Happy to have finished two new solar lease analyses. We built new model functionality for these analyses. This new functionality allowed us to simultaneously assess the impact of different lease economic structures on the developer’s effective CAPEX and presumed target PPA price — this allowed the landowner to see how different structures could affect project […]
We have seen threats to project and lease revenue from wildlife risks. In our opinion, significant wildlife risks could (at least in theory) derail an operating project or effectively prevent its repowering. More likely, it seems, wildlife risks would lead to curtailment strategies, like curtailment during low wind speed periods, when certain bat species migrate. […]
Interesting to note this Wind Tech Center project, and it will be more interesting to see the results of this study. The scope of the study also suggests revenue features owners (particularly owners hosting turbines) should be capturing in their leases, because these revenue features will add long-term value. RES Providing Storage System For NREL […]
Very happy to have finished a solar lease revenue analysis today. In connection with a potential lease extension discussion, we compared the value of an existing lease to other, recent leases. It’s interesting to see where rates are for these projects are and how they differ from rates just a few years ago and as […]
The numbers and studies mentioned in the article linked below show interesting potential for project improvement or degradation attributable to leading edge erosion. This is another factor to consider when analyzing turbine lease revenue. Over time, a two to seven percent production impact (not to mention a 25% impact) could have a significant effect on […]
Thank you for supporting LeaseGen! We started our business to address a growing need – informed evaluation of wind lease revenue streams for people buying or selling land with turbines on it. Our core business is growing, and we are now working in related areas, including on evaluations of overall lease economic structures for landowners […]
We recently finished analyses for an international energy company of three potential acquisitions, involving different projects’ lease revenue streams. We analyzed projections using our project-specific datatsets and recently-updated model and advised the client on deal risks and structuring each acquisition. This work was completed considering each projects’ features and contractual and legal constraints. Many thanks […]
In an October 2016 post, we noted how repowers may affect landowner revenue, positively and negatively. An additional potential aspect of how a repower may affect landowner revenue is worth noting. This other aspect relates to potential power price impacts. Firstly, and generally, most wind leases (and some solar leases, but solar is not relevant […]
An October 7, 2016 Wall Street Journal article notes project owners are using the recent Production Tax Credit (PTC) extension to repower (generally, replace turbines at) existing projects. These repowers may mean unexpected changes to landowners with turbines on their property, particularly those landowners paid under a royalty structure (and really also for landowners paid […]
A noteworthy report has been published related to future wind power costs. The report is a summary of an expert elicitation on wind power costs prepared by Lawrence Berkeley National Laboratory. Based on 2014 costs, the results of the survey forecast the levelized cost of wind energy may drop by 24-30% by 2030 and by […]