You are on page 1of 28

United States

renewable energy
attractiveness indices
February 2012
United States renewable energy attractiveness indices | Issue 8 1
Life after 1603
With the expiration of the ARRA Section 1603 Grants in Lieu
of Tax Credits for Renewable Energy, we see the return of
lYp]imalqlgj]f]oYZd]khjgb][lfYf[]&@go]n]j$*()*oadd
dac]dqk]]Yka_fa[Yflk`gjl^Yddg^lYp]imalq$Yf\l`]kmhhdq%
demand mismatch may limit growth trends in solar and wind
\]n]dghe]fl&
Production tax credit expiration
Oaf\\]n]dghe]floaddZ]kmhhgjl]\l`jgm_`*()*Zql`]
Production Tax Credit (PTC), wind powers key incentive, which is
k]llg]phaj]af<][]eZ]j*()*&>Yadmj]lg]pl]f\l`akaf[]flan]
could stop wind development in its tracks, as occurred in 1999,
*(()Yf\*((+&
Normalization
*())[gf[dm\]\oal`Hj]ka\]flGZYeYkka_faf_g^l`]FYlagfYd
<]^]fk]9ml`gjarYlagf9[l^gj>ak[YdQ]Yj*()*&L`]Y[l
contained a provision exempting recipients of the 1603 Grants
^jgefgjeYdaraf_l`][Yk`_jYflkZ]f]lk$Ykakj]imaj]\afl`]
lj]Yle]flg^l`]Afn]kle]flLYp;j]\alAL;!&Oal`l`]j]d]Yk]g^
1603 Grants from normalization requirements, it is possible that
o]oaddk]]mladala]kfYddqYZd]lgk]d^%_]f]jYl]jYl]k[geh]lalan]
oal`l`gk]g^AHHkYf\mfj]_mdYl]\mladala]k&
IRS provides guidance on federal
energy tax credits
The IRS provides guidance on solar facilities In US possessions,
]f]j_qklgjY_]\]na[]k$jgg^%egmfl]\kgdYjafklYddYlagfkYf\
9JJ9K][lagf).(+?jYfl<]n]dghe]flk&
Website
Ernst & Young LLP has a single location website,
www.ey.com/USAI, where you can go to get back issues of
the USAI, country attractiveness indices and biofuel
YlljY[lan]f]kkaf\a[]k&
Issue content
2
Table of contents
Gn]jna]og^af\a[]kYf\_dgkkYjq&&&&&&&&&&&&&&&&&&&&&&&&&& 3
US highlights &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 5
Life after 1603 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 6
Production tax credit expiration &&&&&&&&&&&&&&&&&&&&&&&&&&& 7
FgjeYdarYlagf&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 8
Market activity&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 9
All renewables index &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 11
Dgf_%l]jeaf\a[]k&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& )*
;gee]flYjq2`a_`%k[gjaf_klYl]k&&&&&&&&&&&&&&&&&&&&&&&&& 13
Commentary: key states &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 17
IRS guidance&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 18
Excerpt: country
attractiveness indices &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& *(
Country focus: Canada &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& *)
Country focus: Mexico &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& *+
Commentary: guidance notes &&&&&&&&&&&&&&&&&&&&&&&&&&&&&& *-
=jfklQgmf_j]f]oYZd]
energy services &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& *.
United States renewable energy attractiveness indices | Issue 8 3
Overview of indices
L`]=jfklQgmf_DDHMfal]\KlYl]k9lljY[lan]f]kkAf\a[]kMK9A!
provide scores for state renewable energy markets, renewable
energy infrastructures and their suitability for individual
l][`fgdg_a]k&L`]af\a[]khjgna\]k[gj]kgmlg^)((Yf\Yj]
lqha[Yddqmh\Yl]\gfYZaYffmYdZYkak&
L`]eYafaf\a[]kYddj]f]oYZd]k$dgf_%l]jeoaf\Yf\dgf_%l]je
kgdYj!Yj]j]^]jj]\lgYkl`]dgf_%l]jeaf\a[]k&L`]dgf_%l]je
af\a[]kYj]^gjoYj\%dggcaf_Yf\`Yn]Ydgf_%l]jegmldggcgf
l`]j]f]oYZd]]f]j_qaf\mkljq&L`mk$YklYl]l`Yl`Ykhgkalan]
attributes (such as unexploited wind resources, attractive power
pricing or tax climate) will score well even if that state currently has
dalld]afklYdd]\[YhY[alq&J]Y\]jkk`gmd\j]^]jlgl`]_ma\Yf[]fgl]k
k]lgmlgfhY_]*-&
All renewables index
This index provides an overall score for all renewable energy
l][`fgdg_a]k&Kaf[]gmjdYkl]\alagf$o]`Yn]j]%o]a_`l]\
l][`fgdg_a]klgj]][ll`]af[j]Yk]afY[lanalqafkgdYj\]n]dghe]fl&
It combines individual technology indices as follows:
Dgf_%l]jeoaf\af\]p,-
Dgf_%l]jekgdYjaf\]p,-[gehjakaf_l`]j]ka\]flaYdkgdYj
af\]p$[gee]j[aYdkgdYjaf\]pYf\l`]dYj_]%k[Yd]af\]p!
:ageYkkaf\]p-
?]gl`]jeYdaf\]p-
Individual technology indices
These indices are derived from scoring:
L][`fgdg_q%kh][a[hYjYe]l]jkl`]l][`fgdg_q^Y[lgjk!$
Y[[gmflaf_^gj.-
?]f]jYdklYl]%kh][a[hYjYe]l]jkl`]j]f]oYZd]k
af^jYkljm[lmj]af\]p!$Y[[gmflaf_^gj+-
Renewables infrastructure index
This index is an assessment by state of the general regulatory
af^jYkljm[lmj]^gjj]f]oYZd]]f]j_q&GfYo]a_`l]\ZYkak$l`]af\]p
considers:
Klj]f_l`g^J]f]oYZd]Hgjl^gdagKlYf\Yj\JHK!*1
HdYffaf_Yf\_ja\[gff][lagfakkm]k-/
9[[]kklgfYf[]),
Technology factors
L`]k]hjgna\]j]kgmj[]%kh][a[Ykk]kke]flk^gj]Y[`klYl]&
Each of the technology indices considers, on a weighted basis,
the following:
Hgo]jg^^lYc]YlljY[lan]f]kk+*
LYp[daeYl]0
?jYfl'kg^ldgYfYnYadYZadalq0
EYjc]l_jgol`hgl]flaYd*.
;mjj]flafklYdd]\ZYk]0
J]kgmj[]imYdalq)0
Long-term solar index
These indices are derived from scoring:
L`]dYj_]%k[Yd]mladalq%k[Yd]hjgb][lk!kgdYjaf\]p./
L`][gee]j[aYdjgg^lghYf\_jgmf\%egmflafklYddYlagfk!
kgdYjaf\]p**
L`]j]ka\]flaYdkgdYjaf\]p))
Comments and suggestions
We welcome your comments or suggestions on any aspect of the
af\a[]k&LYadgj%eY\]YlljY[lan]f]kkkmjn]qkYf\eYjc]lj]hgjlk
[YfZ]hjgna\]\l`YllYc]kh][a[[gjhgjYl]gZb][lan]kaflg
Y[[gmfl&Hd]Yk][gflY[lEac]:]jfa]j$<gjaYf@mfl$HYmdFYmeg^^
gj?YZja]dOm]ZZ]fYl=jfklQgmf_DDHoal`Yfq[gee]flk
and/or suggestions:
Mike Bernier | michael.bernier@ey.com
Dorian Hunt | dorian.hunt@ey.com
Paul Naumoff | paul.naumoff@ey.com
Gabriel Wuebben | gabriel.wuebben@ey.com
5
Glossary
AWEA American Wind Energy
Association
CHP Combined Heat and Power
DOE Department of Energy
GC Green Certificate
GW Gigawatt (1,000 MW)
IPO Initial Public Offering
IRR Internal Rate of Return
ITC Investment Tax Credit
kWh Kilowatt Hour (1,000 Wh)
M&A Mergers and Acquisitions
MW Megawatt (1,000 kW)
MWh Megawatt hour (1,000,000 Wh)
PE Private Equity
PPA Power Purchase Agreement
PTC Production Tax Credit
PV Photovoltaic
REC Renewable Energy Certificates
RPS Renewable Portfolio Standard
SREC Solar Renewable Energy
Certificate
WREGIS Western Renewable Energy
Generation Information System
USPREF US Partnership for Renewable
Energy Finance
United States renewable energy attractiveness indices | Issue 8 5
US highlights
All Renewables Index
Despite uncertain macroeconomic conditions, renewables
]ph]ja]f[]\YZYff]jq]Yjaf*())&Gfk`gj]oaf\hjgb][lkkYo
j][gj\afn]kle]fl3Y[[gj\af_lg9O=9$*())oaf\afklYddYlagfk
lghh]\.&0?O&9[[gj\af_lg?j]]fl][`E]\aY$kgdYjYdkg`Y\Y
eYkkan]q]Yjaf*())oal`l`]Y\\alagfg^YhhjgpaeYl]dq
)&/?Og^[YhY[alqfYlagfoa\]$lghhaf_)?O^gjl`]jkllae]
afl`]`aklgjqg^l`]af\mkljq&Af[gehYjakgf$ZageYkkYf\
geothermal, comprising a much smaller proportion of the US
j]f]oYZd]khgjl^gdag$km^^]j]\\aeafak`]\afn]kle]fl&
Fglkmjhjakaf_dq$;Yda^gjfaYd]\afl`]9ddJ]f]oYZd]kAf\]p$lYcaf_
]al`]jl`]lghgjk][gf\khglafYddl][`fgdg_a]kY[jgkkl`]ZgYj\&
F]oE]pa[gYf\;gdgjY\g[Ye]afk][gf\Yf\l`aj\$j]kh][lan]dq$
in the All Renewable Index, thanks in part to consistent growth
Yf\kljgf_hgl]flaYdY[jgkkYddl][`fgdg_a]k&@YoYaa^gddgo]\af
^gmjl`\m]lgYfYlljY[lan]keYdd%k[Yd]kgdYjeYjc]l$^gddgo]\Zq
EYkkY[`mk]llkYf\L]pYk$la]\^gj^l`$oal`kljgf_\jYo^gjkgdYj
Yf\oaf\afn]kle]fl$j]kh][lan]dq&
Long-term Wind Index
Oal`+&,?OafklYdd]\afI,*()).&0)?OlglYd^gj*())!$MK
oaf\afklYddYlagfkYj]YhhjgY[`af_-(?Og^lglYdafklYdd]\[YhY[alq&
Californias offtake prices, favorable regulatory and incentive
environment and outstanding resource quality secured its top
hgkalagfafl`]Dgf_%l]jeOaf\Af\]p$^gddgo]\Zq;gdgjY\gYf\
F]oE]pa[g&AddafgakYf\L]pYkl`]`aklgja[Yddq\geafYflklYl]
`Yekljmf_ZqljYfkeakkagfakkm]k!jgmf\gmll`]lghn]&K]n]jYd
Ea\o]klklYl]khYjla[mdYjdqG`agYf\Ea[`a_Yf!kYo]phdgkan]
growth and this region represents the greatest concentration of
[YhY[alq[mjj]fldqmf\]j[gfkljm[lagf&
Long-term Solar Index
;Yda^gjfaY`gd\kY\geafYfld]Y\gn]jl`]j]eYafaf_lghn]klYl]k
afl`]Dgf_%l]jeKgdYjAf\]p&@YoYaaYf\EYkkY[`mk]llk$oal`l`]aj
]klYZdak`]\keYdd%k[Yd]eYjc]lkYf\hjgeakaf__jgol`hgl]flaYd$
k`Yj]l`]k][gf\hgkl$^gddgo]\ZqF]oE]pa[gYf\F]nY\Y&
L`]]phYfkagfg^l`]l`aj\%hYjlq%gof]\kgdYjeg\]d$\]]h]faf_alk
hold in current markets and expanding geographically to attractive
eYjc]lk$k`gmd\kmhhgjl[gflafm]\_jgol`afl`]keYdd%k[Yd]
segment, while Solar Energy Industries Association (SEIA) projects
1&.-?Og^Y\\alagfYdmladalq%k[Yd]afklYddYlagfkl`jgm_`*()-&
Biomass/Geothermal Index
As mentioned, Californias All Renewables Index performance
was not limited to solar and wind; the states geothermal and
ZageYkkjYfcaf_ko]j]k][gf\Yf\jkl$j]kh][lan]dq&@YoYaak9dd
Renewable Index standing was helped by its strong geothermal
klYf\af_&EYaf]Ydkgklj]f_l`]f]\alkgn]jYddjYfcaf_oal`d]Y\af_
ZageYkkYf\_]gl`]jeYdk[gj]k&
6
Life after 1603
Last year closed with the expiration of the Section 1603
HYqe]flk^gjKh][a]\=f]j_qHjgh]jlqafDa]mg^LYp;j]\alk&
Despite the expiration at the end of the year, many projects were
_jYf\^Yl`]j]\afmf\]jaf\mkljq%^ja]f\dqZ]_af[gfkljm[lagf
jmd]k&>jge*((1l`jgm_`*())$l`]).(+hjg_jYedd]\l`]
nga\d]^l\mjaf_l`]j][]kkagfo`]flYp]imalq]\l`]eYjc]laf
j]khgfk]lgjYehYflmfhjglYZadalqYf\l`]]fkmaf_dgkkg^lYp
Yhh]lal]&L`jgm_`).(+$Lj]Ykmjqhjgna\]\YhhjgpaeYl]dq)(Zaf
daima\alqlggn]j,$*-(hjgb][lk$Yddgoaf_l`gmkYf\kg^hjgb][lklg
]^[a]fldqegf]lar]l`]+(Yf\)(Afn]kle]flLYp;j]\alk&
With the closing of the 1603 Grant, tax equity is set to reclaim a
hanglYdjgd]afl`]fYf[af_g^j]f]oYZd]\]n]dghe]flk&:Yjjaf_
a renewal of the 1603 Grant by congress, developers must once
Y_Yafj]kgjllgkljm[lmj]\hjgb][lfYf[]lgYlljY[lgmlka\]hjgb][l
equity, reintroducing a level of complexity and costs temporarily
j]egn]\Zql`]_jYfl&@go]n]j$\]khal]kdgodqj][gn]jaf_
[gjhgjYl]hjglk$lYp]imalq`Ykfgl^mddqj]Y[`]\hj]%j][]kkagf
d]n]dk&?LEE]\aY[gmflkYhhjgpaeYl]dqfaf]]klYZdak`]\lYp
equity providers active in the market compared with over twenty
af*((/3l`]af\mkljqdgklk]n]jYdafn]klgjklgafkgdn]f[a]k$
ZYfcjmhl[a]kYf\[gfkgda\Ylagfk&J]eYafaf_hdYq]jkYj]dac]dqlg
`Yn]\aeafak`]\hjglYZadalqYf\l`mkd]kklYp[j]\alYhh]lal]!$
Yko]ddYkY\]_j]]g^mf[]jlYaflqafhjgb][laf_^mlmj]]Yjfaf_k&
Thus, demand for tax equity is likely to outstrip a vastly diminished
kmhhdq$`Yeh]jaf_\]n]dghe]flaf[geaf_q]Yjk&MKHJ=>$Y
renewable energy research organization, projects that tax equity
kmhhdqaf*()*eYqlglYd+&*Z&L`akkmhhdqhYd]kaf[gehYjakgf
oal`l`]af\mkljq`a_`kmhhdqg^.&)ZaflYp]imalqYnYadYZd]
af*((/&G^_j]Yl]j[gf[]jf$:dggeZ]j_F]o=f]j_q>afYf[]
]klaeYl]kl`YllYp]imalq\]eYf\eYqjYf_]^jge/Zlg)(Zaf
*()*$km__]klaf_Yk`gjl^Yddg^Yld]Ykl+&0Z&
Fme]jgmkhYjla[ahYflkafl`]af\mkljq`Yn]j][]fldqZ]]f
Yfla[ahYlaf_o`Yll`]q]ph][llgZ]Yka_fa[Yflk`gjl^Yddafl`]
kmhhdqg^lYp]imalqafl`][geaf_q]Yj&@go]n]j$o]Yj]kc]hla[Yd
YZgmll`]kar]g^l`]hjgb][l]\k`gjl^Ydd^gj*()*&Gmj]ph]ja]f[]k
\mjaf_l`]fYdegfl`kg^*())af\a[Yl]l`YlYdYj_]fmeZ]jg^
projects were grandfathered into the 1603 program and many
g^l`]k]hjgb][lkYj]]ph][l]\lgZ][gehd]l]\af*()*&:Yk]\
on our anecdotal experience and informal feedback from client
discussions, we estimate that the amount of 1603 Grants claimed
\mjaf_*()*oaddZ]kge]o`]j]afl`]f]a_`Zgj`gg\g^+&-Zlg
,&-Z&L`ak[gmd\dYj_]dq`]dh]daeafYl]l`]Yfla[ahYl]\k`gjl^Ydd&
L`YlakfgllgkYql`]hjgZd]eakfglY[gf[]jf&KeYdd]j$ima[c]jlg
Zmad\hjgb][lkkm[`Yk\akljaZml]\kgdYjoaddZ]l`]jkllgn]flmj]
out from the safety of the 1603 program and need to survive
kgd]dqgflYp]imalqYf\\]Zl^gjfYf[af_&O]]ph][ll`YllgZ]
^gddgo]\ZqdYj_]j%k[Yd]hjgb][lkkm[`YkkgdYjYf\oaf\Ykkmeaf_
l`]HL;ak]pl]f\]\!&O]]ph][l*()+lgZ]Yn]jq[`Ydd]f_af_
q]Yj^gjhjgb][lfYf[]afl`]j]f]oYZd]]f]j_qkhY[]&
L`ak^mlmj]kmhhdq%\]eYf\aeZYdYf[]ak]ph][l]\lg]d]nYl]lYp
]imalqqa]d\k$kim]]raf_\]n]dgh]jk&=jfklQgmf_DDHakY\nakaf_
companies that have not traditionally invested in tax equity
afn]klgjklg`]dhl`]emf\]jklYf\l`]Z]f]lkYf\jakckYkkg[aYl]\
oal`lYp]imalqafn]klaf_&Af\]]\$l`]j]f]oYZd]kaf\mkljq
[gflafm]klgdggclgoYj\hjglYZd]fgf%fYf[aYd[gjhgjYlagfkoal`
adequate and predictable tax liability to step in and augment the
supply provided by traditional tax equity providers (historically,
fYf[aYdafklalmlagfkYf\afkmjYf[][gehYfa]k!&O]]ph][ll`]
participation of these new entrants to dramatically change the
dYf\k[Yh]g^l`]af\mkljqaf*()+&
United States renewable energy attractiveness indices | Issue 8 7
Production tax credit
expiration
Oaf\\]n]dghe]floaddZ]kmhhgjl]\l`jgm_`*()*Zql`]HL;$
oaf\hgo]jkc]qaf[]flan]$o`a[`hjgna\]kY(&(*lYp[j]\al^gj
]Y[`cO`g^]f]j_qhjg\m[]\gn]j)(gh]jYlaf_q]Yjk&=phajYlagf
g^l`akaf[]flan]af<][]eZ]j*()*`Ykl`]hgl]flaYdlgklghoaf\
\]n]dghe]flafalkljY[ck&
L`]HL;`YkYngdYlad]`aklgjq&Kaf[])111l`][j]\al`Yk]phaj]\
on three occasions, decimating the industry on each occasion, only
lgZ]kmZk]im]fldqj]kmjj][l]\^gjgf]lglogq]Yj]pl]fkagfk&
Hj]nagmk]phajYlagfkaf)111$*(()Yf\*((+j]kmdl]\af\jghkg^
YffmYdafklYdd]\[YhY[alqg^1+$/+Yf\//$j]kh][lan]dq&L`]j]
are no illusions with respect to the impact this uncertainty will
`Yn]gfl`]oaf\af\mkljqaf*()*&AlYhh]Yjkl`YlY[lanalqafl`]
af\mkljqoaddZ]kmZklYflaYddqj]\m[]\oal`gmlYf]pl]fkagf&
In addition to damaging wind development, expiration of the PTC
ogmd\`Yn]Yka_fa[YflaehY[lgfo`Yl`YkZ][ge]Yl`janaf_
\ge]kla[eYfm^Y[lmjaf_k][lgj&:m[caf__dgZYdlj]f\k$af*()(
l`]oaf\af\mkljqj]Y[`]\-(\ge]kla[[gfl]fl^gj\ge]kla[Yddq
deployed turbines, and there is reason to believe this percentage
oadd[gflafm]lgaf[j]Yk]&9O=9j]hgjlkl`Yll`]oaf\af\mkljq
fgokmhhgjlk/-$(((bgZkYlgn]j,((\a^^]j]fl^Y[adala]kafYdd-(
klYl]k&9O=9[gflafm]k$Oal`klYZd]lYphgda[ql`]oaf\af\mkljq
can grow to nearly 100,000 American jobs in the next four years
Yf\kmhhgjl-(($(((9e]ja[YfbgZkZq*(+(&
9fmeZ]jg^kgmj[]kkm__]kll`YlY^gmj%q]Yj]pl]fkagfakafl`]
ogjck&L`]Hj]ka\]flk;gmf[adgfBgZkYf\;geh]lalan]f]kk
Road Map to Renewal report endorsed extending the PTC for wind
energy, concluding that, aside from preserving jobs, extending
production tax credits will also promote the type of innovation and
investment America needs to diversify its generation portfolio and
hj]hYj]^gjjakaf_d]n]dkg^]f]j_q\]eYf\&:ahYjlakYfd]_akdYlagf
j][]fldqafljg\m[]\Yaeklg_jYflY^gmj%q]Yj]pl]fkagflgl`]
HL;^gjoaf\]f]j_q&L`]d]_akdYlagf$kmhhgjl]\Zq+.ZahYjlakYf
[g%khgfkgjk$Ydkg[Yjja]k]f\gjk]e]flk^jgeYZjgY\[gYdalagfg^
more than 370 members including organizations representing
eYfm^Y[lmjaf_$^Yjeaf_$mladalqYf\_gn]jfe]fl]flala]k&L`]
legislation also enjoys the support of the bipartisan Governors
Oaf\=f]j_q;gYdalagf$[gehjak]\g^*+_gn]jfgjk^jgeY[jgkk
l`][gmfljq&
8
Normalization
DYklq]Yj[gf[dm\]\oal`Hj]ka\]flGZYeYkka_faf_g^l`]
FYlagfYd<]^]fk]9ml`gjarYlagf9[l^gj>ak[YdQ]Yj*()*
F<99!&L`]d]_akdYlagfaf[dm\]\Ymfaim]hjgnakagfl`Yl
retroactively amends Section 1603(f) of the American Recovery &
J]afn]kle]fl9[lg^*((19JJ9!$]daeafYlaf_l`]fgjeYdarYlagf
j]imaj]e]flYhhda]\lgjYl]%j]_mdYl]\hmZda[mladala]kl`Yl[dYae
_jYflk^gjj]f]oYZd]]f]j_qhjgb][lk&
JYl]%j]_mdYl]\hmZda[mladala]kYj]Yddgo]\lg[dYaeYf]f]j_q[j]\al
^gj]da_aZd]hjgh]jlqmf\]jK][lagf,0&@go]n]j$mladala]k`Yn]
been required to follow the rules dealing with the recapture of the
lYp[j]\alk$af[dm\af_oal`j]kh][llgfgjeYdarYlagf$Ye]l`g\
g^Y[[gmflaf_afo`a[`l`]Z]f]lkg^l`][j]\alkgol`jgm_`
to the utilities customers, generally over the useful life of the
mf\]jdqaf_Ykk]l&Kh][a[Yddq$K][lagf-(af[dm\]kYj]^]j]f[]lg
l`]fgjeYdarYlagfj]imaj]e]flkmf\]jgd\K][lagf,.^!l`Yl
j]imaj]kjYl]%j]_mdYl]\hmZda[mladala]klgmk]YfgjeYdarYlagf
method of accounting for ITCs when setting the rates they charge
[mklge]jk^gjmladalqk]jna[]k&L`ake]Yfk_]f]jYddql`YljYl]%
j]_mdYl]\mladala]keYqfglhYkkl`jgm_`l`]Z]f]lg^l`]AL;klg
customers in lower rates in the year they are realized, but must
afkl]Y\hjgna\]l`]Z]f]llg[mklge]jkYkYj]\m[lagfaf[gklg^
k]jna[]gn]jl`]mk]^mdda^]g^l`]mf\]jdqaf_hjgh]jlq&
O`]f9JJ9oYkhYkk]\af>]ZjmYjqg^*((1$al[j]Yl]\l`]
K][lagf).(+_jYflkafda]mg^Yfafn]kle]fllYp[j]\alkhjg_jYe&
Among other things, Section 1603 included language that applied
a set of recapture rules under Section 50 to the grant program
(since the grant program was intended to replicate energy
afn]kle]fllYp[j]\alk!&
Section 50 of the Code provides a regime for recapturing
previously claimed investment credits in certain circumstances, but
also includes the reference to normalization requirements under
gd\K][lagf,.^!Ykfgl]\YZgn]&
By applying this provision to the 1603 grant program, the drafters
arguably eliminated the ability of public utilities to participate in
the grant program unless the grants are subject to normalization
afjYl]eYcaf_&Afalk_ma\Yf[]^gjl`]_jYflhjg_jYemf\]jK][lagf
).(+$l`]Lj]Ykmjq<]hYjle]fln]jqkh][a[Yddqa\]fla]\l`]
requirement to normalize grant proceeds There were public utilities
l`Ylo]j]ghhgk]\lgl`akfgjeYdarYlagfj]imaj]e]fl&9dl`gm_`
the application of the normalization requirement was not clear, if
hmZda[mladala]kfgjeYdar]\l`]lYpZ]f]lg^l`]_jYflhjg[]]\kaf
a manner identical to energy investment tax credits, the amounts
they would be required to charge customers for renewable power
ogmd\Z]`a_`]jl`Yfa^l`]qhmj[`Yk]\l`]hgo]j^jgefgf%
j]_mdYl]\j]f]oYZd]]f]j_q\]n]dgh]jk&L`]fgjeYdarYlagfjmd]
eY\]al\a^[mdl^gjhmZda[mladala]klgafn]kl\aj][ldqafj]f]oYZd]
energy projects subject to the Section 1603 Treasury grant
hjg_jYe&
L`]F<99[`Yf_]]daeafYl]kl`]j]imaj]e]fllgfgjeYdar]
Lj]Ykmjq_jYflhjg[]]\kmf\]jl`]K][lagf).1+hjg_jYe&K][lagf
-(\!*!aklmjf]\g^^j]ljgY[lan]dqkgl`YlhmZda[mladala]kYj]fgl
j]imaj]\lg^gddgol`]jmd]kaf^gje]jK][lagf,.^!Z]^gj]l`]aj
j]h]Ydaf)11(&
United States renewable energy attractiveness indices | Issue 8 9
Market activity
General
Last year saw the United States reclaim its position as the global
leader in renewable energy investment, a position lost to China in
*((1&9[[gj\af_lg:dggeZ]j_F]o=f]j_q>afYf[]$l`]MKkYo
lglYdj]f]oYZd]kafn]kle]flkmj_af_lg--Z$mh++^jge*()(3
;`afYe]Yfo`ad]kYoafn]kle]flaf[j]Yk]bmkl)$lg,/&,Z&
Investment was concentrated in the two established renewable
energy technologies, solar and wind, which both saw record
\]n]dghe]fll`jgm_`l`]q]Yj&L`]mjjqg^Y[lanalqafl`]k]
technologies was due in part to developers efforts to break
_jgmf\gfhjgb][lkZqq]Yj]f\*())afgj\]jlglYc]Y\nYflY_]
g^l`]]phajaf_).(+?jYflkafDa]mg^LYp;j]\alk&L`]]phajYlagf
g^l`akhjg_jYeakdac]dqlg\][]d]jYl]Y[lanalql`jgm_`gml*()*
YklYp]imalqj][dYaekalkhanglYdjgd]afhjgb][lfYf[]&Oal`l`]
expiration of the Grants, developers will have to structure project
fYf[]lg]^^][lan]dqegf]lar]l`]Hjg\m[lagfYf\Afn]kle]flLYp
;j]\alkHL;$AL;!&@go]n]j$\]eYf\^gjlYp]imalqeYqgmlkljah
l`]kmhhdq`aklgja[Yddqhjgna\]\Zq]klYZdak`]\lYp]imalqafn]klgjk&
?j]]fl][`E]\aY]klaeYl]k*()*eYqj]hj]k]flY\]eYf\^gj
/Zg^lYp]imalq$o`ad]l`]MKHYjlf]jk`ah^gjJ]f]oYZd]=f]j_q
>afYf[]HJ=>!]klaeYl]klYp]imalqkmhhdqg^YhhjgpaeYl]dq
+&,Z^jge[mjj]flafn]klgjk&L`akkmhhdqYf\\]eYf\aeZYdYf[]
could result in increasing tax equity yields which, combined with
increasingly competitive PPA bidding processes, may provide
_j]Yl]j[`Ydd]f_]k^gj\]n]dgh]jk&
Wind
Oaf\k*())ZggeeYqZ]]n]fegj]k`gjl%dan]\Yk$Y\\af_lgl`]
tax equity challenges, the PTC, wind powers key incentive, is set to
]phaj]Ylq]Yj%]f\*()*&Egkl]ph][ll`][mjj]fldqmk`hah]daf]
lg[gflafm]lgko]ddl`jgm_`l`]jkl`Yd^g^*()*Yk\]n]dgh]jk
again rush to commence projects in time to take advantage of
]phajaf_af[]flan]k&@go]n]j$ZYjjaf_d]_akdYlagf]pl]f\af_l`]
HL;$Y[lanalqakdac]dqlgkdgol`jgm_`l`]k][gf\`Yd^g^*()*$Yf\
may suffer a collapse similar to those experienced with previous
]phajYlagfkg^l`]HL;af*((($*((*Yf\*((,$o`]foaf\
afn]kle]fl^]dd/+%1+q]Yjgn]jq]Yj&
*())k]phdgkan]q]YjZ]_Yfoal`Y[gf[]fljYlagfg^Y[lanalqaf
Ea\o]kl]jfafklYddYlagfk$oal`l`]*,(EO:a_KcqOaf\^Y[adalqaf
AddafgakYf\l`]*()EO:]flLj]]^Y[adalqafEaff]kglY[gfljaZmlaf_
lggn]j.0(EOafI)Ea\o]kl]jfafklYddYlagfkgn]j.(g^gn]jYdd
I)fYlagfYdafklYdd]\[YhY[alq!&I*kY[lanalqkomf_o]kloYj\$
oal`l`][geeakkagfaf_g^;Yda^gjfaYk9dlYAA%N^Y[adala]k$o`a[`
Zjgm_`l,*(EOgfdaf]$Yf\Gj]_gfkD]Yfaf_Bmhal]j^Y[adalq$
oal`fYe]hdYl][YhY[alqg^gn]j*((EO&;gdgjY\g\geafYl]\I+
installations with over 500 MW commissioned at the Cedar Creek II
Yf\;]\YjHgaflOaf\^Y[adala]k&9[lanalqkomf_ZY[clgl`]Ea\o]kl
afI,&Jgddaf_@addk$DYmj]dYf\Yk]ja]kg^gl`]jhjgb][lkZjgm_`l
I,afklYddYlagfk^gjAgoYlggn]j.((EO$+((EO[Ye]gfdaf]af
Addafgak$Ea[`a_Yf[geeakkagf]\*((EOafloghjgb][lkYf\G`ag
kYoY1*1q]Yj%gn]j%q]Yjaf[j]Yk]af[YhY[alq$hjaeYjadq\m]lg
keYdd]j<?hjgb][lk&>afYddq$I,kYoCYfkYk;Yf]qJan]jhjgb][l
[ge]gfdaf]$_]f]jYlaf_*((EOg^hgo]jo`a[`oaddZ]kgd\lgl`]
LN9l`jgm_`Y*(%q]YjHH9&L`]LN9akZjaf_af_gn]j)&-?Og^
wind power to the nations Southeast in the coming years through
a series of at least nine contracts with Midwestern states, which
k`gmd\klgc]Yhjgeakaf_Zml`aklgja[Yddqmf\]j\]n]dgh]\eYjc]l&
A number of massive wind developments are scheduled to come
gfdaf]af*()*$egklfglYZdqGj]_gfkK`]h`]j\k>dYl$ZgYklaf_
0,-EOg^fYe]hdYl][YhY[alq&L`akhjgb][lakj]eYjcYZd]fgl
only for its scale; it also represents major contributions from
fgf%ljY\alagfYd[gjhgjYl]lYp]imalqafn]klgjk&Afda_`lg^l`]
Y^gj]e]flagf]\lYp]imalqkim]]r]$l`akZg\]ko]dd^gjl`]af\mkljq&
Solar
L`]Za_f]okafl`]kgdYjaf\mkljqaf*())oYkl`][gddYhk]af
hgdqkada[gfhja[]k$Yf\l`]]^^][lgfHNeg\md]hja[af_&<jYofZq
^]o[geh]lalgjkYf\eYkkan]hjgleYj_afkafl`]dYl]*(((k$f]o
]fljYflkgg\]\l`]hgdqkada[gfkh`]j]Z]_affaf_af*((0&Kaf[]
then, global oversupply has pushed silicon spot prices down from
0('c_afI)*())lgd]kkl`Yf+('c_&?LEJ]k]Yj[`km__]klk
l`Yll`ak[gddYhk]afhja[]kk`gmd\[gflafm]l`jgm_`*()*$Yf\
^gj]k]]kl`]hgl]flaYd^gj(&/('oYllHNeg\md]knk&)&0('oYll
Yll`]klYjlg^*())!&L`]hja[]\jghoadddac]dq^gj[]fme]jgmk
hdYq]jkgmlg^l`]kada[gfeYjc]l&
J]ka\]flaYdafklYddYlagfkj]eYaf]\klYZd]l`jgm_`gml*())$oal`
.(%0(EOafklYdd]\af]Y[`imYjl]j&L`]eYbgjalqg^l`ak[YhY[alq
was installed in California, and nationwide growth can be attributed
af_j]YlhYjllgl`]hjgda^]jYlagfg^l`aj\%hYjlqgof]jk`ahk[`]e]k&
As this model and its geographic reach expand, the residential
k]_e]fldggckhYjla[mdYjdqhjgeakaf_&Mladalq%k[Yd]afklYddYlagfk
Y[[gmfl]\^gjl`]_j]Yl]kl_jgol`afl]jekg^gn]jYdd[YhY[alq&
This is a sample of the main market activities in the renewables
sector over the past quarter.
Sources
All information relating to market activity in the sector is obtained
from publicly available sources.
10
>afYdlglYdkYj]q]lmf[d]Yj$ZmlY[[gj\af_lgK=A9alakhgkkaZd]l`Yl
lglYdkgdYjafklYddYlagfkkmjhYkk]\)$0((EOaf*())&9_gg\\]Yd
g^l`ak[YhY[alqoYkYlljaZmlYZd]lgdYj_]j%k[Yd]hjgb][lkjmk`af_
lgZj]Yc_jgmf\Z]^gj]]phajYlagfg^l`]).(+?jYflk&;Yda^gjfaY$
9jargfYYf\F]oE]pa[gafhYjla[mdYjZ]f]l]\^jgel`akhmk`&
L`ak).(+afm]f[]$Yko]ddYk<G=kmhhgjlg^fme]jgmkdYj_]
mladalq%k[Yd]hjgb][lkl`jgm_`l`])/(-dgYfhjg_jYegn]j+?Og^
[YhY[alqafHNYf\;KHhjgb][lk!dac]dqk][mj]\Y[gfkakl]flkgdYj
hah]daf]l`jgm_`*()*%*()+&
>afYddq$alakogjl`fglaf_l`YlF]oB]jk]qYf\H]ffkqdnYfaY$log
states traditionally recognized as strong solar states, are absent
^jgel`ak]\alagfkDgf_%l]jeKgdYjAf\]p&L`]na[laeg^l`]aj
own success, these states have seen the prices of SRECs fall
precipitously as developers rushed in to take advantage of high
SREC prices at the tail end of the last decade, resulting in what
Yj]fgonYkldqgn]j%kmhhda]\eYjc]lk&F]oB]jk]qkkhglhja[]`Yk
[gddYhk]\^jgegn]j.((af*()(lgmf\]j*((&H]ffkqdnYfaYk
KJ=;khglhja[]$o`ad]f]n]jj]Y[`af_F]oB]jk]qk`a_`k$j][]fldq
\jghh]\Z]dgo-(&L`]KJ=;eYjc]lkafEYjqdYf\Yf\<]dYoYj]
`Yn]Ydkglj]f\]\\gofoYj\$Ydl`gm_`fgllgl`]kYe]]pl]fl&
:Yjjaf_d]_akdYlan][`Yf_]lgJHK$H]ffkqdnYfaYYf\F]oB]jk]q
are likely to see substantially reduced activity in coming years
o`ad]\]eYf\[Yl[`]kmhoal`kmhhdq&
Biomass/Geothermal
Although solar and wind posted stellar years, biomass and
_]gl`]jeYdkYoYj]\m[lagfafafn]kle]flaf*())&:dggeZ]j_
F]o=f]j_q>afYf[]j]hgjlkl`Yl_dgZYdafn]kle]flafZageYkk
Yf\oYkl]%lg%]f]j_qkm^^]j]\Yf)0k]lZY[clg)(&0Z$o`ad]
afn]kle]flaf_]gl`]jeYd\jghh]\^jge+&*Zlg*&0Z&9fmeZ]j
g^_]gl`]jeYdhdYflkZ]f]l]\^jgel`])/(-DgYf?mYjYfl]]
hjg_jYe$fglYZdqYk]ja]kg^hjgb][lkafF]nY\Y]ph][l]\lg
_]f]jYl]gn]j)-(EOg^hgo]jgf[][geeakkagf]\&
Although mentioned less than wind, biomass and geothermal
hjgb][lkYj]YhhjgY[`af_l`]]phajYlagfg^l`]ajHL;Z]f]lk$k]l
lgkmfk]lYll`]]f\g^*()+&Oal`gmll`akaf[]flan]$eYfqZageYkk
Yf\_]gl`]jeYdhjgb][lkZ][ge]mfhjglYZd]&Alak`gh]\l`YlYf
extension of the PTC would include extensions not only for wind,
ZmlYdkg^gjl`]k]\]n]dghaf_l][`fgdg_a]k&
Geothermal saw some legislative victories in recent months,
including Senate Energy Committee passage of the Geothermal
L][`fgdg_qYf\=phYfkagf9[lg^*())$o`a[`ogmd\[j]Yl]Y
federal loan program for geothermal exploration drilling, and
l`]?]gl`]jeYdHjg\m[lagf=phYfkagf9[lg^*())$o`a[`ogmd\
]ph]\al]\]n]dghe]flg^_]gl`]jeYdj]kgmj[]kgf^]\]jYddYf\&
United States renewable energy attractiveness indices | Issue 8 11
All renewables index
February 2012
Rank State
All renewables
index
Long-term
wind index
Long-term
solar index*
Biomass
Index
Geothermal
index
Infrastructure
index**
1 California 67 74 75 77 79 80
2 New Mexico 62 71 68 57 63 72
3 Colorado 61 72 64 55 69 65
4 Hawaii 60 64 70 65 69 61
5 Massachusetts 59 61 70 65 66 78
5 Texas 59 70 63 58 57 63
7 Illinois 58 70 56 71 69 71
8 Maine 57 65 56 82 75 85
8 Pennsylvania 57 68 56 66 73 74
8 New York 57 67 58 69 73 71
8 Nevada 57 61 66 53 70 65
12 Iowa 55 67 52 70 58 64
13 Oregon 54 66 52 66 66 68
14 Michigan 53 63 52 65 60 67
14 Arizona 53 55 64 56 64 53
14 Oklahoma 53 66 51 49 51 51
17 Maryland 52 58 60 60 65 67
17 North Carolina 52 59 54 65 59 66
17 Montana 52 65 50 56 58 66
17 Florida 52 56 60 62 58 65
17 New Jersey 52 58 59 56 61 61
17 South Dakota 52 65 49 54 58 59
17 New Hampshire 52 56 59 64 68 54
17 Vermont 52 58 59 57 65 52
17 Kansas 52 65 50 55 52 47
Kgmj[]2=jfklQgmf_DDHYfYdqkak&
* Represents the index score for large, commercial and residential solar
** Combines with each set of technology factors to generate the individual
technology indices
&
12
Wind indices
Rank State Wind index
1 California 74
2 Colorado 72
3 New Mexico 71
4 Illinois 70
4 Texas 70
6 Pennsylvania 68
7 New York 67
7 Iowa 67
9 Oregon 66
9 Oklahoma 66
Afl`akakkm]kdgf_%l]jeoaf\af\]p$o]k]];Yda^gjfaY$;gdgjY\g
Yf\F]oE]pa[gk][mjaf_lghkhglkafl`]klYf\af_k&AddafgakYf\
L]pYk$h]j]ffaYdkljgf_`gd\k$ddgmll`]lghn]&L]pYkhgkalagf
illustrates its transmission limitations, a problem that may see
kge]j]da]^oal`F]oE]pa[gkLj]k9ea_YkKmh]jKlYlagfhjgb][l$
Ydgf_oal`Y\\alagfYdljYfkeakkagfhjgb][lk&
Solar indices
Rank State Solar index
1 California 75
2 Hawaii 70
2 Massachusetts 70
4 New Mexico 68
5 Nevada 66
6 Colorado 64
6 Arizona 64
8 Texas 63
9 Maryland 60
9 Florida 60
Fglkmjhjakaf_dq$;Yda^gjfaY[gflafm]klg\geafYl]l`]dgf_%l]je
kgdYjaf\]pl`akakkm]&9dkgafl`akakkm]$o]k]]logkljgf_keYdd%
k[Yd]eYjc]lk$@YoYaaYf\EYkkY[`mk]llk$afl`]k][gf\Yf\l`aj\
hgkalagfk&
Interestingly, lacking from this list are traditionally strong solar
klYl]kF]oB]jk]qYf\H]ffkqdnYfaY$klYl]kl`Yl`Yn]km^^]j]\
lglYd[gddYhk]kafKJ=;hja[af_\m]lgq]Yjkg^gn]jZmad\af_&
Long-term indices as
of February 2012 (top 10)
United States renewable energy attractiveness indices | Issue 8 13
Residential installations enjoyed uninterrupted administration
of the California Solar Initiative (CSI), a statewide program
dYmf[`]\af*((/oal`l`]gZb][lan]g^afklYddaf_+$(((EOg^
kgdYj_]f]jYlagf[YhY[alqZq*().&9kl`]fYlagfkhj]ea]jkgdYj
program, the CSI has spurred huge growth, although funds for
l`]fgf%j]ka\]flaYdhgjlagfg^l`]hjg_jYeo]j]]p`Ymkl]\af
]Yjdq*())$\Yeh]faf_\]n]dghe]flafl`akk]_e]fl&HYkkY_]
g^K:-0-afI+*())afb][l]\*((eaddagflgl`]hjg_jYe$Yf\
fgf%j]ka\]flaYd\]n]dghe]flk`gmd\j]khgf\hgkalan]dqaf*()*&
Another program which should result in growth in distributed
generation is the Renewable Auction Mechanism (RAM), a
eYjc]l%ZYk]\hjg[mj]e]fle][`Yfake^gjdYj_]afn]klgj%
gof]\mladala]k&L`];HM;]ph][lkJ9Elg[gehd]e]fll`]
RPS Program by reducing transaction costs and providing a
hjg[mj]e]flghhgjlmfalq^gjkeYdd]jJHK%]da_aZd]hjgb][lk4*(
EO!&O`ad]kaeadYjlgY^]]\%aflYja^^afl`YlJ9Ej]hj]k]flk
a streamlined contracting mechanism and utilizes a standard
[gfljY[l$J9Ej]da]kgfeYjc]l%ZYk]\hja[af_Yf\k]d][lk
hjgb][lkZYk]\gfd]Ykl[gkljYl`]jl`YfgfYjkl%[ge]$jkl%
k]jn]\ZYkakYlYfY\eafakljYlan]dq\]l]jeaf]\hja[]&L`];HM;
intends to generate 1,000 MW in distributed generation through
Yhhda[Ylagfg^J9E&;Yda^gjfaYkegj]ljY\alagfYd^]]\%aflYja^^$
]klYZdak`]\l`jgm_`K:+*$Yddgok]da_aZd][mklge]j%_]f]jYlgjk
lg]fl]jaflg)(%$)-%gj*(%q]YjklYf\Yj\[gfljY[lkoal`l`]aj
utilities to sell the electricity produced by small renewable energy
kqkl]ek4+EO!Yllae]%\a^^]j]flaYl]\eYjc]l%ZYk]\hja[]k&
>afYddq$K:P)%*g^*())[g\a]\l`]af[j]Yk]af;Yda^gjfaYkJHK
^jge*(lg++gja_afYddq]klYZdak`]\l`jgm_`=p][mlan]Gj\]j
K%*)%(1afK]hl]eZ]j*((1&
Commentary:
high-scoring states
California
Category Ranking
All renewables index 1
Long-term wind index 1
Long-term solar index 1
California stands alone as the renewable energy capital of the
nation, leading the wind, solar and geothermal indices and holding
k][gf\hgkalagfafl`]ZageYkkaf\]p&9ka\]^jgeZ]af_klYl]
blessed with enviable resource quality in all technologies under
[gfka\]jYlagf^gjl`akklm\q$j]f]oYZd]]f]j_qhjgb][lkZ]f]l
from attractive offtake prices, generous state policies and a
^YngjYZd]j]_mdYlgjq]fnajgfe]fl&
Although Texas stands alone as the king of wind installed base
oal`gn]j)(?Og^[YhY[alq!$;Yda^gjfaY+&.?O!Yf\AgoY
+&/?O![gehjak]Y^gjea\YZd]k][gf\la]jg^afklYdd]\[YhY[alq
each with nearly 1 GW more installed base than the tertiary states
Eaff]kglY$Addafgak$OYk`af_lgfYf\Gj]_gf!&9ke]flagf]\$
;Yda^gjfaYZ]f]lk^jgeYka_fa[Yfldq`a_`]jhgo]jg^^lYc]k[gj]$
oal`Yn]jY_]j]ka\]flaYdhgo]jhja[]kg^YhhjgpaeYl]dq(&)-'cO`
`]dhaf_lgeYc]l][`fgdg_a]kdac]kgdYjfYf[aYddq^]YkaZd]&Egkl
recently, California has seen its total wind capacity expand through
l`][gehd]lagfg^l`]9dlYAAA%Nhjgb][lk$o`a[`Zjgm_`lgn]j
,((EOgfdaf]&Oal`9dlYNAYf\NAAAmf\]joYq$l`]9dlY^Y[adalqoadd
j]hj]k]fll`]jklkaf_d]oaf\afklYddYlagflgj]hj]k]flgn]j)?O
aflglYd[YhY[alq&
;Yda^gjfaY[gflafm]\alk\geafYfljgd]afkgdYjafklYddYlagfaf*())
across all markets, particularly within the residential and utility
kh`]j]k&L`]klYl]kYof]Yjdq*((EOafmladalq%k[Yd]afklYddYlagfk
af*())$Yf\Zjgm_`lgn]j)-(EOafj]ka\]flaYd[YhY[alqgfdaf]
ZqI+*())&
14
New Mexico
Category Ranking
All renewables index 2
Long-term wind index 3
Long-term solar index 4
F]oE]pa[gj]hj]k]flkYfgmlklYf\af_$Ydl`gm_`dYj_]dqmflYhh]\$
opportunity for renewable energy in its stellar portfolio of potential
kgdYj$oaf\Yf\_]gl`]jeYd%_]f]jYlaf_[YhY[alq&9dl`gm_`q]l
lgZj]Ycaflgl`])$(((EOoaf\%_]f]jYlaf_[dmZ$F]oE]pa[g
has seen substantial growth with the commissioning of the
@a_`Dgf]kge]E]kYhjgb][laf*())Yf\oadd[gflafm]lg_jgo
oal`),$)+-EOafoaf\\]n]dghe]flafim]m]&L`]klYl]ak
o]dd%hgkalagf]\lgZ]f]l^jgealklgh)(j]kgmj[]imYdalqYf\Y
favorable regulatory environment, as well as housing what is to be
the countrys preeminent interconnection hub in the Tres Amigas
Kmh]jKlYlagf&
F]oE]pa[gjYfck^gmjl`fYlagfoa\]afmladalq%k[Yd]afklYdd]\
[YhY[alq))(EOYkg^I+*())!&9kmj_]afmladalq%k[Yd]
afklYddYlagfkaf*())$]kh][aYddqI+o`a[`kYo-mladalqhjgb][lk
[gehd]l]\!Y\\]\gn]j.(EOlgl`]klYl]kafklYdd]\[YhY[alq&
F]oE]pa[gklYf\klgk]]ka_fa[Yfl_jgol`afalkj]ka\]flaYdYf\
fgf%j]ka\]flaYdeYjc]lk]_e]flk$\m]lgalkgmlklYf\af_kgdYj
j]kgmj[]imYdalqYf\l`][gflafm]\_]g_jYh`a[]phYfkagfg^l`aj\%
hYjlq%gof]\kgdYjkqkl]ek&
Groundbreaking for the Tres Amigas SuperStation is expected for
Bmdq*()*&Lj]k9ea_Ykoaddk]jn]Ykl`]fYlagfkjklj]f]oYZd]
]f]j_qeYjc]l`mZ&L`]f]ohgo]j^Y[adalq$lgZ]Zmadlgf),$,((
Y[j]kfgjl`]Yklg^;dgnak$FE$oaddY[lYkYhgo]jeYjc]l`mZ$
enabling the buying and selling of electricity throughout various
afl]j[gff][lagfk&
Colorado
Category Ranking
All renewables index 3
Long-term wind index 2
Long-term solar index 6
Like other leading states, Colorado enhances its bounty of
outstanding natural resources with favorable policy and effective
j][jmale]flg^j]f]oYZd]afn]kle]fl&;gdgjY\gak`ge]lg
the only national laboratory solely dedicated to advancing
j]f]oYZd]]f]j_qYf\]f]j_q]^[a]f[qFJ=D!Yf\fme]jgmk
eYbgjeYfm^Y[lmjaf_^Y[adala]k&;gdgjY\g`Yk]^^][lan]dqn]jla[Yddq
afl]_jYl]\lgj]YhZ]f]lk^jgel`]j]f]oYZd]af\mkljqY[jgkk
l`]]flaj]nYdm][`Yaf&<m]lgl`]hj]k]f[]g^J<^Y[adala]k$l`]
klYl]`Yk]e]j_]\YkYd]Y\]jafafn]jl]jeYfm^Y[lmjaf_,0g^
\ge]kla[hjg\m[lagf!&?=j][]fldqYffgmf[]\l`Yl;gdgjY\goadd
Z]l`]kal]g^Yf]ol`af%dehYf]dkeYfm^Y[lmjaf_hdYfl[YhYZd]
g^eYfm^Y[lmjaf_mhlg,((e]_YoYllkg^kgdYjhYf]dkl`Yl
ogmd\]ehdgq,((ogjc]jk&9\\alagfYddq$N]klYk`Ykkh]flYZgml
)Zaddagfgf^gmjeYfm^Y[lmjaf_^Y[adala]kl`jgm_`gmll`]klYl]$
]ehdgqaf_)$/((ogjc]jk&Mf^gjlmfYl]dq$Ydl`gm_``Ynaf_]k[Yh]\
l`]afalaYdjgmf\g^N]klYkdYqg^^k$;gdgjY\g[gmd\k]]ka_fa[Yfl
a\daf_g^alkN]klYkYf\gl`]joaf\eYfm^Y[lmjaf_^Y[adala]kafl`]
YZk]f[]g^Yf]pl]fkagflgl`]HL;&
;gdgjY\g\geafYl]\I+*())oaf\afklYddYlagfkfYlagfYddqoal`
l`][geeakkagfaf_g^l`]*-(EO;]\Yj;j]]cAAYf\*-(EO
;]\YjHgaflOaf\hjgb][lk&*()*k`gmd\k]]egj]mladalq%k[Yd]
afklYddYlagfk[ge]gfdaf]$oal`l`][gehd]lagfg^l`]*((EO
DaegfOaf\=f]j_q;]fl]j$lgZ][gehd]l]\dYl]jl`akq]Yj&
United States renewable energy attractiveness indices | Issue 8 15
In solar development, Colorado saw the installation of a major
HN^Y[adalqafl`]+(EO9dYegkY$mladaraf_`a_`[gf[]fljYlagf
h`glgngdlYa[mfalk\]ka_f]\lggh]jYl]Ylloa[]l`]]^[a]f[qg^
ljY\alagfYdhYf]dk&L`]klYl]kj]ka\]flaYdkgdYjk]_e]fl`Ykl`jan]\
afj][]flq]Yjk$[`Ykaf_F]oB]jk]q^gjl`aj\hdY[]fYlagfYddq
afafklYdd]\[YhY[alq&L`]j]Yj][gf[]jfk$`go]n]j$l`Yll`]
residential segment of the solar market may cool in response to
[mlZY[ckYf\[YhkafP[]dkKgdYjJ]oYj\khjg_jYe$o`a[`hjgna\]\
f]Yjdq*-(eaddagfafj]ZYl]kYf\[j]\alkkaf[]alkaf[]hlagf
af*((.&
>afYddq$;gdgjY\gkkm[[]kk`YkZ]]fhYjldq\m]lgYf]plj]e]dq
Y__j]kkan]JHK$j]imajaf_AGMklg_]f]jYl]+(g^l`]ajhgo]j
^jgej]f]oYZd]kgmj[]kZq*(*(&Oal`k]n]jYdeYbgjAGMk
approaching this benchmark, there is some concern that solar
eYqklYddafl`]YZk]f[]g^Yf]phYfkagfg^[mjj]flJHK_gYdk&
Hawaii
Category Ranking
All renewables index 4
Long-term wind index 15
Long-term solar index 2
<]khal]alkkeYddkar]$@YoYaaj]hj]k]flknYjagmkghhgjlmfala]k^gj
renewables investment, due in great part to its extremely high
power offtake prices and abundant wind, solar and geothermal
j]kgmj[]k&@YoYaa`YkZYlld]\alk`aklgja[\]h]f\]f[]gfaehgjl]\
gadoal`YfY__j]kkan]JHKg^,(j]f]oYZd]]f]j_qZq*(+(&
Af*())$@YoYaakYo_jgmf\Zj]Ycaf_gfl`].1EOCYoYadgYoaf\
^Yje$o`a[`oaddbgafl`]gh]jYlagfYdCY`mcmoaf\^YjegfGY`mk
fgjl`k`gj]&9\\alagfYddq$@YoYaak:a_Oaf\hjgb][l[gflafm]klg
hdg\gfoYj\&L`][gfljgn]jkaYd\]n]dghe]flogmd\k]]*((EO
installed on each of Molokai and Lanai islands and connected to
GY`mnaYmf\]joYl]jljYfkeakkagf[YZd]k&9\\alagfYddq$l`]*)EO
9moY`aOaf\hjgb][loYkYhhjgn]\afdYl]*())&L`]hjgb][loaddZ]
ll]\oal`Yf9)*+))EO?ja\:Yll]jqKqkl]e?:K!\]ka_f]\lg
j]_mdYl]Yf\keggl`afl]jeall]floaf\hgo]j&L`]?:Kk`gmd\Z]
YZd]lgklgj]Ykem[`Yk)*e]_YoYll%`gmjkg^oaf\]f]j_q&
Afj][]flq]Yjk$@YoYaa`Ykk]]fYmjjqg^Y[lanalqafkgdYj
\]n]dghe]fl$hYjla[mdYjdqafl`]j]ka\]flaYdk]_e]fl&@go]n]j$Y
fmeZ]jg^^Y[lgjkl`j]Yl]f]\lg[mjlYadl`]ege]flmeaf*())&
Gf]j]_mdYlagfj]imaj]\l`Ylo`]f\akljaZml]\_]f]jYlagfj]Y[`]\
)-g^h]Yc\]eYf\gfYdg[Yd[aj[mal$l`gk]oak`af_lgY\\egj]
solar were responsible for performing a study demonstrating the
hjghgk]\afklYddYlagfk_ja\[gff][lanalqj]daYZadalq&>gjlmfYl]dq$
@YoYaakHmZda[Mladala]k;geeakkagfYhh]Yjkhgak]\lg]Yk]l`]k]
jmd]k&Hjgb][lkfgdgf_]jemklh]j^gjel`]klm\qaf[Yk]ko`]j]
kgdYjkqkl]ekY[[gmfl^gjd]kkl`Yf-(g^l`]eafaeme\Yqlae]
\]eYf\&
For more details on the USAI and previous issues,
please visit:
www.ey.com/USAI
16
Massachusetts
Category Ranking
All renewables index 5
Long-term wind index 19
Long-term solar index 2
Although not necessarily a powerhouse wind state, Massachusetts
j]hj]k]flkYlgh%n]eYjc]l^gjj]f]oYZd]k\m]lgalk
YlljY[lan]kgdYjghhgjlmfala]k&:mgq]\ZqYkljgf_KJ=;eYjc]l$
EYkkY[`mk]llkhj]k]flkkeYdd%k[Yd]kgdYjafklYdd]jk$Zgl`
j]ka\]flaYdYf\fgf%j]ka\]flaYd$oal`YlljY[lan]g^^lYc]hja[]k&
There are indications that this lure may draw developers from
f]a_`Zgjaf_klYl]koal`[gddYhk]\KJ=;eYjc]lk$fYe]dqF]o
B]jk]q$o`geYqdggclg\mhda[Yl]l`]ajhj]nagmkkm[[]kk]kaf
EYkkY[`mk]llk&
Like Colorado, Massachusetts has positioned itself as a hub of
affgnYlagfYf\eYfm^Y[lmjaf_$k][gf\gfdqlgGj]_gfafoY^]j
hjg\m[lagf[YhY[alq&@go]n]j$l`]klYl]oYkfglaeemf]lgl`]
global shakeout of less competitive solar manufacturers, as
Evergreen Solar shuttered its Danvers manufacturing facility in the
^Y[]g^^Yddaf_eg\md]hja[]k&
Although not included in our scoring, it is worth noting that Cape
Oaf\$l`]hjghgk]\,*(EOg^^k`gj]oaf\^Y[adalqaf;Yh];g\$
[d]Yj]\Yfgl`]j`mj\d]afdYl]*())&L`]EYkkY[`mk]llkKmhj]e]
Bm\a[aYd;gmjljmd]\l`Yll`]HH9Z]lo]]f;Yh]Oaf\Yf\FYlagfYd
?ja\$Yl(&)0/'cO`$j]hj]k]flkY[gkl%]^^][lan]mk]g^jYl]hYq]j
egf]qafl`Yll`]hjgb][lkgmlhml`Ykkh][aYdZ]f]lkbmkla^qaf_
alkhja[]hj]eamegn]j[gfn]flagfYdhgo]j&L`]HH9j]hj]k]flkY
[gfljY[l^gj`Yd^g^l`]^Y[adalqklglYdgmlhml&L`]fYdj]_mdYlgjq
`mj\d]$>99YhhjgnYd$ak]ph][l]\af*()*$o`a[`d]Yn]k;Yh]Oaf\
oal`logfYdgZb][lan]k2dYf\af_YHH9^gjl`]j]eYafaf_-(g^
gmlhmlYf\k][mjaf_hjgb][lfYf[af_&
Texas
Category Ranking
All renewables index 5
Long-term wind index 4
Long-term solar index 8
La]\oal`EYkkY[`mk]llk^gj^l`hdY[]afgn]jYddj]f]oYZd]af\]p$
Texas holds a commanding lead in national installed capacity
and resource quality, although the states solar attributes are
d]kk\]n]dgh]\&LjYfkeakkagfakkm]k'Zglld]f][ckYdkg\Yeh]f]\
\]n]dghe]flaf*())$cfg[caf_l`]klYl]\gofkda_`ldqafgmj
^gjoYj\%dggcaf_jYfcaf_k&
Despite enviable solar intensity, Texas has lagged behind its
neighboring southwestern states in solar development, likely due
to the states concentration on wind power and the aforementioned
ljYfkeakkagfakkm]k&@go]n]j$l`]klYl]j]hj]k]flkYfghhgjlmfalq
^gj\akljaZml]\_]f]jYlagfkgdYj\]n]dghe]fl$o`a[`$mfdac]mladalq%
k[Yd]$akfglYkj]daYflgfl`]Ydj]Y\qgn]j%lYp]\_ja\af^jYkljm[lmj]&
Dac]F]oE]pa[g$L]pYkakhgak]\lgZ]f]l^jgeYeYbgjhjghgk]\
ljYfkeakkagfdaf]&L`]Kgml`]jf;jgkk$Y,((%ead]$-((%cadgngdl
cN!`a_`%ngdlY_]\aj][l[mjj]fl@N<;!ljYfkeakkagfdaf]$ogmd\
connect Garland, Texas, to the southeast through Louisiana and
Eakkakkahha&A^Yhhjgn]\$l`]daf]ogmd\Z]_af[gfkljm[lagfaf*(),
Yf\[ge]gfdaf]af*().&
United States renewable energy attractiveness indices | Issue 8 17
Commentary:
key states
New Jersey and Pennsylvania
:gl`H]ffkqdnYfaYYf\F]oB]jk]qjg\]n]jq`a_`KJ=;hja[]klg
eYjc]l%d]Y\af_afklYdd]\[YhY[alqafl`]j]ka\]flaYdYf\[gee]j[aYd
kgdYjk]_e]flk&Afl`]jmk`lg[YhalYdar]gf^YngjYZd]hja[af_$Zgl`
states overbuilt and are currently dealing with hangovers in which
]Y[`f]okgdYjhjgb][l[gfljaZml]kKJ=;kmhhdqafYfYdj]Y\qgn]j%
kmhhda]\eYjc]l&:Yjjaf_d]_akdYlan][`Yf_]lgl`]ajJHKk$l`]k]
klYl]kYj]hgak]\^gjklY_fYfl_jgol`afl`][geaf_q]Yjk&
AfH]ffkqdnYfaY$KJ=;hja[]k`Yn]^Ydd]ff]Yjdq1($Yf\Yf
]^^gjlakmf\]joYqafl`]^gjeg^@:)-0($l`]KgdYjBgZk:add$
lgYe]f\l`]klYl]kJHK&L`]Zaddhjghgk]kYfaf[j]Yk]afl`]
amount of SRECs utilities are required to purchase and closes off
H]ffkqdnYfaYkKJ=;eYjc]llggmlka\]klYl]k&
F]oB]jk]qdac]oak]j][g_far]kl`]f]]\lgaf[j]Yk]l`][Yjn]%
out in the states RPS in order to boost SREC prices and stabilize
l`]klYl]kkgdYjaf\mkljq&L`]d]_akdYlmj]^Yad]\afBYfmYjq*()*
to vote on a bill that would have performed this, and thus awaits
afljg\m[lagfg^Yf]oZadddYl]jafl`]q]Yj&
For more details on the USAI and previous issues,
please visit
www.ey.com/USAI
18
IRS provides guidance
on federal energy tax
credits
Private letter rulings generally
applicable to tax credits
Solar facility In US possession
AfHjanYl]D]ll]jJmdaf_HDJ!*()),*(**$l`]K]jna[]jmd]\
l`YlYkgdYj^Y[adalqgh]jYlaf_afYMKhgkk]kkagfimYda]k^gjl`]
K][lagf,0afn]kle]fllYp[j]\alZ][Ymk]l`]^Y[adalqakgof]\Zq
a domestic partnership with domestic corporations for partners,
Yf\fg\akimYda^qaf_]d][lagfoaddZ]eY\]&L`akjmdaf_]pl]f\kl`]
tax credit availability for projects in US possessions that technically
applies to eligible corporations to partnerships composed of
]da_aZd][gjhgjYlagfk&L`]K]jna[]`Y\]Yjda]jeY\]YkaeadYj
determination for a wind farm located in a US possession in PLR
*())+.()0&!
The taxpayer is a wholly owned domestic limited liability company
l`Ylak\akj]_Yj\]\^jgealkhYjlf]j^gj^]\]jYdlYphmjhgk]k&L`]
taxpayers primary business is to construct, own and operate
Y*(%e]_YoYll_jgmf\%egmfl]\kgdYj]f]j_q^Y[adalql`Yloadd
mk]kgdYj]f]j_qlg_]f]jYl]]d][lja[alq&L`]]d][lja[alqoaddZ]
kgd\lgYdg[Ydmladalqmf\]jY*(%q]Yj[gfljY[l&O`]fl`]hjgb][l
Z][ge]kgh]jYlagfYd$Yl`aj\%hYjlqafn]klgjoaddafn]klaflYphYq]j$
[gfn]jlaf_alaflgYhYjlf]jk`ah&FghYjlf]joaddZ]YlYp%]p]ehl
]flalqmf\]jK][lagf).0`!*!&
The Service ruled that since all of the partners will be taxable
domestic corporations or US citizens (none of which has made an
election under Sections 936, 931 or 936), the partnership is a US
\ge]kla[hYjlf]jk`ah&L`]K]jna[][gf[dm\]\l`Ylkaf[]l`]hjgb][l
imYda]k^gjl`]K][lagf).0_!,!?!hgkk]kkagf]p[]hlagfj]dYl]\
lg\]hj][aYlagf$alYdkgimYda]k^gjl`]afn]kle]fllYp[j]\al&L`mk$
each partner will be entitled to its share of the energy credit to the
]pl]flg^alkZYkakafl`]hYjlf]jk`ahkYkk]lk&
Energy Storage Devices
AfHjanYl]D]ll]jJmdaf_*()),*((-$l`]K]jna[]`Ykjmd]\l`YlY
oaf\_]f]jYlaf_hdYflkklgjY_]\]na[]imYda]\^gjl`]K][lagf,0
afn]kle]fllYp[j]\al&L`akjmdaf_[gf[dm\]kl`Yll`]klgjY_]\]na[]
akY_]f]jYlagfjYl`]jl`YfYljYfkeakkagfYkk]l&
The wind farm will be owned by a limited liability company
subsidiary of a large power company headquartered in the United
KlYl]k&Afl`]k`gjl%l]je$]d][lja[alqoaddZ]kgd\gfYh]j[]flY_]
ZYkaklgYj]_agfYdljYfkeakkagfgj_YfarYlagfJLG!hgo]jhggd&
The storage device will enable the wind farm to provide regulation
k]jna[]lgl`]JLG$]fkmjaf_YZYdYf[]Z]lo]]fl`]kmhhdqYf\
consumption of electricity over time periods ranging from seconds
lg`gmjk&L`akj]_mdYlagfk]jna[]mk]kl`]klgjY_]\]na[]lgjYeh
hgo]jgmlhmlmhYf\\gofgfk`gjlfgla[]$\]h]f\af_gf\]eYf\&
The storage device is used expressly to store for later use electricity
_]f]jYl]\Zql`]oaf\^Yje$em[`dac]YZYll]jqogmd\\g&
The Service ruled that the storage device is not transmission
]imahe]flkaf[]alakkalmYl]\f]Yjl`]oaf\lmjZaf]kgfl`]]f]j_q%
_]f]jYlaf_ka\]g^l`]oaf\^Yje&
?ma\Yf[]J]dYl]\lgKh][a[LYp;j]\alk
Jgg^%egmfl]\kgdYjhYf]dk
AfHjanYl]D]ll]jJmdaf_*())*)((-$l`]K]jna[]jmd]\l`Yl
hgjlagfkg^Yjgg^%egmfl]\kgdYj%]f]j_qkqkl]eo]j]]da_aZd]^gj
l`]K][lagf,0afn]kle]fllYp[j]\al&
LYphYq]jk]ddkYf\afklYddkjgg^%egmfl]\kqkl]ekl`Yl[gfn]jlkgdYj
]f]j_qaflg]d][lja[alq&L`]kqkl]ekafngdn]l`j]][gehgf]flk$Zml
l`][gehgf]flkYj]kgd\gfdqYkYkaf_d]kqkl]e$fglk]hYjYl]dq&
Af*()($lYphYq]jafklYdd]\gf]g^alkjgg^%egmfl]\kgdYjkqkl]ek
gfalkgofZmkaf]kkZmad\af_&:][Ymk]l`]d]ll]jjmdaf_ak`]Ynadq
redacted, the exact nature of the system is otherwise not
[gehd]l]dq[d]Yj&@go]n]j$alYhh]Yjkl`YlhYjlg^l`]kqkl]e\a\
\gmZd]%\mlqaf^mf[lagfaf_kaeadYjlgYjgg^&
L`]K]jna[]\]l]jeaf]\l`Ylkqkl]ekll`]]p[]hlagfmf\]j
J]n]fm]Jmdaf_/1%)0+^gjkljm[lmjYd[gehgf]flkg^Y
Zmad\af_kh][a[Yddq\]ka_f]\Yf\]f_af]]j]\lgZ]YhYjlg^
Yfaf\]h]f\]flkqkl]e&9dl`gm_`l`]kqkl]eafngdn]kl`j]]
components, the Service concluded that the components are
afk]hYjYZd]hYjlkg^Ykaf_d]kqkl]e&L`]K]jna[]jmd]\l`Yll`]
jgg^%egmfl]\kgdYjkqkl]eoYk]da_aZd]^gjl`]afn]kle]fllYp
credit except for that portion of the system that performs the
normal functions of a roof such as protection from rain, snow,
wind, sun, hot or cold temperatures, or that provides structural
kmhhgjlgjafkmdYlagf&
United States renewable energy attractiveness indices | Issue 8 19
ARRA Section 1603 Grant developments
LjYfk^]jkg^hjgb][lkl`YlZ]_Yf[gfkljm[lagfZ]^gj]
BYfmYjq)$*()*
Afea\%<][]eZ]j$Lj]Ykmjq[dYja]\l`][gf\alagfkmf\]j
o`a[`Yf9JJ9%]da_aZd]hjgb][ll`YlklYjl]\[gfkljm[lagfZ]^gj]
BYfmYjq)$*()*$ZmloYkljYfk^]jj]\YlYdYl]j\Yl]$[gmd\j]lYaf
alk_jYfl%]da_aZd]klYlmk&
Lj]Ykmjqmh\Yl]\af>j]im]fldq9kc]\Im]klagfko`Yl`Yhh]fk
a^YfYhhda[Yflj]dqaf_gfl`]-kY^]`YjZgjljYfk^]jk]f]j_q
property between the time the property is acquired for use in a
hjgb][lYf\l`]lae]l`]hjgb][lakhdY[]\afk]jna[]&A^l`]hYjla]k
are related and the property is used for the same project, then the
ljYfk^]j]]aklj]Yl]\^gjhmjhgk]kg^l`]-kY^]`YjZgjYk`Ynaf_
paid or incurred, at the same time as the transferor, the costs that
l`]ljYfk^]jgjhYa\gjaf[mjj]\lgY[imaj]l`]hjgh]jlq&L`mk$l`]
hjgb][loaddj]lYafalk_jYfl%]da_aZd]klYlmk&9*([geegfafl]j]kl
test is used to determine whether the transferor and transferee
Yj]j]dYl]\h]jkgfk&Lj]YkmjqdYl]jaf^gjeYddq[dYja]\l`Yl
l`]kYe]hjgb][lj]imaj]e]floYkfgllgZ]klja[ldqYhhda]\lg
applicants generally in the business of developing energy projects
o`gk]hjgb][lhdYfkeYqfgl`Yn]Z]]ffYdar]\Zq<][]eZ]j
+)$*())&!
@go]n]j$a^l`]hYjla]kYj]mfj]dYl]\$Yf\l`]ljYfk^]jg[[mjk
Y^l]j<][]eZ]j+)$*())$l`]hmj[`Yk]jeYqfgllYc]l`][gklk
that the transferor incurred with respect to the property into
Y[[gmflaf\]l]jeafaf_o`]l`]jl`]-kY^]`YjZgjake]l&L`ak
limitation does not apply to a sale/leaseback arrangement if the
^Y[adalqakd]Yk]\ZY[coal`af1(\Yqk&Afl`Yl[Yk]$Ykkmeaf_Ydd
other requirements are met, the purchaser of the facility would be
lj]Yl]\YkkYlak^qaf_l`]-kY^]`YjZgj&
A^gof]jk`ahg^Yf]flalql`Yle]ll`]-kY^]`YjZgj[`Yf_]k
before the property is placed in service, eligibility is not affected if
[]jlYaf[gf\alagfkYj]e]l&L`]hmj[`Yk]jemklZ]Yfgl`]joak]
eligible Section 1603 applicant and the entity being sold must
have commenced development of a project as evidenced by
Y[lanalq&=pYehd]kg^Y[[]hlYZd]Y[lanala]kaf[dm\]2Y[imajaf_dYf\$
obtaining permits and licenses, entering into a power purchase
agreement, entering into an interconnection agreement, and
contracting with an Engineering, Procurement and Construction
[gfljY[lgj&L`]hmj[`Yk]jg^Yf]flalql`Yle]j]dq`gd\k]imahe]fl
may not rely on costs paid or incurred to acquire that equipment in
gj\]jlge]]ll`]-kY^]`YjZgj&
20
Excerpt: Country attractiveness indices (CAI)
February 2012
Rank
1
Country
All
renewables
Wind
index
Onshore
wind
Offshore
wind
Solar
index
Solar
PV
Solar
CSP
Biomass/
other
Geothermal Infrastructure
2
1 (1) China 70 76 79 69 61 66 46 58 51 74
2 (2) USA
3
68 67 71 57 74 74 75 63 69 65
3 (3) Germany 66 70 67 80 51 70 0 67 58 74
4 (4) India 63 64 71 43 65 69 54 60 45 67
5 (6) UK 59 66 61 80 34 48 0 58 36 66
6 (5) Italy 57 58 61 50 57 63 42 53 62 58
7 (7) France 56 58 59 55 49 56 29 57 34 56
8 (8) Canada 54 61 67 46 33 46 0 50 36 65
9 (10) Sweden 50 54 55 53 31 42 0 56 35 55
10 (10) Brazil 49 51 56 40 42 46 32 51 23 49
11 (12) Australia 48 47 51 37 53 53 54 42 57 46
11 (9) Spain 48 47 51 36 55 53 60 43 27 38
13 (13) Romania 47 52 56 39 33 45 0 44 41 46
14 (13) Poland 46 52 56 41 30 42 0 42 22 47
14 (15) South Korea 46 48 46 53 44 50 29 41 36 43
16 (15) Japan 45 46 48 39 52 61 27 38 46 52
16 (15) Belgium 45 51 49 58 30 42 0 38 27 50
16 (23) South Africa 45 47 52 36 43 41 50 37 34 48
19 (15) Ireland 44 52 52 50 22 30 0 43 23 48
19 (19) Denmark 44 48 44 58 29 40 0 45 33 52
21 (19) Portugal 43 45 48 34 44 47 36 39 25 38
21 (21) Netherlands 43 49 49 49 30 42 0 36 21 41
21 (21) Greece 43 44 48 33 46 51 33 34 25 32
24 (23) Mexico 42 43 45 39 42 43 40 38 54 38
24 (23) Norway 42 48 48 46 21 29 0 45 30 51
26 (26) Finland 41 45 48 39 20 28 0 52 26 47
27 (27) New Zealand 40 46 49 36 22 31 0 34 51 46
27 (27) Egypt 40 41 45 32 41 39 45 35 25 34
27 (27) Taiwan 40 43 45 38 32 44 0 35 38 43
30 (30) Morocco 39 38 42 26 49 47 54 36 21 42
30 (30) Turkey 39 41 43 32 37 40 28 34 41 37
32 (32) Ukraine 38 37 41 27 33 46 0 43 32 41
33 (33) Austria
4
36 32 40 0 36 50 0 48 33 50
34 (34) Tunisia 34 35 38 27 45 44 48 19 27 41
34 (34) Bulgaria 34 35 39 24 31 42 0 33 34 39
34 (34) Argentina 34 35 40 22 31 36 17 31 27 34
37 (37) Israel 33 31 37 14 44 46 38 25 28 38
38 (39) Chile 32 34 38 23 30 34 19 27 36 39
39 (38) Hungary
4
31 31 38 0 26 36 0 41 39 37
40 (40) Czech Republic
4
30 31 38 0 26 36 0 30 23 46
Kgmj[]2?dgZYd=jfklQgmf_YfYdqkak&
1
JYfcaf_afAkkm]+)akk`gofafZjY[c]lk&
*
;geZaf]koal`]Y[`k]lg^l][`fgdg_q^Y[lgjklghjg\m[]l`]af\ana\mYdl][`fgdg_qaf\a[]k&
3
L`akaf\a[Yl]kMKklYl]koal`j]f]oYZd]hgjl^gdagklYf\Yj\JHK!Yf\^YngjYZd]j]f]oYZd]]f]j_qj]_ae]k&
,
L][`fgdg_qo]a_`laf_k`Yn]Z]]fY\bmkl]\^gjdYf\dg[c]\[gmflja]klgj]^d][ll`]dY[cg^g^^k`gj]hgl]flaYd&
For more details on the CAI and
previous issues,please visit
www.ey.com/CAI
United States renewable energy attractiveness indices | Issue 8 21
Canada
Renewables buoyed by Ontario
election result
5
Ranking Issue 32 Issue 31
All renewables index 8 8
Wind index 6 6
Solar index 23 25
Policy
L`akakkm]kYoj]f]oYZd]]f]j_qkmjnan]Yc]ql]klafFgjl`
9e]ja[Y$oal`GflYjagkhjgnaf[aYd]d][lagfafFgn]eZ]j&GflYjagk
renewable energy policies were a key political battleground,
with the main opposition party promising to revoke supporting
d]_akdYlagf^gjj]f]oYZd]]f]j_q&@go]n]j$afYhgkalan]kl]h^gjl`]
industry, the incumbent Liberal party retained leadership and were
bmklgf]k]Ylk`gjlg^YeYbgjalq_gn]jfe]fl&L`]f]ok[ge]k
Ykl`]lglYdafn]kle]flafj]f]oYZd]]f]j_qafGflYjagkmjhYkk]\
;9F*(Z)-Z!Yll`]]f\g^*())$Ykl`]hjgnaf[][gflafm]klg
provide strong support for the industry through programs such as
l`]GflYjag=e]j_af_L][`fgdg_a]k>mf\Yf\l`]GflYjagHgo]j
9ml`gjalqL][`fgdg_q<]n]dghe]fl>mf\&
Af<][]eZ]j*())$GflYjagkEafakljqg^=f]j_qYffgmf[]\alk
k[`]\md]\log%q]Yjj]na]og^GflYjagk>ALhjg_jYe&L`]j]na]og^
l`]log%q]Yjgd\hjg_jYeoadd]pYeaf]hjg_jYejmd]kYf\hja[af_
and was recognized among the renewables industry to ensure
Ydgf_%l]jeYf\kmklYafYZd]^mlmj]&9ffgmf[]e]flkYf\Yfq
mh\Yl]kYj]]ph][l]\afI)*()*&
AfFgnYK[glaY$=f]j_qEafakl]j;`Yjda]HYjc]jYffgmf[]\l`]jkl
Yhhjgn]\;geemfalq^]]\%aflYja^^;GE>AL!hjgb][lk&9[[]kkaZd]
Zqemfa[ahYdala]k$>ajklFYlagfk$[g%gh]jYlan]kYf\fgl%^gj%hjgl
_jgmhk$gn]j)*[geemfalq_jgmhkkmZeall]\00hjghgkYdklgl`]
hjgnaf[]Ykalk]]cklg_]f]jYl]*-g^]d][lja[alq^jgej]f]oYZd]k
Zq*()-Yf\,(Zq*(*(&Km[[]kk^mdYhhda[Yflko]j]2
Proponent Technology MW
Colchester-Cumberland
Wind Field
Onshore
wind
0.1
Watts Wind Energy Onshore
wind
4.0
Northumberland Wind Field Onshore
wind
0.1
Municipality of the District
of Chester
Onshore
wind
2.3
Fundy Tidal Tidal flow 2.0
9hhda[Yflkoaddf]]\lgk][mj]fYf[af_$\]n]dghY_ja\aehY[l
study and complete federal and environmental impact assessments
^gjl`]hjgb][lk&FgnYK[glaYk<]hYjle]flg^=f]j_q<g=!`Yk
klghh]\Y[[]hlaf_f]o;GE>ALYhhda[Ylagfk\m]lg`a_`\]eYf\
and the market is eagerly awaiting the recommencement of project
Yhhda[Ylagfk&
5
=jfklQgmf_DDHYfYdqkak&
22
Country focus
Onshore wind
L`]\]n]dghe]flg^oaf\hgo]jhjgb][lkafIm]Z][kmj_]\gn]j
the past quarter with Kruger Energy securing construction
fYf[af_^gjl`]aj)()EOEgflj_a]\]n]dghe]flhjgb][ll`Ylak
]ph][l]\lgZ][geeakkagf]\af<][]eZ]j*()*&
Boralex Inc., the renewable independent power producer (IPP),
and utility, Gaz Mtro,k][mj]\Y;9F/*-e-,1e!fgf%
j][gmjk]hjgb][lfYf[]dgYf^gjl`]jklklY_]g^alk+..EO
K]a_f]mja]\]:]Ymhoaf\hjgb][l&L`]*/*EOafalaYdklY_]$
o`a[`oYkfYf[]\ZqKFW Group,l`]?]jeYfklYl]%gof]\
\]n]dghe]flZYfc$oadd[gfkaklg^)*.lmjZaf]kYf\oaddZ][ge]
gh]jYlagfYdaf*()+&
TransCanada Corp.,l`][gehYfqhdYffaf_l`]C]qklgf]PDgad
hah]daf]$[gehd]l]\[gfkljm[lagfg^l`]-0&-EOEgflY_f]K][`]
oaf\^YjeYf\l`]jkl)((EOg^l`]?jgk%Egjf]hjgb][laf
Im]Z][Ykalk]]cklgZ][ge]l`]d]Y\af_]f]j_qaf^jYkljm[lmj]
[gehYfqafFgjl`9e]ja[Y&L`]?jgk%Egjf]hjgb][lakhYjl
of the wider Cartier Wind Energy Project being developed by
TransCanadaafnYjagmkdg[Ylagfkl`jgm_`gmlIm]Z][&9ddl`]
power will be sold to Hydro-Quebecmf\]jY*(%q]YjHH9&
Solar
Recurrent Energy, YKYf>jYf[ak[g%ZYk]\kgdYjhjgb][l\]n]dgh]j
owned by Sharp Corp.,j][]an]\Y^gmj%q]Yj;9F*-(e)01e!
revolving credit facility from Mizuho Financial Group Inc. to fund
l`][gfkljm[lagfg^*(kgdYjHNhjgb][lkafGflYjag&L`]hjgb][lk
oaddZ]\]n]dgh]\mf\]jl`]hjgnaf[]k>ALhjg_jYeYf\oaddaf[dm\]
mhlg*((EOg^[YhY[alq&
Wave and tidal
The province of British Columbia has awarded Carnegie Wave
Energy Ltd., a producer of wave power technology, a grant of
;9F*e)&-e!^jgealk;d]Yf=f]j_q>mf\lgZmad\Y-EO
\]egfkljYlagfhjgb][lg^^l`]o]kl[gYklg^NYf[gmn]jakdYf\&
The company, which also has backing from Electricite de France
SA (EDF),akhdYffaf_lgmk]alk;=LGoYn]]f]j_ql][`fgdg_q^gj
l`]hjgb][l&L`]hjgb][lakhYjlg^Yoa\]jYeZalagfZq;YfY\Ylg
afklYdd/-EOg^eYjaf]]f]j_qZq*().$*-(EOZq*(*(Yf\
*?OZq*(+(&
Contacts
Ernst & Young LLP (Canada)
Mark Porter
L]d]h`gf]2#),).1,+*)(0
=eYad2eYjc&hgjl]j8[Y&]q&[ge
Cynthia Orr
L]d]h`gf]2#).(,.,+-,+(
=eYad2[qfl`aY&d&gjj8[Y&]q&[ge
United States renewable energy attractiveness indices | Issue 8
Mexicos prospects for a clean energy
transition
6
Ranking Issue 32 Issue 31
All renewables index 24 23
Wind index 27 28
Solar index 17 16
Policy
L`]E]pa[Yf_gn]jfe]flkK][j]lYjY\]=f]j_YK=F=J!akl`]
department responsible for energy production and regulation,
hjgeglaf_l`]mk]g^J=Kafj]\m[af_^gkkad^m]d\]h]f\]f[]&
A recently issued Study on prospects for renewable energy
\]n]dghe]flafE]pa[gZqK=F=Jkm__]klkl`Yll`]j]akZ]lo]]f
).?OYf\*(?Og^hgl]flaYdj]f]oYZd]]f]j_q\]hdgqe]fl
YnYadYZd]gn]jl`]f]pl)-q]Yjk&
Currently, the country is close to meeting a number of national
renewable energy targets across a range of technologies including
oaf\$`q\jg4+(EO!$_]gl`]jeYdYf\Zag]f]j_q_]f]jYlagf&
L`]k]lYj_]lko]j]]klYZdak`]\YkhYjlg^l`]FYlagfYd=f]j_q
KljYl]_q*()(%*(*,$o`a[`Yaeklg\an]jka^ql`]]f]j_qeapYf\
increase the share of clean technologies supplying power to the
_ja\lg+-Zql`]q]Yj*(*,&
9kYlae]dqZggkllgl`]][gfgeq$E]pa[gk>gj]a_fEafakljq
j][]fldqYffgmf[]\l`YlMK)-0e)**e!g^j]k]Yj[`_jYflk
are being provided by Germany to work in collaboration with the
DYlaf9e]ja[YfklYl]gfYlog%q]Yjk[a]fla[ljYafaf_hjg_jYe$
developing renewable energy initiatives as well as other measures
lglY[cd][daeYl][`Yf_]&
>mjl`]j$l`];d]YfL][`fgdg_q>mf\afn]kle]flhdYf$hYjldq^mf\]\
Zql`]Afl]j%9e]ja[Yf<]n]dghe]fl:YfcA<:!$o`a[`kmhhgjlk
[daeYl]%^ja]f\dq\]n]dghe]flY[jgkkDYlaf9e]ja[Y$Yffgmf[]\gf
+(Fgn]eZ]j*())$Y*(%q]YjdgYfg^MK/(e-,e!lgE]pa[g&
L`akoaddYa\l`][gfkljm[lagfg^egj]l`Yf)(keYdd%k[Yd]`q\jg
and wind power projects with total renewable electricity generation
of around 1GW, going some way to meeting Mexicos ambitious
j]f]oYZd]]f]j_qhdYfk&
Onshore wind
Mexicos Electric Power Research Institute has conducted studies
lg]klYZdak`l`]fYlagfYdoaf\]f]j_q_]f]jYlagfhgl]flaYd&L`]k]
]klaeYl]kYj]ZYk]\gfl`]Ykkmehlagfl`Ylgfdq)(g^l`]lglYd
area is potentially viable for the installation of wind farms due to
E]pa[gk`a_`dqnYjaYZd]l]jjYaf&
<m]lgnYjagmkkg[ag%][gfgea[^Y[lgjk$Yko]ddYkl`]l][`fa[Yd
feasibility of wind generation, the wind energy potential resource
^gjhdYfldgY\^Y[lgjk_j]Yl]jl`Yf*($+(Yf\+-ak]klaeYl]\
YlYjgmf\/)?O$))?OYf\-?O$j]kh][lan]dq&O`ad]l`]dYll]j
are naturally the most attractive from a generation point of view,
under the nuances of the Mexican electricity market, plants with
dgY\^Y[lgjkZ]dgo+([YfZ]][gfgea[Yddq^]YkaZd]af[]jlYaf
[gf\alagfk&
Mexico is privileged to have one of the worlds best wind resources
afl`]kgml`o]kl]jfklYl]g^GYpY[YkDYN]flgkYj]_agf&L`]A<:
`YkYhhjgn]\fYf[af_^gjl`][gfkljm[lagf`]j]g^)+*lmjZaf]k
representing one of the largest wind farms in Latin America
`]j]$Yl+1.EO$naYYMK/*e-.e!dgYflgMarea
Renovables Capital.
Country focus
Canada Mexico
23
6
EYf[]jYK&;&YfYdqkak&
24
The project will reduce annual carbon dioxide emissions by 1m
tons and supply energy to subsidiaries of Fomento Econmico
Mexicano, S.A.B. de C.V. (FEMSA) and Heineken, reducing the
Z]n]jY_][gehYfa]klglYd]f]j_q[gklkZqYhhjgpaeYl]dq)(&
Solar
Gf*0Fgn]eZ]j*())$l`];`af]k]kgdYjHNkh][aYdaklRisen
Energy Co. signed an agreement with the government of the
[]fljYdklYl]g^<mjYf_glgZmad\YkgdYjhdYflgn]jk]n]jYdh`Yk]k&
L`]afalaYd_jgmf\%egmfl]\h`Yk]oadd[gklMK.(e,.e!$oal`
lglYd[YhY[alqg^YddhdYff]\h`Yk]kYl*((EO&;mjj]fldq$kgdYj
HNakmk]\^gjkeYdd%k[Yd]Yhhda[Ylagfkaf[dm\af_oYl]jhmehaf_
Yf\jmjYdYf\j]ka\]flaYd]d][lja[alq$oal`bmkl+*EOg^afklYdd]\
[YhY[alqfYlagfoa\]&
Currently, Mexico has no operational solar CSP plants, however,
there is a project underway to develop a hybrid system consisting
g^Y[geZaf]\[q[d]_YklmjZaf]lg_]l`]joal`),EOkgdYjl`]jeYd$
]ph][l]\lgZ]_afgh]jYlagfkaf*()+&
Small hydro
L`]>]\]jYd=d][lja[alq;geeakkagf;>=!akY[gehYfq[j]Yl]\
and owned by the Mexican government with responsibility for
_]f]jYlaf_$\akljaZmlaf_Yf\eYjc]laf_hgo]jlgYjgmf\+)g^
l`]hghmdYlagf&Algh]jYl]kYfmeZ]jg^`q\jg]d][lja[hdYflkoal`Y
lglYd[YhY[alqg^*1+EO&
Contacts
Mancera S.C.
Roberto Cuaron
L]d]h`gf]2#-*---*0+0.10
=eYad2jgZ]jlg&[mYjgf8ep&]q&[ge
David Escalante
L]d]h`gf]2#-*---*0+0.(,
=eYad2\Yna\&]k[YdYfl]8ep&]q&[ge
United States renewable energy attractiveness indices | Issue 8 25
Commentary:
guidance notes
Long-term index
9kklYl]\gfhY_],$l`]af\ana\mYdl][`fgdg_qaf\a[]k$o`a[`
combine to generate the all renewables index, are made up
as follows:
J]f]oYZd]kaf^jYkljm[lmj]af\]p+-
L][`fgdg_q^Y[lgjk.-
These guidance notes provide further details on the renewables
af^jYkljm[lmj]af\]pYf\l`]l][`fgdg_q^Y[lgjk&
Renewables infrastructure index
The renewables infrastructure index is an assessment by state of
l`]_]f]jYdj]_mdYlgjqaf^jYkljm[lmj]^gjj]f]oYZd]]f]j_q&GfY
weighted basis, the index considers:
Klj]f_l`g^JHK*1!klYl]koal`JHKo]j]jYfc]\ZYk]\
upon the immediacy of the target deadlines, the amount of
renewable energy that needs to be developed to meet the
target, penalties if the target is missed and the presence of a
[gehdaYf[]%ZYk]\j]f]oYZd]]f]j_q[j]\aleYjc]l&
HdYffaf_Yf\_ja\[gff][lagfakkm]k-/!^YngjYZd]hdYffaf_
]fnajgfe]flkdgo^Yadmj]jYl]k$]Ykq%lg%fYna_Yl]YhhjgnYd'
h]jeallaf_hjg[]kk]k!Yj]k[gj]\`a_`dq&?ja\[gff][lagf
scoring is based on the ease of obtaining a grid connection in
Y[gkl%]^^][lan]eYff]j&L`]k[gj]YdkglYc]kaflgY[[gmfll`]
\]_j]]g^_ja\kYlmjYlagf^gjafl]jeall]fll][`fgdg_a]k&
9[[]kklgfYf[]),!YeYjc]loal`YeYlmj]j]f]oYZd]
]f]j_qfYf[af_]fnajgfe]fl$[`YjY[l]jar]\Zq[`]YhY[[]kk
lg]imalqYf\_gg\d]f\af_l]jek$oaddk[gj]`a_`]j&
This generic renewables infrastructure index is combined
with each set of technology factors to provide the individual
l][`fgdg_qaf\a[]k&
Technology factors
L`]k][gehjak]kapaf\a[]khjgna\af_j]kgmj[]%kh][a[
assessments for each state, namely:
)&Gfk`gj]oaf\af\]p
*&DYj_]%k[Yd]kgdYjaf\]p
+&;gee]j[aYdkgdYjaf\]p
,&J]ka\]flaYdkgdYjaf\]p
-&?]gl`]jeYdaf\]p
.&:ageYkkYf\gl`]jj]kgmj[]kaf\]p
Each of the technology indices considers, on a
weighted basis, the following factors:
1
Hgo]jg^^lYc]YlljY[lan]f]kk+*!l`ak[gfka\]jk
the price received (including proceeds from REC
sales and other major incentive programs such as
state production tax credits) per kWh of electricity
_]f]jYl]\&
2
Tax climate (8%) ^YngjYZd]$`a_`%k[gjaf_lYp[daeYl]k
that stimulate renewable energy generation can
]paklafYnYja]lqg^^gjekYf\'gjkljm[lmj]k&Lqha[Yd
incentives and structures are direct renewable energy
tax breaks, sales tax abatements for equipment,
real estate tax abatements and accelerated tax
\]hj][aYlagfgfj]f]oYZd]]f]j_qYkk]lk&
3
Grant or soft loan availability (8%)_jYflk[YfZ]
available at local and/or regional levels, and typically
tend to be more prevalent in immature markets or
l][`fgdg_a]k&Kg^ldgYfk`Yn]`aklgja[YddqZ]]fmk]\
^gjj]f]oYZd]]f]j_ql][`fgdg_a]klgca[c%klYjll`]
af\mkljq&@a_`k[gj]kYj]Y[`a]n]\l`jgm_`YfYjjYqg^
e]Yfaf_^md_jYflkYf\kg^ldgYfk&
4
Market growth potential (26%)l`ak[Yl]_gjqlYc]k
a holistic approach to estimating a states projected
_jgol`d]n]dk&L`]eYjc]l_jgol`hgl]flaYdlYc]kaflg
account information contained in other categories, as
well as information gathered but not included in one
g^l`]gl`]j[Yl]_gja]k&
5
Current installed base (8%) `a_`afklYdd]\ZYk]k
demonstrate that the state has an established
infrastructure and supply chain in place, which will
^Y[adalYl][gflafm]\_jgol`&@a_`afklYdd]\ZYk]kYj]
also indicative of the acceptance for such projects,
and the lack of public support can make planning and
_Yafaf_YhhjgnYdkegj]\a^[mdl&
6
Resource quality (18%) l`ake]Ykmj]kl`]imYdalq
of resources available; for example, wind speeds and
kgdYjafl]fkalqYj]af\a[Ylgjkg^j]kgmj[]imYdalq&
For more details on the USAI and previous issues,
please visit
www.ey.com/USAI
26
Ernst & Young
renewable energy
services
Team overview
LYp[j]\alafn]kle]flY\nakgjqk]jna[]k
Oal`Y\]\a[Yl]\**%e]eZ]jl]Yeg^Y\nakgjk^g[mk]\gflYp
[j]\alegf]larYlagf$=jfklQgmf_DDHkLYp;j]\alAfn]kle]fl
Advisory Services (TCIAS) helps take advantage of the
opportunities and address the risks associated with renewable
]f]j_qY[lanalq&
Members of the group, supported by a network of experienced
hjg^]kkagfYdk^jgegmjg^[]kogjd\oa\]$hjgna\]Y\na[]Yf\
services in the following areas:
Tax credit monetization
>afYf[aYdeg\]daf_
Strategic planning
Transaction structuring
Investment due diligence
In addition to TCIAS, our Indirect Tax and Business Tax Services
Group provides a wide variety of tax advisory services to the
j]f]oYZd]]f]j_qaf\mkljq&
Renewable Energy Group
=jfklQgmf_DDHkJ]f]oYZd]=f]j_q?jgmhYml`gjkZgl`l`]
renewable energy country attractiveness indices and the biofuels
af\a[]k&E]eZ]jkg^l`]_jgmhhjgna\]Y\na[]afl`]^gddgoaf_
areas:
>afYf[aYdY\nakgjqYf\nYdmYlagf
Asset valuation
Transaction support
>afYf[aYdeg\]daf_Yf\kljm[lmjaf_
>afYf[]jYakaf_
PPA tendering
>gjegj]af^gjeYlagfgfl`]J]f]oYZd]=f]j_q?jgmh$
go to www.ey.com/renewables
Strategic Growth Markets
=jfklQgmf_DDHakYll`]^gj]^jgflg^akkm]kY^^][laf_9e]ja[Yk
Z]kl`a_`%_jgol`[gehYfa]k&GmjnYkl]ph]ja]f[]Y\nakaf_l`]k]
companies sustains our dominant competitive position in key
markets, including our Assurance and Advisory services share
g^l`]Jmkk]dd*((($>gjZ]kdYj_]klhjanYl][gehYfa]kYf\l`]
fmeZ]jg^[gehYfa]ko]Ykkaklaf_gaf_hmZda[&O]Ydkg`Yn]
experience in convening the experts who shape the business
climate, and advising policy makers on the issues affecting these
[gehYfa]k&
=f]j_q]^[a]f[qlYpaf[]flan]k
=jfklQgmf_DDH[Yf`]dh[da]flkegn]lgoYj\kkmklYafYZadalq
in their real and personal property projects, including helping to
Y[`a]n]D==<[]jla[Ylagf$Yf\hjgna\af_l`]\g[me]flYlagf^gj
aee]\aYl]\]\m[lagfkg^]f]j_q%]^[a]fl]imahe]flaf[gee]j[aYd
Zmad\af_k&
Washington Council Ernst & Young (WCEY)
O;=QakYd]_akdYlan]Yf\j]_mdYlgjqY\ng[Y[q_jgmhoal`af
=jfklQgmf_DDHl`Ylj]hj]k]flk[da]flkgfYoa\]jYf_]
g^]f]j_qYf\]f]j_qlYpakkm]k&Afl`]]f]j_qk][lgj$O;=Q
represents a wide variety of renewable energy technologies and
ljY\]Ykkg[aYlagfk$af[dm\af_kgdYj$`q\jghgo]j$gh]f%dgghZageYkk$
[dgk]\%dgghZageYkk$Zag\a]k]d$j]f]oYZd]\a]k]dYf\[]ddmdgka[
ZageYkkYd[g`gd&
Business incentives and credit services
=jfklQgmf_DDHYkkaklk[da]flko`gYj]j]dg[Ylaf_$]phYf\af_
gj[gf\m[laf_j]k]Yj[`Yf\]ph]jae]flYlagfY[lanala]k&O]`]dh
clients utilize economic development incentives offered by US
state and local governments, including cash grants, tax credits,
]p]ehlagfk$YZYl]e]flk$dgYfkYf\mladalqkmZka\a]k&>gj^mjl`]j
information on our services, and for future copies of the indices,
hd]Yk][gflY[lEac]:]jfa]j$<gjaYf@mfl$HYmdFYmeg^^gj
?YZja]dOm]ZZ]f&
Contacts
Ernst & Young LLP
Michael Bernier
L]d]h`gf]2#).)/-0-(+**
=eYad2ea[`Y]d&Z]jfa]j8]q&[ge
Dorian Hunt
L]d]h`gf]2#).)/+/-*,,0
=eYad2\gjaYf&`mfl8]q&[ge
Paul Naumoff
L]d]h`gf]2#).),*+*/),*
=eYad2hYmd&fYmeg^^8]q&[ge
Gabriel Wuebben
L]d]h`gf]2#).)/+/-),*-
=eYad2_YZja]d&om]ZZ]f8]q&[ge
=jfklQgmf_
Assurance | Tax | Transactions | Advisory
About Ernst & Young
=jfklQgmf_akY_dgZYdd]Y\]jafYkkmjYf[]$lYp$
ljYfkY[lagfYf\Y\nakgjqk]jna[]k&Ogjd\oa\]$
gmj)-*$(((h]ghd]Yj]mfal]\Zqgmjk`Yj]\
nYdm]kYf\YfmfoYn]jaf_[geeale]fllgimYdalq&
We make a difference by helping our people,
our clients and our wider communities achieve
l`]ajhgl]flaYd&
=jfklQgmf_j]^]jklgl`]_dgZYdgj_YfarYlagf
g^e]eZ]j^ajekg^=jfklQgmf_?dgZYdDaeal]\$
]Y[`g^o`a[`akYk]hYjYl]d]_Yd]flalq&
=jfklQgmf_?dgZYdDaeal]\$YMC[gehYfq
limited by guarantee, does not provide services
lg[da]flk&>gjegj]af^gjeYlagfYZgmlgmj
gj_YfarYlagf$hd]Yk]nakalooo&]q&[ge
=jfklQgmf_DDHakYe]eZ]j^ajek]jnaf_
[da]flkafl`]MK&=jfklQgmf_DDH!akY
member firm serving clients in Canada and
EYf[]jY&
*()*=Q?EDaeal]\&
9ddJa_`lkJ]k]jn]\&

=Q?Fg&QQ*.,(
)*(*%)+*1,/-:GK
This publication contains information in
summary form and is therefore intended for
_]f]jYd_ma\Yf[]gfdq&Alakfglafl]f\]\lg
be a substitute for detailed research or the
]p]j[ak]g^hjg^]kkagfYdbm\_e]fl&F]al`]j
=Q?EDaeal]\fgjYfqgl`]je]eZ]jg^l`]
_dgZYd=jfklQgmf_gj_YfarYlagf[YfY[[]hl
any responsibility for loss occasioned to any
person acting or refraining from action as a
j]kmdlg^YfqeYl]jaYdafl`akhmZda[Ylagf&GfYfq
specific matter, reference should be made to the
YhhjghjaYl]Y\nakgj&

You might also like