skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: The EPSA Project Finance Mapping Tool

Abstract

The Energy Policy and Systems Analysis Office of DOE has requested a tool to compare the impact of various Federal policies on the financial viability of generation resources across the country. Policy options could include production tax credits, investment tax credits, solar renewable energy credits, tax abatement, accelerated depreciation, tax-free loans, and others. The tool would model the finances of projects in all fifty states, and possibly other geographic units like utility service territories and RTO/ISO territories. The tool would consider the facility s cost, financing, production, and revenues under different capital and market structures to determine things like levelized cost of energy, return on equity, and cost impacts on others (e.g., load-serving entities, society.) The tool would compare the cost and value of the facility to the local regional alternatives to determine how and where policy levers may provide sufficient incremental value to motivate investment. The results will be displayed through a purpose-built visualization that maps geographic variations and shows associated figures and tables.

Authors:
 [1];  [1]
  1. Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Publication Date:
Research Org.:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org.:
USDOE
OSTI Identifier:
1265841
Report Number(s):
ORNL/TM-2015/638
EP0100000; PIPE211
DOE Contract Number:
AC05-00OR22725
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY; electric renewable finance tax

Citation Formats

Hadley, Stanton W., and Chinthavali, Supriya. The EPSA Project Finance Mapping Tool. United States: N. p., 2016. Web. doi:10.2172/1265841.
Hadley, Stanton W., & Chinthavali, Supriya. The EPSA Project Finance Mapping Tool. United States. doi:10.2172/1265841.
Hadley, Stanton W., and Chinthavali, Supriya. 2016. "The EPSA Project Finance Mapping Tool". United States. doi:10.2172/1265841. https://www.osti.gov/servlets/purl/1265841.
@article{osti_1265841,
title = {The EPSA Project Finance Mapping Tool},
author = {Hadley, Stanton W. and Chinthavali, Supriya},
abstractNote = {The Energy Policy and Systems Analysis Office of DOE has requested a tool to compare the impact of various Federal policies on the financial viability of generation resources across the country. Policy options could include production tax credits, investment tax credits, solar renewable energy credits, tax abatement, accelerated depreciation, tax-free loans, and others. The tool would model the finances of projects in all fifty states, and possibly other geographic units like utility service territories and RTO/ISO territories. The tool would consider the facility s cost, financing, production, and revenues under different capital and market structures to determine things like levelized cost of energy, return on equity, and cost impacts on others (e.g., load-serving entities, society.) The tool would compare the cost and value of the facility to the local regional alternatives to determine how and where policy levers may provide sufficient incremental value to motivate investment. The results will be displayed through a purpose-built visualization that maps geographic variations and shows associated figures and tables.},
doi = {10.2172/1265841},
journal = {},
number = ,
volume = ,
place = {United States},
year = 2016,
month = 7
}

Technical Report:

Save / Share:
  • This document identifies a plan for developing, assembling, and testing a data acquisition system for a 6-inch schedule 40 riser mapping profiler. This plan includes testing and qualifying and integrated system (data acquisition system, riser mapping profiler, and hoist positioner) for plant use. The integrated system supports project W-151 construction activities and will measure diameter, ovality, and vertical alignment of 6-inch risers. Dimensional data will be received by the data acquisition system and stored for later transfer to a portable computer.
  • Institutional buildings present a unique opportunity and challenge for energy efficiency programs. The barriers to conservation in these public buildings often include cumbersome purchasing and decision-making processes, centralized energy payment procedures, and, most importantly, chronic shortages of upfront funds for capital improvement projects. In 1988, representatives from several South Carolina state government agencies completed work on a project funded under a demonstration grant from the United States Department of Energy. The purpose of South Carolina's Tier 1 Demonstration Project was to encourage the development of non-traditional financing opportunities for energy conservation projects in public buildings. The primary vehicle to achievemore » this purpose was the design of a framework for a South Carolina Energy Management Authority, which would directly finance energy conservation retrofits in public buildings and other facilities, with repayment being made from energy cost savings. The project also includes technical assistance to private and public institutions interested in obtaining private third-party financing and entering into performance contracting agreements.« less
  • The finance submodel produces industry-wide income statements for the oil- and gas-producing industries, which permit PIES results to be translated into detailed schedules of oil and gas industry capital requirements. This report describes the finance submodel in terms of its logic, input data, and output format.
  • As a subproject of the HANDI 2000 project, the Finance and Supply Management system is intended to serve FDH and Project Hanford major subcontractor with financial processes including general ledger, project costing, budgeting, and accounts payable, and supply management process including purchasing, inventory and contracts management. Currently these functions are performed with numerous legacy information systems and suboptimized processes.
  • In the United States, the 'community wind' sector - loosely defined here as consisting of relatively small utility-scale wind power projects that sell power on the wholesale market and that are developed and owned primarily by local investors - has historically served as a 'test bed' or 'proving grounds' for up-and-coming wind turbine manufacturers that are trying to break into the U.S. wind power market. For example, community wind projects - and primarily those located in the state of Minnesota - have deployed the first U.S. installations of wind turbines from Suzlon (in 2003), DeWind (2008), Americas Wind Energy (2008)more » and later Emergya Wind Technologies (2010), Goldwind (2009), AAER/Pioneer (2009), Nordic Windpower (2010), Unison (2010), and Alstom (2011). Thus far, one of these turbine manufacturers - Suzlon - has subsequently achieved some success in the broader U.S. wind market as well. Just as it has provided a proving grounds for new turbines, so too has the community wind sector served as a laboratory for experimentation with innovative new financing structures. For example, a variation of one of the most common financing arrangements in the U.S. wind market today - the special allocation partnership flip structure (see Figure 1 in Section 2.1) - was first developed by community wind projects in Minnesota more than a decade ago (and is therefore sometimes referred to as the 'Minnesota flip' model) before being adopted by the broader wind market. More recently, a handful of community wind projects built over the past year have been financed via new and creative structures that push the envelope of wind project finance in the U.S. - in many cases, moving beyond the now-standard partnership flip structures involving strategic tax equity investors. These include: (1) a 4.5 MW project in Maine that combines low-cost government debt with local tax equity, (2) a 25.3 MW project in Minnesota using a sale/leaseback structure, (3) a 10.5 MW project in South Dakota financed by an intrastate offering of both debt and equity, (4) a 6 MW project in Washington state that taps into New Markets Tax Credits using an 'inverted' or 'pass-through' lease structure, and (5) a 9 MW project in Oregon that combines a variety of state and federal incentives and loans with unconventional equity from high-net-worth individuals. In most cases, these are first-of-their-kind structures that could serve as useful examples for other projects - both community and commercial wind alike. This report describes each of these innovative new financing structures in some detail, using a case-study approach. The purpose is twofold: (1) to disseminate useful information on these new financial structures, most of which are widely replicable; and (2) to highlight the recent policy changes - many of them temporary unless extended - that have facilitated this innovation. Although the community wind market is currently only a small sub-sector of the U.S. wind market - as defined here, less than 2% of the overall market at the end of 2009 (Wiser and Bolinger 2010) - its small size belies its relevance to the broader market. As such, the information provided in this report has relevance beyond its direct application to the community wind sector. The next two sections of this report briefly summarize how most community wind projects in the U.S. have been financed historically (i.e., prior to this latest wave of innovation) and describe the recent federal policy changes that have enabled a new wave of financial innovation to occur, respectively. Section 4 contains brief case studies of how each of the five projects mentioned above were financed, noting the financial significance of each. Finally, Section 5 concludes by distilling a number of general observations or pertinent lessons learned from the experiences of these five projects.« less