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Energy storage has been deemed one of the missing links of the energy transition for quite some time now. After the vast deployment of standalone storage assets, which tirelessly (and swiftly) respond for duty when the grid needs it, the long-awaited next phase of renewables-plus storage is finally approaching the mainstream! The term ‘renewables-plus-storage colocation’ has climbed the ladder in the renewable’s vocabulary, particularly in the merchant renewables sphere. But

This is a summary of the Energy Security Scenarios report made by Shell . Shell created 3 different energy scenarios - Waves, Islands and Sky 1.5. Each of these was built around possible approaches to climate change action as the world emerged from the COVID-19 pandemic. Waves  - Waves  assumed that society would prioritize repairing the economy . In Waves  this focus on wealth pushes other societal and environmental pressures into the background, until their relative neglec

The two main tax equity structures are sale/leasebacks and partnership/flips. The ITC is a one-time credit against income tax that is based on the amount invested in a facility. The ITC is subject to recapture if, within five years after a facility is “placed in service,” the taxpayer sells or otherwise disposes of the project or stops using it in a manner that qualifies for the credit – like taking it out of service or permitting the PPA off taker to operate and maintain the

This intend to be a summary  post of the “Scaling up Private Finance for Clean Energy in  Emerging and Developing Economies” published by the IEA and IFC The Emerging Markets and Developing Economics (EMDEs) group contains the following territories: Africa, Developing Europe, Eurasia, Latin America, the Middle East and South and Southeast Asia. In EMDEs there are 775 million people that lack access to electricity and 2.4B that lack access to clean cooking fuels. Clean techno

Energy Transition and need for flexibility.   There is no denying the fact that electricity is crucial for the world economy to thrive in this and the coming centuries. The demand for electricity increases not only because the human population increases, but also because the social-economic activities of humans are rapidly shifting from manual processes to automated processes, which are essentially driven by electricity. Therefore, electricity becomes inevitable for the susta

UK The main drivers for implements hybrid projects in the UK are: 1.       Advanced grid services : The UK comprises the most advanced standalone battery storage market in Europe, having pioneered since 2017 through the proliferation of grid-services. 2.       Mature Industry :  Due to vast commercialization expertise, the industry is the most welcoming when it comes to innovation such as co-located assets and Hybrid PPAs. The UK is Europe’s largest energy storage market  – b

It is no longer a secret, nor a great insight, that we are in a revolutionary era in terms of the energy industry. Many technologies , greener and cheaper are implemented , a lot of assets we uses are being electrified ( EV’s , heating solution) and more and energy , in general becomes more of commodity than an production resource. With that development, new challenges and limitations arise and create risks for industrial, commercial, and residential uses and processes. Our

November 15, 2022   ERCOT manages the flow of electric power on the Texas Interconnection that supplies power to more than 26 million Texas customers – representing approximately 90% of the state's electric load. As the independent system operator for the region, ERCOT dispatches more than 680 generating resources to reliably deliver power to customers over more than 46,500 miles of transmission lines. The performance of the markets in ERCOT is essential because those markets

Relaxed credit terms have created opportunities for priming financing outside Chapter 11.  In today’s market, drafting holes in sponsor-friendly credit agreements are exploited to avoid the cost and dislocation of a Chapter 11 process.  The current trend is an evolution from one type of Liability Management Transaction (LMT), the dropdowns of collateral, toward the other type of LMT, senior new money and non-ratable up tier exchanges.  A LMT begins with creditors holding comm

There are several ways in which a hybrid PPA can work. Just like the technical setup of each co-located project, there is no one-size-fits-all solution when it comes to the commercialization aspect. It always comes down to investment goals, risk appetite, and the capabilities when it comes to trading assets of each asset owner.   1.       Renewable PPA & Storage Capacity agreement (CSA)/Optimization agreement In this scenario, the hybrid arrangement comprises two contracts: a

PPA structures are evolving, and the challenge of Hybrid PPAs lies behind understanding and quantifying the benefits of flexibility, and how it’s reflected in the pricing. The risk profile of the asset is the core determinant of its fair value. And since energy storage changes the risk profile of the generation part, this would need to be reflected in the price. To understand what’s driving the Hybrid PAP pricing, it would be better to go through how benchmark PPA prices are

Energy storage has been around for a long time. Alessandro Volta invented the battery in 1800. Until recently, Batteries used to provide power at those locations where no grid connection is present, like for starter motors cars, mobile phones, laptops and other electronic devices or for emergency power or computer servers. With the last innovations in the energy storage industry, it is clear that energy storage technology and solutions will become crucial element in our life.

It is not secret anymore, that the way we are using energy cause damage to our planet. In 2021 we expect to consume 40x energy compare to 1900.  Due to the global warming we will demand 3x energy by 2050 compare today.   To adjust to the new energy reality, organizations are under growing pressure to participate in the globalization effort reduce emission and avoid global warming. Over the past decades the cost of electricity distribution increased by 50% in the U.S. In order

The Inflation Reduction Act's investments are bearing fruit by creating good-paying jobs, strengthening our energy security, tackling climate change, and improving services the IRS provides to taxpayers. As a part of President Biden's broader Investing in America agenda, Treasury will continue to collect and share data, analysis, and stories about how the IRA is aiding American families and workers, driving investment toward underserved communities as well as to new technolog

Virtual currency mining registration The Public Utility Commission of Texas (Commission) proposed a new rule that would require certain virtual currency mining facilities to register with the Commission. Under the proposed rule, a person operating a virtual currency mining facility must register the facility as a large flexible load, if its load is greater than 75 megawatts (MW) and its interruptible load is 10 percent, or more, of the actual or anticipated annual peak demand

The Inflation Reduction Act's investments are bearing fruit by creating good-paying jobs, strengthening our energy security, tackling climate change, and improving services the IRS provides to taxpayers.   The IRA development in terms of tax credits, included: (i)                   Extension of the production tax credit (PTC) and the investment tax credit (ITC) for electricity generated from wind, solar and certain other renewable resources. (ii)                 Expansion of

The Inflation Reduction Act's investments are bearing fruit by creating good-paying jobs, strengthening our energy security, tackling climate change, and improving services the IRS provides to taxpayers.   The IRA development in terms of tax credits, included: (i)                   Extension of the production tax credit (PTC) and the investment tax credit (ITC) for electricity generated from wind, solar and certain other renewable resources. (ii)                 Expansion of

A Commercial & Industrial (C&I) Power Purchase Agreement (PPA) should be a simple contract whereby a host agrees to purchase power from a system owned by a project company – this should include project company’ obligations that naturally relate to providing such a service, like installing the system and a meter and maintaining insurance. A Net Metering Credit Purchase Agreement should look exactly like a PPA, except that instead of purchasing power, the host purchases net met

Data center operation is one of the fastest growing industries worldwide. The International Energy Agency recently projected that global data center electricity demand will more than double by 2026. In the United States, the national outlook could resemble the global outlook, but is highly uncertain. One key uncertainty that could change the trajectory of data center load growth is the use of generative AI models. Both public and corporate imaginations were triggered by the r

As the world continues to advance technologically, the number of cyber-attacks has increased at an alarming rate. A study done by...