Project Finance NewsWire

Publication April 2016

The Project Finance NewsWire reports on new developments affecting the power sector, gas pipelines, LNG terminals, energy storage facilities, energy efficiency, biofuels, gasification, water, toll roads, bridges, ports, stadiums and other infrastructure. We report from the perspective of a law firm down in the trenches on deals. The NewsWire is published every other month and goes to 46,000 people.

In this issue

Learning from Venus

by John Schuster, with 32 Advisors in Washington Even 50 years into the women’s liberation movement and even with increasing numbers of women at the negotiating...

April 12, 2016

Solar Securitizations: Practical Advice

Solar securitizations may see a hiatus for part of 2016 in anticipation that equilibrium will be restored in the debt capital markets...

April 12, 2016

Solar Tax Equity Update

A record number of people — more than 900 — attended a solar finance and investment summit in San Diego in March, reflecting the strong interest among developers...

April 12, 2016

New US Tax Rules Could Reclassify Debt as Equity

New regulations the Internal Revenue Service proposed in early April to try to halt corporate inversions could affect all uses of debt between affiliated...

April 12, 2016

Fund Managers Take Note

Private equity funds that engage in active management of portfolio companies are troubled by the decision in a lawsuit involving Sun Capital Partners. The decision...

April 12, 2016

Net Metering in Play in Multiple US States

Adjustments to standard net energy metering policies are possible in eight, and likely in another two, US states during the remainder of 2016...

April 12, 2016

Stronger US Focus on Africa

The US government took steps in February to ensure that the Power Africa initiative will last beyond when the Obama administration leaves office...

April 12, 2016

Financing Renewable Energy Projects with the US Military

Projects with the US military present special challenges. Financiers focus on the revenue stream...

April 12, 2016

World Bank Guarantees for Private Projects

The World Bank has rolled out an enhanced guarantee program, building on 25 years of experience in issuing “partial risk” and “partial credit” guarantees...

April 12, 2016

Environmental Update

Attorneys general from Massachusetts and the US Virgin Islands announced in late March that they are joining ongoing efforts by New York and California to...

April 12, 2016

In other news

Mexico Tees Up Another PPA Auction

Mexico has scheduled the next auction for long-term power contracts for August. Bidders will be invited to participate in April...

April 12, 2016

Argentina Sets Power Contract Auction

Argentina is expected to award up to 1,000 megawatts of long-term power contracts in an auction in May...

April 12, 2016

Suing Treasury May Lead to a Counterclaim

Treasury cash grant litigation carries risk to companies suing for additional payments that the government may ask for money back...

April 12, 2016

Gas-Fired Power Plants

Gas-fired power plants remain able to attract favorable financing...

April 12, 2016

Investment Tax Credit

US investment tax credit regulations are unlikely to be updated before 2017...

April 12, 2016

Master Limited Partnerships

Master Limited Partnership investors may be in for a rude surprise when the MLPs have to restructure debt...

April 12, 2016

US Inbound Acquisitions

CFIUS reported to Congress in February that foreign companies submitted 147 proposed acquisitions of US companies to it for review in 2014...

April 12, 2016

India

India continues trying to collect taxes from foreigners holding investments in India through offshore holding companies when shares in the offshore companies are...

April 12, 2016

Solar Data

US solar companies are expected to install 16,000 megawatts of solar panels in 2016, up from 7,300 megawatts in 2015, according to a Solar Energy Industries...

April 12, 2016

US Electricity Demand

US electricity demand fell 1.1% last year, the fifth decline in the last eight years...

April 12, 2016

Coal Retirements

Forty-one coal-fired power plants with a generating capacity of 5,600 megawatts are expected to be retired in 2016 in the United States, according to the US Energy...

April 12, 2016

Wholesale Electricity Prices

Wholesale electricity prices were up 2.6% across the United States and Canada in 2015. The largest increases were a 10.9% increase in Florida and a 10.2% increase...

April 12, 2016

Greenhouse Gas Emissions

Greenhouse gas emissions remained flat globally for the second year in a row in 2015, according to the International Energy Agency. Emissions are decoupling from...

April 12, 2016

Oregon

Oregon moved to phase out use of coal for generating electricity and to increase the share of electricity that comes from renewable energy. The effort to bar use...

April 12, 2016

Oklahoma

Oklahoma will go at least another year without scaling back production tax credits for wind or adding new incentives to use natural gas. The state faces a $1.3...

April 12, 2016

Refined Coal

A refined coal transaction got raked over on audit...

April 12, 2016

Solar Subsidies

Solar subsidies paid by a state to homeowners to encourage them to install rooftop solar systems do not have to be reported by the homeowners as income, the IRS...

April 12, 2016

Placed-in-Service Date

A solar project will be considered in service for tax purposes even though the utility with which the project is interconnected has not finished the intertie to...

April 12, 2016

Warrants

Warrants are addressed by the IRS. Banks and tax equity investors sometimes ask for warrants in a project developer in exchange for financing one or more of its...

April 12, 2016

Anti-Bribery Efforts

Anti-bribery efforts are expected to step up in the United States. The US Department of Justice is hiring another 10 prosecutors for its unit that enforces the...

April 12, 2016

Minor Memos

Minor Memos. More than half of House Republicans have co-sponsored a bill to “blow up” the US tax code at the end of 2019 in order to force Congress to start over...

April 12, 2016


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