Welcome Back. Big news recap from this Labor Day Weekend. SolarWakeup Live! Jersey City is now live, we’ve got some great conversations on tap and as always a big focus on dealmaking. NJ has a bold solar agenda ahead and this is where you will want to be on November 6th. Get your tickets at solarwakeuplive.com as well as information on sponsorships.
Europe Moves Forward. The European version of the solar tariff was in the form of a minimum price. After several years of the counterintuitive tax, the EU is pulling the MIP. The UK took a brunt of the tax as it was the market that was the hottest during the time, but now many of the markets will be able to tackle unsubsidized solar within the global market dynamics.
Moniz Issues Approval. Since the CA Legislature sent SB100 to the Governor, much has been said about the pros and cons of the bill that would have California at zero carbon for 100% of its energy consumptions. The Governor has yet to sign the legislature but is widely to do so ahead of the Global Climate Action Summit happening in San Francisco. The former Secretary of Energy has chimed in, telling Axios’ Amy Harder that this is a ‘very big deal’.
Consumers Pay For Fire Damage. There was some sentiment that the California fires would cause the utilities to use shareholder money to pay for the damages, potentially causing a bankruptcy of an IOU. Given the system that we are in, where regulated monopolies have to take very little risk, I am not surprised that consumers will have to pay the tab. Whether it is fires in California or hurricanes in Florida, the regulated monopoly model is outdated and no longer works for consumers in my opinion. The shareholders and consumers need to be aligned in benefits of new investments and aligned with the regulations that both parties have to operate under.
Ain’t First, You’re Last. Many co-operative utilities (co-ops) are part of larger generating entities. This gives them some bulk buying power which was essential in larger power plant operations. Some of the entities have places caps on the co-ops regarding how much solar they could contract with individually which has angered many co-op boards that are run by the ratepayers. Some co-ops are now leaving the larger entities and finding their energy in the open market with a lot of renewable energy attached to it.
Thank Your Neighbor. If they have solar on their roofs, they save you a lot of money. This latest report shows how much solar saved the system within ISO-NE during a recent heat wave.

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Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

One Colorado co-op has set the stage to defect from one wholesaler because they don't believe it's moving fast enough to incorporate renewables into its portfolio - and the long-term implications are potentially startling. As Western Energy News reports:

The Delta-Montrose Electric Association will vote in October on rule changes that would allow another power supplier to help finance its exit from a contract with Tri-State Generation and Transmission. The association is among Tri-State’s largest customers, and its defection could heighten the risk of a mass exodus as others are forced to cover a larger share of costs for operating the wholesaler’s infrastructure, including its coal-fired power plants.

The problem, at least according to Delta's CEO, is the arbitrary cap Tri-States puts on local generation. That significantly limits the amount of renewable energy the co-op can have in its own portfolio. From Western Energy News:

Several co-ops have been stymied by Tri-State’s 5 percent cap on local generation, and Tri-State and Delta-Montrose continue to wait on a rehearing from the Federal Energy Regulatory Commission on the matter. “We’ve been stifled from our ability to have flexibility to develop those resources and make them economical for our membership under the confines of our current contract,” [Delta CEO Jansen] Bronec said.

While Delta's defection would have an immediate impact on Tri-State, the decision to move away from coal-generated electricity could have implications far beyond Colorado's borders. It should send the message to wholesalers like Tri-State that arbitrarily clinging to outdated fossil-fuel generation is a way to lose members at an alarming rate. As prices continue to drop for solar and wind production, co-ops are not going to sit idly by and pay higher prices just because the wholesaler doesn't want to change. The Solar Revolution is happening, and smaller entities like Delta are starting to catch on. Once they realize the power is in their hands, look for more wholesalers to bend to the will of their members - and look for more renewable energy to come online as they do so. More: Colorado co-op vote sets table for defection from coal power wholesaler

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

While the United States seems hellbent on starting new trade wars with countries around the world, the European Union (EU) has determined that its own sanctions on Chinese solar modules should come to an end, according to reporting by Reuters. As Reuters reports:

The EU first imposed anti-dumping and anti-subsidy measures for Chinese solar panels, wafers and cells in 2013 and extended them by 18 months in March 2017, signaling that they should then end. Chinese manufacturers have been allowed to sell solar products in Europe free of duties if they do so at or above a progressively declining minimum price. If sold for less than that price, they are subject to duties of up to 64.9 percent.

The trade measures will be allowed to expire on Monday. The reasons for the expiration mirror the same debate going on over tariffs in the United States, to wit: the EU is trying to strike a balance between EU module manufacturers (who believe the measures should stay in place) and installers (who want the measures to go away so less expensive modules can keep coming to the market and allowing installations to flourish). In the end, the European Commission, which coordinates economic policy for the EU, decided to let the measures expire. Which, of course, set off a panic in some quarters surrounding what was referred to as a 'flood' of modules being dumped on European markets at below-market prices, thereby depressing prices on modules throughout the supply chain. Again from Reuters:

EU ProSun, the grouping of EU producers that launched the initial complaint in 2012 and wanted a further extension of measures, had said that European manufacturers would be devastated if the measures ended. Beijing’s decision to limit installations in China meant producers there had some 30 gigawatts of excess capacity to shift with few markets to sell into after tariffs imposed by the United States and planned by India, the second and third largest markets behind China. The total EU market is some 7 gigawatts.

It's long been our contention that tariffs don't really help anyone, and that inexpensive modules help spread the use of solar throughout the world. It's why we've argued so vociferously against Trump's tariffs here in the United States. But this European issue isn't over yet - Reuters reports ProSun said it might launch a legal challenge to the expiration of the duties. This story is something to keep an eye on moving forward - it could reshape the global solar industry for years to come. More: EU ends trade controls on Chinese solar panels raising fears of cheap imports

Be Heard On SolarWakeup Live. Now that I am fully installed in the hub of solar, the SolarWakeup Live studio is also in operation. After a short summer break, come back to check out the podcasts from this platform which cover that most interesting people in solar doing the most important work. Being on SolarWakeup Live means sitting on the orange chair and introducing your point of view on the most influential newsletter in solar. If you have a story to tell and want to join me in person, send your pitch the next time you are in the Bay Area.
SB700 Heads To Governor Brown. The Senate has approved SB700 in concurrence and it has made its way to Governor Brown. Further info on the Assembly vote, it passed 57-18 in a giant bipartisan victory. Lastly, the delay in the bill vote I mentioned yesterday was due to a floor speech being left behind and needed to be brought to the Assemblymember.
Lion Point Offers To Take CSIQ Private. Lion Point was part of the Suniva process when they tried to get into the debt stack during the original bankruptcy. The reason was likely due to the investment that Lion Point had in Canadian Solar. Now Lion Point sees the potential for more upside with Canadian Solar as a private company and has offered to take it private for $250million. That’s what some folks would consider, funding secured.
More Debt For Cheaper Cost. The team at kWh Analytics has been doing nice work over the past 5 years to get to this point. The work has been to figure out what makes better solar installations and creates less risk for capital providers. Once that information has been credibly gathered, asset owners can engage with kWh to put an insurance product on their debt placement and significantly increase the amount of debt that it can put on the project cash flows. In the latest round, kWh insured cash flows for a portfolio of 50MW in Oregon. I also had to pleasure to hosting the kWh team at the Quick Mount manufacturing facility for a tour last week, this type of connection making is the reason I moved to San Francisco so we could all be a lot closer together.

Have a great day!

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Have a great day!
Yann