New York Times: Bank regulators present a dire warning of financial risks from climate change
“Home values could fall significantly. Banks could stop lending to flood-prone communities. Towns could lose the tax money they need to build sea walls and other protections.These are a few of the warnings published on Thursday by the Federal Reserve Bank of San Francisco regarding the financial risks of climate change. The collection of 18 papers by outside experts amounts to one of the most specific and dire accountings of the dangers posed to businesses and communities in the United States — a threat so significant that the nation’s central bank seems increasingly compelled to address it.”
“Expiring tax credits for wind and solar projects offer near-term promise and long-term uncertainty, with the U.S. wind industry on track to become the nation’s fastest growing source of electricity generation by the end of 2020 and the solar industry potentially soon following. Both face bursting bubbles due to the loss of tax incentives, analysts told Utility Dive. But the resources have other advantages and ideas are emerging on how to finance the projects, which could propel them into the next decade.”
Climate Central: Illinois Solar Booms Under New Program, but Developers Fear Bust Ahead
“FEJA incentivizes solar by awarding solar owners or developers the right to sell Renewable Energy Credits (RECs) for the energy they generate… The shortfall is a result of several factors including the way funds are collected, allocated and distributed, as well as the types of projects that have applied for and been approved to receive funding. In order to reach the state’s renewables goals, including by ramping up the development and completion of more large, utility-scale projects, Illinois must find new funding, given that the current pool of money has nearly been tapped out given the large number of projects.”
“These moves towards shorter contract lengths, longer “tails” and alternative contract structures all suggest a move in the direction of merchant power. However, these developments also bring up many questions. Chiefly, is the use of hedges in place of PPAs part of a larger trend, or merely a quirk of the market driven by the expiring Investment Tax Credit (ITC)? And ultimately, can merchant solar emerge as a viable business model?”
PV Magazine: Solar to lower power bills 4.6% at Arkansas co-op
“After adding enough solar capacity to reduce its costly peak load by about 30%, an Arkansas utility plans to cut electric bills by 4.6%. Expansion of a solar-powered factory that will yield 400 jobs is already under way.”