NextEra CFO: Battery storage is starting a ‘real revolution’ in electric industry

first_img FacebookTwitterLinkedInEmailPrint分享PV Magazine:1.5 cents per kilowatt-hour. That’s how much NextEra Chief Financial Officer (CFO) Jim Ketchum estimates that batteries will add to the cost of solar and wind projects that the company has built over the last six to 12-months, as revealed in the company’s results call yesterday.But that’s not all. Ketchum further added that he expects this cost to fall to around half a cent per kilowatt-hour in the middle of the next decade. “Early in the next decade, mid-next decade, it’s going to probably be about $0.005 a kilowatt hour add, maybe $0.01, but probably closer to about $0.005. And so if we find ourselves in a marketplace where we are selling wind right around $0.02, I mean, a combined wind and solar product probably looks roughly around $0.025. Solar, into the next decade, probably looks more like a $0.03 product, sub-$0.03 in some markets. You add half a penny on that on the high end, you’re probably at about $ 0.035 a kilowatt hour.”NextEra CEO Jim Robo added to this, noting that batteries are allowing the company to provide “firm” power. “We’re right at the beginning of, I think, a real revolution in this country in terms of how electricity is – how storage interacts with electricity on the grid, and how we’re going to start delivering much different, firm, renewable products to our customers going forward,” stated Robo on the results call.CFO Ketchum elaborated on that statement, noting that the economics of wind and solar are going to allow these resources to out-compete existing conventional power plants – and potentially knock them off the grid. “As battery cost declines and efficiency gains are realized during the four-year start of construction period, we continue to expect that in the next decade new nearly firm wind and solar, without incentives, will be cheaper than the operating costs of traditional inefficient generation resources, creating significant opportunities for new renewables growth going forward.”These confident statements about the costs and abilities of solar and wind plus storage come as the company has reached a record backlog of 7.4 GW of solar, wind and energy storage projects. This includes nearly 2 GW of solar projects that the company has contracted to put online through 2020. During the quarter NextEra added 692 MW of solar projects and 90 MW of battery storage to its backlog.The large majority of this, at 1.48 GW of solar and 75 MW of battery storage, is planned for the 2019-2020 timeframe, however NextEra is also planning projects after 2020, and notes that the new IRS guidelines on the beginning of construction allow the company to claim the full 30% Investment Tax Credit for projects that it puts online as late as 2023, as long as they have started construction in 2019.More: NextEra expects storage to add half a cent to solar in mid-2020’s NextEra CFO: Battery storage is starting a ‘real revolution’ in electric industrylast_img read more

UPL Update

first_imgUPL Update October 15, 2003 Regular News The advisory opinion processcenter_img Jeffrey T. Picker Assistant UPL CounselI am often asked whether a certain activity constitutes the unlicensed practice of law. The answer to this question can be found primarily in case law. But what if there is no case law addressing the particular activity? This is where the formal advisory opinion process comes into play. The next few columns will discuss this process.Rule 10-9.1 of the Rules Regulating The Florida Bar sets forth the formal advisory opinion process in UPL matters. The rule requires that a written request for a formal opinion be submitted in the form of a hypothetical, providing all the relevant facts to the UPL Department, The Florida Bar, 651 E. Jefferson Street, Tallahassee 32399-2300. The question must not be the issue in a pending lawsuit and must ask whether the activity is the unlicensed practice of law.If the request complies with the above requirements, it will be placed on the agenda of the next meeting of the Standing Committee on Unlicensed Practice of Law. The standing committee usually meets three or four times per year. At the meeting the committee will decide whether to hold a public hearing on the request. In the past, the committee has voted to hold a public hearing in matters of first impression or of statewide importance.The next column will discuss what happens at the hearing and after.last_img read more

Siemens Benefits Scheme signs £530m buy-in

first_imgThe Siemens Benefits Scheme has completed a £530m (€578m) buy-in transaction with Legal & General, securing the benefits of more than 2,000 UK retirees.The deal is the pension fund’s second such pension risk transfer transaction, but the first with Legal & General.The insurer, which announced the deal today, said the pension scheme had chosen an umbrella contract to allow for potential future transactions to be completed quickly and easily, when the time and market conditions are right.It also said the trustees ran an agile and flexible process, which allowed them to take advantage of favourable pricing opportunities in the market, and to move quickly to meet their objectives. Joanna Matthews, chair of the trustees, said: “Through careful planning, we were able to overcome the logistical and investment challenges posed by COVID-19 and complete this transaction at this time on very favourable terms. This is a fantastic outcome and I would like to thank all involved in the process.”The trustees were advised on the transaction by Aon and Sackers. Legal advice was provided to Legal & General by Eversheds.Karen Gainsford, principal consultant at Aon, said the scheme’s “nimble governance” was key to the firm having been able to secure attractive terms “so efficiently”.“It’s a great example of what will be needed throughout the remainder of 2020, as schemes seek to secure benefits in what is set to become a busy market once again,” she said.Legal & General has been working with the Siemens Benefits scheme for many years, and Legal & General Investment Management Limited helped to set up the liability-driven investment portfolio in 2008.Siemens’ deal is the latest in a series of bulk annuity transactions to be announced recently. Rothesay Life last week announced it had closed a £930m buy-in with Littlewoods Pensions Scheme last month, and a day later Legal & General Assurance Society disclosed a £70m buy-in with ICI Pension Fund.To read the digital edition of IPE’s latest magazine click here.last_img read more