Are You Ready for Your Next Wind Deal?
||Nov 10, 2015
||11:30 AM (Tue) - 12:30 PM (Tue)
||Himali Parmar, Judah Rose
In this webinar, ICF International experts provide an assessment of challenges and opportunities for wind projects. ICF believes that despite challenges such as scheduled expiration of the Production Tax Credit (PTC), limited transmission capability in premium resource areas and increasing competition from solar generation, wind generation will continue to grow its market share in the next decade due to regulatory dynamics incenting renewables (CPP and expanded RPS) and technological improvements.
But not all wind investments will pan out: for one thing, those located at strategic points across the grid that can access premium pricing areas are clearly more likely to succeed than others. An additional discriminating factor in determining winning investments is likely to be whether project owners have a sophisticated understanding of the interplay of transmission congestion, carbon policy-driven demand and price impacts, and financial tools for hedging wind contracts. Therefore, due diligence should go beyond gross margin analysis, particularly for hedged assets that may incur additional costs in case of transmission curtailment/congestion.
Discussion topics include:
- Understanding key challenges and opportunities;
- Understanding of basis and curtailment risks and ICF’s approach in assessing these risks;
- Risk mitigation strategies including advantages and limitations of Firm Transmission Service and Firm Transmission Rights;
- Treatment of risks in hedge contracts and its implications on project economics;
- Regional assessment of wind opportunities;
- CPP as a potential game changer