- Returns from solar and storage – an analysis of what to expect and how to keep them high
- Asset owners speak back: solar, solar+storage and storage as asset classes – how do they compare with other infrastructure investments?
- Thoughts from institutional investors about how the industry can attract long term capital to the market
- How to increase deal value and project size – examples from recent deals
- How effective has securitization been at attracting investors with low risk appetites?
- Macro issues affecting investor risk appetite: economics, politics and climate change
The future of solar and storage industries are intertwined, as dispatchable solar becomes a new normal. In 2018, the U.S. added nearly 10GW of solar and 300MW of storage. This year, almost 2GW of solar-plus-storage projects have been announced to be delivered over the next four years. Developers seek to deliver both technologies, and investors are trying to understand the risks involved. More than a trend restricted to sunny states with arbitrage opportunities, join to hear BloombergNEF’s take on:
- U.S. solar market update: how new capacity and price declines will fare as tariffs distort supply
- How solar-plus-storage contracts are structured to value different services, and how these contracts are evolving.
- With a new solar-plus-storage contract announced each month, who are the players to watch?
- The changing landscape of solar development – portfolio acquisitions, and new market entrants
- What are the drivers for the drop in energy storage costs?
- What is the technology evolution underlying the growth in energy storage?
- Why is there a dominance of lithium-ion, and will that change?
- How to attract capital to a project – what do you need to do to work with providers in the future?
- How is the project finance market evolving and how are debt providers working on more complicated project designs?
- How does the cost of capital compare for solar, co-located solar and storage, and stand-alone storage?
- Are we in a lithium bubble or are capital providers ready for other storage technologies?
- How are lenders dealing with complicated capital stacks?
This panel will start with a short presentation from Mona E. Dajani who will give the audience an update on assets changing hands, and the M&A landscape in the USA. We will look at where capital and buyers are coming from, how to win investment and how the trends 2019 has presented might continue. Discussion points include:
- Secondary markets – deal flow in 2019, are we trading on a project-to-project basis or portfolios and companies?
- How have successful deals been structured? What were the elements that helped?
- What do asset owners need to do to get the best deal?
- How will traditional energy companies approach the market in the future? (utilities, oil and gas)
- Do investors see oil and gas companies as competitors, capital providers or partners?
- What are we seeing in terms of valuations?
- How are O&M and Technical Asset Managers supporting deal values?
This afternoon session will feature a deep dive into how we can drive uptake for renewables at a state level, a city level and through corporate energy buying.
- The interplay between Federal policy-making and state-level policy-making in driving the market forward
- Review of states with a 100% renewable target – is the infrastructure and the capital there to support it?
- From cities to corporates – how can you work with large energy users?
- Did we reach the 6.4 GW* highs from the corporate market predicted in 2018 – what can the industry do to improve this?
- What new mechanisms are available to hedge risk? What is the relationship between generation, energy buyers and networks now?
- What is the size of the corporate PPA market in 2020?
* EY identified corporate buyers entered into over 6 GW of power purchase agreements (PPAs) in the USA in 2018
- PPA case study – sleeved versus virtual? Differences and benefits of each approach
- How to sell the deal internally – what do you need to do to convince your FD?
- Return on investment – what’s the reality in terms of energy production, savings and can you sell surplus energy?
- Risk – what do you need to know now to get the installation right?
- How to select the right partners
- Funding options
- How to remove risk from your own balance sheet
- How is an abundance of capital affecting developers?
- Locations emerging as hotspots
- Project design – focus on solar+storage
- How are developers dealing with complicated revenue options?
- Utility scale Vs. C&I Vs. large scale residential
- Success themes – what’s driving success in 2019?
This session will outline how the PPA market is evolving and how companies have negotiated the best value from their PPA.
- How to work with different offtakers coming to the market – understanding their needs and winning business
- How successful generators are changing their offerings and structuring deals
- Hedging merchant risk
- Allocating balancing risk in the right way between stakeholders
- Overview of strengths and weaknesses of different markets
- Can the market sustain lower cost PPAs?
- Why install anything now if the costs are coming down?
- What are the possible revenue streams, expected generation and payback periods?
- Legal issues between tenants and landlords
- Matching with cities’ plans for renewable energy and storage
- How should you value power moving forward?
- Which PPA structure should you go for: standard or synthetic?
This session will provide a deep dive into the policy landscape in the USA and provide insight into what panelists and the audience expect in 2020, how a Green Deal could play out, the impact that FERC Order 841 has had and how to prepare for a future without subsidies.
- What could the New Green Deal mean for the industry
- FERC Order 841 – what have the results been for deployment of storage?
- Audience vote: where would they like policy to move in 2020?
- Post subsidy era – what mechanisms would be useful to the industry in the absence of subsidization?
- Is there a need for policies aimed at energy buyers?
- Dealing with the ITC phase out
- What are the use cases for standalone storage, and how to define your area of focus
- How the economics work for merchant storage stand alone, and what revenues and returns are possible
- Why solar+storage makes sense: the co-location value drivers
- What an optimal storage+solar configuration could look like: ratio of storage to solar to grid, battery duration etc.
- Risk and financing considerations
- Deal microscope – how have successful deals been structured?
It works: great minds, great beer (or wine) and the chance to get your own questions answered: our round tables with beer are always a huge success.
Suggested topics include:
- Locations for new development – where are people prospecting for business?
- The economics of solar + storage – when do attendees think they will work?
- Community projects – accessing one of the hottest markets in the USA
- Utilities’ role in the industry – how do we overcome the barrier of what utilities can own and what role can private companies play in building and leasing storage assets?
- Is lithium-ion the best technology? How are longer-duration batteries maturing and what are their economics like?
- The role that the private sector can play in expediting the move away from fossil fuels towards lower carbon power generation and storage
- The need for leadership throughout the industry, including afore mentioned private sector, state governments, cities, large energy buyers and the financial community supporting the growth in low carbon generation and the renewable energy industry
- “Bigger picture” issues such as threat to the economy from climate change and opportunity to develop skilled employment in a new sector