Recommended Reading
kWh Analytics
kWh recently released its third annual Solar Risk Assessment.
Three key findings:
- Project underperformance continues to worsen. This year’s contributions identify multiple causes of underperformance, including higher-than-expected degradation, terrain mis-modeling, and bankrupt manufacturers.
- The combination of chronic project underperformance and increasing operating leverage is elevating default risk for newly issued loans, even when loans are sized at the traditional 1.30x debt service coverage ratio (DSCR).
- Unforeseen impacts from natural catastrophes and a hardening insurance market is leading to increased exposure and costs for insurers and insureds alike.
Columbia Center for Global Energy Policy
This recent paper discusses the role of PPAs and VPPAs in facilitating a low-carbon future. While these long-term contracts underpin the vast majority of new resource development, the authors find that their usage is unlikely to be sufficient to drive growth needed to meet government pledges and that additional incentives will be necessary.
Power Finance & Risk roundtable discussion
Timely discussion in current issue of Power Finance & Risk around PPAs, VPPAs, and other hedge structures; options for buyers and other intermediaries; and relevance to common financing structures