A bill that would set California on a trajectory toward carbon-free emissions from its electric power sector cleared a major hurdle with its passage through the California State Legislature. SB 100 (De León), The 100 Percent Clean Energy Act of 2018, sets a state policy that eligible renewable energy and zero-carbon resources supply 100 percent (%) of all retail sales of electricity in California by 2045. 
Continue Reading California Legislature Passes Bill Putting State on Path to 100% Renewable and Zero-Carbon Power

On 4 April 2018, Covington’s client Building Energy, a multinational company operating in the renewable energy industry, signed a power purchase agreement (PPA) with the South African state owned utility Eskom Holdings SOC Ltd (Eskom) to build, own and operate a 147 MW wind plant in Roggeveld (on the border of the Western and Northern Cape provinces of South Africa). Building Energy had been awarded preferred bidder status under Round 4 of the South African Department of Energy Renewable Independent Power Producer Procurement (REIPPP) programme for the wind project in April 2015. The Roggeveld wind farm will generate around 613 GWh per year and the energy generated will provide energy to 49,200 households every year, while avoiding the emission of about 502,900 tons of CO2 emissions. Construction work is scheduled to begin in 2018 and the commercial operation date is foreseen to be in April 2021. Matteo Brambilla (Building Energy’s Managing Director for Africa and the Middle East) commented “We are delighted to have signed the agreement in the presence of Minister of Energy of South Africa, for the construction of the Roggeveld plant, which represents our first wind farm in South Africa. We are also excited to develop two of the 2.3GW of renewable energy projects allocated by South African Government in the first major investment deal under President Cyril Ramaphosa”.
Continue Reading The Roggeveld Wind Farm in South Africa

Energy storage has frequently been cited as the critical missing link in an electric infrastructure designed to maximize the benefits of cheap, renewable energy.  Because energy from the sun and the wind is inherently intermittent, it has not been able to satisfy a round-the-clock need for electricity.  And in many places we’ve built more renewable

A recently-published NAFTA arbitration award in Windstream Energy LLC v. Government of Canada illustrates the perils of investing in clean energy projects in jurisdictions with ever evolving regulatory and policy frameworks.  The case is also a good reminder of the importance of investing in foreign jurisdictions through vehicles incorporated in countries that have adequate investment-protection

As expected, with the inauguration of President Trump all Obama Administration content on the White House website has been replaced with content of the new Administration. The new content includes “An America First Energy Plan”, the entire focus of which is national security and job creation benefits of the Administration’s “embrace” and promotion of

The Trump Administration will take office intent on reversing many Obama Administration policies. Although the Trump Administration’s publicly released 100-day plan does not announce a new energy policy, campaign promises and priorities of the Republican-controlled Congress suggest a number of early initiatives that will impact the power sector.  Moreover, the Trump transition team for the Department of Energy signaled a variety of potential energy policy priorities in requesting information from the outgoing Obama Administration.  The impacts of these regulatory and legislative initiatives will need to be evaluated against the backdrop of market, technology, international, and consumer driven dynamics that are transforming the power sector independent of federal law and policy.  The Covington Energy Group will be watching closely the new Administration’s and Congress’ initiatives and evaluating their significance in altering or reinforcing the transformative changes sweeping the power sector.  Below, we identify the more prominent expected initiatives from the new Administration.
Continue Reading Watching for Initiatives from the Trump Administration and Congress Affecting the Power Sector

Fundamental changes in the way that the electric utility and power sector operates, interacts with customers, and relates to its regulators are occurring on a massive scale and at an unprecedented pace. Covington is committed to exploring these transformations affecting the power sector, helping our clients to understand and navigate the changes, and fostering collaborations to respond to the evolving nature of the power grid.

To this end, Covington has hosted a series of conversations with key thought leaders in industry and government to address the ramifications of these transformations. The first two conversations in the fall of 2015 focused on both the technology that underlies and enables these changes, and the response of the regulatory framework to the rise of distributed generation and a far more nimble and customer-oriented array of electricity services. A summary of these conversations can be found here.

On October 5, 2016 Covington, in collaboration with the American Council on Renewable Energy (ACORE) and Advanced Energy Economy (AEE), hosted a conversation devoted to the issue of corporate energy procurement. Senior representatives of corporations, utilities, developers, government agencies and NGOs participated in person and by webinar. Followers on Twitter joined the conversation at #CovingtonGOTF. Highlights of the discussion appear below with a link to the full audio replay.

October 5, 2016 – Covington’s Washington, DC Office Corporate Procurement & Renewable Energy: Market Overview (click here for the recording)


Continue Reading Grid of the Future: Opportunities, Challenges, and Solutions in Corporate Energy Procurement

As part of an ongoing Department of Defense (“DoD”) effort to increase its energy efficiency,  late last month the U.S. Army committed to develop its largest renewable energy project to date — a 65MW  wind and solar  project at Fort Hood.  This ambitious project will need to comply with the latest DoD rules regarding sourcing requirements for photovoltaic (“PV”) devices.  We previously analyzed the proposed rule issued by DoD in May 2015 that placed stricter sourcing requirements on PV devices.  Toward the end of last year, DoD issued a final rule implementing the requirements of the proposed rule with relatively minimal, but still notable, changes.  The solicitation for the Fort Hood project was amended to add the updated DFARS clause implementing this final rule.  The final rule tightens the sourcing restrictions for PV devices and may raise some compliance challenges for contractors.
Continue Reading Strict DoD Sourcing Requirements for PV Devices

Last week, California Governor Jerry Brown signed the Clean Energy and Pollution Reduction Act of 2015.  The law establishes ambitious energy efficiency and renewable energy goals for California, including increasing from 33% to 50% the procurement of California’s electricity from renewable sources and doubling the energy efficiency savings through energy efficiency and conservation.

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