Integration of variable power sources like wind and solar energy into local, regional and national electrical transmission could be the biggest challenge confronting accelerated development of renewable energy. Policy, procedural, load and rate reviews are underway at the Federal Energy Regulatory Commission, at Regional Transmission Organizations and at Independent System Operators. Similar work is being done by large, investor-owned utilities as well as by smaller generators that struggle with weak links both to each other and to urban load centers. While renewable integration analysis and planning proceeds, new distribution, metering and storage technology continues in various stages of development and installation. All the while, rising demand for power and political pressure for more electricity from renewable sources grows across the United States and around the world.
Although transmission access is only one part of a renewable energy project, its importance is crucial to project financing. Relationships between power purchase agreements, transmission access and project financing will rise ever higher to make or break deals as the grid evolves. Investors and developers alike should depend on an economically sophisticated, technically well-informed and renewable power-experienced investment advisor to help them stay abreast of the evolution of transmission and distribution because three things are certain: opportunities will be geographically scattered, market and regulatory changes will be piecemeal and transmission access will become more complicated.
Attractive renewable energy investments made possible by changes in the nation’s transmission and distribution infrastructure will appear gradually. They will be smaller in scope and incremental in impact, but not technically or economically unattractive. Smart investors and developers must be proactive to avoid missing their opportunity and attractive returns.
Vert Investment Group searches continually for cogeneration, grid extension and associated fiscal incentives for new investments in power transmission and distribution that will make renewable energy projects economically and technically feasible. If you are an investor or developer in the renewable energy space, contact Vert Investment Group to explore how Vert can help leverage your interests in renewable power development through the new paradigm now being crafted in U.S. power transmission and distribution.