Financial Procurement and Regulatory Risks

Transcription

1 ENERGY Financial Procurement and Regulatory Risks Smart Utility-Scale Project Development Tactics for Easy Project Financing Ellen Crivella 1 SAFER, SMARTER, GREENER

2 DNV GL Advisory Support Shaped by Experience DNV GL is the We have over 2,500 world s largest energy experts. 13 major offices We have advised energy and renewables More than 1,000 are focused on are focused on Solar worldwide. on over 3,000 solar projects. advisory firm. renewables. 2

3 Agenda! What are regulatory risks?! What frameworks shape these risks?! What do we do about it to make financing (somewhat) easier? 3

4 What is a regulatory risk? 4

5 What is a regulatory risk? 5

6 What is a regulatory risk? 6

7 What is a regulatory risk? 7

8 What is a regulatory risk? 8

9 What is a regulatory risk? 9

10 What is a regulatory risk? 10

11 Regulations Compliance Drives Siting! Federal Requirements National Environmental Policy Act Endangered Species Act, Migratory Bird Treaty Act, Bald and Golden Eagle Protection Act Clean Water Act (401, 402, 404) Clean Air Act National Historic Preservation Act! State Requirements State Revised States & Administrative Code State Environmental Policy/Quality Act State Endangered Species Act State Historic Preservation Act Transportation Permits, Road Crossing Permits! Local Requirements Comprehensive Plans, Ordinances, Building and Grading Permits 11

12 Any guidance out there?! Not really for solar Voluntary Land-Based Wind Energy Guidelines (WEGs) AWEA Siting Handbook! DRAFT Bird and Bat Conservation Strategy Guidance in California (Region 8; 2012)! Current need Industry should take an active role in collaboration 12

13 Other Considerations! Depending on the financier Equator Principles 9 Environmental and Social Impact principles 84 EPFIs: Bank of America, Citigroup, Credit Suisse, JPM, Wells Fargo, Santander IFC Performance Standards Development Banks Other internal standards/requirements Not standardized across banks or buyers 13

14 So, what do we do?! Step 1: Assess you site Desktop studies - always Constraints analysis (GIS), critical issues analysis In-field assessments sometimes necessary Wildlife/habitat, wetlands/hydrology, archaeology/ historic resources Geotech surveys prudent for smart foundation design Phase I ESA always Take about 2-4 months to complete Early understanding allows you to address risk head-on; can affect cost & technology selection 14

15 So, what do we do? (continued)! Step 2: Talk it out Speak with any permit-granting authorities Consultation is voluntary when there is no federal nexus Sometimes still a good idea to speak with agencies Consider public meetings/communication early on Avoid surprises! Angry landowners, litigation, confused public Documentation, documentation, documentation 15

16 So, what do we do? (continued)! Step 3: Make plans Keep good records of commitments, mitigation plans, conditions of approval fulfilment Especially important if you are selling your project Equator Principle 4: ESMP/Action Plan! Step 4: Communicate with your lender/buyer IEs ask lots of questions to gage project risk More information is better; IDed risks require quick solutions 16

17 The Take Aways! Lots of potential development phase risks- early knowledge and planning is key Regs/expectations differ per jurisdiction! Know thy site Desktop review Field validation Do a Phase I ESA! Talk to you the relevant agencies/authories/public! Know thy lender (or buyer or seller) EPFI? IDB? Where have they had troubles in the past?! IEs want to understand risk- docs help! 17

18 Ellen Crivella Global Head of Practice, Environmental and Permitting Services x SAFER, SMARTER, GREENER 18