Wind Project Development & Transactions
August 23-24, 2016
Chicago, IL

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Overview

The wind industry is booming in North America, with exceptionally strong growth in the U.S.  Experts have said 2015 is one of the most successful years ever for the wind industry, with development and growth projected to continue at an aggressive pace with the extension of renewable tax credit incentives.

This program is designed to provide expert insight on the development market, and tips for creating a bankable project for utilities, developers, and investors to take advantage of the quickly maturing wind market.  It will explore the financial and valuation aspects of developing a cost-effective wind farm, and relate those due diligence items to considerations for power and renewable energy credit purchase agreements, acquisitions, M&A and other transactions. Both industry veterans and those new to the business will benefit from this instructional symposium, reviewing critical items for due diligence at the various stages of wind project development and evaluating potential exposures to unknown costs.  It will also explore what elements wind asset sellers must address to attract the attention of renewable energy asset buyers and financial entities, providing specific guidance, metrics, and case studies for establishing a common denominator between the buyers and sellers to transact wind projects under various stages of development.

 

Learning Outcomes

  • Assess the state and future direction of the U.S. wind market, investment and acquisition trends
  • Evaluate key emerging trends and how they could impact the wind market
  • Review industry perspectives on the project development landscape
  • Discuss best practices for cost-effective management of wind farm development
  • Evaluate project risks and associated costs during wind project development
  • Analyze technical due diligence for wind energy assessment and asset valuation
  • Identify suitable methods to value wind assets for investment and M&A decisions
  • Analyze key tax equity and project financing considerations
  • Examine case-studies and best practices for negotiating power purchase agreements and M&A transactions
  • Review Fatal Flaw Analysis processes for determining whether an acquisition will be a profitable choice

Credits

AP_LogoEUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.0 CEUs for this Conference, 0.8 CEUs for the pre conference workshop and 0.4 CEUs for the post conference workshop.

Agenda

Tuesday, August 23, 2016

7:30 – 8:00 a.m. :: Registration and Continental Breakfast

I. Setting the Stage

8:00 – 9:45 a.m. :: Update on U.S. Wind Market, Investment and Acquisition Trends

This opening session will feature a panel of experts with unique perspectives on what the industry saw in the past couple years to the present, and where it is headed for the rest of 2016 and beyond:

  • Overview of new wind project development in North America
  • Industry perspectives on acquisition and M&A trends for wind projects
  • Best practices and considerations for transactions—a Banker’s perspective on lessons learned
    • Monetizing big transactions
    • Assessing options at different stages of development
  • Natural gas cost projections and possible influences on wind development
  • YieldCos — Challenges and future opportunities

Moderator:

Ethan Schultz, Partner, Skadden, Arps, Slate, Meagher & Flom LLP

Panelists:

Ted Brandt, CEO, Marathon Capital

Terri Denning, Finance Manager, Suzlon Wind Energy Corporation

9:45 – 10:00 a.m. :: Morning Break

II. Wind Project Development

10:00 – 11:15 a.m. :: Perspectives and Update on the Project Development Landscape
  • Tower and turbine technology developments
  • Offshore wind development—International market update and U.S. market potential
  • Update on the international wind market
    • Central and South America, South Africa, and Europe
    • How countries are structuring transactions without tax credits
  • Assessing opportunities to grow company expertise and evolve skills to be more encompassing
    • Dealing with specialization of expertise in the development process
    • Evaluating needs and costs of external consultants vs. utilizing internal resources
    • Progress towards improving and streamlining development processes

Patrick Bauer, Senior Associate- Global M&A and Corporate Development, InterGen

Cari VanAmburg, Project Developer, EDP Renewables

11:15 a.m. – 12:15 p.m. :: Logistics and Transportation – Strategies for Managing Costs

Wind companies face substantial challenges with logistics and transportation of wind farm parts. The spend on logistics for wind farms is a higher percentage of costs than any other type of energy project, as transporting 250-foot-tall wind turbines is no easy feat. This session will discuss how to develop a logistics strategy for wind farm transportation and throughout its’ entire life-cycle, evaluating costs and considerations with regard to:

  • Determining pre-development price quotes
  • Key transportation issues and considerations
  • Determining—and contracting for—appropriate transport methods:
    • Railway
    • Roads
    • Ocean (barges)
  • Managing increasing size of components
    • tall towers
    • longer blades
  • Post-transportation logistics

Sally Chope, Director of Transportation and Logistics, Siemens Wind Power Americas

12:15 – 1:15 p.m. :: Group Luncheon

1:15 – 2:45 p.m. :: Financial Quantification of Wind Resource Assessment & Independent Engineering (IE) Review for Wind Projects

This session will provide an overview of technical due diligence items required for a holistic independent engineering assessment. It will discuss how technical due diligence items relate to wind project development, operations, and considerations for project M&A.

  • Energy and resource estimation, wind energy assessment and financial quantification of assessment
  • Environmental and permitting review
  • Turbine technology review
  • Site assessment and project design review
  • Construction and turbine supply review
  • O&M review
  • Operating agreement review (O&M, PPA, interconnection)
  • Project performance and operational evaluation (for operating assets)
  • Portfolio review (as applicable)
  • Financial model review

Morgan Chrust, Associate Manager, Luminate LLC

Terrance Unrein, Associate Manager, Luminate LLC

2:45 – 3:00 p.m. :: Afternoon Break

III. Taxes, Project Finance and Transactions

3:00 – 4:15 p.m. :: U.S. Wind Market and Key Tax Considerations: M&A and Other Structured Transactions

Maximizing the benefits of tax incentives is vital in any renewable energy transaction. This session will provide an overview of key tax terms and issues involved in the development and structure of wind energy projects. It will then move into a more in-depth discussion on how tax equity financings get done and apply to project deals, drawing a banker’s experience managing transactions.

  • Wind tax equity update
  • Tax code overview
  • Understanding depreciation for project development timelines
    • Production Tax Credit (PTC)
    • Investment Tax Credit (ITC)
  • State, local, and transactional considerations
  • Diligence and tax equity structures
  • Tax equity trends in M&A
  • Tax equity transactions
    • Transaction and target type
    • Overall structure considerations
    • Diligence and tax equity structures
    • Transaction effect on tax equity structure
    • Debt equity and financing equity interactions
  • What investors are looking for in a deal
    • Surety of repayment
    • Credit worthiness of off taker
    • No problems on permits up front
    • Turbine liability

Joel Spenadel, Executive Director- Energy Investments, J.P. Morgan

Skadden, Arps, Slate, Meagher & Flom LLP, Representative

4:15 – 5:15 p.m. :: Mid-Stage Wind Project Acquisition: Fatal Flaw Analysis

This session will explore Lincoln Clean Energy’s (LCE) Fatal Flaw Analysis procedure, a process used by the developer to whether they should move forward with acquiring a mid-stage development wind project.  Specifically, the session will identify:

  • Overview of fatal flaw analysis process
  • Status of permitting and environmental compliance obligations
  • Evaluation of Production Tax Credits (PTC)
  • Valuation of project assets and resource estimation
  • Real estate due diligence
  • Review of offsite easements
  • Transportation analysis
  • Analysis of fatal flaws and determining whether to acquire

Patrick Dalseth, Director of Development, Lincoln Clean Energy LLC (LCE)

5:15 – 6:15 p.m. :: Networking Reception


Wednesday, August 24, 2016

7:30 – 8:00 a.m. :: Continental Breakfast

8:00 – 10:00 a.m. :: Purchase Agreements for Power and RECs

This session will provide an overview of key concepts and issues associated with the legal and contractual structure of power purchase agreements and renewable energy credit (REC) purchase agreements.  It will then go into details on specific transactions conducted by Sacramento Municipal Utility District (SMUD) and Basin Electric Power Cooperative, including SMUD’s successful transaction with CitiCorp for the Solano Wind Project. Specifically, this session will address:

  • Key concepts and issues associated with drafting power purchase agreements/renewable energy credit (REC) purchase agreements
  • How to minimize risks, avoid common pitfalls and ensure projects get built
  • Methods and practices for successful negotiation of the final power purchase agreement/REC purchase agreement
  • Overcoming barriers and satisfying conditions to ensure effectiveness of definitive agreements
  • Contract management concepts and strategies
  • Tips for structuring REC power contracts, site lease terms and conditions
  • Taking advantage of tax credits/renewable carve-outs

Aaron Ramsdell, Power Supply Engineer III, Basin Electric Power Cooperative

William Westerfield, Senior Attorney, Sacramento Municipal Utility District (SMUD)

10:00 – 10:15 a.m. :: Morning Break

10:15 – 11:45 a.m. :: Corporate PPAs and Procurement of Renewables—Wind Contracts

Commercial and industrial (C&I) businesses are large end-users of electricity that traditionally represent a significant portion of a utility’s revenue and earnings. These C&I businesses, pressed by public sentiment for cleaner energy sources, are increasingly entering into bi-lateral contracts to buy or invest in renewable energy generation. A number of corporations have already been successful in this space, and their transactions now account for an estimated 25 percent of the new wind and utility-scale solar builds in the U.S. However, these transactions can be very complex and difficult to navigate on legal, financial, and regulatory levels. This session will explore these complexities and the unique transactional structure involved with C&I renewable procurement, identifying best strategies for success for collaboration on wind contracts. Specifically, it will discuss:

  • Initiatives and lessons learned from The Business Renewables Center (BRC), an organization founded by the Rocky Mountain Institute to streamline and accelerate corporate procurement of wind and utility-scale energy
  • Trends in corporate renewable transactions
  • Impacts of state regulation and relevant grid region on corporate procurement and deal complexity
  • Accounting for variation in C&I experience, needs, and goals influence renewable procurement
  • Best practices in structuring C&I procurement deals
    • Project development considerations
    • key contractual considerations
    • optimizing Utility/C&I/Developer partnerships

Rob Threlkeld, Global Manger-Renewable Energy, General Motors

Ian Kelly, Manager, Rocky Mountain Institute (RMI)

Dominic Serpe, Vice President of Development, Tradewind Energy, Inc.

11:45 a.m. :: Conference Adjourns

Workshops

Monday, August 22, 2016
Land Use, Environmental and Permitting Considerations for Wind Energy Development

Wednesday, August 24, 2016
Estimating Wind Project Interconnection Costs and Revenues

Estimating Wind Project Interconnection Costs and Revenues

Wednesday, August 24, 2016

12:30 – 1:00 p.m. :: Registration

1:00 – 4:30 p.m. :: Workshop Timing

Overview

Interconnecting a wind energy project is a complex and lengthy process. Essentially, it involves navigating the many rules and regulations of the given grid region, and assessing potential pricing impacts for different sites to try and evaluate the most economically advantageous area. Furthermore, once a wind project is successfully interconnected and under operation, there can be a number of different design and performance issues that materially affect the financial picture and valuation of the wind facility.  This workshop will address the economics of wind interconnection both pre and post operation, focusing on key considerations to related to price impacts and overall value of a wind project.

Learning Outcomes

  • Evaluate economic and pricing impacts of wind project interconnection based on site
  • Identify economic hurdles and risks that can negatively impact prices for wind farms
  • Discuss how the design and interconnection aspects of an operating wind farm will impact its’ overall value and economics

Agenda

I. Design and Cost Considerations
  • Design features and cost estimation
    • Equipment failures due to electrical resonances
    • Interconnection requirements
II. Transmission and Market Considerations
  • Identifying an economically advantageous site area
  • Estimating market prices in interconnection node
  • Economic hurdles and risks
    • Congestion
    • Transmission constraints
    • Curtailment
III. Market Impacts and Project Value
  • Understanding generation patterns in wind resource availability and performance
  • The relationship of generation and operating performance to market price
  • The role of extremes in distribution patterns
  • Pricing impacts of wind generation availability and performance
    • Seasonal
    • Hourly
    • Sub-hourly
  • High priced hours impact on wind project revenue
  • Capacity performance and capacity revenues (e.g., PJM/CPP, ERCOT/ORDC)

Instructor

Bill Babcock, Managing Consultant, PA Consulting Group

Bill Babcock has over 30 years of experience in consulting and economic research for clients in the energy industry. He has conducted a wide variety of strategic planning studies, market and technology assessments, and financial analyses for both private and public sector clients in all segments of the energy industry, including electricity, oil, natural gas, coal, and renewable resources. For the last 20 years, he has used nodal electricity market models (e.g., GE MAPS, PROMOD IV and AURORAxmp) to value generation and transmission assets and conduct detailed cost-benefit analyses for a broad range of electric industry clients in North America — including merchant generators, large investor-owned electric utilities, energy service companies, public power companies, ISO/RTOs, energy trade associations, and financial institutions. His recent work has focused on helping his clients successfully meet the business challenges created by the radical changes taking place in the electric power and fuels markets. During the past five years he has provided expert market support on generation asset transactions totaling over $15.0 billion.


Land Use, Environmental and Permitting Considerations for Wind Energy Development

Monday, August 22, 2016

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30—5:00 p.m. :: Workshop Timing

12:00 – 1:00 p.m. :: Group Luncheon

Overview

This one-day workshop will explore key land use, environmental, and permitting due diligence items and considerations during the early-stages of wind project development. It will provide a current and in-depth review of key legal, contractual, and compliance due diligence items, describing common pitfalls to avoid to mitigate development risk.

Learning Outcomes

  • Review the general suite of land use and environmental permits and regulatory obligations required for wind project development
  • Evaluate due diligence processes for community, wildlife and avian issues
  • Discuss strategies to minimize environmental, land-use and permitting risk for wind development

 

Agenda

I. Review of Permits, Report Authorizations, Studies and Approvals
  • NEPA/CEQA
  • Environmental site assessment reports
  • Biological resource studies and risk assessments
  • Environmental impacts assessment
  • Operating within permitted limits
II. Environmental and Wildlife Considerations—Deep Dive
  • Avian issues and solutions
  • Protected species issues and solutions
  • Offsetting impacts
  • Wildlife studies and government agency (local and federal) interactions
  • Timelines for obtaining approvals

III.Post-Construction Compliance Monitoring

IV. Land Title Search and Insurance Issues
  • Covering the basics
  • Invalid contracts
  • Gen-tie challenges
  • Mineral rights and coverage
  • Encroachment issues
  • Time constraints
  • Land use restrictions
  • Uninsurable interests
  • Mechanics lien coverage
  • Unique landlords
  • State law considerations
V. Understanding Common Issues, Exposures and Liabilities
  • Environmental insurance polices
  • Hazardous material considerations and due diligence
  • Brownfield development considerations
VI. Compliance Costs
  • Environmental remediation
  • Investigative activities
  • Expected and unexpected costs
VII. Optimizing Development to Meet Regulatory and Compliance Standards
  • Mitigation design and monitoring
  • Developing strategies to avoid and minimize impacts on species
  • Sustainable development practices

 

Instructors

John Agle, Energy Specialist, First American Title Insurance Co.

John Agle has over 35 years of experience in the title insurance industry, almost all within the commercial submarket.  He has been involved in underwriting renewable energy projects for about 20 years, and has a particular passion for these projects and their enhanced complexity.  His experience extends to geothermal, wind, solar, hydro, storage, gas-fired, and biomass/biofuel projects.  John is a CA attorney, and serves on the Advisory Board of the McMillin Real Estate Center at his alma mater, San Diego State University.  In June 2011, he was instrumental in the creation of the First American Energy Group, and presently serves as an Energy Specialist for the corporation.

 

Eric Hansen, Director- Environmental Services, Westwood

Eric Hansen is a Director Environmental Services at Westwood, where he leads environmental services for Westwood, managing environmental projects and staff for energy and land markets.  Based in the Eden Prairie office, Eric Hansen is a shareholder and brings 28 years of experience in regulatory permitting, site assessment and environmental field studies to his projects.  His current focus is on project management of Westwood’s larger projects in renewable energy.  His experience includes regulatory analysis, environmental due diligence studies, field application of remediation technologies, geo-engineering design, public speaking and project management.  Additional areas of expertise include expert testimony, site investigation, environmental remediation, wetland permitting, power line routing, and storm water permitting.  Mr. Hansen has been involved in field studies and permitting at scores of wind and solar projects throughout the US.  He is adept at interpreting regulatory issues in multiple jurisdictions and negotiating with agencies such as the US Fish and Wildlife Service and the US Army Corps of Engineers.  He is a professional engineer and professional geologist with degrees from the University of Minnesota.

 

Mallory Lindgren, Director, Westwood

Mallory is the market leader for Westwood’s national solar team. She is responsible for developing the strategy for Westwood’s pursuit of the commercial and utility-scale solar markets and overseeing the execution of the engineering, surveying and environmental services provided to our clients. Mallory Lindgren closely monitors renewable energy policies and trends to support Westwood’s strategic growth, including new client, service and geographic initiatives. She is a shareholder in the company and an experienced, client-focused senior project manager for renewable energy projects. Ms. Lindgren has expanded Westwood’s visibility in her eight years with the firm by championing community involvement, increasing media exposure, and being involved with numerous industry organizations. She actively volunteers her time at charitable events and participates in industry conferences and committees. She was recently co-chair of the Women of Wind Energy Twin Cities Chapter and co-chair of the Women of Wind Energy National Leadership Forum. Prior to joining Westwood, Mallory worked for Minnesota State Colleges and Universities (MnSCU) and interned with two National Weather Service offices.

 

Elizabeth Mitchell, Partner, Holland & Hart LLP

Elizabeth Mitchell is a Partner at Holland & Hart LLP.  For over 20 years, Ms. Mitchell has helped major national and international companies to reduce environmental risks and enhance their environmental compliance. Her clients include manufacturing, pharmaceutical, agricultural, conventional and renewable energy, and mining companies. Ms. Mitchell regularly advises these and other entities on environmental and regulatory issues associated with mergers and acquisitions, project finance, environmental compliance, permitting, securities filings, and enforcement matters. Furthermore, she has extensive experience handling a variety of infrastructure, energy, and environmental projects.  Elizabeth Mitchell works with domestic and foreign clients on the environmental aspects of energy and industrial projects in the U.S., from site selection and permitting, to financing, to environmental compliance requirements. She regularly advises developers and lenders regarding environmental aspects of financing commercial and industrial projects. Her work includes the assessment of environmental systems through environmental audits and investigations, as well as the development of environmental management systems.

Speakers

John Agle, Counsel, Energy Specialist, Stewart Title Guaranty Company

Felipe Arrazola, Vice President, Marathon Capital

Bill Babcock, Consultant , PA Consulting

Ted Brandt, CEO & Co-Founder, Marathon Capital

Sally Chope, Director-Transportation & Logistics, Siemens

Morgan Chrust, Associate Manager, Luminate, LLC

Joe Condo, General Counsel,

Patrick Dalseth, Director of Development, Lincoln Clean Energy (LCE)

Terri Denning, Finance Manager, Suzlon Wind Energy Corporation

Eric Hansen, Director- Environmental Services, Westwood

Ian Kelly, Manager, Rocky Mountain Institute (RMI)

Chris Loeb, Consultant Analyst - Global Energy and Utilities, PA Consulting

Elizabeth Mitchell, Partner, Holland & Hart

George Nelson, Vice President of Marketing & Origination, Akuo Energy

Derek Rieman, Director, Renewable Energy, Calpine Corporation

Arthur Roden, Project Developer, PNE Wind

Paul Schockett, Counsel, Skadden, Arps, Slate, Meagher & Flom LLP

Ethan Schultz, Partner, Skadden, Arps, Slate, Meagher & Flom LLP

Dominic Serpe, Vice President of Business Develpment , Tradewind Energy, Inc.

Joel Spenadel, Executive Director- Energy Investments, J.P. Morgan

Rob Threlkeld, Global Manager-Renewable Energy, General Motors

Terrance Unrein, Associate Manager, Luminate, LLC

Cari VanAmburg, Project Developer, EDP Renewables

Location

Millennium Knickerbocker Hotel Chicago
163 E Walton Pl
Chicago, IL 60611

To reserve your room, please call 1-312-751-8100
Please indicate that you are with the EUCI group to receive the group rate.

ROOM RATE:

The room rate is $179.00 single or double

ROOM BLOCK DATES:

A room block has been reserved for the nights of August 21 – 23, 2016.

RATE AVAILABLE UNTIL:

Make your reservations prior to August 1, 2016. There are a limited number of rooms available at the conference rate. Please make your reservations early.

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