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IRS Provides Relief for Offshore Wind and Federal Land Projects

New guidance from the Internal Revenue Service (IRS) extends the Continuity Safe Harbor to 10 years for both offshore wind projects and projects on federal land. The relatively quick release of this guidance following enactment of the offshore wind investment tax credit (ITC) last week suggests strong support for these projects by Congress, the US Department of the Treasury and IRS. Access the article.

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COVID-19 Stimulus Bill Includes Key Renewable Energy Tax Credits

The US stimulus bill passed into law yesterday includes several key extensions and additions to the tax credits available for renewable energy. The bill had been agreed to by Congress early last week and was signed into law by the president last night. Access the full article here.

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New York Announces One of the World’s Largest Procurements for Offshore Wind and Onshore Renewable Energy Projects.

On July 21, 2020, New York Governor Andrew Cuomo announced the largest combined clean energy solicitation ever issued in the United States, seeking up to 4 GW of renewable capacity. This capacity is broken up into 2500 MW of offshore wind and 1500 MW of onshore large-scale renewable energy projects. Access the full article.

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Five Takeaways: What’s New in Energy Private Equity? Trends and Developments in a Shifting Investment Landscape

McDermott recently hosted Andrew Ellenbogen of EIG Partners and Jeff Hunter of Apollo Global Management for a lively discussion about the trends and developments in today’s shifting investment landscape. Below are key takeaways from this week’s webinar. 1. The most impactful changes in energy investment over the last decade have been the drop in natural gas prices, the decrease in the cost of capital for renewable investments and the increase in renewable capacity factors (and a dramatic decrease in equipment pricing). 2. As the energy market has become crowded for traditional operating assets, some investors are seeking opportunities in non-traditional spaces, such as investing in non-traditional technologies (such as solar plus storage or offshore wind) or investing in service providers or construction companies. 3. In search of returns, some investors are continuing to take a greater amount of merchant risk or development risk than they previously would...

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Massachusetts Legislation Spurs Offshore Wind Power Development

On August 8, 2016, Massachusetts Governor Charlie Baker signed into law a major energy bill aimed at putting Massachusetts at the forefront of states developing offshore wind power. The law, An Act Relative to Energy Diversity (H. 4568), requires Massachusetts electricity distribution companies to procure 1,600 megawatts (MW) of offshore wind energy by June 30, 2027. The United States currently has no offshore wind generation, but Rhode Island wind developer Deepwater Wind is nearing completion of a 30 MW offshore wind farm, which will be the first of its kind in the country. In a statement, Governor Baker’s office said the bill “spurs the development of an emerging offshore wind industry…and represent[s] the largest commitment by any state in the nation to offshore wind.” The new law requires Massachusetts distribution companies and the Department of Energy Resources (DOER) to jointly develop a competitive bidding process for offshore wind energy generation...

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United States’ First Offshore Wind Farm Obtains Critical Federal Approval

by Bethany K. Hatef For the fourth time the Federal Aviation Administration (FAA) on August 15, 2012 issued a Determination of No Hazard to the proposed Cape Wind project, which, if constructed after a decade of planning, will be the United States’ first offshore wind farm.  Energy Management Inc., the project’s developer, proposes to construct and operate 130 wind turbines in a 25-square-mile shallow area of Nantucket Sound known as Horseshoe Shoal at an estimated cost of $2.5 billion.  The project has now received all required permits, including Construction and Operations Plan approval from the Bureau of Ocean Energy Management, Regulation and Enforcement and various other federal and state approvals, and a 25-year commercial lease from the Department of the Interior. The FAA began its review of the Cape Wind project in 2002 and originally approved the project in May 2010, but the Cape Cod town of Barnstable and the Alliance to...

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DOE Previews Significant Funding Opportunities for Offshore Wind

by Kimberly Glasspool The Department of Energy (DOE) has announced new funding opportunities for offshore wind energy projects.  The DOE has not yet confirmed the amount of new funding that will be made available, but early indications from officials suggest grants could total between $100 million to $175 million.  The DOE awards are expected to cover roughly half of a selected offshore project’s total costs.  According to a draft funding announcement  available on the DOE’s website, the focus of this assistance is to support advanced technology demonstration projects that test new technology and verify performance and cost under actual operating and market conditions.  The announcement indicates that one of the primary goals of providing financial assistance to advanced technology demonstration projects is to expedite development of offshore wind farms with the potential for bringing the cost of energy down to a point...

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Maryland Poised to Develop Offshore Wind Resources

by Benjamin B. McReynolds Promoting development of Maryland’s considerable offshore wind energy resources tops Governor Martin O’Malley’s recently announced 2012 legislative agenda. The Maryland Offshore Wind Energy Act of 2012, S.B. 237, if enacted, will tweak the state’s existing renewable portfolio standard (RPS) to require that a small percentage (no more than 2.5 percent) of generation be sourced from qualifying offshore wind projects. The current draft of the bill requires utilities to meet the new offshore wind RPS beginning in 2017 and specifies that qualifying projects must interconnect to the PJM Interconnection at a point located on the Delmarva peninsula. Maryland’s utilities will be able to satisfy the offshore wind RPS by obtaining (through development or purchase) a new category of renewable energy credit (REC) — the offshore wind renewable energy credit (OREC). The Maryland bill borrows...

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