CEI

Competitive Energy Insight, Inc.

Phone: (858) 566 - 0221

Fax: (858) 566 - 0287

info@ceinsight.com

DISTRIBUTED GENERATION

 

Rooftop SolarRenewable energy applications including Wind, Solar (PV and Thermal), Biomass, Digester Gas, Geothermal, and others, and combined heat and power (CHP) systems will together contribute to the re-electrification of the US over the next decade contributing to system diversity and our national security.

With the passage of the Emergency Economic Stabilization Act of 2008, H.R. 1424 in October of 2008 extending new incentives are available to commercial and residential users of on-site power generation technologies including investment tax credits and accelerated depreciation benefits.  These are complemented by state incentive programs and potential opportunities to monetize CO2 credits.   Many of these investments with thus involve small scale “behind-the-meter” applications otherwise known as "Distributed Generation" (DG).

 

Reciprocating Engine
 

DG projects include applications where the primary purpose of the investment is to generate energy for use by a host, displacing energy and even gas that would otherwise have been purchased from the utility, providing efficiencies and savings to the owner. These projects can include the generation of electric power only, thermal only, or combined heat and power (CHP) where both electric and thermal energy are generated by the on-site facilities. Fully understanding the economic drivers and risks associated with successful and profitable investments in DG requires all interested parties to understand the factors that drive those economics including:

 

  • Host site electric (and thermal) demand and use
  • Project scheduling
  • Equipment performance and the resulting energy production profile
  • Electric (and gas) tariffs and resulting energy bills before and after the investment
  • Capital investment costs
  • Operations and maintenance costs
  • Financing alternatives
  • Techniques for efficiently monetizing tax benefits and rebate incentives
  • Contracting approaches and entity structures

Now, private ownership of renewable energy investments has reemerged and refocused on a new class of project developers and a complete new set of technologies of choice, spirited by the need for clean energy and national energy independence. These new events further raise the importance of developing an accurate understanding of the economic drivers and risks associated with investments in power project investments including: 

  • Forward price forecasts for electricity including time-of-production considerations
  • Price projections for fuel and raw materials (Biomass)
  • Project development expenses
  • Project schedule
  • Capital investment requirements
  • Operating expenses
  • Financing costs and other “soft cost”
  • Renewable energy credits
  • Tax incentives and techniques for monetizing and allocating those incentives
  • Entity structures (partnerships, on/off balance sheet, C-corp., leases or other) 

All of these factors will have a direct impact on the economic feasibility and risk associated with investments in these independent power projects. Whether you’re investing in, operating or selling equipment to the energy projects, fully understanding the related technical and economic issues associated with ownership and operation of these projects is critical to your success.CEI’s experienced project development team and advanced software products are ready to help you understand and address these challenges. 

The Elements of a Profitable Own and Operate Business 

Those who have achieved success as owner / operators did not do so as the result of chance. Success was achieved as the result of a thorough and methodically executed business plan that envisions:

  • The short term objectives of closing deals and operating assets with positive cash flow, and
  • The long term objectives of assembling an integrated portfolio of smoothly operating assets that not only deliver operating income but that can be valued and recapitalized by the financial community.

These principles are the fundamental basis of the business and project development, contracting, financing and asset management approach that CEI can help you to achieve. Most in the industry seem to have fairly recognized the importance of good engineering, sound technology and well performed maintenance as important elements of a successful Ownership and Operation Business, but unfortunately for many this is where it stops. Widely misapplied and misunderstood in the industry today are the importance of:

  • Thorough, consistent and standardized financial analysis tools,
  • Integrated business and contract development tools,
  • Innovative financing techniques and approaches for effective utilization of tax benefits,
  • The formation of a consistent set of documentation that will allow the investment community to assign a premium value to a portfolio of individual assets.

A portfolio of assets, if properly architected from the start, can realize this value. CEI can provide you with the financial analysis tools, documents, training and techniques to successfully deliver on this broader and more profitable vision.

CEI's Offering  

CEI has offers a phased, systematic and comprehensive approach that will facilitate both profit and growth in the exciting own and operate marketplace. Through demonstrated and repeated success for our clients, we offer an integrated suite of customizable software tools and services that allow you to screen, value, negotiate, finance, close, manage and recapitalize energy project investments, maximizing the value and managing the risks. Included in this software and services offering are:

  • World Class and fully customizable financial analysis software that allows you to evaluate the economics of energy projects from your own viewpoint as well as from the viewpoint of every party that you are negotiating with.
  • Terms Sheets / Heads of Agreement that provide the basis for an integrated business development and contracting approach for financing, power purchase agreements, thermal supply agreements, maintenance agreements, and other key contracts.
  • Support for obtaining and optimizing financing.
  • Implementation of an asset management strategy that will allow you to optimize, manage risks and capitalize the inherent value energy projects that can be capitalized and then recapitalized to grow your business and optimize your profitability.

 

 

<>

Investment Tax Credits , Production Tax Credits , Wind Project Finance , ITC , PTC , Investment Tax Credit , Production Tax Credit , Accelerated Depreciation , Model Wind Partnerships , Discount cash flow models for wind , Discount cash flow models for renewable energy , Wind Partnerships , Model Limited Partnerships , Energy Project Financial Model , Energy Project Discount Cash Flow Model

<>

Investment Tax Credits , Production Tax Credits , Wind Project Finance , ITC , PTC , Investment Tax Credit , Production Tax Credit , Accelerated Depreciation , Model Wind Partnerships , Discount cash flow models for wind , Discount cash flow models for renewable energy , Wind Partnerships , Model Limited Partnerships , Energy Project Financial Model , Energy Project Discount Cash Flow Model

<>

Investment Tax Credits , Production Tax Credits , Wind Project Finance , ITC , PTC , Investment Tax Credit , Production Tax Credit , Accelerated Depreciation , Model Wind Partnerships , Discount cash flow models for wind , Discount cash flow models for renewable energy , Wind Partnerships , Model Limited Partnerships , Energy Project Financial Model , Energy Project Discount Cash Flow Model