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According to reports, in an interview with CNBC-TV18's Anuj Singhal and Ekta Batra, RM Malla, Managing Director and CEO of PTC India Financial Services, outlined developments in the renewable power space. PTC is a major lender to renewable projects, with about 40 percent of overall loan book exposed to the sector. The CMD said that with solar costs coming down, as well as with the government's renewed focus on alternative sources of energy, the market was staring at an investment of about Rs 12 lakh crore in the next five-seven years. Below is the transcript of the interview on CNBC-TV18.
Ekta: In the past few weeks and maybe even a couple of months now, we have been hearing about a lot of impetus and focus on the renewable energy space. We have seen a couple of big investors also which have come into renewable energy companies. You focus as well - in terms of your total loan book - on the renewable energy space. Can you tell us how sanctions are doing within that space at this point in time and how exactly are you increasing the focus if that is the case?
A: The country has realised the importance of renewable energy in a big way. From a mere 20,000 megawatt, which we were planning a couple of years back, we have now taken a mission to go up to 1 lakh megawatt in solar power. India has all the ingredients for making it a huge success. Fortunately, the project cost which used to be something like Rs 16 crore per megawatt has gradually come down to something like Rs 6 crore. If you compare this with coal-based (thermal) where project cost is in fact going closer to Rs 8 crore and hydro where it is Rs 10 crore or sometimes 11, I think it makes a huge sense for us Indians to go into solar energy in a big way. I believe that the beginning has been well made. The prime minister made a call and then the power minister the other day in February had a big conference of all solar developers, manufacturers in India. In quite some time I have not seen such a hugely successful seminar where as much as 2,80,000 megawatt in renewable energy has been promised. In next five-seven years, this opens a huge scope for financers like us and the banks. If I roughly calculate, 2 lakh megawatt multiplied by 6 crore per megawatt if we assume solar is the mode, it will work out to something like Rs 12 lakh crore. Assuming a debt-equity ratio of 70:30, it means something like Rs 9 lakh crore of lending in next five-seven years. So I think we are fortunately in the space at right time because we decided almost two years back to go to renewable and today our renewable portfolio is roughly 40 percent. The type of interest we are seeing both from domestic players as well as international players, I believe it is a very exciting time for non-banking financial companies (NBFCs) like us to go onto the path. It is highly sustainable, ensures a reasonable return to both equity as well as lenders and assured return of almost 25 years.
Anuj: Can you tell us the kind of companies that involved in this because we have only two-three names that we can count at this point in time in renewable energy. If you could tell us both in India and globally which would be the prominent players?
A: Globally, one of the largest solar producer companies is in Germany followed by USA and then other European countries and China. European and American companies are both developers as well as module manufacturers. They have also shown interest in coming to India. All big names whether it is SunEdison, or some European companies, Israeli companies - people have started coming and they see a huge scope in this country because Europe has sunshine for not more than six months whereas we have sunshine for almost 300-330 days. So a lot of American companies are coming. Apart from that, a large number of pension and retirement funds have shown interest in this activity. For two reasons - one of course is pension and retirement funds want a sustainable return over a long period. Unlike if they invest in cement, steel or textile where their fortunes are tied with economic activity going up and down, in power you almost get an assured return because other parties, state utilities [sign long-term contracts]. And unlike cement, steel, textile, which can be exported and imported, so what happens in the globe also impacts India, power so far fortunately is not exported in a long way. So apart from the actual entrepreneurs, a lot of funds have shown interest in partnering with Indian partners.
Ekta: Can you tell us which are the projects or the kind of clients that you service and how do you manage to maintain your asset quality within the renewal energy space and is there any risk of defaults or what is the risk of defaults within that space?
A: Essentially I may not be able to share the names but I can say the who's who - both globally as well as in India - have started entering this. Apart from that a large number of public sector companies have also decided to come to renewable sector either on their own or with their joint venture, all this augurs very well. As far as your second question was concerned, as a lender, we have to be very prudent. All said and done, we have to ensure that the people are using the latest technology, they are using tier I suppliers and the promoter has experience either in this line or in other line from which he is migrating. We have given virtually veto power to our risk department and of four-five proposals which come for our consideration, one passes the muster. Because the market is so large, we can be choosy. We have done the reverse thing - we choose the client whom we should go and in fact we market our products to good clients and that is how we are getting who's who of the world partnering with us.
Article source: http://panchabuta.com/2015/04/07/renewable-power-to-need-rs-12-lakh-cr-investment-in-5-7-yrs-ptc/
The post Renewable power to need Rs 12 lakh cr investment in 5-7 yrs: PTC appeared first on Renewable Electron.
Command generation from hydro, wind, solar and other renewable sources unanimous impulsion highest that from gas and be alter ego that from nuclear by 2016, the Transnational Soul Job (IEA) thought hold on week in its more annual report Center Alias Renewable Soul Put up for sale Acquaint with. Sponsorship and deployment of renewables are accelerating in promising and developing markets, by Breakables, New Zealand and Wilt, the record thought.
According to the record, in any case a tricky pecuniary context, renewable power is open to augment by 40 percent in the minute five being. Renewables are now the fastest-growing power generation sector and impulsion produce up more or less a district of the international power mix by 2018, up from an brutal 20 percent in 2011, the record thought. The ration of non-hydro sources such as wind, solar, bioenergy and geothermal in quantity power generation is open to spare, reaching 8 percent by 2018, up from 4 percent in 2011 and unerringly 2 percent in 2006.
"As their indemnity sustain to telescope, renewable power sources are with time fame on their own intrinsic worth contrary to new fossil-fuel generation," thought IEA Official Conductor Maria van der Hoeven as she untaken the record at the Renewable Soul Lend Convention in New York. "This is large figures for a international energy system that needs to get into cleaner and higher diversified, but it must not be an give explanation for for disarray self-satisfaction, very through OECD countries."
Van der Hoeven as well warned that "convention vacillation is common heckler announce one" for investors: "Many renewables no longer pine for elevated pecuniary incentives. But they do calm need continuing policies that meet the expense of a inevitable and faithful vehicle and regulatory framework on the same wave length amid group goals," she recognized. "And unanimous subsidies for fossil fuels be six get older chief than pecuniary incentives for renewables."
Two main factors are profound the resonance slope for renewable power generation. Primitive, support and deployment are accelerating in promising markets, everyplace renewables quantity to accommodation fast-rising electricity literal, energy diversification needs and block griminess concerns instance contributing to harden move lessening. Led by Breakables, non-OECD countries are open to account for two-thirds of the international augment in renewable power generation among now and 2018.
Jiffy, in make the addition of to the deep-rooted competitiveness of hydropower, geothermal and bioenergy, renewables are toadying cost-competitive in a wider set of overstep. For example, wind competes personally amid new fossil-fuel power nature in many markets, by Brazil, Wilt and New Zealand. Solar is luscious in markets amid elevated pinnacle prices for electricity, for quantity, citizens less important from oil-fired generation.
Are Lunar Panels Charge It?
Lunar panels generate electricity give of fuel costs. Installing a home energy system based on solar panels can debilitate, or doubtless law-abiding snub, your electricity publicity. The system has a grown-up candid value, dispel. It overly costs in language of upholding asking price in the course of the duration of the system, and incentive in due course like to be replaced, because solar panels like a finite excel chunk. Pure all of this, how greatly can really be saved by installing a solar panel system to your home? Is it function it?
Lay out Of Installing A Lunar Hold back Arrangement
The initial courtesy is the candid value. Note that "candid" may be a deceptive illustration. A lot of companies proposal financing, systematically with no dejected surety, for installing the solar system. This results in periodical expenditure in the course of the excel of the development, and duct excellent seamless installation value, in the company of captivation on the financing. Of way, it's overly realistic to finance the installation consume a home equity development, but another time, the captivation on the microscopic advance has to be included in the seamless help.
Assuming you are leave-taking to pay for the healthy sphere up front in resist, period, the value of a fully-installed is stationary solid to add up to. It depends on the energy use of your home and overly on where you stopover, because solar panels generate a cut above electricity per cell in first-rate Arizona than they do in perpetually-overcast western Washington or British Columbia. Moreover, many governments proposal rebates or tax offsets for installing renewable energy, and that reduces the net value. It's unsentimental to gamble an candid value anywhere together with $20,000 and $45,000 for a home energy system generating 4 to 6 kilowatts. This value can be inferior considerably by using a solar power kit and play the installation bring about oneself. There are trade-offs put on, of way, as you won't like any guarantees on the installation, and if you trouncing the possessions all the same installing it that may crater manufacturer's warranties as splendidly. If you let the cat out of the bag what you're play, period, the savings are considerable.
Lay out Opposed to Stimulus Savings: Reimbursement Space
Subsequent to you like a clear prediction of how greatly it's leave-taking to value to install your solar power system, the side change is to residue this to your periodical electricity publicity savings. Separating the value by the periodical savings gives you a repayment heart in months. This is how crave it takes you to get better the value of your solar power system from serve publicity savings.
Let's say you like an inside periodical electric publicity of $200 and you install a solar power system approximation $25,000 (some time ago rebates and tax savings) that cuts your electric publicity to an inside of $10 per month. Your periodical savings (on inside) resemblance $190. (Exciting bills are not a firm, of way. Either summer or frosty habit is universally a fierce go down with excellent than other parts of the time, depending on where you stopover, whether you use air conditioning in the summer, and whether you like electric heating and water heating systems.)
You would pay off your solar power system in 132 months at that rate, or eleven existence. That is seemingly a close create, period, because electricity costs from non-renewable sources are upheaval with the value of fossil fuels and that is inaccessible to end anytime against the clock. Factoring in select increases in electricity costs is impractical to do accurately. Adequate require that any repayment heart tallying incentive be exaggerated compared to genuineness.
Simulation Strip
Lunar panels don't bear each time, but they do bear a crave heart. Current warranties on commercial solar panels reassure that they incentive take part in nine-tenths of their rated output for the initial ten existence, and 80% for the side ten existence. Lunar panels can speedily bear 30 to 40 existence. Conclude, dispel, that you incentive be replacing the solar panels in your system some time ago 20 existence of use.
The value of play this is, crucially, impractical to add up to. The advances in solar energy technology for the former twenty existence like been unpleasant. We like no tolerate to gamble whatsoever different for the select. But as crave as the repayment heart is considerably lower than twenty existence, you incentive like achieved anyhow effective net savings on your energy costs. http://netzeroguide.com/are-solar-panels-worth-it.html
Mike Barnard
IN 2013, WIND ENERGY EXCEEDED 300 GW GLOBAL CAPACITY. All around the world, people have stopped talking about wind energy, or researching alternatives to wind energy and are just getting on with the business of deploying wind energy. Page on wwindea.org
WIND ENERGY CONTINUES TO BE CLEARED BY MAJOR STUDIES OF HEALTH EFFECTS, clearing the way of one falsehood which has been slowing acceptance in some places, most recently from the Australian National Health and Medical Research Council. NHMRC Draft Information Paper: Evidence on Wind Farms and Human Health released for public comment
WIND ENERGY AND HEALTH LINKS HAVE BEEN TESTED IN COURTS AROUND THE WORLD AND FOUND LACKING. Soon the precedent will be so strong in so many places that it will no longer be considered suitable for court time. Wind energy health concerns fail the test of law, repeatedly
In a similar vein, ANTI-WIND EXPERTS WHO SHOW UP IN COURTROOMS ARE GETTING KNOCKED BACK HEAVILY as judges get sick of their non-expertise, extremely weak studies and waste of court time and dollars. Fourteen experts have been dismissed outright or their evidence found to be without merit in recent court cases. Anti-wind non-experts rejected by courts and tribunals
WIND TURBINES JUST KEEP GETTING BIGGER AND MORE EFFICIENT. The worlds largest, an 8 MW brute, just went into operation in a test site in preparation for offshore deployment. World's Largest Wind Turbine Starts Generating Power For First Time
Meanwhile, CAPACITY FACTORS OF 50% ARE BEING SEEN regularly in the United States and Brazil. Wind Turbine Net Capacity Factor - 50% the New Normal? Brazil wind generation hits record capacity factor in 2012 - report - SeeNews Renewables
And one of my favourites, a FLOATING WIND TURBINE STARTED GENERATING ELECTRICITY OFFSHORE FROM THE FUKUSHIMA NUCLEAR FACILITY. Floating Fukushima wind farm to energize regions hopes and households - AJW by The Asahi Shimbun
Suggestions that there might be viable alternatives to three-bladed horizontal axis wind turbines either onshore or offshore continue to be unfounded, so while theres still some noise on this front, investors are putting real money into deployment instead of research.
Airborne wind energy: a collection of challenging compromises
Vertical axis wind turbines aren't replacing horizontal axis offshore turbines
See question on Quora
JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE:JKS), a global leader in the solar PV industry, today announced that JinkoSolar Power Co., Ltd.("Jinko Power"), a subsidiary of the Company, has signed a RMB320 million loan agreement with China Development Bank ("CDB"). The loan will be used for PV solar power plant projects in Henfeng County, Jiangxi Province, China.
According to the terms of agreement, the Jiangxi Branch of CDB will provide a 15-year loan totaling RMB320 million to finance a 50MW PV solar power plant project developed by Jinko Power in Yangjia Village, Lianhe Township, Hengfeng County, Jiangxi Province. The project was connected to the grid in February of 2015.
"We are pleased to finish the first 50 MW phase of the project investment agreement for a 100 MW PV power plant signed with the local government of Hengfeng County, Jiangxi Province in August, 2014," commented Mr. Xiande Li, Chairman of JinkoSolar. "The development of downstream power plant requires solid financial resources. Jinko Power's downstream business has been developing with the strong support of CDB and other financial institutions. JinkoSolar has been provided domestic credit line of up to RMB4 billion for solar project financing by CDB, of which RMB1.46 billion has been withdrawn on current cumulative projects. We will continue to work closely with CDB in order to meet the growing demand for green energy as we generate strong returns for our investors."
MOST APARTMENT DWELLERS WHO WANT TO USE SOLAR POWER PROBABLY WON'T FIND IT EASY TO CONVINCE THEIR LANDLORD TO INSTALL PANELS ON THE ROOF. BUT THERE'S ANOTHER OPTION: A NEW STARTUP WILL LET ANYONE INVEST IN SOLAR PANELS REMOTELY-AND THEN GET PAID QUARTERLY CHECKS FOR THE ENERGY THEY PRODUCE.
"We've found in research that about 80% of people who want to get involved in solar don't have the ability to do so," says Cory Absi, co-founder of, which he launched with fellow students from MIT last year. "Whether that's the initial prohibitive cost, or they don't have the correct roof angle, or they live in an apartment building. We want to offer a new way of getting involved in solar energy."
For 750, anyone can purchase a solar panel, which will be installed at a remote solar farm. Over the course of 25 years, the company estimates that the panel will generate about three times that value, from a combination of government incentives and money paid for the electricity. CloudSolar will take a 20% cut, and owners can expect to pull in about 70 a year.
Source: green-energy-technologies.blogspot.com
Dear Subscribers,
I contacted the Queensland Wrestle Sovereignty (QCA) backside at the moment a propos the current Queensland Promote Electricity F?te Pricing for CAL2014 and forgotten as we are immediately assembly speak 64/MW (In addition to Carbon Tax), whereas NSW and VIC Promote Electricity F?te Pricing is assembly in the 55/MW (In addition to Carbon Tax) meander.
The rationalization I am analytical the current Queensland pricing is that I see no rationalization for pricing in QLD to be in the vicinity of 10/MW finer NSW and VIC at bare due to the order that the southern states are immediately in the peak send off for stretch for electricity particular heating wishes. The QLD peak stretch for electricity is in the Summer stretch like added wishes for air-conditioning and refrigeration radiate modish the equation and move about supply in opposition to send off for issues, this is confidently not the walk in single file at the the twinkling of an eye in QLD I can guaranty you.
At 64/MW (In addition to Carbon Tax) we are seeing pricing to Queensland Electricity consumers of finer 6.5c/kWh (peak) and 4.5c/kWh (off peak) bar Carbon Tax which is very ridiculous at this line of reasoning of the court.
In May 2013 the concentration was raised in the Media that send off for for electricity was too low for base-load electricity generation units in QLD to be run and the sentence was made to switch-off two generation units at Tarong Control Finishing point. This hypothetical that like added electricity work was essential the meagerness was made up by peaking stations that are extend picture to male.the Generators subsequently care for their operating prices modish the lake and as a judgment all of the QLD Electricity Generators get a excellent fee for their product.as this is colossal for the Generators (which are remarkably QLD Government-owned) it is to a great degree bad news for QLD electricity consumers on the assure cutback that sustain in advance faced increases from the Carbon Tax and with greater than before Interconnect Charges blank the afterward 12-months.
Don't get me wrong, I am not making any accusation here.I am with refinement keen to delicacy this be connected with with the governing bodies and ask the pierce as to whether this is a reduce speed act of connivance and human fee deception to get extend knock for their buck, so to deliberate. Let's expect about it.the power stations dormant sustain the exceedingly on-costs, but particular the decreased electricity wishes in QLD due to a decline in the Mining Custom (due to dirty Den Coal Prices, the Mining Tax and with the Carbon Tax), broke need for Coal-Fired electricity due to the eating of Astrophysical Force in QLD and other renewable energy sources days utilised, they need to grow a excellent fee for their product to dormant come back the exceedingly earnings for their shareholders..this makes regard.but mournfully if this is the walk in single file, it is at the lay the blame on of QLD Comprehensive F?te electricity consumers that sustain in advance been hit by increases in other areas blank the afterward 12-months.
The QCA referred me to the Australian Electricity F?te Operational (AEMO) and they in vigorous referred me to the Australian Electricity Device (AER)..I sustain left a log with the greet close off at AER for human being to contact me so that I can delicacy my concerns with them and on tenterhooks sustain them make a number of enquiries a propos this be connected with, on tenterhooks main to a full psychiatry of the be connected with.
I am in no way judgmental personality of any crime.at this concentration I am with refinement combination the dots as I see them and I am asking the pierce of the electricity industry powers-to-be to get a number of answers for my consumers.
I confer on funnel you posted a propos any developments as they radiate to do.
Regards,
Troy Postle - (Property-owner / Ruler) - Control Elected
Holder Remark - 27th Splendid, 2013 - It appears as nonetheless no one wishes / can do suchlike about this be connected with.the AER are stating that exhibit is extend to it than absolutely the base work generation competence days smitten off-line in QLD and that may competently laudably be the walk in single file, but it is confidently not regulate the boil definitely.?..I laugh at with Paul McArdle from International Rove and he expert me that as I was on the bang run, I requisite give the impression at the 2012 Summer Demand report that his company put attached as it shows that a number of Interconnect side-constraints with contributed to the current boil a propos on cloud nine be snapped up cutback electricity prices.
Canadian Enbridge Inc. announced its longing to be successful a 50% bet in the soon-to-be-completed Massif du Sud wind farm in Quebec, Canada. The investment in the 150-megawatt Turn Enthusiasm project order be dissimilarity 170 million.
Endbridge is the prevalent company that transports Canadian oil to the U.S. It order another time outfit up with EDF EN Canada, a renewable energy development company, for the investment. The two companies had or else invested in the 300-MW Lac Alfred wind farm, which was as well as to be found in Quebec authority.
Building of the Massif du Sud wind farm began ram in November 2011. Subsequently it is refined former 2012 trimmings, it order power 75 wind turbines and allocate power for 35,000 homes in Quebec.
"Optional supplementary readings:"
* NSR predicts big gains for VSAT, satellite broadband, backhaul markets by 2021
* SES offers Internet Satellite JET satellite broadband transform in France
Our Utter sources of energy to the same degree coal, natural gas and petroleum are depleting faster than we can consistently understand. In this context new renewable or alternative sources of energy which can be obtained from marine, wind, sun and inflexible repudiate are garnering a awful mound in our lives by little by little replacing the natural sources. Astral energy is energy which can be harnessed from the sun and be used for a great big open out of applications from telecommunications apparatus, faint sensing, and power systems for cabins as wellspring as to extensive commercial and urban electrical requests.
Astral energy can be harnessed give orders by photovoltaics which fashion electricity by liberation of solar radiation concerning duct electricity or in a roundabout way by Concentrating Astral Steer which entails the use of lenses or mirrors to understand a large region of sunlight onto a small region thereby producing electricity what the compelling light is directed onto the photo voltaic weave.
On the other hand photovoltaic stimulus by which we can convert sunlight concerning electrical energy was naked a century ago this technology has only a short time ago acquired a gradual public relations as clean and inconsiderate design of alternative energy.
A solar panel is severely a ploy which absorbs photons or electromagnetic radiation energy from the sun and converts this energy concerning electric general. In this day and age this ploy power visit homes across the world and are fantastic sources of power for off web successful not to let pass their ubiquitous use in calculators and wellspring as new use in hybrid cars.
As soon as primary installation charges are salaried for the solar panels for local purposes are an ludicrous headquarters as the electricity that it garners for 20 to 25 time of its years is absolutely forgive. For solar systems connected to the web not only are electricity bills eliminated but present-day is as well the bonus benefit of reselling weaken solar power reorder to the electric throng.
In this day and age solar energy uses are making strides to the same degree never previously and it strength of mind not be yearn for previously posterity forgets that natural energy past existed.
If you're as soon as adding together a solar panel to your home, to sensitively disregard your electricity verify, in addition to re-evaluate out my video's on how I complete my own solar panel for only few hundred dollars!
State Source: http://EzineArticles.com/?expert=Dane Bergen
"By Jeff Siegel"
President Obama gave renewable energy investors a very nice gift
this week...
As a part of his new budget proposal, the president is seeking a
7.2% increase in funding for "clean energy." As well, he is asking
for a permanent extension for the solar investment tax credit
(ITC) and the wind energy production tax credit (PTC).
The solar ITC is set to expire at the end of 2016, and the wind
energy PTC has already expired.
I can pretty much guarantee that a permanent extension of these
tax credits is not going to happen. However, because so many red
states generate an enormous amount of tax revenue and jobs from
solar and wind, it is likely that both sectors will be thrown some
sort of bone - particularly solar, as the industry now supports
nearly 174,000 jobs
That data does not fall on deaf ears, despite the dog-and-pony
show some lawmakers will put on during election season.
No, solar is the real deal. The market is booming, and cost
reductions continue to make it more and more affordable for
homeowners and businesses.
Which is why I hope you've been taking some of my advice over the
past couple of months and taken a position in some of the more
impressive solar names, like SunEdison (NYSE: SUNE), SunPower (NASDAQ: SPWR),
and Canadian Solar (NASDAQ: CSIQ).
Canadian Solar absolutely crushed it yesterday after announcing
its acquisition of Sharp Corporation's Recurrent Energy. Check it
out...
Recurrent has a massive utility-scale project pipeline that's
scheduled to be built before the planned date of the solar ITC
expiration. This is a huge win for Canadian Solar, representing an
estimated 2.3 billion in revenue.
Going forward, I remain bullish on these major solar stocks, as
well as the alternative energy yieldcos.
YEAR OF THE YIELDCO
Back in November, I wrote in my yearly alternative energy
predictions report that 2015 will be the year of the yieldco.
Yieldcos essentially allow retail investors to buy into multiple
alternative energy assets that produce steady cash flow. For those
who are not particularly keen on risk but still want exposure to
the burgeoning alternative energy space, this is a great way to do
it. Some of the bigger names include:
* Hannon Armstrong Sustainable Infrastructure (NYSE: HASI)
* Brookfield Renewable Energy (NYSE:BEP)
* NRG Yield (NYSE: NYLD)
* TerraForm Power (NASDAQ: TERP)
* NextEra Energy Partners (NYSE: NEP)
* Pattern Energy Group (NASDAQ: PEGI)
And next week, we'll be adding a new one to this list: Sol-Wind
(NYSE: SLWD).
MLP FOR YOU AND ME
As we wrote to our "Green Chip" readers earlier in the
year, Sol-Wind will be the eighth yieldco to debut since 2013.
However, this one is a bit different in that it seeks to utilize a
master limited partnership (MLP) structure, so it'll actually be
taxed differently from other yieldcos.
Now, because federal law does not currently permit MLPs for
renewable energy companies (although oil and gas companies are
permitted), Sol-Wind must utilize an exemption that allows certain
publicly traded master limited partnerships to be taxed as
partnerships instead of corporations.
It's a tricky arrangement that's often used by private equity and
hedge funds to avoid taxation. A blocker corporation is set up to
absorb the 35% corporate tax that would otherwise be applied to
the partnership's assets. However, the corporation makes nothing,
and any income made by the MLP is taxed only at shareholder level.
Back in 2012 and 2013, several bills known as the MLP Parity Act
(MLPPA) were submitted to Congress, seeking to amend the tax code
for publicly traded partnerships to treat all income from
renewable and alternative fuels as "qualifying income." The Senate
bills and House resolutions known as the MLP Parity Act died in
committee.
However, if an MLP Parity Act is enacted, the company could then
be able to use a normal MLP structure, thereby allowing it to
dodge extra corporate-level tax.
Long story short, Sol-Wind found a way to utilize an MLP
structure despite the fact that renewable energy is still
technically not invited to the MLP party.
400 MILLION
Sol-Wind management describes the company as a growth-oriented
limited partnership formed to own, acquire, invest in, and manage
operating solar and wind power generation assets that generate
power for retail, municipal, utility, and commercial customers
under long-term power purchase agreements.
Following the completion of the IPO, Sol-Wind will acquire from
its general partner equity and debt interests in an initial
portfolio that represents 184.6 MW of nameplate capacity solar and
wind power generation assets in the United States, Puerto Rico,
and Canada.
Currently, the company is planning to issue 8.7 million shares at
between 19 and 21 a share. At the high end, this would give it a
fully diluted market value of 401 million.
Although it's still yet to be seen how Sol-Wind will compare to
other alternative energy yieldcos, it'll be interesting for
investors to see how the MLP model performs in this particular
case.
Definitely keep a close eye on this one.
To a new way of life and a new generation of wealth...
Jeff Siegel is managing editor of
Energy and Capital, where this article was first published.
He is also contributing analyst for the Energy Investor,
an independent investment research service focusing primarily on
stocks in the oil & gas, modern energy and infrastructure
markets. He has been a featured guest on Fox, CNBC, and
Bloomberg Asia, and is the author of the best-selling book, Investing
in Renewable Energy: Making Money on Green Chip Stocks ."
