Post on 31-Dec-2015
transcript
Critical Issues Economics
Generation market Renewable Portfolio Standard Federal and state tax incentives
Procurement method: long-term contracting authority is key Due diligence and pre-procurement work by the Service Project size and technologies sought Essentiality of the installation Track record of the Service and installation
Project “champion” Team must include members with experience and financial
strength
2
3
Additional Considerations Potential Issues & Challenges PPA pricing
Termination for convenience Recapture during tax benefit period RECs Insolation and shading
Potential Complexities Site control Relocation Roof Replacement Novation/assignment Procurement method OMB scoring State utility laws
Additional Value Renewable Energy Credits (RECs) –
ownership, price, and value
Energy Security
Renewable Energy Financing Structure - ESPC
4
TRUSTEE
Solar Facility and ECMs
RESA and ECM Payments
GOVERNMENTIDIQ Contract Task Order for ECMs
Tax EquityOwnership
ESCO
Construction FundsEnergy Services
Agreement
BOSTONIA(Owner / SPE)
O&M Agreement
Tax Benefits
RESA / Task Order Assignment
InstallationAgreement
PPA Financing Structure
5
Tax Equity
Debt Project Equity
Purchase Price
GOVERNMENT
PPA Revenue & Tax Benefits
InstallationO&M ContractGuarantees
Project Company(Solar Facility
Owner)Solar Developer
Solar generated electricity
Electricity Payments
EUL Financing Structure
6
GOV’T
Ground Lease
EPC
FUEL
DEVELOPER / SPE
TRUSTEE
LENDER [TAX]
EQUITY
O&M
Power Sales
PPA Payments
Debt ServiceFINANCIER
COMMERCIAL OFF-TAKE
Power Sales