Alberto E. Mihelcic Bazzana

As the Investment Manager of the internationally diversified Gore Street Energy Storage Fund (LSE: GSF), we have been operating #energystorage assets in the #US since March 2022 when we entered the ERCOT market in Texas, before later completing a transaction in California in early 2023. These acquisitions by the fund followed years of preliminary work driven by the fact that the US has been undergoing a boom in #renewables deployment for several years. Since August 2022 this market appeal has been reinforced by the #InflationReductionAct which continues to deliver #investment tax credits for standalone energy storage and other #renewableenergy solutions. This has led to incredible deployment of new wind and solar generation, as well as the energy storage systems that play a crucial role integrating this clean power. Despite its successes, the future of the legislation has become uncertain as we get closer to November’s presidential #election and a potential second term for former President Donald Trump. A return to a Republican administration would signal a shift in US energy #policy and has the potential to impact the work being done under the Inflation Reduction Act. In our latest blog, we take a look at what the Inflation Reduction Act has done so far, how a new Trump Presidency may seek to change its course, and why any action could face opposition from red states that have received considerable investment under the legislation. While we do not expect existing investments to be affected by any shift in direction, the key takeaway remains that the US is expected to continue to be a key market for renewable energy solutions like energy storage, no matter who is in the White House. The fundamentals of renewables deployment, diminishing thermal generation, falling technology costs and societal demand for #decarbonisation will continue to drive the #energytransition well into the future. We are confident that the enduring nature of this transition and the economic forces driving investment into clean power will continue. You can read our full blog here: https://lnkd.in/eR3V-V2s

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New York’s roller coaster journey to reaching its renewable goals continues. The latest twist is: Tentative contracts for 24 land-based renewable projects, totaling 2.4 GW. It's a step forward, but it comes after a series of major setbacks. In late 2023, developers pulled the plug on a whopping 11.7 GW of onshore and offshore projects. Rising costs and interest rates made them economically unviable. It was a big blow to New York's goal of 70% renewable energy by 2030. The new tentative contracts, along with some offshore wind, replace a fraction of that. A lot of work remains to be done. NY has historically been one of the most renewable energy friendly policy states in the country. Policy is important but continued and improved incentives will be needed to hit the state’s goals. As always, real estate constraints must be considered as well because as we say, “No land, no project”. *** Read more about it here: https://lnkd.in/exq2j5jm

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📈 Corporate PPA activity in the ERCOT market has reached 1.8 GW, YTD 2024. Data from the Enerdatics Energy Transition PPA database indicates that ERCOT has seen ~1.8 GW in corporate power purchase agreements (PPAs) since the start of 2024, constituting over 60% of the U.S. total. 💡 Tech giant Microsoft leads the way, having secured ~800 MW across three deals. Meanwhile, new entrants such as UnitedHealth Group, Sonoco, and AdventHealth are also stepping up their sustainability efforts. 🏆 Key Suppliers Making Waves: > Regional Leaders: Primergy, Leeward Renewable, Scout Clean Energy > International Players: Orsted, ENGIE 🤝 Positive PPA negotiations in ERCOT are driven by the market's lower land and interconnection costs, which help mitigate higher interest rates and supply chain issues. 🌟 Top Deals to Note: > Microsoft and Primergy Solar: 408 MW from Ash Creek solar project > Hyundai and Matrix Renewables: 147 MW (Hyundai’s first U.S. PPA) > RTX and ENGIE: ~38 MW from Priddy wind project #CorporatePPA #ERCOT #RenewableEnergy #Sustainability #Microsoft #Hyundai #RTX #ENGIE #Orsted #Primergy #LeewardRenewable #ScoutCleanEnergy #UnitedHealthGroup #Sonoco #AdventHealth

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PJM & MISO face a growing interconnection backlog, with over 25 GW of solar and 9 GW of wind projects waiting for approvals Key actions being taken: -- PJM: Adopting a 'first-ready, first-served' approach to prioritize viable projects. -- MISO: Implementing a cluster study method to accelerate the process. -- Combined ~$14 billion investments are set to integrate roughly 10 GW of new capacity. ⚡ Meanwhile, ERCOT's 'Connect and Manage' approach simplifies grid integration, significantly reducing backlog clearance times. #RenewableEnergy #PJM #MISO #ERCOT #SolarPower #WindEnergy #GridConnection #EnergyReforms

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Exus Renewables North America has begun the repowering of the 139 MW Twin Ridges Wind Farm in Somerset County, Pennsylvania. The Twin Ridges repowering project involves replacing the nacelles and blades of the existing wind turbines while retaining the towers and foundations. The repowering will result in a 30% increase in energy generation for the project. “As the wind energy industry faces increasingly complex obstacles to growth, including a nearly 3 GW interconnection queue of renewable energy projects trying to connect to the grid, repowering has become a path to help meet clean energy goals,” said Jim Spencer, CEO of Exus Renewables North America. “Thanks to these upgrades, the Twin Ridges project will generate clean, reliable and renewable power – and millions in community investment – to the region for decades to come.” Exus Renewables will invest approximately $200 million in the project, creating 150 union construction jobs. It expects to inject over $7.35 million into the local economy through the procurement of materials and services from local suppliers and anticipates that over the 30-year life of the project, more than $100 million will be invested in the community through tax and landowner payments. Vestas-American Wind Technology, Inc. will supply American-made nacelles, hubs, blades, and tower adaptors for the project. #cleanenergy

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Reconductoring could enable 764 GW of transmission-connected solar by 2035. (My latest for PV Magazine USA) Replacing existing transmission lines, known as conductors, with advanced conductors could enable 764 GW of transmission-connected solar by 2035 even if transmission in new corridors was limited, found a study by UC Berkeley and GridLab researchers. 3M CTC Global TS Conductor Amol Phadke #Reconductoring

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The Massachusetts clean energy roadmap for 2025/30 envisions #OffshoreWind as the primary source of #electricity to support the state goal of achieving #NetZero by 2050.

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I wonder how the valuation and modeling service providers factor in these latest market conditions in their models. Thoughts?

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Hey good news, this week, the Federal Energy Regulatory Commission (FERC) voted to modernize long-distance high-powered transmission policies, aligning with the Biden Administration's decarbonization goals and fortifying the grid against extreme weather impacts. The transmission system must modernize and expand to meet 21st-century demands. With the growth of AI, data centers, and EVs powered by green energy, the U.S. must double regional transmission capacity. Key changes include: Increased Renewable Energy: Expect more renewable energy and less coal-fired power, though litigation is anticipated. Enhanced Grid Stability: Regional authorities can now improve grid stability, making the network more renewables-friendly. Improved Transmission Coordination: Transmission owners will plan every five years for future needs, thinking 20 years ahead. Notably, 260,000 MW of power generation is waiting to connect to the U.S. grid, with 95% from solar, wind, and battery storage. This ruling facilitates power movement from rural to urban areas, benefiting renewable energy. FERC’s new policies also revise backstop authority, allowing federal intervention when states fail to push through vital projects. This ensures no state can veto projects crucial for national interest. The changes aim to cut CO2 levels by 40% by 2030 and achieve carbon neutrality by 2050. Falling prices for wind and solar, coupled with increased clean energy capacity, signal a bright future for renewable energy and grid resilience. Rudy Garza of CPS Energy noted, "This transition is going to happen whether you like it or not." #Renewableenergy https://lnkd.in/gK4nJQB3

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Rooftop solar has deployed over 22.6 gigawatts (GW) of capacity ☀ It now outstrips the capacity being generated by large scale renewables with wind generating about 11.5 GW and large scale solar about 9.2 GW. Our Chief Executive John Grimes believes that as consumers gain the ability to generate, store, and distribute power, rooftop solar could transform Australia and potentially the world. Read the full article 🔗 https://lnkd.in/gMEakkAR RenewEconomy

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Have you seen the latest #Energy Wholesale Market Review? Most tracked #gas and #power contracts registered losses, with the baseload June 24 contract experiencing the only gain last week. Day-ahead gas fell 3.6% to 74.25p/th, as prices were influenced by forecasts of above-average temperatures in the week ahead. Read the full #energywholesale market update: https://bit.ly/3Uea0XA

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A potentially significant development in the energy storage market: CATL’s latest grid scale storage product packs 6.25MWh into a 20ft container, 30% more than alternatives in the market and nearly double the norm 2 years ago. They are also claiming ‘zero degradation’ in the first 5 years. This will mean smaller footprints for new projects and higher early year revenues. This could help make battery energy storage even more cost effective… as long as CATL share the financial benefit with investors.

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Agreeing on the definition of energy storage for your state is a critical first step in developing the many policies needed to create a full fledged energy storage market https://lnkd.in/eMMkECnp

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REMINDER: Tune into today's Federal Energy Regulatory Commission Transmission Planning Rule Breakdown PowerCast from 1–2 PM ET to hear from a panel of experts as they discuss what the recent FERC ruling is attempting to achieve, its implementation, significance, and potential issues. Register now: https://bit.ly/3wC4WEH

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Multiple channels reporting on domestic content bonus guidance from Treasury late last week. Some keys: "The US Treasury greatly simplified the calculations yesterday to determine whether solar, onshore wind and battery projects have enough domestic content to qualify for a 10% bonus tax credit. The new calculations are in Notice 2024-41. They are as simple as adding up percentages in a table for the various components of a project that are US-made." See https://conta.cc/4dPKwJg and https://conta.cc/4dQl71N #solar #energy #solarenergy #renewables #renewableenergy #electricity #energystorage #ESS #distributedenergy #solarpower #batteries #EVCharging #EV

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The offshore wind industry is projected to invest $65 billion towards projects by 2030, supporting 56,000 U.S. jobs, finds ACP’s latest Offshore Wind Market Report. The new analysis shows that in the U.S. there is currently 12 GW of projects with active offtake agreements and 4 GW under active construction at Vineyard Wind, Revolution Wind and the Coastal Virginia Offshore Wind projects. Across 37 leases in the U.S., there are now 56 GW of capacity under development, which could provide enough electricity to power the equivalent of 22 million homes.   The new report also highlights the economic impact of offshore wind on domestic U.S. shipbuilding, port infrastructure, and other supply chain activities. Download a copy of the new report: https://bit.ly/3S0vtTH

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