ESF RESEARCH. Natural Gas and Renewables are Complements, Not Competitors. North America Fossil Fuels Natural Gas. June 25, 2013 Industry Brief

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "ESF RESEARCH. Natural Gas and Renewables are Complements, Not Competitors. North America Fossil Fuels Natural Gas. June 25, 2013 Industry Brief"

Transcription

1 ENERGY SOLUTIONS FORUM INC. ESF RESEARCH North America Fossil Fuels Natural Gas June 25, 2013 Industry Brief Natural Gas and Renewables are Complements, Not Competitors Angelique Mercurio Founding Partner Overview Many renewable energy supporters tout the claim that cheap natural gas prices will delay deployment of renewable energy technologies. However, this is contrary to reality, and investors and policymakers have clear market-based incentives to invest simultaneously in both natural gas generation and renewables. In fact, natural gas can serve as a complement to renewable energy, and investment in natural gas could actually help make renewables more economically feasible in the long run. The key takeaway is that the cheapest option is not always the best option. The best investment opportunities minimize risk and provide certainty, reducing the variance of expected future costs and portfolio risk. i Key Takeaways: Natural gas and renewable energy are complements, not competitors. The best energy investment opportunities seek to reduce the variance of expected future costs and portfolio risk. The combined investment in both renewable energy and natural gas-fired generation offers portfolio diversification benefits from two sources with different but complementary risk profiles. Natural gas-fired generation can rapidly ramp up and offset renewable energy s variability, while renewables offer fuel price stability (contributing as a fixed cost portfolio component) and low emissions to hedge against regulatory risk. Investing in both renewable energy and natural gas-fired generation can help optimize investment portfolios and the nation s energy mix. This report is for industry information only and we make no investment recommendations whatsoever with respect to any of the companies cited, mentioned, or discussed herein. Please refer to the end of this report for analyst certification(s) and other important disclosures.`

2 Reduce Risk by Investing in Both Natural Gas and Renewables Natural gas and renewable generation offer complementarities that range from political to economic, technical, and environmental considerations. Within each of these overarching categories, there are various types of risk spanning across environmental regulation compliance costs to fuel supply and price uncertainty. Although energy investments and policy planning have traditionally relied upon leastcost option analyses as costs per unit of output (levelized costs) can encourage or redirect investment, ii today s energy market is characterized by an uncertain future and a range of technology options. iii Even with some of the attempts that have been made to fully capture benefits such as demand side management, these efforts still focus on leastcost analyses. Given the long-term and more or less permanent nature of highly capitalintensive investments such as energy projects, once an energy investment is pursued and a technology is deployed, investors are exposed to the risk of that investment such as fuel and generating costs for many years. iv Successful energy investment decision-making must go beyond strictly least-cost analyses and apply portfolio optimization theory to balance costs, reliability and risks. v And the complementary risk profiles of natural gas and renewable energy can enhance a portfolio s stability when both are present. Economic Factors Electricity generation faces risks that directly affect a company s cash-flow. This can contribute as either cost or revenue-related risks such as fuel availability and price volatility, demand spikes, costs of carbon (i.e. environmental regulation compliance risk), and electricity price risks. Although renewable energy projects are capital-intensive and require significant upfront investments, they face low operational costs and remain relatively immune to fuel price volatility, adding a fixed cost component to the portfolio. At the same time, natural gas remains extremely vulnerable to fuel price volatility, which adds a variable and uncertain cost component. vi Natural gas is currently experiencing low and relatively stable prices, however, fuel prices, which are important for electricity planning, are generally highly uncertain and volatile in the long run. For example, the first of the following figures illustrates U.S. Energy Information Administration (EIA) forecasts of U.S. wellhead natural gas prices, adjusted for inflation (blue lines) compared with actual prices (orange line). This demonstrates that predicting natural gas prices is very uncertain and risky. The second of the two figures illustrates costs of The remainder of this report summarizes the risk that must be captured in energy investment analysis with a focus on the complementariness of natural gas-fired and renewable energy generation, making the case for their simultaneous pursuit Energy Solutions Forum Inc. All rights reserved. 2

3 natural gas with and without accounting for volatility, and it demonstrates that wind energy actually fares better than natural gas in the long run when volatility is incorporated into the cost. drawbacks of renewable generation. Renewable energy is often extremely variable and cannot meet drastic demand spikes. Natural gas combined cycle and combustion turbines can rapidly ramp up to meet demand in those cases, and this ability of generators to provide such flexibility that is required by variable renewable energy generation must be valued appropriately. However, although natural gas is relatively clean-burning and offers rapid ramp-up, the regulatory climate of natural gas development remains highly uncertain. There is tremendous public pushback on the industry as natural gas development moves into areas that are unfamiliar with the practice, particularly in New York where there remains an ongoing statewide ban on hydraulic fracturing. Including the fixed-cost element of renewable energy in a portfolio lowers the expected cost (adjusted for risk) even if the initial project costs are higher. The fixed-cost nature can help hedge fossil fuel price risk. Environmental, Technical, and Political Consideration Both natural gas and renewable energy offer environmental improvements over oil and coal, and the current U.S. administration supports development of both natural gas and renewables. If there are further environmental regulations to consider in the future, such as another increase in the cost of carbon, then the flexible portfolio of including natural gas and renewable energy can help reduce the risk of higher costs from coal or oil. Cleaner energy technologies both natural gas and renewable energy will be more attractive. At the same time, the current political agenda seeks to pursue clean and efficient energy resources. If an investor wishes to hedge against the risk of there being increased costs associated with increased environmental compliance costs for developing natural gas in the future, investing in renewable generation could help offset that risk. Further, while development of natural gas in the U.S. is bringing tremendous benefits, overreliance poses demand shortage and price spike risks. For example, in New England, electricity prices rose to levels that were four to eight times higher than normal in February 2013 as heating demand spiked. This increase is not only important for consumers, but businesses relying upon natural gas for their needs also faced dramatic increases in operating costs. A more diversified energy mix could reduce this vulnerability. Including natural gas, rather than strictly renewable energy in a portfolio mix when aiming to reduce emissions, offsets some of the Lastly, although the current administration supports renewable energy development, investors must remain wary of potential future 2013 Energy Solutions Forum Inc. All rights reserved. 3

4 political shifts that could change the risks associated with their current investments. If there is a swing in the political party of the administration, energy development trends could also shift. A diversified portfolio can offset increased costs that may arise as a result of administration changes. Capital Costs One last consideration is that the currently cheap natural gas prices could provide the opportunity to offset the higher initial costs of renewable energy, aiding in deployment to the point where the capital costs of renewable energy become more competitive. With the help of natural gas low prices in a portfolio, renewable energy capital costs could be dramatically reduced and offer low-cost benefits in addition to meeting environmental regulations. Conclusion While there are various economic, environmental, and political factors that incentivize simultaneous development of natural gas and renewable energy generation, there remains somewhat of a perception that low natural gas prices are delaying renewable energy deployment. At the same time, there are numerous environmental concerns associated with natural gas extraction, which has sparked a movement against its development. However, natural gas and renewable energy generation offer many complementarities that help balance the risks in an energy portfolio. It is important for not just private investors but also policymakers to consider these implications. New York s Renewable and Natural Gas Potential The U.S. Energy Information Administration (EIA) estimates that the Marcellus shale could hold more than 141 trillion cubic feet of technically recoverable natural gas. This offers tremendous natural gas potential to the state of New York if the ongoing hydraulic fracturing moratorium is lifted. At the same time, New York s Renewable Portfolio Standard requires that by 2015, 30 percent of electricity come from renewable energy resources. While New York achieved 24 percent of electricity from renewable energy resources in 2011, it had the fourth highest average electricity prices in the nation. Combined pursuit of natural gas and renewables to continue its clean energy portfolio goals could offer the benefits of lower and more stable prices, and could even drive down the cost of renewables Energy Solutions Forum Inc. All rights reserved. 4

5 Disclosures Section RESEARCH RISKS Regulatory and Legislative agendas are subject to change. AUTHOR CERTIFICATION By issuing this report, Angelique Mercurio as author(s) of this report, certifies that recommendations or opinions that may be expressed herein accurately reflect her/his personal views and no part of the author s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. IMPORTANT DISCLOSURES This report is for industry information only and we make no investment recommendations whatsoever with respect to any of the companies cited, mentioned, or discussed herein. Energy Solutions Forum Inc. Energy Solutions Forum Inc. is not a broker-dealer or registered investment advisor. Information contained herein has been derived from sources believed to be reliable but is not guaranteed as to accuracy and does not purport to be a complete analysis of the company, industry or security involved in this report. This report is not to be construed as an offer to sell or a solicitation of an offer to buy any security or to engage in or refrain from engaging in any transaction. Opinions expressed are subject to change without notice. The information herein is for persons residing in the United States only and is not intended for any person in any other jurisdiction. This report has been prepared for the general use of the wholesale clients of the Energy Solutions Forum Inc. and must not be copied, either in whole or in part, or distributed to any other person. If you are not the intended recipient you must not use or disclose the information in this report in any way. If you received it in error, please tell us immediately by return to and delete the document. We do not guarantee the integrity of any s or attached files and are not responsible for any changes made to them by any other person. In preparing this report, we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this (or any) report, you need to consider, with or without the assistance of an adviser, whether the advice is appropriate in light of your particular investment needs, objectives and financial circumstances. We accept no obligation to correct or update the information or opinions in it. No member of Energy Solutions Forum Inc. accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this report and/or further communication in relation to this report. For additional information, please visit energysolutionsforum.com or contact management team: Angelique Mercurio or Eric Davis at (212) Copyright 2013 Energy Solutions Forum Inc. All rights reserved. No part of this report may be redistributed or copied in any form without the prior written consent of Energy Solutions Forum Inc. i Awerbuch, S., Portfolio-Based Electricity Generation Planning: Implications for Renewables and Energy Security, prepared for REEP Environmental Policy Department and United Nations Environment Programme ii Gross, Robert, William Blyth and Heptonstall, P., Risks, revenues and investment in electricity generation: Why policy needs to look beyond costs, Energy Economics 32 (2010) iii Awerbuch, S., Portfolio-Based Electricity Generation Planning: Implications for Renewables and Energy Security, prepared for REEP Environmental Policy Department and United Nations Environment Programme iv Ibid. v Wiser, R., Bachrach, D., Bolinger, M., and Golove, W., Comparing the risk profiles of renewable and natural gasfired electricity contracts. vi Bolinger, M., Wiser, R., Golove, W., Accounting for fuel price risk when comparing renewable to gas-fired generation: the role of forward natural gas prices, Energy Policy 34 (2006) Energy Solutions Forum Inc. All rights reserved. 5

DOE Announces $1B Loan Guarantee Fund For Distributed Energy Projects

DOE Announces $1B Loan Guarantee Fund For Distributed Energy Projects RESEARCH North America Alternative Energy Smart Grid DOE Announces $1B Loan Guarantee Fund For Distributed Energy Projects Financing Structure Aimed At Innovative Large-Scale Distributed Energy Projects

More information

New ISO-NE Return on Equity Rate Could Impact Future Transmission Decisions

New ISO-NE Return on Equity Rate Could Impact Future Transmission Decisions RESEARCH North America Power and Utilities Energy Efficiency New ISO-NE Return on Equity Rate Could Impact Future Transmission Decisions Continued Transmission Investments Key to Electric Grid Reliability

More information

Regulators Reconsider Utility Hedging Policies Given Shifts In Natural Gas Flow

Regulators Reconsider Utility Hedging Policies Given Shifts In Natural Gas Flow RESEARCH North America Fossil Fuels Natural Gas Regulators Reconsider Utility Hedging Policies Given Shifts In Natural Gas Flow Utilities Prioritize Price Stability Over Cost Reduction In Fuel Procurement

More information

ECONOMIC OUTLOOK. Quantifying the Shale Gas Revolution s Impact on U.S. Industrial Energy Consumption MAY 2014

ECONOMIC OUTLOOK. Quantifying the Shale Gas Revolution s Impact on U.S. Industrial Energy Consumption MAY 2014 MAY ECONOMIC OUTLOOK Quantifying the Shale Gas Revolution s Impact on U.S. Industrial Energy Consumption THE CARLYLE GROUP 1001 PENNSYLVANIA AVENUE, NW WASHINGTON, DC 20004-2505 202-729-5626 WWW.CARLYLE.COM

More information

SECTION 1. PREAMBLE 3 SECTION 2. EXECUTIVE SUMMARY 4 ABOUT US 6

SECTION 1. PREAMBLE 3 SECTION 2. EXECUTIVE SUMMARY 4 ABOUT US 6 CONTENTS SECTION 1. PREAMBLE 3 SECTION 2. EXECUTIVE SUMMARY 4 ABOUT US 6 Disclaimer notice on page 8 applies throughout. Page 2 SECTION 1. PREAMBLE The New Energy Outlook (NEO) is Bloomberg New Energy

More information

Displacement of Coal with Natural Gas to Generate Electricity

Displacement of Coal with Natural Gas to Generate Electricity Displacement of Coal with Natural Gas to Generate Electricity The American Coalition for Clean Coal Electricity (ACCCE) supports a balanced energy strategy that will ensure affordable and reliable energy,

More information

ESF RESEARCH. Federal Regulations and Tax Credits Support Diesel and Natural Gas Vehicle Adoption. Policy Brief. North America.

ESF RESEARCH. Federal Regulations and Tax Credits Support Diesel and Natural Gas Vehicle Adoption. Policy Brief. North America. ENERGY SOLUTIONS FORUM INC. North America Fossil Fuels Oil & Gas Federal Regulations and Tax Credits Support Diesel and Natural Gas Vehicle Adoption ESF RESEARCH May 12, 2014 Policy Brief Erin Carson Senior

More information

Delivering Clean Energy

Delivering Clean Energy Delivering Clean Energy Meeting Energy Needs Homes and businesses across the country depend on energy to support the economy and sustain a high quality of life. Yet there s also a responsibility to provide

More information

Scenario Study: Natural Gas Prices Deflating

Scenario Study: Natural Gas Prices Deflating WWW.IBISWORLD.COM November 2012 1 November 2012 Scenario Study: Natural Gas Prices Deflating By Antonio Danova What if the price of natural gas bucked its trend of steady growth? And what industries would

More information

Global Climate Disclosure Framework for Oil & Gas Companies

Global Climate Disclosure Framework for Oil & Gas Companies Global Climate Disclosure Framework for Oil & Gas Companies An international initiative in partnership with: Europe North America Australia/New Zealand About IIGCC The Institutional Investors Group on

More information

North American Energy Independence A bump in the road

North American Energy Independence A bump in the road Wealth Management Research October 2015 A bump in the road Nicole Decker Equity Sector Strategist, Energy This report has been prepared by UBS Financial Services, Inc. Please see important disclaimers

More information

Security of electricity supply

Security of electricity supply Security of electricity supply Definitions, roles & responsibilities and experiences within the EU Thomas Barth Chairman of Energy Policy & Generation Committee EURELECTRIC Outline Security of Supply a

More information

Renewable Energy Finance, Market & Policy Overview

Renewable Energy Finance, Market & Policy Overview Renewable Energy Finance, Market & Policy Overview April 2014 Generation (TWh) - Solid Lines Retail Cost ($/kwh) - Dashed Lines Renewable Energy Policy is Driving Massive Private Capital Investment The

More information

IS IT TIME FOR A NEW UTILITY BUSINESS MODEL?

IS IT TIME FOR A NEW UTILITY BUSINESS MODEL? Energy POINT OF VIEW IS IT TIME FOR A NEW UTILITY BUSINESS MODEL? BECOME A MORE AGILE AND EFFECTIVE UTILITY IN AN INCREASINGLY UNCERTAIN ENVIRONMENT AUTHOR Michael Britt, Partner Utilities are grappling

More information

What s Hot in Oil, Gas and Energy Equipment Leasing

What s Hot in Oil, Gas and Energy Equipment Leasing WWW.IBISWORLD.COM October 2013 1 Follow on head on Master page A October 2013 What s Hot in Oil, Gas and Energy Equipment Leasing By David Yang Effective portfolio risk management is vital to the long-term

More information

BACKGROUNDER. Emissions Trading versus CO 2 Taxes. Ian W.H. Parry and William A. Pizer. May 2007

BACKGROUNDER. Emissions Trading versus CO 2 Taxes. Ian W.H. Parry and William A. Pizer. May 2007 BACKGROUNDER May 2007 Emissions Trading versus CO 2 Taxes Ian W.H. Parry and William A. Pizer 1616 P Street NW Washington DC 20036 202-328-5000 www.rff.org Contents Overview... 1 Similarities between CO

More information

Economic Impacts of Potential Colorado Climate Change Initiatives: Evidence from MIT and Penn State Analyses. July 2007

Economic Impacts of Potential Colorado Climate Change Initiatives: Evidence from MIT and Penn State Analyses. July 2007 Economic Impacts of Potential Colorado Climate Change Initiatives: Evidence from MIT and Penn State Analyses July 2007 Introduction California and other western states are actively pursuing a variety of

More information

Emissions Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant

Emissions Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant Emissions Comparison for a 20 MW Flywheel-based Frequency Regulation Power Plant Beacon Power Corporation KEMA Project: BPCC.0003.001 May 18, 2007 Final Report with Updated Data Emissions Comparison for

More information

GLOBAL RENEWABLE ENERGY MARKET OUTLOOK 2013

GLOBAL RENEWABLE ENERGY MARKET OUTLOOK 2013 GLOBAL RENEWABLE ENERGY MARKET OUTLOOK 213 FACT PACK GUY TURNER HEAD OF ECONOMICS AND COMMODITIES APRIL 26, 213 GLOBAL RENEWABLE ENERGY MARKET OUTLOOK, 26 APRIL 213 1 INTRODUCTION This year s Global Renewable

More information

So, What Exactly is Risk Management?

So, What Exactly is Risk Management? So, What Exactly is Risk Management? By Paul Wielgus, Managing Director, GDS Associates, Inc. Buyers, sellers, and others in the energy business need to understand the risks in this very uncertain environment

More information

Visualizing the Production Tax Credit for Wind Energy 1

Visualizing the Production Tax Credit for Wind Energy 1 Visualizing the Production Tax Credit for Wind Energy 1 Jason Dedrick a, Kenneth L. Kraemer b, Greg Linden c a School of Information Studies, Syracuse University, jdedrick@syr.edu b Paul Merage School

More information

Our financing of the energy sector in 2013

Our financing of the energy sector in 2013 Our financing of the energy sector in 213 rbs.com/sustainable About this document This report is the fourth Our financing of the energy sector briefing that we have produced since 21. The aim remains the

More information

The economic competitiveness of nuclear energy

The economic competitiveness of nuclear energy How competitive is nuclear energy? by J.H. Keppler* The economic competitiveness of nuclear energy will be crucial for determining its future share in world electricity production. In addition, the widespread

More information

The Economic Impact of Replacing Coal with Natural Gas for Electricity Production. William A. Knudson. Working Paper 01 0811

The Economic Impact of Replacing Coal with Natural Gas for Electricity Production. William A. Knudson. Working Paper 01 0811 THE STRATEGIC MARKETING INSTITUTE The Economic Impact of Replacing Coal with Natural Gas for Electricity Production William A. Knudson Working Paper 01 0811 80 AGRICULTURE HALL, MICHIGAN STATE UNIVERSITY,

More information

A. M. Best Company & The Rating Process

A. M. Best Company & The Rating Process A. M. Best Company & The Rating Process Raymond J. Thomson, ARe, ARM Senior Financial Analyst, Property/Casualty Ratings Oldwick NJ Disclaimer AM Best Company (AMB) and/or its licensors and affiliates.

More information

Analysis of a 30 Percent by 2030 National Renewable Electricity Standard

Analysis of a 30 Percent by 2030 National Renewable Electricity Standard Analysis of a 30 Percent by 2030 National Renewable Electricity Standard Alison Bailie, Steve Clemmer, and Jeff Deyette May 12, 2015 Photo: istock 2015 Union of Concerned Scientists www.ucsusa.org/30by2030nationalres.pdf

More information

Crafting a Forward Looking Investment Portfolio

Crafting a Forward Looking Investment Portfolio BOURSE SECURITIES LIMITED February 15th, 2016 Crafting a Forward Looking Investment Portfolio This week, we at Bourse evaluate the investment considerations and opportunities having looked previously at

More information

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET A Pöyry briefing note Electricity Market Reform (EMR) proposals, intended to deliver the transition to a decarbonised electricity sector, have

More information

Mobilizing capital towards a low-carbon economy

Mobilizing capital towards a low-carbon economy Mobilizing capital towards a low-carbon economy Anthony Hobley CEO, Carbon Tracker Initiative Bruegel, Brussels 27 th April 2015 Who Are We? Identity Mission Strategy Carbon Tracker is a non profit financial

More information

Transparency in Private Equity. General

Transparency in Private Equity. General Transparency in Private Equity Top Level Findings Institutional investor allocations to private equity are expected to increase over the next five years Investors expect increased levels of demand among

More information

Global Risk & Trading Practice STARING INTO THE EYE OF THE STORM AIRLINES NEED A NEW GAME PLAN FOR HEDGING FUELS - NOW. Cantekin Dincerler Mark Robson

Global Risk & Trading Practice STARING INTO THE EYE OF THE STORM AIRLINES NEED A NEW GAME PLAN FOR HEDGING FUELS - NOW. Cantekin Dincerler Mark Robson Global Risk & Trading Practice STARING INTO THE EYE OF THE STORM AIRLINES NEED A NEW GAME PLAN FOR HEDGING FUELS - NOW Cantekin Dincerler Mark Robson VOLATILE COMMODITY PRICES It may seem like a distant

More information

Canada s Energy Sector in a Changing Global Market. Kristi Varangu Director, International Energy Division March 10, 2014

Canada s Energy Sector in a Changing Global Market. Kristi Varangu Director, International Energy Division March 10, 2014 Canada s Energy Sector in a Changing Global Market Kristi Varangu Director, International Energy Division March 10, 2014 2 Purpose Illustrate the profound changes that are taking place in global and North

More information

TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING

TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING Tim McCullough July 2014 Contents Summary of trading single FX options versus FX spot and forwards Summary of trading FX risk reversals as proxy

More information

IN THE MATTER OF ASSURANCE OF DISCONTINUANCE PURSUANT DYNEGY INC., TO EXECUTIVE LAW 63(15)

IN THE MATTER OF ASSURANCE OF DISCONTINUANCE PURSUANT DYNEGY INC., TO EXECUTIVE LAW 63(15) ATTORNEY GENERAL OF THE STATE OF NEW YORK INVESTOR PROTECTION BUREAU ENVIRONMENTAL PROTECTION BUREAU ---------------------------------------------------------------------X IN THE MATTER OF ASSURANCE OF

More information

The Outlook for Nuclear Energy In a Competitive Electricity Business

The Outlook for Nuclear Energy In a Competitive Electricity Business 1776 I STREET N.W. SUITE 400 WASHINGTON, D.C. 20006 202.739.8000 The Outlook for Nuclear Energy In a Competitive Electricity Business Executive Summary: Nuclear Units Competitive, Profitable in Deregulated

More information

New York Seeks To Redesign Compensation To Keep Nuclear Plants Alive

New York Seeks To Redesign Compensation To Keep Nuclear Plants Alive RESEARCH North America Alternative Energy Nuclear Power New York Seeks To Redesign Compensation To Keep Nuclear Plants Alive Continued Nuclear Generation Deemed Crucial to Reduce Emissions February 29,

More information

Creating Wealth Worth Having. Green Infrastructure Bonds: Accessing the scale of low cost capital required to tackle climate change.

Creating Wealth Worth Having. Green Infrastructure Bonds: Accessing the scale of low cost capital required to tackle climate change. Creating Wealth Worth Having Green Infrastructure Bonds: Accessing the scale of low cost capital required to tackle climate change Ben Caldecott Summary 1. There are a wide variety of different green or

More information

Casper Wind Power Project Using Our Land Wisely

Casper Wind Power Project Using Our Land Wisely Casper Wind Power Project Using Our Land Wisely Chevron Global Power Company The solutions are not either/or. It s not a choice between more drilling or more efficiency. It s not a choice between coal

More information

Understanding California s Electricity Prices Updated April 2011

Understanding California s Electricity Prices Updated April 2011 White Paper Understanding California s Electricity Prices Updated April 2011 Executive Summary Most industry experts conclude that average electricity prices throughout the U.S. will increase significantly

More information

Electric Utilities. Introduction to the module

Electric Utilities. Introduction to the module Introduction to the module The electric utilities module is based on a reporting framework produced by the Institutional Investors Group on Climate Change (IIGCC), Ceres, and the Investor Group on Climate

More information

H1 2014 LEVELISED COST OF ELECTRICITY - PV

H1 2014 LEVELISED COST OF ELECTRICITY - PV H1 2014 LEVELISED COST OF ELECTRICITY - PV JENNY CHASE 4 FEBRUARY 2014 LCOE OF PV, FEBRUARY 2014 1 PV EXPERIENCE CURVE, 1976-2013 (2013 $/W) 100 Cost per W (2013 $) 1976 10 1985 2003 2006 1 2012 2013 Q3

More information

The UK Electricity Market Reform and the Capacity Market

The UK Electricity Market Reform and the Capacity Market The UK Electricity Market Reform and the Capacity Market Neil Bush, Head Energy Economist University Paris-Dauphine Tuesday 16 th April, 2013 Overview 1 Rationale for Electricity Market Reform 2 Why have

More information

Hedging Natural Gas Prices

Hedging Natural Gas Prices Hedging Natural Gas Prices Luke Miller Assistant Professor of Finance Office of Economic Analysis & Business Research School of Business Administration Fort Lewis College Natural Gas Industry U.S. natural

More information

Main Street. Economic information. By Jason P. Brown, Economist, and Andres Kodaka, Research Associate

Main Street. Economic information. By Jason P. Brown, Economist, and Andres Kodaka, Research Associate THE Main Street ECONOMIST: ECONOMIST Economic information Agricultural for the and Cornhusker Rural Analysis State S e Issue p t e m b2, e r 214 2 1 Feed de er ra al l RR e es se er rv ve e BBa an nk k

More information

Unconstrained Fixed Income

Unconstrained Fixed Income Unconstrained Fixed Income A Dynamic and Flexible Approach to Fixed Income Investing 26th ANNUAL TEXPERS CONFERENCE Global Fixed Income & Liquidity Management March 2015 This material is provided for educational

More information

Page 1 of 11. F u t u r e M e l b o u r n e C o m m i t t e e Agenda Item 7.1. Notice of Motion: Cr Wood, Renewable Energy Target 9 September 2014

Page 1 of 11. F u t u r e M e l b o u r n e C o m m i t t e e Agenda Item 7.1. Notice of Motion: Cr Wood, Renewable Energy Target 9 September 2014 Page 1 of 11 F u t u r e M e l b o u r n e C o m m i t t e e Agenda Item 7.1 Notice of Motion: Cr Wood, Renewable Energy Target 9 September 2014 Motion 1. That Council resolves that the Chair of the Environment

More information

NATIONAL WIND COORDINATING COMMITTEE AIR QUALITY AND WIND ENERGY: ISSUES AND OPPORTUNITIES

NATIONAL WIND COORDINATING COMMITTEE AIR QUALITY AND WIND ENERGY: ISSUES AND OPPORTUNITIES NATIONAL WIND COORDINATING COMMITTEE AIR QUALITY AND WIND ENERGY: ISSUES AND OPPORTUNITIES Issue Forum October 20, 2005 Lansing, MI Summary On October 20, 2005, the National Wind Coordinating Committee

More information

Carbon pricing and the competitiveness of nuclear power

Carbon pricing and the competitiveness of nuclear power Carbon pricing and the competitiveness of nuclear power by J.H. Keppler and C. Marcantonini* recent NEA study entitled Carbon Pricing, Power A Markets and the Competitiveness of Energy assesses the competitiveness

More information

Energy Trading. Jonas Abrahamsson Senior Vice President Trading. E.ON Capital Market Day Nordic Stockholm, July 3, 2006

Energy Trading. Jonas Abrahamsson Senior Vice President Trading. E.ON Capital Market Day Nordic Stockholm, July 3, 2006 Energy Trading Jonas Abrahamsson Senior Vice President Trading E.ON Capital Market Day Nordic Stockholm, July 3, 2006 Agenda The Nordic Power Market The Role of Energy Trading within E.ON Nordic Page 2

More information

Industry Trends in the U.S. Wind Energy Sector August 11 th 1:30 to 2:30 p.m. eastern

Industry Trends in the U.S. Wind Energy Sector August 11 th 1:30 to 2:30 p.m. eastern Industry Trends in the U.S. Wind Energy Sector August 11 th 1:30 to 2:30 p.m. eastern Clean Energy Initiative Our goal is to accelerate the clean energy economy for its national security, economic and

More information

California Leak Exposes Risks Of Increasing Reliance On Natural Gas

California Leak Exposes Risks Of Increasing Reliance On Natural Gas RESEARCH North America Fossil Fuels Natural Gas California Leak Exposes Risks Of Increasing Reliance On Natural Gas Regulatory Actions Likely To Enhance Methane Detection And Remediation Requirements January

More information

Proposal for a RECOMMENDATION OF THE EUROPEAN COMMISSION

Proposal for a RECOMMENDATION OF THE EUROPEAN COMMISSION EUROPEAN COMMISSION Brussels, XXX [ ] (2013) XXX draft Proposal for a RECOMMENDATION OF THE EUROPEAN COMMISSION Providing minimum principles for the exploration and production of hydrocarbons (especially

More information

Natural Gas: A Bridge to a Low Carbon Future?

Natural Gas: A Bridge to a Low Carbon Future? Date Issue Brief # ISSUE BRIEF Natural Gas: A Bridge to a Low Carbon Future? Stephen P.A. Brown, Alan J. Krupnick, and Margaret A. Walls December 2009 Issue Brief 09 11 Resources for the Future Resources

More information

AN ECONOMIC EVALUATION OF DISTRIBUTED ELECTRICITY GENERATION TECHNOLOGIES

AN ECONOMIC EVALUATION OF DISTRIBUTED ELECTRICITY GENERATION TECHNOLOGIES AN ECONOMIC EVALUATION OF DISTRIBUTED ELECTRICITY GENERATION TECHNOLOGIES ABSTRACT Alexander Mészáros Distributed generation, the small-scale production of electricity at or near customers' homes and businesses,

More information

United States Progress Report on Fossil Fuel Subsidies Part 1: Identification and Analysis of Fossil Fuel Provisions

United States Progress Report on Fossil Fuel Subsidies Part 1: Identification and Analysis of Fossil Fuel Provisions A. Production Fossil Fuel Subsidies United States Progress Report on Fossil Fuel Subsidies Part 1: Identification and Analysis of Fossil Fuel Provisions There are a number of tax preferences, described

More information

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015

Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015 June 2015 Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2015 This paper presents average values of levelized costs for generating technologies that

More information

Electricity Market Reform: Proposals for Implementation

Electricity Market Reform: Proposals for Implementation EMR Programme Team Department of Energy & Climate Change 4 th Floor Area D 3 Whitehall Place London SW1A 2AW 23 rd December 2013 Dear Sirs, Electricity Market Reform: Proposals for Implementation I am

More information

Investments in Private Energy Partnerships

Investments in Private Energy Partnerships Investments in Private Partnerships August 2010 Private energy partnership investments offer a meaningful addition to a diversified private equity or real asset portfolio. Over the past 20 years, private

More information

Global Risk & Trading Practice HOT COMMODITIES VOLATILE COMMODITY PRICES SHOULD BE ON THE CEO S RADAR SCREEN. John Drzik

Global Risk & Trading Practice HOT COMMODITIES VOLATILE COMMODITY PRICES SHOULD BE ON THE CEO S RADAR SCREEN. John Drzik Global Risk & Trading Practice HOT COMMODITIES VOLATILE COMMODITY PRICES SHOULD BE ON THE CEO S RADAR SCREEN John Drzik VOLATILE COMMODITY PRICES Japan s nuclear crisis and political unrest in the Middle

More information

Commodities Super-Cycle: Is It Coming To An End? September 2013

Commodities Super-Cycle: Is It Coming To An End? September 2013 ALTERNATIVE INVESTMENTS Commodities Super-Cycle: Is It Coming To An End? September 2013 The Commodities Super-Cycle Defined A commodities supercycle is an approximately 10-35 year trend of rising commodity

More information

Flash Comment Euro area: resilient PMIs the recovery should continue

Flash Comment Euro area: resilient PMIs the recovery should continue Investment Research General Market Conditions 23 August 2016 Flash Comment Euro area: resilient PMIs the recovery should continue The euro area PMI figures for August were little changed compared with

More information

Green Power Accounting Workshop: Concept Note For discussion during Green Power Accounting Workshop in Mexico City, May 13th 2011

Green Power Accounting Workshop: Concept Note For discussion during Green Power Accounting Workshop in Mexico City, May 13th 2011 Introduction As more companies and government organizations prepare greenhouse gas (GHG) inventories that reflect the emissions directly and indirectly associated with their operations, they increasingly

More information

Public Comment to EPA on New Stationary Sources Rule Sam Batkins and Catrina Rorke Docket ID No. EPA-HQ-OAR-2013-0495 May 9, 2014

Public Comment to EPA on New Stationary Sources Rule Sam Batkins and Catrina Rorke Docket ID No. EPA-HQ-OAR-2013-0495 May 9, 2014 Public Comment to EPA on New Stationary Sources Rule Sam Batkins and Catrina Rorke Docket ID No. EPA-HQ-OAR-2013-0495 May 9, 2014 Introduction We appreciate the opportunity to comment on the Environmental

More information

Decoding the Financial World

Decoding the Financial World Decoding the Financial World The collapse of Lehman Brothers heralded the beginning of 2008 financial crisis that affected every one of us directly or indirectly. Yet, mystery of the financial world remains

More information

Energy BUSINESS PLAN 2015 18 ACCOUNTABILITY STATEMENT THE MINISTRY LINK TO GOVERNMENT OF ALBERTA STRATEGIC DIRECTION

Energy BUSINESS PLAN 2015 18 ACCOUNTABILITY STATEMENT THE MINISTRY LINK TO GOVERNMENT OF ALBERTA STRATEGIC DIRECTION Energy BUSINESS PLAN 205 8 ACCOUNTABILITY STATEMENT This business plan was prepared under my direction, taking into consideration the government s policy decisions as of October 5, 205. original signed

More information

Ontario Hydro. September 28, 1995

Ontario Hydro. September 28, 1995 Ontario Hydro Ontario Hydro 700 University Avenue Toronto, Ontario M5G 1X6 O. Allan Kupcis, President & CEO September 28, 1995 Honourable Anne McLellan Minister of Natural Resources Canada Sir William

More information

Institutional investors expectations of corporate climate risk management

Institutional investors expectations of corporate climate risk management Institutional investors expectations of corporate climate risk management Institutional investors expectations of corporate climate risk management As institutional investors, we are major shareowners

More information

Nuclear Power s Role in Enhancing Energy Security in a Dangerous World Al Shpyth, B.A., M.E.S. Director, Government Relations Cameco Corporation

Nuclear Power s Role in Enhancing Energy Security in a Dangerous World Al Shpyth, B.A., M.E.S. Director, Government Relations Cameco Corporation Nuclear Power s Role in Enhancing Energy Security in a Dangerous World Al Shpyth, B.A., M.E.S. Director, Government Relations Cameco Corporation Introduction: Should we be concerned about energy security?

More information

Implications of Carbon Cap-and-Trade for Electricity Rate Design, with Examples from Florida. Hethie Parmesano and Theodore J.

Implications of Carbon Cap-and-Trade for Electricity Rate Design, with Examples from Florida. Hethie Parmesano and Theodore J. Implications of Carbon Cap-and-Trade for Electricity Rate Design, with Examples from Florida Hethie Parmesano and Theodore J. Kury Hethie Parmesano is a Special Consultant with NERA Economic Consulting

More information

Testimony of Barbara D. Lockwood, P.E. Manager, Renewable Energy Arizona Public Service Company

Testimony of Barbara D. Lockwood, P.E. Manager, Renewable Energy Arizona Public Service Company Testimony of Barbara D. Lockwood, P.E. Manager, Renewable Energy Arizona Public Service Company Before the U.S. House of Representatives Select Committee on Energy Independence and Global Warming Blowing

More information

Greenhouse gas abatement potential in Israel

Greenhouse gas abatement potential in Israel Greenhouse gas abatement potential in Israel Israel s GHG abatement cost curve Translated executive summary, November 2009 1 Executive Summary Background At the December 2009 UNFCCC Conference in Copenhagen,

More information

Needs For and Alternatives To Overview Meeting Manitobans Electricity Needs. Meeting Manitobans Electricity Needs

Needs For and Alternatives To Overview Meeting Manitobans Electricity Needs. Meeting Manitobans Electricity Needs Meeting Manitobans Electricity Manitoba is growing and is expected to continue doing so. Over the last years the province has enjoyed an expanding population and economy. These increases have led to many

More information

Master Limited. canterburyconsulting.com. CanterburyConsulting Notes from the Investment Office 1

Master Limited. canterburyconsulting.com. CanterburyConsulting Notes from the Investment Office 1 canterburyconsulting.com 2015 Master Limited The answer to this topic which has been the source of much debate, dialogue, and division lies in proper education and personal choice. Partnerships Master

More information

Nordea Asset Management. Our Approach on Climate Change

Nordea Asset Management. Our Approach on Climate Change Nordea Asset Management Our Approach on Climate Change Introduction Scientific fact base The Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report concludes that Climate change and

More information

CONSUMER CREDIT DEFAULT RATES DECREASE IN SEPTEMBER 2015 ACCORDING TO THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES

CONSUMER CREDIT DEFAULT RATES DECREASE IN SEPTEMBER 2015 ACCORDING TO THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES CONSUMER CREDIT DEFAULT RATES DECREASE IN SEPTEMBER 2015 ACCORDING TO THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES Four of the Five Cities Report Default Rate Decreases in September 2015 New York,

More information

CONVERTIBLE DEBENTURES A PRIMER

CONVERTIBLE DEBENTURES A PRIMER What are convertible debentures? CONVERTIBLE DEBENTURES A PRIMER They are hybrid securities, combining the features of a conventional debenture with the option of converting, under certain circumstances,

More information

DISCLOSURE NOTES. How the accounts are presented. Generation

DISCLOSURE NOTES. How the accounts are presented. Generation DISCLOSURE NOTES As a result of changes in SSE s management and reporting structure in 2011/12 and in the interests of improved transparency, SSE s financial statements for the year ending March 2012 were

More information

Guide to Options Trading. NZX Derivatives Market

Guide to Options Trading. NZX Derivatives Market Guide to Options Trading NZX Derivatives Market CONTENTS WHAT ARE OPTIONS? 3 COMPONENTS OF AN OPTION 4 ADVANTAGES OF TRADING OPTIONS 5 PAYOFF DIAGRAMS 7 GLOSSARY 9 Disclaimer: This Disclaimer relates to

More information

Energy Productivity & Pricing

Energy Productivity & Pricing Energy Productivity & Pricing Markets for energy, renewable energy and carbon Dr Jenny Riesz February 2014 2 Average electricity retail prices Electricity price rises CSIRO Future Grid (2013) Change and

More information

WORLD ENERGY INVESTMENT OUTLOOK 2014 FACTSHEET OVERVIEW

WORLD ENERGY INVESTMENT OUTLOOK 2014 FACTSHEET OVERVIEW OVERVIEW More than $1.6 trillion was invested in 2013 in energy supply, a figure that has more than doubled in real terms since 2000, and a further $130 billion to improve energy efficiency. Renewables

More information

Investor Presentation September 15, 2014

Investor Presentation September 15, 2014 Investor Presentation September 15, 2014 Disclaimer This Investor Presentation was prepared exclusively for the benefit of and internal use by the recipient for the purpose of considering the transaction

More information

Debt Financing for Healthcare Companies: The Current State of the Market

Debt Financing for Healthcare Companies: The Current State of the Market Debt Financing for Healthcare Companies: The Current State of the Market Note: For the purposes of this paper, we will define healthcare as life sciences/biotech, medical devices, diagnostics and health

More information

Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs

Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs 1. Introduction The European Regulation on OTC Derivatives, Central Counterparties and Trade Repositories ( EMIR ) will impose

More information

Popular, Inc. BPOP $29.88 12 month target $41.00 BUY. Equity Research September 18, 2015. Financials. Mark Palmer

Popular, Inc. BPOP $29.88 12 month target $41.00 BUY. Equity Research September 18, 2015. Financials. Mark Palmer Buy 4 84 Reduce 0 5 Hold 2 40 IBC 6 Upsi de 37.2% 17-Mar-2014, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A, N/A Equity Research September 18, 2015 Mark Palmer

More information

Property Investment. Why Invest in Property?

Property Investment. Why Invest in Property? Property Investment Why Invest in Property? In every person s life, there will come a point where he has to make choices, and one of which is an investment choice. Where should his hard earned money be

More information

Is fracking cracking the renewable industry? How big a threat is shale gas to renewables?

Is fracking cracking the renewable industry? How big a threat is shale gas to renewables? Is fracking cracking the renewable industry? How big a threat is shale gas to renewables? Infrastructure Investor: Renewable Energy Forum 2012 London, 30 th October 2012 Dragoș Tâlvescu on behalf Karen

More information

GSA SmartPay Conference. Credit Card Basics. Bruce E. Sullivan VP / Head of Specialized Sales - Federal, Visa, Inc.

GSA SmartPay Conference. Credit Card Basics. Bruce E. Sullivan VP / Head of Specialized Sales - Federal, Visa, Inc. GSA SmartPay Conference Credit Card Basics Bruce E. Sullivan VP / Head of Specialized Sales - Federal, Visa, Inc. 11 th Annual GSA SmartPay Conference Phoenix, Arizona July 28 th - July 30 th, 2009 Credit

More information

California s Cap-and-Trade Voluntary Renewable Electricity Program

California s Cap-and-Trade Voluntary Renewable Electricity Program California s Cap-and-Trade Voluntary Renewable Electricity Program Cap-and-Trade Overview Outline Purpose of the Voluntary Renewable Electricity Account (VRE) Holding Account VRE Program Requirements Application

More information

Technology Assessment, Market Analysis, and Generation Planning - Program 178

Technology Assessment, Market Analysis, and Generation Planning - Program 178 Program Description Technology Assessment, Market Analysis, and Generation Planning - Program 178 Program Overview Electric sector companies today face an unprecedented array of uncertainties. Low natural

More information

Independent Thinking. The Changing Landscape for Wealth Management

Independent Thinking. The Changing Landscape for Wealth Management Independent Thinking The Changing Landscape for Wealth Management October 2015 1 Wealth Management Common Central Tenets Common central tenets to successful wealth management relationships: The Changing

More information

Levelized Cost of New Electricity Generating Technologies

Levelized Cost of New Electricity Generating Technologies Levelized Cost of New Electricity Generating Technologies The Energy Information Administration (EIA) produces forecasts of energy supply and demand for the next 20 years using the National Energy Modeling

More information

Recommended Acquisition of Networkers International plc Presentation to Analysts & Investors

Recommended Acquisition of Networkers International plc Presentation to Analysts & Investors Recommended Acquisition of Networkers International plc Presentation to Analysts & Investors 28 January 2015 Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES.

More information

rising Electricity Costs:

rising Electricity Costs: rising Electricity Costs: A Challenge For Consumers, Regulators, And Utilities Electricity is the lifeblood of the U.S. economy. It powers our homes, offices, and industries; provides communications, entertainment,

More information

Seeking Alternatives. Senior loans an innovative asset class

Seeking Alternatives. Senior loans an innovative asset class Trends 09 10.11 Seeking Alternatives Senior loans an innovative asset class Dirk Wieringa, Alternative Investments Advisory Senior loans are an innovative asset class that provide a hedge against rising

More information

Separately Managed Accounts in Counterparty Risk Management

Separately Managed Accounts in Counterparty Risk Management Separately Managed Accounts in Counterparty Risk Management Abstract Counterparty risk management should have an integrated framework. While utilizing a separately managed account may help reduce a corporation

More information

Spark Advisors Advisory Agreement

Spark Advisors Advisory Agreement Spark Advisors Advisory Agreement This Investment Advisor Agreement ( Agreement ) is by and between Spark Advisors, LLC ( Spark Advisors or Adviser ), a registered investment adviser, and the party electronically

More information

Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan

Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan Using Less Energy: Nova Scotia s Electricity Efficiency and Conservation Plan April 2014 Contents Summary...1 Introduction...2 Objectives of the Plan...3 Plan of Action...5 The Benefits of Energy Efficiency...

More information

Natural Gas and Electricity Coordination Experiences and Challenges

Natural Gas and Electricity Coordination Experiences and Challenges 1 Natural Gas and Electricity Coordination Experiences and Challenges Challenges Facing the New England Power System Gordon van Welie, President and CEO, ISO New England 2015 IEEE Power & Energy Society

More information

City of Bath Maine. A Small Landfill s Preliminary Evaluation of Carbon Credits and Renewable Energy Projects. December 11, 2008

City of Bath Maine. A Small Landfill s Preliminary Evaluation of Carbon Credits and Renewable Energy Projects. December 11, 2008 City of Bath Maine A Small Landfill s Preliminary Evaluation of Carbon Credits and Renewable Energy Projects December 11, 2008 Presented by Michael Booth P.E. Presentation Background Bath s Approach to

More information