies aren’t pleased. In Arizona, the state’s largest utility has proposed leasing rooftops from its residential customers, installing solar arrays, and paying the homeowners $30 a month in return. If approved by state regulators, the plan would place Arizona Public Service in direct competition with Bay Area companies such as Sungevity, Sunrun, and SolarCity that already lease panels to homeowners.
Wind Power Monthly - Oct 24
GE described the closure of the hub and nacelle factory in the U.S. as "streamlining." In November, all activities at the Tehachapi plant will be transferred to the company's second nacelle factory in Pensacola, Florida. GE said that 37 jobs would be impacted as a result of the closure. The company will retain the plant as a testing facility and servicing base with around 14 "high-tech" jobs remaining.
Notable Renewable Energy Projects and Deals
Bloomberg - Nov 4
Abengoa SA, the largest developer of solar-thermal power plants, agreed to buy out its partner BrightSource Energy Inc. in a planned project in California. Abengoa will become the sole owner of the Palen Solar Energy Generating Station and will scale down what was initially proposed as a 500-megawatt project, the Seville, Spain-based company said today in a statement. Terms of the sale weren’t disclosed. The companies had planned to build two so-called power towers. California regulators in September recommended approving one tower. Abengoa now plans to add a thermal-storage system that uses molten salt to retain heat, so the plant will continue to generate electricity after sundown.
Bloomberg - Oct 26
Southern Company subsidiary Southern Power announced the acquisition of the 150-megawatt Solar Gen 2 solar photovoltaic facility in Imperial County, California from First Solar Inc. As the largest solar PV facility in the Southern Power portfolio, Solar Gen 2 is expected to generate enough electricity to power more than 60,000 average California homes. Construction on the plant will be complete in the final quarter of 2014.
PV Tech - Oct 24
Santander Bank will provide a $377 million credit facility to Solar Star California XIII, a SunPower hold co. According to an SEC filing published on Thursday, the funds include $318 million in construction loans for the 135-megawatt Quinto Solar Energy Project in Merced County, California. SunPower has committed to invest $139 million of equity into the Solar Star hold co.
Recharge - Oct 27
Pattern Energy Group says it has completed a re-pricing of the commercial bank tranche of the existing term debt on its Ocotillo Wind facility, a 265-megawatt wind farm in California. The developer provided little financial detail on the move, noting that the banks reduced the interest rate by 100 basis points to, “to reflect current market pricing.” The transaction involved 10 lenders, including two new financial institutions, which Pattern did not name.
Bloomberg - Nov 5
Edison International said it signed contracts with power generators, mostly natural gas fueled plants, to replace the output of its San Onofre nuclear station shut since 2012. AES Corp. will supply 1,284 megawatts from a gas-fueled power plant, or about 59 percent of the energy sought. About 24 percent of needs would be offset by contracts for renewable energy, to reduce energy use or to store power. The agreements are subject to state regulatory approval. more info.
