Introduction: On November 18, 2021, the Federal Energy Regulatory Commission (“FERC” or “Commission”) issued a notice of inquiry seeking comments on various aspects of currently accepted reactive power compensation mechanisms and alternative compensation methodologies, including for those resources that interconnect at the distribution level but offer reactive power capability in support of transmission.  The NOI may foreshadow FERC’s adoption for the first time of a uniform standard for reactive power compensation, displacing the current fragmented reactive power federal pricing environment.

Continue Reading FERC Seeks Comments on Potential Alternative Reactive Power Compensation Mechanisms in Reactive Power Capability Compensation, 177 FERC ⁋ 61,118 (2021) (“NOI”)

On November 15th, 2021, President Biden signed the highly anticipated $1.2 trillion infrastructure bill. Among other infrastructure-related incentives, the bill includes billions in funding to help fight climate change and support clean energy technologies. Specifically, the bill allocates approximately (1) $65 billion for power infrastructure, of which nearly $29 billion is devoted to bolstering the electric grid (including transmission), (2) $47.2 billion to address critical cyber and climate resilience and (3) $7.5 billion to build out a national network of electric charging infrastructure.[1]  These incentives are critical for facilitating broader proliferation of renewable energy projects and the transmission assets needed to carry their output to load centers, which is expected to help the nation achieve stated climate change goals.

Continue Reading Comprehensive $1.2 Trillion Infrastructure Bill to Provide Critical Support for Clean Energy

The much-anticipated vaccine rule is here.  On November 4, 2021, and in response to President Biden’s Executive Order, the Department of Labor, through the Occupational Safety and Health Commission, issued the Emergency Temporary Standard (“the Rule”), requiring mandatory vaccination or weekly COVID testing for many U.S. employers.  The Rule is effective immediately.

Continue Reading It’s Here: OSHA’s Rule Mandating COVID Vaccinations or Weekly Testing for Employers

This is the second of three articles on the Solar Industry and Forced Labor. Here we focus on interactions with solar module suppliers. Our first article in the series focused on regulations in this area, and our next will focus on investors and their requirements.

Continue Reading Clean Energy’s Messy Problem II: The Solar Industry, Its Suppliers, and the Complex Task of Combatting Forced Labor

This is the first of three articles on the Solar Industry and Forced Labor. Here we focus on regulation. Articles in the coming weeks will focus on issues facing importers and their suppliers, and on investors and their requirements.

Continue Reading Clean Energy’s Messy Problem: The Solar Industry, the U.S. Government, and the Complex Task of Combatting Forced Labor

Continued commitments to renewable generation in 2021 mean that corporate purchasers remain major drivers in the development of new wind and solar power generation projects in the United States.  Megawatt numbers vary depending on the source; however, there is no dispute about the significant role played by corporates.  While corporate offtakers were initially focused on wind generation, corporate offtakers now regularly contract for solar generation as well.

Continue Reading Corporate Offtake Agreements are a Driving Force Behind the Shift Toward Renewable Energy in the United States

  • U.S. Customs halts the import of silica-based products from made by Hoshine Silicon Industry Co. because the products are suspected of being produced using forced labor.
  • For future imports of solar energy equipment sourced from Xinjiang, China, the United States may use Withhold Release Orders (WROs) to block entry into the United States if there is reasonable suspicion of forced labor in the supply chain.
  • The renewables industry is working together and with regulators to find ways to certify its supply chains are free of forced labor.


Continue Reading Anti-Forced Labor Measures Turn Up the Heat on Chinese Solar Equipment Suppliers

Investors are increasingly focused on Environmental, Social, and Governance (ESG), and more companies are reporting on these statistics.  Reporting on ESG metrics is challenging because there is a lack of consistency in the market as to what ESG is, how to measure whether ESG is successful, and how that success is rewarded.  In the debt capital markets, industry trade groups are working to provide market participants with ESG reporting frameworks in order to unite these ESG reporting efforts and move towards a more uniform reporting standard.  The latest proposed framework is the Social Loan Principles published by the Asia Pacific Loan Market Association, the Loan Market Association and the Loan Syndications & Trading Association.
Continue Reading Six Key Items to be Aware of Regarding the Social Loan Principles

Offshore Wind Goes West.  On May 25, the Biden administration and the State of California announced an effort to develop areas off of the coast of California for up to 4.6 GW of offshore wind generation.  While Northeastern states and project developers are poised to begin bringing commercial scale offshore projects to market, this announcement represents the first concrete step to open up the West coast to offshore wind development.  Wind generation in the waters off the West coast will face some unique challenges (such as water depths that will force the use of floating wind turbines that are still in pre-commercial stages of development), but will also face some of the same challenges that we have been working through on the East coast (such as constrained transmission corridors, undeveloped onshore interconnection and transmission infrastructure and the need for Jones Act-qualified vessels).  Here are six key things to be aware of in the development of floating offshore wind in California.
Continue Reading Six Key Things to be Aware of in the Development of Floating Offshore Wind in California

As the demand for renewable energy in the United State increases, so does related project M&A activity.  For decades, the Sheppard Mullin team has been working on renewable energy project M&A and now we are helping our clients address several accelerating market trends for projects at all stages of the project life cycle. Here are six key items to be aware of today in US renewable energy M&A transactions.
Continue Reading Six key items to be aware of today in US Renewable Energy M&A Transactions