January
2018
Did
You Know - How
Significant are
Investments in "Green"
Projects?
Much
has been written about the
increase in "green"
sustainability projects over
the past few years. Projects
are being pursued both on
the demand side,
creating new energy
efficiencies, and on the
supply side, through
generation from cleaner
energy sources.
Bloomberg
recently posted a graphic
showing that spending on
these projects has exploded
over the past two years.
Globally, corporations have
more than doubled their
issuance of "green-bonds" in
an effort to finance these
projects. Graphic is
immediately below.
Could
Blockchain Become a Part
of the Energy Market?
The
financial market news of late
has been replete with
stories about market cap
values and volatility of
cryptocurrencies. It is only a
matter of time before
blockchain technology, the
digital ledger where
cryptocurrency transactions
are recorded, is integrated
into the energy market.
A
blockchain
is a digitized ledger that
records a series of
transactions without a central
record keeping system. Each
transaction, or "block", is
permanently connected by
digital "chain" to the next
transaction, linking them
permanently. The result
is a decentralized but
accurate database which anyone
can view. This technology
works with nearly every type
of transaction. Some
consider integrating
blockchain technology into
local power markets as the
next evolution of the grid.
It is gaining a lot of
attention in Europe, in
validating electricity trade
and monitoring grid equipment.
Many are speculating
that the United States will
also take advantage of this
technology, and we may see a
crypto-energy unit,
enabling the ability to
circumvent the current grid /
utility system.
For
two recent stories about
start-ups testing these
concepts, click here and
here.
How
Long will Nuclear
Generators Continue to
Operate?
The
arguments around nuclear power
generators are well-known. On
the one hand, the power is
very clean,
minimizing any harmful
environmental impact. On the
other hand, these plants are
much more expensive to operate
and maintain. Consequently,
the power is more expensive
and government subsidies are
needed to keep them viable.
Both
New York and Illinois approved
such subsidies in 2016 in
order to avert early
retirement of some nuclear
power plants. Other states are
considering similar measures.
Outgoing Governor Christie
from New Jersey has been
considering such a bill before
he leaves office later in
January. As expected, some
environmental groups and the
plant operators favor the
move, while it is opposed by
the energy industry, producing
at a lower cost and without
subsidy.
For more on this story from
Reuters, click here
How
Will the Tax Bill Impact
Energy-Related Industries?
Washington
recently passed a revision of
the United States tax system.
While the jury is still
out on how the energy market
will be impacted in the macro
sense, the general consensus
is that there will be many
surprises yet to come.
MFG
Wind (division of Molded Fiber
Glass Companies)
announced in December
2017 that they would cease
producing wind turbine blades.
Closure of the 400+ worker
plant would come in February
2018. The company cited a
changing market and likely tax
policy revisions as factors in
the closure. Speculation was
that subsidies that they had
received in the past would be
drying up (see story here).
At the end of December, the
company announced that they were
able to secure a new large order
for wind turbine blades. This
was a direct, positive result of
the Production Tax Credit (PTC)
being preserved in the tax
reform bill. This order is
expected to keep the company in
production at least through the
third quarter of 2018, and
perhaps beyond.
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