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More About This Title Investing in the Renewable Power Market: How to Profit from Energy Transformation
English
The path to the widespread adoption of renewable energy is littered with major technological legal, political, and financial challenges. Investing in the Renewable Power Market is a reality check for the mass roll out of green energy and its financial dominance of the world energy market, focusing on real energy costs and global energy needs over the next decade. If green energy is to be truly successful, the market must be properly understood, so that dreams of a green future do not lead to actual energy nightmares.
The first book to cover the major investing challenges and monetary constraints placed on electric power companies as they race to meet their green energy requirements, Investing in the Renewable Power Market explains how generating electricity is totally different from other energy enterprises in that it is highly regulated and its product cannot be stored. This combination greatly affects the finances of renewable power and influences how investors should navigate the energy market. To help the reader better understand the current state of the alternative energy industry, the book:
- Details the challenges facing green energy, such as the fact that it is priced compared to natural gas, which is currently at an all-time low
- Analyzes real energy costs and the global demand for energy over the next decade
- Describes why, in the short term, investment opportunities with renewable power will be with financial and operational restructurings
The green energy market is currently facing enormous challenges, but Investing in the Renewable Power Market explains the real costs of energy, the future of the energy market, and how to profit in both the long and short term.
English
Thomas Fogarty has spent his entire career managing energy industry project development and financing electric power projects. He has written an editorial in the Daily Bankruptcy Review and has been quoted on the many current challenges facing renewable power.
Robert Lamb is a Professor at New York University's Stern School of Business and a management consultant. He was previously strategy advisor and debt advisor to the New York State Power Authority and, over the past twenty-five years, has developed and taught customized courses for investment banks and corporations, including Goldman Sachs, Deutsche Bank, Merrill Lynch, Morgan Stanley, and Citibank American Express. Dr. Lamb has written numerous books and contributed chapters on the financing of public power projects and is a founding member of Standard & Poor's Academic Counsel of Advisors.
English
Introduction xv
CHAPTER 1 An Overview of Renewable Power 1
It’s All About Natural Gas 2
Control of CO2 Emissions Is Not Currently Possible 3
Reality of Demand-Side Management 6
Summary 7
CHAPTER 2 Analyzing Power Project Economics 9
Regulated Utilities 9
Evaluating a Power Plant 12
Financing a Power Plant 15
Hedge Providers 17
Opportunities with Distressed Renewables 19
Summary 21
CHAPTER 3 The Challenges of Renewable Power Projects 23
Tax Issues 23
Special Exemptions 25
Summary 28
CHAPTER 4 Risk Assessment for Power Projects 31
Project Risk Assessment and Risk Mitigations 32
Precompletion Risks/Mitigants 32
Postcompletion Risks/Mitigants 39
Summary 39
CHAPTER 5 Exploiting Profitability of Distressed and Abandoned Municipal Power Plants 41
Waste-Fuel Projects Have Key Financial Advantages for Investors 42
Duties of Professionals in a Municipal Power Plant 42
The Professional Feasibility Study Engineer 44
Disclosures of Risks in the Bond Offering Materials 45
Calculation of Debt Service Coverage 50
Investment Opportunities at Troubled Municipal Power Plants 53
Summary 54
CHAPTER 6 Energy Storage 55
Cheap Energy Storage—TheMost Vital Game Changer in the World 56
Opening theMarket for Historic Energy Storage Financing 58
Categories of Energy Storage Technologies 60
U.S. Regional Multi-Energy Storage Collaborations 63
Flywheel Technology Energy Storage Has the Lowest Cycle-Life-Cost 65
Summary 67
CHAPTER 7 Shale Natural Gas and Its Effect on Renewable Power 69
Fracking 69
New Attitudes in Natural Gas 70
Cost of Production 72
Summary 76
CHAPTER 8 Solar PV and Solar Thermal Power Plants 77
The Economics of Solar Power 77
Financing Techniques 78
The Technology 80
Summary 82
CHAPTER 9 Wind Power Plants 83
Projects Overview 83
Wind Project Economics 85
Wind Project Power Contracting 87
Wind Energy Prediction 90
Summary 92
CHAPTER 10 Electric Power Transmission 93
Overview 93
Grid Input, Losses, and Exit 98
High-Voltage Direct Current 99
Controlling the Components of the Transmission System 99
Electricity Market Reform: Costs and
Merchant Transmission Arrangements 100
Additional Concerns 102
Summary 104
CHAPTER 11 Natural Gas Power Plants 107
Gas Turbine Engines 107
Benefits of Gas Turbine Engines 109
Gas Turbines and CO2 109
Gas Turbine Operations 110
Summary 111
CHAPTER 12 Coal-Fired Power Plants 113
Coal’s High Output Capacity 113
Life of a Coal Plant 115
Extending Coal Plant Operations 116
Coal Technologies 118
Summary 120
CHAPTER 13 Biomass Energy and Biomass Power Plants 123
Wood Waste 123
Economics of Biomass 125
Summary 126
CHAPTER 14 Nuclear Power Energy Plants 127
Global Impact of Japan’s Three Nuclear Plant Meltdowns 128
Comparative Costs of Energy 130
Key to the EIA Cost Estimates 130
Nuclear Power Plants’ 50 Years of Electricity Globally 135
Required Up-Front Payment for Nuclear Waste Disposal before a New Plant’s Approval 136
Asia Will Lead the Next Shift to Nuclear Power Plant Development 137
China’s New Nuclear Reprocessing Is a Vast Expansion of Atomic Fuel 139
Summary: Nuclear Power Faces a Capital Cost and Ongoing Local Approval Challenge 141
CHAPTER 15 Hydropower Plants 143
A Unique Renewable Technology 143
Hydropower and RECs 145
Hydropower Economics 149
Summary 151
CHAPTER 16 Geothermal Power Plants 153
Steam Technology 153
Geothermal Project Costs 155
Hydrothermal Power Systems 156
Ground-Source Heat Pumps 156
Standing Column Wells 158
Enhanced Geothermal Systems 158
Direct Use of Geothermal Energy 159
Summary 161
CHAPTER 17 Energy Efficiency and Smart Grid 163
Demand-Side Management 163
Advanced Meter Infrastructure 166
Increasing Energy Needs 167
Summary 169
Conclusion 171
Where Do We Stand Today in Terms of Renewable Energy? 175
Appendix A 177
Appendix B: DTC’s Coal vs. Natgas Displacement Model Methodology, January 6, 2009 183
DTC’s Coal/Natgas Displacement Model Methodology 183
How Much Natgas Is Needed to Displace Coal? 190
About the Authors 193
Index 195
