QUICK NEWS, May 1: WHAT WILL WIN WIND’S PTC EXTENSION; BIG SUN GETS BANK BACKING; SMOOTHING THE GRID

WHAT WILL WIN WIND’S PTC EXTENSION House Committee Hearing Sheds Light On Wind PTC Extension Tactics

Laura DiMugno, 26 April 2012 (North American Windpower)

“Several U.S. congressmen - Democrat and Republican - spoke out in favor of the wind energy production tax credit (PTC)…in a U.S. House Ways and Means Committee hearing focused on tax extenders…Although the hearing was intended to address many of the tax provisions that expired last year or are scheduled to expire this year, the spotlight was on the PTC, with a focus on wind power…

“Of the seven congressmen present at the hearing, only one opposed an extension to the PTC: Rep. Mike Pompeo, R-Kan., who has pushed repeatedly for a repeal of all energy tax credits, including those for wind energy. In fact, as Ranking Member Richard Neal, D-Mass., pointed out, Pompeo is just about the only member of the House in favor of that policy…Even Rep. Steve King, R-Iowa, who Neal called one of the “most conservative” congressmen in the House, is encouraging an extension of the wind energy PTC…”

click to enlarge

“Despite the overwhelming bipartisan support for the PTC, it still hasn’t managed to be renewed, even after several failed attempts to attach an extension to other legislation - such as the payroll tax bill and the transportation bill…[though] the PTC has had 93 bipartisan sponsors. So what’s it going to take to actually get it passed?

“Rep. Tom Reed, R-N.Y., stressed that rather than politicizing renewable energy as a partisan issue, Congress should emphasize the economic and energy security benefits wind and solar power bring to the nation…[Because many Republicans in Congress] are in favor of an “all of the above” energy approach that includes renewable energy and a PTC for wind power and other renewables…the most logical way for the PTC to be renewed might be to include incentives for other types of energy, not just wind, the congressmen at the hearing hinted…” BIG SUN GETS BANK BACKING Bankrupt Developer Solar Trust Of America Receives New Loans

27 April 2012 (Solar Industry)

“Solar Trust of America LLC, which filed for bankruptcy earlier this month, has been approved to receive financing from Mason Capital Management LLC. The funding includes $25 million in working capital loans and $18.3 million in letters of credit, according to a bankruptcy court order…”

click to enlarge

“Solar Trust of America…is building the 1 GW Blythe solar plant in California. As the company's bankruptcy case proceeds, the fate of the Blythe project remains uncertain. NextEra Energy has been repeatedly named as a potential buyer, but the company has yet to submit a bid…With the new round of loans from Mason Capital, Solar Trust of America is now expected to receive a longer window for selling…” SMOOTHING THE GRID Annual Worldwide Revenues from Frequency Regulation Services Will Surpass $27 Billion by 2022

April 26, 2012 (Pike Research)

"Frequency regulation services, which balance the fluctuations between electricity generation and electrical load and manage the variability in the grid’s frequency output, have traditionally been tied to the wholesale energy market. Today, a second key driver has emerged: intermittent renewable energy. Solar PV, wind, and other intermittent resources are causing frequency instabilities on the electrical grid that require more extensive regulation capability across a wider swath of the grid…

"…In addition, in the face of energy security concerns, major economies are mandating changes in energy mixes globally, altering the mix of technologies available to deliver frequency regulation. New opportunities in the frequency regulation sector are emerging in countries that are liberalizing or deregulating electricity markets, and… in fully deregulated markets that are changing market rules to differentiate the quality of frequency regulation delivered by various technologies…"

click to enlarge

"…According to a new report from Pike Research, the amount of frequency regulation required globally is expected to increase over the next decade, thanks to increased volatility in both generation and load. The total value of the frequency regulation market will grow from $19.5 billion in 2012 to $27.2 billion in 2022…a compound annual growth rate of 3.5%. "Under a more aggressive scenario, revenue from frequency regulation services could reach $56.8 billion in 2022…Whereas the cost of technology typically decreases over time, that is not the case for a service like frequency regulation…[W]ith greater economic activity (and thus demand for energy), more and more diversity in generation assets globally, and increased market liberalization…the value of frequency regulation [is likely to] increase over time…[P]er megawatt hour…Pike Research expects…frequency regulation [to] be worth more in 2022 than in 2012…"