Reports and Publications

 

 
 

Recent Articles

RECs and SRECs Still Playing an Important Role in East Coast Renewable Energy Project Economics

Apr 13, 2021
by Andrew Kinross

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.

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PJM Offshore Wind Transmission Competitive Procurement

Mar 26, 2021
by John Dalton

On 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.

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Using Market Forces to Support Tx Investment

Mar 8, 2021
by John Dalton

The 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.

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New Trends in Corporate Renewables: PPA Case Studies of the Future

Feb 24, 2021
by Ami Khalsa

Over 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.

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ICYMI: UK National Grid Presentation on Benefits of Coordinated Development of Offshore Transmission

Feb 17, 2021
by John Dalton

Earlier 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%.

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UK OSW Leasing: Insights for Potential Forthcoming BOEM Lease Sales?

Feb 17, 2021
by John Dalton

Last 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).

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Lessons for the Clean Energy Transition from CAISO’s Root Cause Analysis Report of the Summer 2020 Heat Storm

Jan 15, 2021
by Nathan Lev

On 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.

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Merchant Energy Storage Coming of Age in North American Power Markets

Dec 8, 2020
by Nathan Lev

Recent 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.

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EV Charger Industry Sees First Major IPO – ChargePoint

Oct 27, 2020
by Andrew Kinross

When 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.

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Large Scale Renewables Procurement on New York State’s Path to 70% Renewable Energy by 2030 and 100% Carbon-Free Electricity by 2040

Aug 25, 2020
by Carson Robers

While 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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Recent New York White Paper Proposes Addition of Tier 4 (Renewable Energy Deliveries into New York City) to the Clean Energy Standard

July 10, 2020
by Carson Robers

Last month the New York State Energy Research and Development Authority (NYSERDA) and New York Department of Public Service (DPS) published a White Paper on Clean Energy Standard Procurements to Implement New York’s Climate Leadership and Community Protection Act. This White Paper aims to provide a framework to better align the state’s Clean Energy Standard (CES) with its Climate Leadership and Community Protection Act (CLCPA) passed in 2019 while also utilizing the existing CES procurement structure to achieve the state’s target of 70% renewable energy by 2030. In part, within this White Paper NYSERDA and the DPS staff propose the addition of a Tier 4 to the CES in order to promote greater renewable energy delivery into New York City (NYISO Zone J).

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New England Class I REC Market Update

Nov 12, 2019
by Carson Robers

While most Class I REC markets across the country are generally oversupplied, the smaller New England Class I REC market stands apart as recent events have driven prices dramatically higher over the last year. In fact, 2019 vintage Class I RECs have climbed all the way from $7/REC a year ago to about $40/REC today, a stunning 5.7x increase. This suggests a shortage of RECs available in the marketplace to compliance entities who need to meet state Renewable Portfolio/Energy Standards. The main factor influencing the REC market is the anticipated timing of completion of a series of large offshore wind projects.

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Power Advisory LLC Kicks Off Procurement Process for Tidal Energy in Nova Scotia

Nov 6, 2019
by Power Advisory LLC

Toronto, Ontario, November 6, 2019 – Power Advisory LLC (Power Advisory) has initiated the procurement process for an in-stream tidal energy demonstration project in Nova Scotia, which offers one of the largest tidal energy resources in the world.
 
In October Power Advisory was appointed as the Procurement Administrator for this procurement process by the province of Nova Scotia. As Procurement Administrator, Power Advisory will be responsible for ensuring that the procurement is fair, transparent and competitive. The province will consider projects with nameplate capacity of no more than four megawatts. Projects are to be restricted to Berth D within the Fundy Ocean Research Centre for Energy (FORCE) marine renewable-electricity area. Project selection and subsequent awarding of a Marine Renewable-Electricity Licence and Power Purchase Agreement is conditional upon providing adequate financial security for the retrieval and disposal of the abandoned CSTV turbine at the site. Power Advisory expects to open the Call for Applications process in the near future, concurrently with the request for approval of the Power Purchase Agreement from the Nova Scotia Utility and Review Board.
 
Interested parties that would like to participate in the procurement process should register at the tidal energy procurement website.
 
Further details regarding the procurement process will be shared with parties that have registered on the website shortly. The procurement objectives are to achieve the best value for Nova Scotia ratepayers and to support the advancement of Nova Scotia’s marine renewable energy sector.
 
Power Advisory is a leading North American management consulting firm offering extensive knowledge of the Nova Scotia electricity sector and has deep expertise in renewable energy competitive procurements. Power Advisory previously served as the Renewable Electricity Administrator in Nova Scotia, overseeing the 2012 Request for Proposals (RFP) for 300 GWh of renewable energy from Independent Power Producers (IPPs).

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Power Advisory adds Andrew Kinross to its team

Sep 24, 2019
by Power Advisory LLC

Power Advisory LLC is pleased to announce the addition of Andrew Kinross as Director based in Boston. Andrew will be augmenting the leadership team at Power Advisory, helping to grow the firm’s business across the US and Canada.
 
“We’re excited to bring Andrew on board with his extensive experience in renewable energy, particularly in solar and wind, and many other emerging energy technologies such as energy storage, microgrids and EVs” said John Dalton, President of Power Advisory.
 
Prior to Power Advisory, Andrew spent 15 years in the Energy Practice at Navigant Consulting, where he helped build the renewables and Distributed Energy Resources businesses, which consistently grew throughout his tenure. Andrew worked mostly in North America but his consulting work also took him across Europe, Asia and the Middle East where he worked on several of the firm’s largest international assignments.

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Massachusetts DOER Clean Peak Standard Update

Aug 22, 2019
by John Dalton

On August 7th and 9th, the Massachusetts Department of Energy Resources (DOER) held informational meetings on the development of the Clean Peak Standard (CPS), which would require retail energy suppliers to procure a portion of their supplies from clean energy resources produced (either through generation or energy storage) during defined peak periods.
During these meetings a summary of the draft regulation was reviewed, which highlighted key features of the program. Further details are covered in our post linked here, and downloadable below.

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US OSW Project Construction Pinch Points

July 29, 2019
by Carson Robers

Two weeks ago New York State announced that they were negotiating contracts with two OSW projects totaling 1,696 MW, with 2024 commercial operation dates (COD), a year when additional 1,348 MW is scheduled to enter commercial operation: Ørsted US Offshore Wind’s (Ørsted’s) 1,100 MW Ocean Wind Project and US Wind’s 248 MW Maryland project. With this the US Northeast/Mid-Atlantic has awarded or is anticipated to award this year OSW contracts representing over 6,000 MW. These are shown by their anticipated COD and developer below.

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