Business & Strategic
"Risk comes from not knowing what you're doing." Warren Buffett
Many are quick to advocate for renewable energy as a viable replacement to fossil fuel, but few understand the dynamic landscape which large scale project developers, institutional investors and lenders must navigate to develop and operate these assets profitably over the long term.
Complications begin with the intersection of federal investment tax credits, ever changing state incentives (up-front grants, feed in tariffs and SRECs) and tremendous growth in exploration for natural gas in North America which has fundamentally re-calibrated utility generation costs.
Macro challenges emanate from US/China tariffs and emerging battery-storage technology, with micro challenges including a wide spectrum of zoning laws, sub-station capacity and widespread uncertainty among municipalities as to how to tax this evolving industry under PILOTs.
There are also the normal construction and underwriting considerations, including bankable component suppliers/contractors, environmental/wetlands restrictions, permitting, insurance/bonding, site control, EPC and PPA Agreements, and the inevitable project which has gone sideways.
Over the last decade, our attorneys have sat in each seat, as advisors and asset owners. There has proven to be no better education than long-term, feet on the ground, project execution, with bankable strategic partners who span the full breadth of the value chain.