About
The largest reforms in the history of ERCOT will be implemented over the next two years. Multiple market and rule reforms will bring enormous changes to how power sales will be rewarded, introduce new products and services to increase reliability and resilience, and, potentially, will initiate a loan guarantee and grant program aimed at jump-starting investment in dispatchable generation, BTM energy assets, and transmission infrastructure. And the potential remains for more drastic energy legislation to impact the ERCOT market in the future.
At the same time these multiple reforms will be implemented in ERCOT, a series of external shifts and challenges will be hitting the Texas power sector as well. Massive additions to load, an avalanche of new storage and generation capacity, more extreme weather, and growing price volatility will increase risks, open new opportunities, and create headaches for power asset owners, developers, wirecos, QSEs and investors. How will these changes impact market participants, and how are they planning to deal with the ongoing policy and market uncertainties?
Infocast’s ERCOT Market Summit will provide an unparalleled deep dive into these impending changes, and provide serious insights into the directions they will drive the market. A stellar group of policymakers together with utility, solar, wind, IPP, finance, and trading executives will explore the tumultuous future of this massive power market, and examine the impacts on resource adequacy, power prices, project siting and bankability, and how to best meet the shifting needs of commercial, industrial, and retail customers.
Panel Discussion: Financing Projects in ERCOT in the Post-IRA Era
Uri fundamentally changed the project finance market in ERCOT, and the Inflation Reduction Act tax provisions are likely to have even more profound effects. The project terms that sponsors, equity investors, tax equity and lenders are seeking are extremely different now. This panel will examine what makes a project financeable in the market today, including:
- Where is the capital flowing? How are IRA incentives helping various types of projects pencil out?
- What changes can be expected in the tax equity market?
- What impacts are the new transferability provisions in the Act having on financial structures?
- Where does the transferability market for tax equity stand today?
- Will financiers have an increased appetite for standalone storage projects?
- Will standalone storage projects in ERCOT have difficulties penciling out for construction loans?
- Are balance concentration issues affecting lender appetite?
- Are changes in credit structures being seen as a result of the changing tenor of offtake agreements?
