by William R. Devine, Barry Epstein, Emily L. Murray/Allen Matkins Gamble Mallory & Natsis LLP (July 8, 2016) www.jdsupra.com
Renewable Energy Focus
Greentech Media – Jul 5 There will soon be an energy storage tax credit proposal in both the House and Senate. Senator Martin Heinrich (D-NM) will introduce an investment tax credit for energy storage, based on the existing credit for solar energy, next week. The legislation would give businesses and homes a 30 percent credit, but the credit would taper off starting in 2020. Rep. Mike Honda (D-CA) introduced similar legislation on the House side in May. The U.S. storage market is still a fraction of the size of the wind or solar industries; it totaled $111 million in 2013 but rose to $441 million last year, according to GTM Research. It’s expected to grow to $2.9 billion by 2021.
Reuters – Jul 5 Solar power is on pace for the first time this year to contribute more new electricity to the grid than will any other form of energy, a feat driven more by economics than green mandates. The cost of electricity from large-scale solar installations now is comparable to and sometimes cheaper than natural gas-fired power, even without incentives aimed at promoting environmentally friendly power, according to industry players and outside cost studies. Buoyed by appeals to self-reliance and environmental stewardship, as well as government subsidies, the early solar industry was dominated by rooftop panels that powered individual homes and businesses. But such small-scale installations are expensive, requiring hefty incentives to make them attractive to homeowners. Today, large systems that sell directly to utilities dominate. They are expected to account for more than 70 percent of new solar added to the grid this year, according to industry research firm GTM Research.
Las Vegas Sun – Jul 6 The nation’s largest rooftop solar array is now on the Las Vegas Strip. After expanding a rooftop solar array atop the Mandalay Bay Convention Center, MGM Resorts International announced this Wednesday that its roughly 26,000 solar panels that span 28 acres set a record as the largest rooftop array in the U.S. At full production, the system will provide Mandalay Bay 25 percent of its energy.
Solar Industry Magazine – Jul 1 GRID Alternatives Greater Los Angeles (GRID GLA), the largest affiliate of U.S. nonprofit solar installer GRID Alternatives, has unveiled its new LA 500 pledge. Los Angeles Mayor Eric Garcetti joined the nonprofit to make the announcement last Thursday at a low-income Los Angeles family’s home, where GRID GLA and students from three local vocational schools were installing a rooftop solar system. Through its LA 500 pledge, GRID GLA says it will provide no-cost rooftop solar to 500 low-income families in single- and multi-family dwellings and provide hands-on solar workforce training to 500 individuals in Los Angeles in the next two years.
PennEnergy – Jul 6 Southern Company subsidiary Southern Power has acquired a controlling interest in the 102-megawatt Henrietta Solar Power Project in Kings County, California, from SunPower, which will own the remaining interest in the project. The Henrietta Solar Project represents Southern Power’s first joint venture with SunPower, which developed, designed, and is constructing the facility and will operate and maintain it upon completion. Construction began in May 2015, and the project is expected to be fully operational in the third quarter of this year. Once operational, the facility is expected to be capable of generating enough electricity to help meet the energy needs of approximately 24,000 average U.S. homes.
Disclosure: Allen Matkins represented SunPower in connection with this transaction.
South Florida Business Journal – Jul 5 NextEra Energy Partners has completed an acquisition of renewable projects that includes two wind facilities: Cedar Bluff Wind Energy Center, located in Kansas, and Golden Hills Wind Energy Center in California. NextEra purchased the assets for about $312 million. The acquisition expands the contract renewable energy projects in the company’s portfolio to about 2,656 megawatts. Umbrella company NextEra Energy Inc. has over 44,000 megawatts of generating capacity.
SeeNews Renewables – Jul 7 Bankrupt renewables developer SunEdison hopes to sell its interest in the Mount Signal 2 solar project in California to hedge fund D.E. Shaw for $80 million, court papers show. As first reported by The Wall Street Journal, D.E. Shaw affiliate DESRI MS2 Development LLC has sealed a deal to acquire SunEdison’s stake in the project, but needs the approval of a U.S. bankruptcy judge, who is to decide whether the asset should change hands through a private sale or an auction process.