The U.S. Treasury cash grants for new renewable power projects expired at the end of 2011. These incentives, which were implemented under Section 1603 of the American Recovery and Reinvestment Act of 2009, helped to support continued capacity additions throughout the recession. The impending expiration of these grants caused a wave of merger and acquisition (M&A) activity during 2011 as developers and financiers rushed to get deals done and to begin construction in order to meet the Section 1603, 5-percent safe harbor threshold by the Dec. 31, 2011 deadline.

(October 2011) Wind Capital group selects RMT Inc. to design and construct wind energy facility; MEMC Electronic Materials, Inc. and SunEdison acquire Fotowatio Renewable Ventures; Solar Community and Reliant Energy team up to offer financing options; KEMA selects Green Energy Corp.’s software; Leviton unveils commercial electric vehicle charging stations; plus announcements and contracts involving Science Applications International Corp., Tantalus, FirstEnergy Nuclear Operating Co. and others.

Some of the key policy mechanisms and market factors that triggered the boom in renewable energy development have weakened in the face of one of the most severe economic downturns in modern history. In some ways, though, the renewables sector is richer and more dynamic today than when the boom began. A shakeout might be coming among renewable power players, and those that survive will strengthen their capabilities, hone their strategies, and take advantage of industry consolidation to build scale.

The U.S. utility industry has never faced a more uncertain legal and regulatory landscape. From FERC demand-response pricing to state ratemaking disputes, legal trends and decisions are reshaping the power and gas market. The industry’s top legal minds provide strategic counsel. By definition, a battlefield is an ugly place. Conflict creates chaos, uncertainty and danger.

California’s new feed-in tariff (FIT) is creating a burgeoning market for green energy investments, but the policy has sparked a fierce battle over state authority to dictate wholesale power transactions. A federal case will determine whether the 1978 Public Utility Regulatory Policies Act pre-empts states from requiring purchases that exceed utilities’ avoided cost.

Despite state efforts to follow the European model of state-mandated feed-in tariffs to promote renewable power, these actions won’t pass Constitutional muster. The Supremacy Clause makes a formidable legal barrier.

Despite state efforts to follow the European model of state-mandated feed-in tariffs to promote renewable power, these actions won’t pass Constitutional muster. The Supremacy Clause makes a formidable legal barrier to states’ FIT policies.

The Province of Ontario, Canada is the first jurisdiction in North America to implement a European style feed-in tariff (FIT). It also was the first jurisdiction in North America to have a comprehensive standard-offer program for electricity supply from renewables.

Frontlines

The blackout could doom deregulation, but why treat reliability and reform as either-or?

Driving west near Cleveland on the Ohio Turnpike back in August, a few days after the big blackout, I saw what looked like a small helicopter hovering up ahead, about 25 feet from the top of a transmission tower.

Was this a prank? Had terrorists struck? Or was it the local TV news station, just trying to get a closer look?

Frontlines

DSM Revisited