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.
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 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 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 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.
Read Full ReportLast 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.
Read Full ReportWhile 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 (Figure 1). 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.
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