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New Jersey’s electric grid is under increasing strain, and it’s sparking critical conversations  about the state’s energy future. With rising energy demands driven by scorching summer heatwaves, ambitious electrification goals, and economic growth, ensuring the reliability and efficiency of the electric grid is key—not just for residents, but for energy developers eyeing long-term opportunities. Recent hearings  and data shed light on the state’s grid challenges, advances in renewable energy projects, and the path forward to meet growing demands. Understanding New Jersey’s Current Grid Capacity New Jersey’s electricity grid and capacity faces mounting pressure due to extreme weather events, surging energy consumption, and the push toward electrification. According to recent reporting, this summer’s record heat led to a 20% spike in energy consumption for Atlantic City Electric customers. Heating, ventilation, and air conditioning systems worked overtime, substantially increasing strain on the grid and driving electricity bills up 44% compared to the prior year. Adding to these challenges, the state's electricity supply is tightening. PJM Interconnection, the regional transmission organization supplying New Jersey, reported that auction bids came in nine times higher this year, signaling rising costs and a constrained supply. With projections of increased peak loads, grid reliability becomes an even more pressing issue as demand continues to rise across industries, residential areas, and public infrastructure. Challenges Facing the Grid Several factors highlight the need for urgent upgrades and deliberate planning for New Jersey’s grid: Extreme Weather Resilience : Frequent heatwaves, driven by climate change, are pushing grid infrastructure to its limits. Prolonged periods of high temperatures mean 24/7 operation of air conditioning units and increased energy use, compounding stress on the aging infrastructure. Electrification Goals : Governor Phil Murphy’s clean energy agenda emphasizes mass electrification, yet these initiatives demand significant grid upgrades to support widespread adoption of electric vehicles (EVs), heat pumps, and other technologies. Without these upgrades, the current infrastructure may falter under the weight of additional loads. Infrastructure Aging & Maintenance Costs : Much of New Jersey's grid infrastructure requires upgrades to handle not only immediate energy surges but also projected long-term demand. Recent rate hikes reflect investments directed toward modernizing grid systems, as utilities aim to improve reliability. Rising Costs for Consumers : Rate increases have created financial strain for both residents and businesses. This raises questions about balancing affordability with funding the infrastructure investments required for a modernized grid. New Jersey’s Renewable Energy Push Amid these grid challenges, progress on renewable energy projects in New Jersey holds promising potential to increase supply and promote sustainability. Offshore Wind Expansion : New Jersey is doubling down on offshore wind energy, including landmark projects such as the development of the Ocean Wind 1 and Ocean Wind 2 arrays. These projects are expected to produce over 2,300 megawatts of clean power, supporting the state's ambitious goal of generating 50% renewable energy by 2030. Solar Energy Growth : New Jersey ranks among the top states for solar energy adoption, with over 150,000 residential and commercial solar installations. This push supports grid stability through distributed energy resources (DERs) and reduces dependence on centralized power plants. Community Solar Initiatives : Innovative community solar programs allow residents and businesses to subscribe to shared solar farms, expanding accessibility to clean energy options while reducing costs for subscribers. These projects not only reduce greenhouse gas emissions but provide opportunities for enhanced grid resilience. Renewable installations can diversify the energy supply mix, helping to buffer against shortages or price shocks caused by traditional fuel market volatility. Planning for the Future of New Jersey Grid Capacity While challenges remain, solutions are on the horizon to ensure New Jersey’s grid evolves to meet the demands of the 21st century. Grid Modernization Investments : Utilities are allocating significant resources toward upgrading transmission and distribution systems. For instance, Atlantic City Electric attributed part of its recent rate hike to infrastructure updates designed to improve reliability during peak demand periods. Demand Response Programs : Encouraging customers to shift electricity use to off-peak hours can alleviate pressure on the grid. Programs offering financial incentives for managed usage are becoming more common and effective tools for balancing load. Energy Storage Deployment : Battery storage systems can smooth out fluctuations in energy supply and demand, providing critical back-up power and enhancing the integration of intermittent renewable resources like wind and solar. Federal and State Collaboration : New Jersey's participation in a coalition of states under the PJM service area offers opportunities to leverage joint market and regulatory frameworks. Petitions to the Federal Energy Regulatory Commission (FERC) to reintegrate certain electricity plants into the supply chain could boost market capacity and stabilize regional grid operations. Public-Private Partnerships : Collaboration between energy developers and state agencies is essential to ensure smarter investments in energy infrastructure. Incentive programs for grid reinforcement, renewable project development, and technology innovation remain pivotal in addressing systemic challenges. Why Energy Developers Should Pay Attention For energy developers, New Jersey’s grid scenario presents both challenges and significant opportunities. The state’s ambitious renewable energy targets, along with its push for electrification and decarbonization, open the door for innovative technologies, investments in infrastructure resilience, and public-private partnerships. Supporting grid-enhancing technologies such as microgrids, energy storage, and advanced metering infrastructure (AMI) could position developers as key players in modernizing New Jersey’s electric network. Furthermore, renewable project participation aligned with state policy initiatives can unlock incentives while contributing to grid stability. Energy developers who align their strategies with New Jersey’s evolving grid needs and clean energy goals will not only address key challenges but also play a critical role in building a more sustainable, efficient future. Looking Toward the Future with Grid Capacity Tools When developing energy projects , understanding grid infrastructure and measuring offtake capacity  and transfer capacity  is crucial for selecting optimal project locations. For energy developers operating in areas like New Jersey, LandGate offers a comprehensive solution to streamline this process. LandGate's platform provides complete electric grid mapping , giving you a detailed and transparent view of grid infrastructure in targeted regions. With data on avai lable power at every substation, yo u'll gain valuable insights into offtake capacity, enabling you to make informed decisions about site viability and project feasibility. By leveraging LandGate's advanced tools , energy developers can minimize guesswork, reduce project lead times, and strategize effectively to align with grid availability. Whether you're working on solar, wind, or storage projects, having access to robust grid data helps ensure your project's success from the outset. Click here  to book a demo with our dedicated energy markets team.

Public land, owned and managed by the government, comprises a significant portion of the United States. In fact, the federal government is the largest landowner in the country . How these vast public lands, spanning millions of acres, are used has profound implications for a wide range of stakeholders. From environmental preservation and social considerations to economic outcomes and political dynamics, the management of public lands directly impacts communities and ecosystems alike. Proper stewardship is essential to ensure these lands are not only preserved but leveraged responsibly to support a sustainable, clean energy future for everyone. This resource explores how government-owned land can be used to advance renewable energy goals. LandGate provides a cutting-edge platform designed to help public landowners unlock the full potential of their properties for energy production. By identifying the best sites for renewable energy projects within their portfolios and connecting them with a vast network of energy developers, LandGate enables government property owners to turn underutilized land and rooftops into valuable clean energy assets. Every step of the transformation process is guided with expertise, ensuring a seamless path to sustainable energy solutions. Harnessing Public Land to Achieve Renewable Energy Goals Public landowners encompass a wide range of entities, from federal and state governments to regional airports, universities , cities, and counties. Despite their varying types, all public landowners share a common purpose: achieving mission-driven objectives, with one of the most prominent goals being to foster clean energy development. Unlike private landowners, whose primary focus is often generating profit or securing a return on investment, public landowners carry the added responsibility of utilizing their land assets to fulfill broader goals that benefit the communities they serve. Several mission-driven goals are commonly shared among public landowners and can be advanced through the strategic use of public properties. Examples of these goals include: Reducing ownership and maintenance costs Maximizing both existing and new revenue opportunities Promoting economic growth and attracting investments Enhancing the local electrical grid with new sources of carbon-free energy Supporting federal and local renewable portfolio standards Strengthening government policies  related to renewable energy development By aligning land use with these objectives, public landowners can balance financial sustainability with their commitment to community well-being and environmental stewardship. Benefits of Utilizing Public Land for Renewable Energy Utilizing government-owned land for renewable energy projects offers numerous advantages. By leasing this land for clean energy development, governments can generate significant revenue, stimulate local economic growth, and support the production of sustainable, clean energy. One of the primary benefits of utilizing public land for renewable energy development is the potential to generate significant revenue through lease payments. By leasing agency-owned properties to developers for clean energy projects, public agencies can establish a consistent stream of income that supports other public services and infrastructure investments. For example, typical solar lease payments range from $700-2,000 per acre per year with leases ranging from 25 to 40 years. Additionally, clean energy projects help drive economic growth  in local communities. The construction and operation of renewable energy facilities create jobs across a range of sectors, from manufacturing to maintenance, invigorating the local economy while supporting long-term employment opportunities. Furthermore, renewable energy development can also attract investments and businesses to the area, stimulating growth and prosperity. Leasing public land for renewable energy projects also fosters the production of clean, sustainable energy. Solar farms, wind turbines, and other renewable energy installations on public lands contribute to reducing reliance on fossil fuels  and lowering greenhouse gas emissions, critical to combating climate change. This not only aligns with broader environmental goals but also enhances the energy security of surrounding communities by diversifying energy sources. By supporting renewable energy projects, public landowners can play a vital role in transitioning to a greener, more sustainable energy future. Government Policies Supporting Renewable Energy Development on Public Lands Government policies play a crucial role in fostering renewable energy development on public lands. These policies often focus on incentivizing renewable energy projects through tax credits, subsidies, and streamlined permitting processes. For instance, programs like the Renewable Energy on Public Lands Act  aim to accelerate the development of solar, wind, and geothermal projects while ensuring proper land-use planning and environmental safeguards. Additionally, renewable portfolio standards (RPS) encourage the adoption of green energy by requiring utilities to source a specified percentage of their power from renewable resources. As of December 2023, the Database of State Incentives for Renewables & Efficiency reports that 28 states and the District of Columbia have implemented Renewable Portfolio Standards (RPS), while 7 states have adopted renewable energy goals. Additionally, 11 states have established Clean Energy Standards (CES) or related objectives. Notably, 17 states and the District of Columbia have set ambitious targets to achieve 100% renewable or clean electricity by 2050 or sooner. The Biden-Harris administration  has set an ambitious goal: achieving 100% carbon pollution-free electricity by 2035 and a net-zero carbon economy by 2050. Utilizing public lands will play a crucial role in meeting these targets, given the vast expanse of public land available in the United States. According to Peter Daniels , “...for the United States to reach the widely recommended goal of net zero greenhouse gas emissions by 2050, it will have to site renewable energy projects on roughly 145 million acres.” Public lands, therefore, are a key resource in the nation’s transition toward a sustainable, carbon-neutral future. The Bureau of Land Management (BLM) has established clear processes to identify potential sites for renewable energy development. One process is tailored specifically for renewable energy projects, while the other facilitates collaboration with third-party developers interested in such initiatives. The Bureau of Land Management  (BLM) is the largest public landowner of federal lands in the United States. BLM is setting the tone for other public landowners to contribute land to expand the national renewable energy portfolio through the use of environmentally sound renewable energy programs. Specifically, the Bureau of Land Management (BLM) has exceeded its goal of approving 25 gigawatts (GW) of clean energy projects on public lands. As of November 2024, the BLM has authorized 70 geothermal, 63 solar, 41 wind, and 42 renewable energy gen-tie projects—transmission lines that traverse public lands to connect private renewable energy developments to the grid. Together, these projects boast a total capacity of approximately 30 GW, enough to power more than 12 million homes. Identifying Public Land to Advance Renewable Energy Goals Public institutions are the largest landowners in the United States, making it essential to utilize public land to expand the nation’s renewable energy portfolio. Although policies and regulations governing the use of public land for renewable energy projects vary widely across the country, leveraging public lands for clean energy development has become common and will continue to expand. Many agencies across the country have already leased their properties for clean energy projects, including local and state governments, schools, universities, military installations, and public utilities. LandGate offers a powerful platform for public landowners seeking to optimize their property for energy production. From pinpointing the ideal sites within portfolios for renewable energy projects to connecting with a robust network of energy developers, LandGate empowers government property owners to transform their underutilized land and rooftops into clean energy assets, guiding them through every step of the process. The success of LandGate's platform and marketplace is exemplified by its impact on the State of New Mexico . Since Q1 2024, New Mexico has listed seven properties on LandGate, with four successfully closed deals. These transactions are paving the way for the development of three solar farms and one wind farm on state-owned land. This progress not only advances New Mexico’s commitment to a greener, more sustainable future, but also generates revenue and creates valuable local jobs. If your agency is interested in evaluating the clean energy potential of its properties and would like to explore LandGate's free services for government agencies further, schedule a free consultation call with our team today or learn more here :

A PPA (Power Purchase Agreement) for renewable energy is a contract between a renewable energy producer (typically a renewable energy project developer) and a power purchaser (such as an energy retailer or large energy consumer) for the sale and purchase of electricity. In a PPA, the producer agrees to supply a certain amount of electricity to the purchaser over a certain period, usually ranging from 10 to 30 years. The purchaser agrees to pay a fixed price per unit of electricity over the term of the agreement. This provides revenue certainty for the generator and price stability for the purchaser without the large, upfront capital investment. How long is a PPA for? A PPA has a period of typically 10 to 30 years. Analyzing LandGate’s PPA database, a trend can be identified: the first PPAs had longer terms of 25 or 30 years; the latest terms are getting shorter to about 10 years. The reason is perhaps that renewable energy producers and capital markets are bullish on the price of electricity and government incentives increasing with time. How are PPAs used in the renewables sector? PPAs are commonly used in the renewable energy sector, where the project developer typically produces electricity from sources such as solar or wind farms. PPAs can help renewable energy developers secure financing for their projects by providing a long-term revenue stream, which is particularly important given the variable nature of renewable energy generation. PPAs can also help large energy consumers meet their sustainability goals by sourcing renewable energy to power their operations. What different types of PPAs are there? There are several types of Power Purchase Agreements (PPAs) used in renewable energy projects. Here are some common ones: Fixed-Price PPA : This is a PPA in which the buyer agrees to purchase power from the renewable energy generator at a fixed price for a set period of time. This provides price stability and allows the generator to secure financing for the project. Index-Based PPA : This is a PPA in which the price paid for power is based on a predetermined index, such as the market price for electricity. This allows for some price flexibility, but can also introduce some price risk. Virtual PPA : This is a PPA in which the buyer agrees to purchase a certain amount of power from a renewable energy generator, but the power is not physically delivered to the buyer. Instead, the buyer receives financial credits or offsets for the amount of renewable energy generated, which can be used to meet sustainability or carbon reduction goals. Green Tariff PPA : This is a PPA in which the utility agrees to purchase power from a renewable energy generator on behalf of a specific customer, who pays a premium for the renewable energy. This allows customers to support renewable energy development without having to directly manage a PPA. Synthetic PPA : This is a PPA in which a third-party financial institution, such as a bank or hedge fund, provides the financing for the renewable energy project and takes on the risk associated with the PPA. The buyer pays a fixed or variable rate to the financial institution, which then pays the renewable energy generator. Overall, the type of PPA used in a renewable energy project will depend on the specific needs of the buyer and generator, as well as the regulatory environment and market conditions. How can PPAs be used to finance construction of a renewable energy project? PPAs provide a way for renewable energy project developers to secure financing for their projects by using the future revenue stream from selling electricity to customers as collateral. This reduces the risk for investors and can make it easier to obtain financing for the project. Additionally, PPAs can provide a stable revenue stream for the developer over the long term, which can help offset the upfront costs of building the project.  What stage of project development are PPAs typically procured? PPAs are typically procured during the development stage of a renewable energy project. This is because PPAs are long-term contracts that provide a stable revenue stream for the project, and the terms of the PPA will influence many aspects of the project's design and financing. During the development stage, the project developer will conduct feasibility studies to determine the viability of the project, including the potential energy yield, project costs, and potential revenue streams. Once the developer has a good understanding of the project's potential, they will typically begin seeking a PPA with a customer, such as a utility company or other off-taker. The negotiations for the PPA will typically occur during the development stage, but the agreement itself may not be finalized until later in the project's lifecycle, such as during the financing or construction stages. However, having a PPA in place early on can be important for securing financing for the project, as it provides a reliable revenue stream for the project over the long term. Overall, procuring a PPA early in the development stage can help ensure the project is designed and financed in a way that aligns with the terms of the PPA, and can also help reduce the risk for investors and lenders by providing a reliable revenue stream for the project. How do I know if a PPA is a fair offer? If an off-taker has offered you a power purchase agreement (PPA), it's important to carefully evaluate the terms of the agreement to determine if it's a fair offer. Here are some key factors to consider: PPA Price : The price offered by the off-taker for the electricity generated by the project is a key factor in evaluating the PPA. You should compare the price offered to current market prices for electricity, as well as to prices offered by other potential off-takers, to determine if the offer is competitive. PPA Contract Length :  The length of the PPA can have a big impact on the project's financing and profitability. Longer contract lengths typically provide more stability for the project, but may also come with lower prices. You should evaluate the length of the PPA in relation to the expected lifespan of the project and the projected revenue streams. PPA Payment Terms :  The payment terms of the PPA can also impact the project's financing and profitability. You should evaluate the payment schedule and any penalties or incentives for early or late payments to determine if they align with your needs and expectations. PPA Creditworthiness of the Off-Taker :  The creditworthiness of the off-taker is also an important consideration, as it can impact the likelihood of them fulfilling the terms of the PPA. You should evaluate the off-taker's financial stability and credit rating, and consider seeking additional financial guarantees or collateral to mitigate the risk of default. PPA Other Terms and Conditions :  There may be other terms and conditions in the PPA that could impact the project's financing or operation, such as limitations on energy output or restrictions on the sale or transfer of the project. You should carefully review all terms and conditions of the agreement to ensure they align with your goals and expectations for the project. Overall, evaluating a PPA offer requires a careful analysis of the terms and conditions, as well as consideration of the project's financing and operational needs. You may want to consult with a legal or financial advisor to help you evaluate the offer and negotiate the best terms for your project. When determining the fair market price of a PPA, is there something I can use to compare? When evaluating the fair market price of a Power Purchase Agreement (PPA) tied to a renewable energy project, it is important to compare it to other energy prices that are relevant to the specific market and region where the project is located. Here are some examples of energy prices that may be relevant to consider: Wholesale Electricity Prices : This refers to the price at which electricity is bought and sold on the open market. Wholesale electricity prices vary depending on factors such as supply and demand, fuel prices, weather patterns, and regulatory policies. Retail Electricity Prices : This refers to the price that customers pay for electricity from their utility. Retail electricity prices are generally higher than wholesale prices due to the additional costs associated with distribution and transmission. Natural Gas Prices : Natural gas is a common fuel source for electricity generation, and its price can influence the price of electricity. In some regions, the price of natural gas may be a key factor in determining the competitiveness of renewable energy sources. Renewable Energy Credit (REC) prices : RECs represent the environmental attributes of renewable energy generation and can be sold separately from the electricity itself. The price of RECs can vary depending on market conditions and regulatory policies. Carbon Prices (CO2 prices) : Some jurisdictions have implemented carbon pricing mechanisms to incentivize the reduction of greenhouse gas emissions. Carbon prices can affect the competitiveness of different types of energy sources, including renewables. Other Regional Energy Prices : Depending on the region, there may be other energy prices that are relevant to consider, such as the price of coal, oil, or other fuels used for electricity generation. It's important to note that the specific energy prices that are most relevant to consider will depend on the location of the renewable energy project and the regulatory and market conditions in that region. Using LandGate’s “PPA Analyzer” and “SolarPowerVal” Users can easily model different pricing structures and the economic impacts related to their projects. Solar PowerVal comes pre-loaded with historical and forecasted price decks in all Wholesale Energy Markets (Hub/LMP on Day ahead and real time), Avoided Energy Cost Price decks used by regulated energy service providers, and retail energy prices (Industrial, Commercial, Residential rates).  Who are the largest buyers of corporate PPAs? The largest buyers of corporate PPAs, or power purchase agreements, are typically large corporations and institutions with significant energy consumption needs. Here are some of the top industries and companies that have been actively involved in purchasing corporate PPAs in recent years: Technology Companies : Tech giants such as Google, Microsoft, Amazon, and Apple have been some of the biggest buyers of corporate PPAs in recent years, as they seek to power their data centers and other facilities with renewable energy. Retail Companies : Retailers such as Walmart, Target, and IKEA have also been active buyers of corporate PPAs, as they seek to reduce their environmental impact and meet sustainability goals. Manufacturers : Large manufacturers such as General Motors, Anheuser-Busch, and Mars have also been active in purchasing corporate PPAs to power their factories and other operations with renewable energy. Financial Institutions : Banks and other financial institutions, such as Goldman Sachs and JPMorgan Chase, have also been involved in purchasing corporate PPAs as a way to offset their carbon footprint and meet sustainability goals. Municipalities and Universities:  Municipalities and universities have also been active buyers of corporate PPAs, as they seek to power their facilities with renewable energy and reduce energy costs. Overall, the trend toward purchasing corporate PPAs has been driven by a growing awareness of the environmental and economic benefits of renewable energy, as well as a desire by companies and institutions to meet sustainability goals and reduce their carbon footprint. How do I get a PPA in a Regulated Energy Market?  Getting a Power Purchase Agreement (PPA) in a regulated energy market can be a complex process. Here are some general steps you can take to obtain a PPA: Identify Potential Off-Takers : In a regulated energy market, utilities or other regulated entities may be required to purchase a certain amount of renewable energy. Identifying potential off-takers that are obligated to purchase renewable energy can be a good starting point for securing a PPA. Determine the Regulatory Requirements:  Different regulated markets have different regulatory requirements that must be met in order to secure a PPA. These requirements may include obtaining approval from regulatory bodies, such as the Public Utility Commission (PUC) or the Independent System Operator (ISO), and complying with specific market rules and regulations. Develop a Project Proposal:  Once you have identified potential off-takers and determined the regulatory requirements, you will need to develop a detailed project proposal. This should include information on the size and location of the project, the expected energy output, the technology being used, and any other relevant details. Negotiate the PPA:  Once you have a project proposal, you can begin negotiating the terms of the PPA with potential off-takers. This will typically involve discussing the price of the energy, the length of the contract, and any other terms and conditions. Obtain Regulatory Approval:  Once the terms of the PPA have been agreed upon, you will need to obtain regulatory approval. This may involve submitting the PPA to the appropriate regulatory body for review and approval. Execute the PPA: Once regulatory approval has been obtained, you can execute the PPA with the off-taker. This will typically involve signing a contract that outlines the terms and conditions of the agreement. It is important to note that the specific process for obtaining a PPA in a regulated energy market can vary depending on the region and the specific regulatory requirements. Working with experienced legal and regulatory experts can help ensure that you are following the appropriate procedures and complying with all necessary regulations. Common Types of Power Purchase Agreements (PPAs) Power Purchase Agreements (PPAs) are vital instruments in the renewable energy sector, providing a structured framework for selling electricity generated from renewable sources. Understanding different types can help renewable energy developers make informed decisions. Here’s an overview of the most common PPA structures: 1. Physical PPA Also known as “traditional” PPAs, these agreements involve the physical delivery of electricity between the generator and the buyer. On-site PPAs : Typically used for solar installations on commercial properties, where the energy is consumed on-site. Off-site PPAs : Energy is generated at a different location and delivered through the grid to the buyer. 2. Virtual PPA (VPPA) Virtual PPAs are financial agreements rather than contracts for physical delivery. They allow buyers to receive renewable energy credits without taking physical delivery of power. Benefits : Provides price certainty and supports corporate sustainability goals. Structure : The buyer pays a fixed price for electricity, and any excess is sold into the spot market by the developer. 3. Sleeved PPA A sleeved PPA involves three parties—the generator, the buyer, and an intermediary (usually a utility or energy company). Role of the Intermediary : Facilitates delivery and handles administrative duties. Advantages : Offers a streamlined process for buyers who want renewable energy but lack the infrastructure to manage it directly. 4. Aggregated PPA This type involves multiple buyers coming together to negotiate a single PPA with a generator, often used by smaller companies to leverage collective buying power. Benefit : Enables access to competitive pricing and larger renewable projects. Consideration : Coordination among participants is crucial for a successful aggregated PPA. 5. Synthetic PPA Similar to a virtual PPA, synthetic PPAs are financial contracts used primarily in deregulated energy markets. They provide flexibility for buyers who cannot enter into direct physical PPAs. Structure : A financial swap agreement where the buyer receives price stability while the project developer benefits from guaranteed revenue. Choosing the right PPA structure depends on various factors, such as the size of the project, the regulatory environment, and specific business goals. By understanding these options, renewable energy developers can better align their projects with market demands and strategic objectives. For any questions or further guidance, feel free to reach out . We’re here to support your renewable energy initiatives.

The Community Reinvestment Act (CRA) is a U.S. federal law enacted in 1977 to encourage financial institutions to meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods. Although the CRA is primarily focused on lending to support community development, there are new regulations that will expand CRA investment into renewable energy projects.  The Community Reinvestment Act and Renewable Energy Projects Under the CRA, banks are assessed on their performance in lending and investments that benefit their entire community, including investments in projects that improve energy infrastructure and sustainability.  Banks are assessed a CRA Rating of: Outstanding  Satisfactory  Needs to Improve Substantial Noncompliance A good CRA rating is important for banks as it will ease scrutiny from organizations like: the Federal Deposit Insurance Corporation (FDIC)  the Office of the Comptroller of the Currency (OCC) the Federal Reserve.  Maintaining a good CRA rating also increases a bank's chance for additional community funding opportunities and partnerships.  Understanding Renewable Energy Project Finance Investment in the development of renewable energy projects is at an all-time high and is expected to continue growing for the foreseeable future. Each new project requires multiple investment sources and requires a unique financing model that is often characterized by its reliance on the project's future cash flows, rather than the companies' balance sheets. Typically, the financing for renewable energy projects includes a mix of debt, tax equity, and sponsor equity (cash). The standard project financing structure of a renewable energy is:  50% debt  40% tax equity 10% sponsor equity.  Debt is usually provided by banks or specialized lenders and must be repaid with interest over time. Tax equity investors contribute capital in exchange for tax benefits like Investment Tax Credits (ITCs) or Production Tax Credits (PTCs), which can significantly reduce the effective cost of the project. Sponsor equity, or cash contributed by the project developer, constitutes a smaller portion of the total financing but is essential for covering project costs and demonstrating financial commitment. The project's revenue streams, such as power purchase agreements (PPAs) with utilities or other customers, serve as the primary source of repayment for the debt and returns for the equity investors. This structured approach helps distribute financial risk and align interests among various stakeholders. Benefits of the Community Reinvestment Act for Banks The new CRA regulations provide a multitude of new investment opportunities for banks to improve their CRA scores. Now, when banks invest in renewable projects via tax equity investments, these investments will count towards their CRA rating to improve community infrastructure, which is important for their regulatory assessments and the public perception of their community involvement. A strong CRA performance can also facilitate mergers and acquisitions, as regulators consider CRA ratings during their review processes. Banks can find and invest in both new projects to invest in and projects previously stalled due to a lack of funding within their community. These investments are a brand new opportunity for Banks to improve their CRA rating. Benefits of the Community Reinvestment Act for Renewable Developers For renewable energy developers, the CRA offers access to a pool of capital from banks looking to fulfill their CRA obligations. This is important because one of the most difficult components of project financing to find is tax equity investment. Many projects in the interconnection queue have their development stalled due to a lack of investment. The CRA provides a pathway for developers to tap into bank investments that are aligned with the goals of community development and sustainability. IRA Energy Community Incentives for Renewable Developers Additionally, there are tax incentives via the Inflation Reduction Act (IRA) and other local incentives for projects being developed in underserved and low-income communities. By aligning their projects with CRA and IRA, developers can unlock additional funding opportunities, build partnerships with financial institutions, and receive additional tax benefits on their projects. States Where Renewable Energy Projects Can Benefit from the Community Reinvestment Act The CRA applies to banks operating throughout the United States. This means that renewable energy projects in all states can potentially benefit from CRA-related investments and financing. However, the specific impact and opportunities can vary depending on the state’s policies and the local bank’s commitment to community development. States and areas with progressive energy policies or significant renewable energy initiatives, such as  New York, Illinois, Maryland, Virginia, and New England  might see more active engagement from banks in renewable energy projects due to the high level of interest and investment in these areas. Nonetheless, the CRA’s framework supports renewable energy projects in any state, provided the projects align with the broader community development goals set forth by the CRA. How Does the CRA Work in Practice? Stalled renewable energy projects present a great opportunity for banks and developers alike. These projects are stalled primarily due to a need for additional funding. Developers can see projects once thought to be severely delayed and give them new life with investments from banks looking to improve their CRA rating.  Using LandGate’s unique datasets, banks can find stalled projects in low-income communities with developer contact information. Project developers can understand which projects in development will be able to attract CRA-compliant tax equity investments from banks. Both banks and renewable energy developers alike can find brand new opportunities made possible by new regulations to the CRA.

In a recent development , the Texas Public Utility Commission has proposed that data centers, especially those supporting AI operations, consider constructing their own power plants. This suggestion arises from the increasing energy demands of AI data centers, which can rival those of small cities. The surge in demand poses a threat to the state’s already strained power grid. Key Considerations for Texas Data Center Developers Energy Independence Data center developers might need to think beyond traditional site planning and consider becoming energy providers themselves. This shift would entail substantial investments in building power generation facilities, an undertaking only feasible for companies with significant financial resources. Impact on Site Selection The new directive could influence site selection strategies. Proximity to existing power plants may not suffice, as the dependency on external sources is no longer reliable. Data centers might have to incorporate the feasibility of constructing on-site power plants into their selection criteria. Financial Implications While the initial cost of building a power plant is high, there might be long-term benefits in terms of energy cost savings and reliability. Developers should evaluate the return on investment and potential revenue streams from selling excess energy back to the grid. Regulatory Challenges Navigating regulatory approvals for both data centers and power plants could become more complex. Developers must engage with regulatory bodies early in the process to understand requirements and streamline project timelines. Innovation in Energy Solutions for Data Centers This situation presents an opportunity for developers to innovate in sustainable energy solutions. Leveraging renewable sources like solar or wind could align with broader sustainability goals and reduce environmental impact.  Data center developers  looking to optimize their projects with renewable energy solutions can greatly benefit from the LandGate platform. With its comprehensive tools for site selection, LandGate provides invaluable data such as the status and location of renewable energy projects, grid data, and other key electric infrastructure information. This rich dataset allows developers to make informed decisions on where to locate their data centers to maximize efficiency and sustainability. By understanding the current landscape of renewable energy projects, data center developers can strategically select sites that offer the best potential for integration with clean energy sources. The LandGate platform stands out by facilitating a seamless integration of renewable energy installations with data centers. It provides access to crucial data on infrastructure, zoning, and federal incentives, enabling developers to analyze these factors simultaneously. This holistic approach ensures that both the data center and renewable energy components are developed in harmony, optimizing land use and energy consumption.  By leveraging LandGate’s insights, developers can align their projects with governmental incentives, making the pursuit of renewable energy not only environmentally sound but also economically advantageous. For data center developers and renewable energy firms  alike, the LandGate platform offers a valuable resource in navigating the complexities of integrating renewable energy into their projects. Its professional, user-friendly interface and authoritative data provide the transparency and support needed to make strategic, informed decisions with confidence.  To learn more about LandGate’s tools for smarter data center development, book a demo  with a member of our energy team.

In the intricate world of power trading and energy development, precision is power. For the visionaries behind renewable projects and the strategists in trading firms, staying ahead in the complex energy market isn't just about insights; it's about proactively shaping the future. Understanding Locational Marginal Pricing (LMP) is key to this forward-thinking strategy. LMP, in short, is the heartbeat of wholesale electricity markets, reflecting the cost of generating or transmitting electricity at a specific location and time. Professionals navigating this space need robust tools and data insights to forecast LMP pricing accurately. It's not just a nice-to-have; it's a must-have for emerging victorious in a volatile, fast-moving energy market. Today, we'll deep-dive into the significance of LMP pricing and explore how LandGate's suite of tools can usher in a new era of strategic analysis and foresight for power traders and energy developers. The Impact of LMP Pricing Changes on Renewable Energy Development Understanding LMP and Renewable Energy In energy markets where LMP is used, prices are typically higher in congested areas where the demand for electricity is great but the transmission system is constrained. Conversely, prices can be lower in areas where there is little congestion. This pricing mechanism plays a critical role in guiding new energy development, as developers look for locations with higher price signals for greater potential revenue. Renewable energy resources, such as wind and solar power, are uniquely impacted by LMP for a couple of reasons. First, renewable resources are often located far from consumption centers where they can take advantage of better resource quality – windier sites or sunnier locations. This means they can face significant transmission constraints and volatility in LMP energy values. Second, because renewables have a low marginal cost to operate (primarily just maintenance and no fuel costs), they are often dispatched first, which can lower LMPs when they are generating. Impact of LMP Pricing Changes Incentivizing Project Location:  Changes in locational pricing can incentivize renewable projects to locate in areas with historically higher LMPs to capitalize on higher electricity prices. However, this can lead to congestion in these areas, potentially triggering more transmission investments or causing LMPs to drop in the long term. Feasibility and Financing:  Renewable energy projects are capital-intensive and rely on predictable revenue streams for financing. Volatility in LMP can affect the predictability of revenues, impacting the feasibility of projects and increasing the risk perception among investors. Development of Renewable Zones:  Some grid operators use LMP data to identify and develop competitive renewable energy zones (CREZ). These are areas designated for intense renewable energy development, supported by planned transmission expansions. Investment in Energy Storage:  Lower LMPs during periods of high renewable generation encourage investment in energy storage technologies. Storage can help capture excess renewable energy when prices are low and release it when prices (and LMPs) are higher. Impact on the Merit Order:  Renewable energy can shift the 'merit order', a way that power plants are dispatched based on cost. Because renewables have no fuel cost and thus a very low or even zero LMP, they can push more expensive (fossil fuel) generators out of the market during times of strong generation, which lowers overall LMPs. Policy Implications:  Regulatory agencies may intervene if they see that LMP mechanisms are hampering renewable development. They may provide subsidies or mechanisms such as contracts for difference (CFDs) to stabilize revenue streams for renewable energy projects. Deciphering LMP: Power Trading's North Star Locational Marginal Pricing (LMP) is a methodology used by many electricity markets to determine the price of electricity at different locations, or nodes, within the grid system. LMP aims to reflect the true marginal cost of delivering one additional megawatt-hour of electricity at a specific location, considering various factors including the supply and demand balance, as well as transmission constraints. Changes in LMP pricing can significantly affect the development of renewable energy projects. At the core of energy markets , LMP determines the pricing at which energy changes hands across different points in the grid. Understanding LMP gives traders and developers the ability to identify profit opportunities, manage risks, and optimize resource allocation. However, LMP is a multidimensional phenomenon, influenced by factors like demand, supply, weather patterns, transmission constraints, and regulatory changes. For professionals in power trading and energy development, it’s about more than just seeing the numbers; it’s about uncovering the stories behind the data that can guide critical decisions. LMP acts as the crossroads where economic principles meet the intricate web of energy ecosystem factors, making it one of the most potent analytical resources for anyone with stakes in the industry. The LandGate Advantage: Tools for Forecasting and Analysis To unravel the complexities of LMP pricing, professionals need more than just historical data. Comprehensive analytics tools that can digest a plethora of data sources, from real-time market conditions to long-term trend analysis, are necessary to drive actionable insights. LandGate's suite of tools offers exactly that — a combination of advanced analytics and user-friendly interfaces. Starting with a robust historical database, LandGate’s platform layers on predictive models, risk scenario generators, and machine learning algorithms to forecast LMP pricing. Historic Data and Real-Time Dashboards LandGate's platform provides access to vast repositories of LMP data, enabling users to grasp trends and patterns over time. The real-time dashboards keep users abreast of current developments and the direction in which LMP location-based prices are trending. With this data at their fingertips, power traders and energy developers can make timely and informed decisions, pivoting strategies as market dynamics evolve. Predictive Modeling for LMP Pricing Anticipating market shifts is where the game is won or lost. LandGate leverages predictive modeling to forecast LMP electricity pricing with a high degree of accuracy. These models consider a wide array of influential variables, such as energy demand forecasts, generation capacity factors, and even geopolitical factors that could ripple through the energy market. Risk Scenario Generators In the high-stakes world of energy trading, risk management is paramount. LandGate's platform equips renewable energy development companies with the tools to simulate various market scenarios and assess their impact on locational marginal price data and marginal units. Whether it's a sudden surge in demand, the addition of a new power plant, or a disruptive policy change, these simulations help stakeholders gauge their exposure to unexpected shifts and prepare accordingly. Machine Learning for Proactive Insights The use of machine learning doesn't just stop at predictive modeling; it extends to providing proactive insights. By continuously learning from data feedback, LandGate's algorithms can spot emerging patterns that might not be obvious through traditional analytics. This kind of foresight can arm professionals with strategic advantages and the agility to adapt to trends before they become market norms. Navigating the Energy Ecosystem with LandGate Energy markets are complex ecosystems, and in order to optimize strategies and seize opportunities, professionals need to harness the right technology. LandGate's suite of tools is a beacon in the dynamic world of power trading and energy development, providing a comprehensive analytical platform that spans from discovery to decision. With LMP forecasting and analysis capabilities that rival traditional market forces, LandGate's platform serves as a compass, guiding energy developers towards lucrative projects and empowering power traders to capitalize on market inefficiencies. In a rapidly evolving energy landscape, intelligence is the new currency. By integrating LandGate's suite of tools into their workflows, professionals can tap into a wellspring of data-driven strategies that elevate their performance in the marketplace. This isn’t just about analyzing data; it’s about being at the forefront of shaping the energy future. LMP Pricing: Looking Ahead The strategic significance of LMP pricing in energy development and power trading cannot be overstated. It's the touchstone that reflects the dynamic interplay of economic, environmental, and technological forces that define the energy market. For those at the helm of these ventures, driving by the knowledge of LMP pricing ensures that every decision is fortified by foresight and analytics. With LandGate's suite of tools, the once-daunting task of LMP forecasting and analysis becomes an opportunity to hone competitive edges and unlock new potential. For energy developers and power traders looking to make a significant impact in the industry, the time to harness the power of LMP is now, and the path is illuminated by LandGate's innovative offerings. To learn more, schedule a demo  with a member of LandGate;s dedicated energy markets team.

In a rapidly evolving technological landscape, the need for robust and sustainable infrastructure in AI and data centers has become more crucial than ever. The Department of Energy (DOE) has released a pivotal report titled “ Powering AI and Data Center Infrastructure Recommendations ” in July 2024, providing a comprehensive guide tailored for energy and data center developers. This report aims to address the challenges and opportunities in powering AI capabilities and data centers effectively and sustainably. The Growing Need for Sustainable Infrastructure With the exponential growth of AI technologies and the massive data processing requirements accompanying them, data centers are becoming significant consumers of energy. The DOE report emphasizes that while these centers are integral to advancing AI capabilities, they also pose environmental and infrastructural challenges that need immediate attention. The report calls for collaboration between government agencies, private sector stakeholders, and academic institutions to foster innovation in data center infrastructure. Encouraging joint research initiatives and sharing best practices can lead to more sustainable and efficient data center operations.To manage the increased demand for electricity, the report recommends the adoption of smart grid technologies. These technologies enhance grid reliability and allow for better management of energy loads, ensuring that data centers operate efficiently even during peak demand periods. Key Takeaways for Data Center Developers The information in the DOE article aims to guide data center developers in designing and building infrastructure that is energy-efficient, reliable, and environmentally sustainable. By addressing these key areas, developers can ensure their facilities not only meet current demands but are also prepared for future energy challenges. Assess Current Infrastructure : Evaluate existing energy consumption and identify areas for improvement. Assess existing infrastructure during data center project site selection, such as factoring in offtake capacity  of the existing grid by using analysis tools  such as LandGate. Implement Energy-Efficient Technologies : Adopt practices and technologies that enhance energy efficiency in AI training and operations. Consider developing data center projects alongside renewable energy  installations. Collaborate with Energy Providers : Work with utility companies to manage peak loads and integrate renewable energy sources into the grid. Develop Secure and Flexible Frameworks : Ensure that data center operations align with secure and efficient energy management practices. Implications for Energy and Data Center Developers For energy developers and data center operators, the DOE’s recommendations provide a roadmap for navigating the complexities of powering modern AI infrastructure. By prioritizing sustainability and efficiency, developers can not only meet regulatory requirements but also enhance their operational resilience and market competitiveness. Implementing these recommendations requires a strategic approach, including investing in advanced technologies, adopting innovative energy solutions, and fostering collaborations across industry sectors. By doing so, developers can ensure that their data centers are well-equipped to handle the demands of tomorrow's AI-driven world. Next Steps for Data Center Developers The DOE's "Powering AI and Data Center Infrastructure Recommendations" report offers invaluable insights and guidance for those at the forefront of energy and data center development. By aligning with these recommendations, developers can contribute to a sustainable, efficient, and secure future for data center operations, ultimately supporting the growth and impact of AI technologies on a global scale. To learn more about the site analysis, due diligence, pro forma, and infrastructure tools  offered by LandGate, schedule a demo  with our dedicated energy markets team.

Artificial Intelligence (AI) is driving unprecedented demand for computing power, and data center developers are at the forefront of this technological evolution. However, the recent news  about Microsoft's talks to restore the Three Mile Island nuclear reactor to power its data centers underscores a stark reality for our industry. According to the article, U.S. nuclear plants won't be able to support big tech's AI ambitions immediately, highlighting critical issues we must address—grid capacity and land availability. The Challenge of Grid Capacity for Data Center Development When it comes to building and maintaining data centers, one of the most pressing concerns is grid capacity. The expansion of AI technologies necessitates significant energy consumption, and our existing grid infrastructure is struggling to keep up. The reliance on nuclear power, though promising in its potential to provide stable, carbon-free electricity, faces hurdles that prevent it from being an immediate solution. Why Grid Capacity Matters Operational Continuity : Data centers require a stable and continuous power supply. Intermittent power disruptions can lead to downtime, affecting service delivery and customer satisfaction. Scalability : With AI and other technologies rapidly evolving, data centers must be scalable. Ensuring sufficient grid capacity means being able to expand operations without facing significant delays or constraints. Energy Efficiency : Increased grid capacity allows data centers to implement more energy-efficient solutions, which is crucial for both operational cost management and environmental sustainability. Strategies to Address Grid Capacity for Data Centers Around Three Mile Island Invest in Renewable Energy : Diversifying energy sources by investing in renewables  like solar and wind can help mitigate dependency on the traditional grid. On-site Power Generation : Implementing on-site power generation, such as microgrids or combined heat and power (CHP) systems, can provide additional capacity and enhance resilience. Energy Storage Solutions : Utilizing advanced battery storage systems can help manage peak load demands and ensure a steady power supply. Utilizing data tools that can visualize grid capacity  at every substation across the United States. The Importance of Land Availability While energy is critical, land availability is another vital factor that can't be overlooked. The physical space required to build new data centers or expand existing ones is becoming increasingly scarce, particularly in urban areas with limited real estate. Why Land Availability Matters Proximity to Users : Data centers need to be strategically located close to their user base to minimize latency and ensure optimal performance. Infrastructure Requirements : Adequate space is necessary to house not only the data center itself but also the associated infrastructure, including cooling systems and security measures. Future Expansion : Securing sufficient land ensures that there is room for future growth, accommodating the increasing data and computing demands. Strategies to Address Land Availability Vertical Construction : Building multi-story data centers can maximize the use of available land, particularly in densely populated areas. Remote Locations : Exploring less populated, remote areas for data center construction can mitigate the challenges of urban land scarcity. This approach may also offer cost advantages in terms of land acquisition. Retrofit Existing Buildings : Converting existing structures, such as warehouses and industrial facilities, into data centers can be a cost-effective and time-efficient solution. Looking Ahead to the Future of AI Data Center Power  The intersection of AI development and data center expansion presents both challenges and opportunities. While the current grid capacity and land availability issues highlighted by the Reuters article present significant hurdles, they also drive innovation and strategic planning in our industry. By diversifying energy sources, optimizing land use, and investing in new technologies, data center developers can not only overcome these challenges but also pave the way for a more resilient and efficient infrastructure. Let's continue to push the boundaries of what's possible and lead the way in this dynamic and rapidly evolving sector. To learn more about the tools available to data center developers to address their site selection and grid capacity challenges, book a demo  with LandGate’s dedicated energy markets team.

The solar industry is reaching new heights. According to the Energy Information Administration  (EIA), solar electricity generation from utility-scale installations is set for substantial growth in 2024. This progress aligns with global sustainability goals and marks a pivotal moment for developers and stakeholders in the solar energy landscape. A Surge in Solar Energy In its recent report , the EIA highlights a significant increase in solar electricity generation. This growth is primarily driven by new utility-scale solar installations coming online. The continued expansion of solar capabilities reflects an ongoing commitment to renewable energy and environmental responsibility. Utility-scale solar power refers to large-scale solar installations (or commercial solar installations) that generate and distribute power into the electric grid. These facilities are typically large enough to be classified as 'utility-scale' and contribute significantly to the overall energy mix. Utility-scale solar  plants provide the benefit of fixed-priced electricity during peak demand periods when electricity from fossil fuels is most expensive. According to the most recent figures , commercial solar farms in the United States have a total capacity of 80 gigawatts (GW), which is enough to power approximately 18 million homes. The National Renewable Energy Laboratory  labels a solar project as "utility-scale" if it has 5 megawatts (MW) of solar energy capacity. This highlights the significant potential utility-scale solar power has in contributing to the country's renewable energy portfolio. The current state of the solar power market in the US is promising. With technological advancements and decreasing costs, numerous large projects in the interconnection queue, along with supportive government policies and increasing awareness about climate change, the adoption of solar power is on the rise. The solar industry continues to innovate and evolve, presenting various opportunities for developers, investors, and end-users alike. The Surge of Utility-Scale Solar Power The adoption of utility-scale solar power in the US energy sector has been experiencing a significant upward trend. According to the US Energy Information Administration, utility-scale solar installations are expected to more than double  compared to 2022 by the end of 2023. This is driven by the country's ongoing transition  towards a decarbonized electric system. In fact, it's projected that solar will supply almost all growth in U.S. power generation  for the next two years. Several key drivers are fueling this surge. One of the primary factors is the mounting concern over climate change and the urgent need for sustainable development. Utility-scale solar power represents a clean, renewable source of energy that can help reduce greenhouse gas emissions and mitigate the impacts of climate change. Government policies and incentives have also played a pivotal role in promoting the adoption of utility-scale solar power. Federal, state, and local programs  provide tax credits, rebates, and other incentives to lower the cost of solar installations, making them a more attractive option for the energy sector. Technological advancements and decreasing costs are another crucial driver. The technology behind solar power has been advancing rapidly, leading to more efficient systems that can generate more power. At the same time, the costs of these systems have been falling, making solar power a more economically viable option. Supply chain issues have also led to falling prices, further boosting the adoption  of solar power. Several prominent solar energy developers in the USA are at the forefront of this surge in utility-scale solar power. These include major companies like NextEra Energy (a LandGate user), First Solar, and SunPower, which have been heavily investing  in large-scale solar projects across the country. Insights for Solar Project Developers Solar power developers are presented with a wealth of opportunities in today's fast-paced energy market. Emerging markets and sectors offer vast potential for expansion, particularly in regions where access to electricity is limited or unreliable. Countries in Africa, Asia, and South America, for instance , are increasingly turning to solar energy to meet their growing power needs. Also, sectors like agriculture and manufacturing are exploring solar-powered solutions  to reduce operational costs and improve sustainability. Innovation in commercial solar technology is another area of opportunity. The advent of high-efficiency solar panels, advanced solar trackers, and improved energy storage solutions has opened up new possibilities for utility-scale projects. Developers who stay at the forefront of these technological advancements  can gain a competitive edge in the market. Strategic partnerships and collaborations play a vital role in the successful execution of solar projects. Collaborating with local communities, government agencies, and other stakeholders can help in securing necessary permits , gaining community acceptance, and navigating complex regulatory landscapes. Speaking of regulatory landscapes, understanding and navigating them is crucial for any solar project. Policies and regulations vary widely across different regions and can significantly impact project feasibility and profitability. Even the largest solar developers in the US need to stay abreast of current policies , such as renewable portfolio standards, net metering laws, and federal tax incentives, to ensure project viability. Several utility-scale solar projects serve as successful case studies. For example, the Solar Star project  in California, developed by SunPower and owned by BHE Renewables, is one of the largest solar projects in the world, with a capacity of 579 MW. This project highlights the potential of utility-scale solar power and serves as a model for future developments. Opportunities for Investors Investments in utility-scale solar development present significant opportunities for both individual and institutional investors. One of the key aspects of investing in this sector is the ability to evaluate the potential of solar projects accurately. Tools such as those offered by LandGate  can be instrumental in this process, providing vital data on land values, solar resource potential, and other factors that can influence a project's success. The risk and return profile of solar investments is generally attractive. While all investments carry some level of risk, solar projects often benefit from long-term power purchase agreements  (PPAs) with utilities or corporate entities, providing stable and predictable cash flows . Additionally, the ongoing decline in solar technology costs and the increasing competitiveness of solar power can contribute to higher returns on investment. Public and private financing play a crucial role in the development of solar projects. Public funding, in the form of grants, loans, and tax incentives, can help reduce the initial capital costs of solar projects. Private financing, on the other hand, can provide the necessary capital for project development and expansion. Various financial instruments , including equity, debt, and yieldcos, can be used to finance solar projects. Emerging investment trends in the solar sector include the growing interest in community solar projects and the increasing use of green bonds for financing solar projects. Community solar  projects allow multiple investors to share in the benefits of a single solar project, making solar investment more accessible. Green bonds , on the other hand, are debt securities issued to finance environmentally friendly projects, including solar projects. Profitable solar investments abound in the industry. For instance, current LandGate user NextEra Energy, one of the top solar developers in the US and the world, has generated impressive returns for its investors. The company's focus on renewable energy , particularly solar and wind, has been a key driver of its strong performance. Using Tools & Technology to Ride the Solar Surge Solar farm developers and investors of utility-scale solar can leverage the comprehensive site selection and layout tools , data, insights into queued solar farms, and market forecasting offered by LandGate to capitalize on the rising trend of solar power. LandGate's solar development analysis tools and solar mapping software provide detailed information about a potential project site and allows a developer to evaluate solar farms in minutes, including land values, topography, proximity to transmission lines, solar infrastructure data, and local zoning regulations. LandGate has also provided detailed analyses of the best states for solar farms in the country. These factors are critical in determining the feasibility and profitability of a solar project. For example, a site with high land values might offer excellent solar resource potential but could also lead to higher project costs. Similarly, a site located far from transmission lines could incur additional costs for grid connection. The data provided by LandGate is already being utilized by the top utility scale solar developers, and can further assist solar development companies in making informed investment decisions based on cutting edge solar farm economics. This includes data on solar resource potential, which can help estimate a project's energy yield. Additionally, data on local electricity prices and renewable energy policies can provide insights into the potential revenue and incentives for a project. Market forecasting  is another valuable feature offered by LandGate’s energy data platform. By analyzing trends in solar technology costs, current US solar projects in the queue, electricity prices, and policy developments, LandGate can help predict future market conditions. This can be invaluable in planning long-term investments and identifying potential risks and opportunities. For instance, if market forecasts indicate a continued decline in solar technology costs, it might be advantageous to invest in a project now to lock in lower equipment prices. On the other hand, if forecasts suggest that renewable energy policies might become less favorable in the future, it might be prudent to expedite project development to take advantage of current incentives. To learn more about how to access and use LandGate’s data and tools for development of and investment in solar projects, schedule time to talk  with our dedicated energy team.

How to Successfully Leverage the IRA for Renewable Energy Tax Credits A Collaboration between KPMG and LandGate Navigating the financial landscape of renewable energy can be challenging, but it is essential for developers to leverage available tax incentives at both state and federal levels. These incentives are designed to support and accelerate the growth of clean energy projects, making it more feasible and attractive for developers to invest in renewable technologies. Whether you're working on solar, wind, or other renewable projects, understanding the various tax benefits can significantly enhance your project's financial viability and overall success.  You can also click here to contact KPMG + LandGate directly. IRA and Federal Developer Tax Credits The Inflation Reduction Act (IRA), ratified by the national government in 2022, functions as a key tool in the battle against inflation and the support of domestic energy production. The contributes a minimum of $4 billion through the Advanced Energy Project Credit, a designated credit of up to 30% for forward-thinking energy projects. This generous financial motivation has driven significant investment and sparked creativity in the solar industry. The IRA represents the most significant climate investment in the history of the United States. It aims to propel industries towards adopting cleaner and more ecologically sound energy sources while developing projects within defined energy communities. Energy Communities IRA Energy Communities are areas designated under the Inflation Reduction Act that are eligible for specific funding and incentives related to energy.  An energy community can also be defined as one where fossil fuels provide about 25% of the tax revenue locally. Nationwide, fossil fuels contribute about 138 billion USD in revenue to all of the following governments: tribal, federal, local and state. Brownfields A Brownfield Community is a term used to describe properties that are presumed or confirmed to have environmental contamination from past activities, which can hinder growth or redevelopment. These properties are identified by the US Environmental Protection Agency (EPA), making them qualified for financial assistance to support redevelopment and cleanup initiatives. As the areas these properties occupy are generally smaller, they are often ideal for developers of community solar and BESS. Notice 2023-29 created a “safe harbor” for accepting Brownfield sites that meet at least one of the following conditions:   The site was previously assessed through federal, state, territory, or federally recognized Indian tribal brownfield resources as meeting the definition of a Brownfield  Sites on the Brownfields Properties list on EPA’s “Cleanups in My Community” webpage or on similar webpages  A Phase II Assessment has been completed and confirmed the presence of hazardous substances, pollutants, or contaminants  For projects less than or equal to 5MW (AC), a Phase I Assessment has been completed Statistical Areas The Statistical Areas energy community designation applies to renewable energy projects located in MSAs (Metropolitan Statistical Areas) or non-MSAs that have, at any time since 2009, met both of the following two criteria:  “0.17 percent or greater direct employment or at least 25 percent of local tax revenues  related to the extraction, processing, transport, or storage of coal, oil, or natural gas”.  Unemployment rate is equal to or above the previous year’s national average.  Coal Closures The Coal Closure category includes any census tracts, or adjoining tracts, where either a coal power plant closed after December 31, 2009, or a coal mine closed after December 31, 1999.  While the definition of these tracts did not change, the IRS did provide information to help confirm whether a project may be in a qualifying Coal Closure tract.  The tract outlines used will be from the 2020 Decennial Census and will be updated every 10 years. It was also stated that census tracts are considered adjoining if their boundaries meet at a single point (ex. If 4 square-shaped census tracts all met at one corner, they would all be considered adjoining tracts). The IRS provided a table  of tracts that they believe qualify.  The qualifying coal closure tracts are quite large and make up about 15% of the overall area in the United States. This makes them attractive targets for large-scale solar and wind project developers. Low-Income Communities “Low-Income Communities” are defined as residential buildings that participate in one of several programs listed in the IRA and as part of a low-income economic benefit project if at least 50% of the financial benefits of the electricity produced are provided to households with income of less than 200% of the poverty line or less than 80% of area median income.  The IRA would provide an enhanced ITC for wind and solar projects that are located in a low-income community and have a nameplate capacity of 5 MW(ac) or less, and for which the Secretary makes an allocation of environmental justice solar capacity limitation.  Indian Land Projects located on Indian Land are eligible for the enhanced Investment Tax Credit (ITC) when they meet specific criteria outlined in the IRA. This provision aims to empower tribal communities by promoting renewable energy development within their territories. By supporting solar and wind projects in these areas, the IRA helps to enhance energy sovereignty and provide economic opportunities, while also addressing the unique challenges faced by Indigenous populations in accessing clean energy resources. Category 3: Low-Income Residential Properties Category 3: Low-Income Residential Properties includes residential buildings that participate in federal programs designed to assist low-income households. By targeting these properties, the IRA facilitates investments in renewable energy systems that can significantly reduce energy costs for residents. This approach not only improves access to clean energy but also fosters energy resilience in communities that often experience higher energy burdens. Additionally, it helps to ensure that the financial benefits of clean energy advancements are equitably distributed among those most in need Category 4: Low-Income Economic Benefit Project Category 4: Low-Income Economic Benefit Projects encompasses initiatives where at least 50% of the financial benefits from electricity production are directed to households with incomes below 200% of the poverty line or less than 80% of the area median income. This category emphasizes the importance of creating sustainable energy solutions that prioritize economic equity. By incentivizing projects that focus on low-income communities, the IRA not only fosters social responsibility but also helps stimulate local economies, creating jobs and promoting investment in renewable technologies. Domestic Content Bonus Credit The Domestic Content Bonus Credit further enhances the incentives for renewable energy projects by encouraging the use of domestically sourced materials and equipment. This provision aims to strengthen U.S. manufacturing and supply chains, promoting economic growth while reducing reliance on imported components. By qualifying for this bonus credit, developers can enhance the economic viability of their projects, contributing to local job creation and fostering a more resilient energy infrastructure. This aligns with broader objectives of promoting sustainability and energy independence within the framework of the IRA. State Specific Incentives Many states have implemented a variety of incentives to promote the development and adoption of clean energy sources. These incentives can take the form of tax credits, grants, rebates, and renewable energy credit (REC) programs, each designed to encourage investments in solar, wind, and other renewable technologies.  California Tax Incentives for Renewable Development California  offers a robust set of incentives for renewable energy, including the California Renewable Portfolio Standard (RPS), which mandates that a significant percentage of the state’s energy must come from renewable sources. Additionally, California's Cap-and-Trade Program allows entities to purchase and trade carbon credits, which can benefit renewable energy projects. New York Tax Incentives for Renewable Development New York's Clean Energy Standard requires that 70% of the state's electricity come from renewable sources by 2030. The state also has a Renewable Energy Credit (REC) program, allowing projects to earn RECs for each megawatt-hour of renewable energy generated. These credits can be sold to utilities to help them meet their renewable energy goals. Additionally, New York City actively supports utility-scale renewable projects through the NYC Clean Energy program, which streamlines the approval process and offers financial incentives for large installations. This includes tax incentives for renewable energy projects that contribute to the city's clean energy goals. Texas Tax Incentives for Renewable Development Texas  has a unique approach to renewable energy credits, primarily through its Competitive Renewable Energy Zones (CREZ) initiative, which promotes wind and solar development. While the state lacks a formal REC program, its deregulated electricity market enables renewable energy producers to sell power directly, capitalizing on the growing demand for clean energy and often achieving favorable pricing for their projects. In San Antonio, CPS Energy supports utility-scale solar initiatives through various contracts and local incentives, including property tax abatements for renewable energy developments. These efforts contribute to a supportive environment for large projects while enhancing the city’s renewable energy portfolio. Utility Scale Incentives Under the Inflation Reduction Act, utility-scale solar energy is eligible for the production tax credit (PTC) again, which has been a key tax credit for stimulating the growth of wind resources over the past decade. Solar developers now have the choice of either qualifying for the Alternative Investment Tax Credit (ITC), or receiving a percentage back in tax credits based on the amount of capital spent on tangible equipment or the PTC, which is based on the total energy generated over the first 10 years multiplied by the PTC base rate ($/MWh) and any bonuses received.  The Investment Tax Credit (ITC) has been set to 30% and extended through 2035 before tapering off to 26% in 2033 and 22% in 2034. Previous to the IRA, the ITC had already begun its first phasedown from 30% in 2021 to 2026% in 2022. Community Solar Incentives A community solar  farm is a shared solar power installation that lets many people benefit from one solar array. A community solar farm is a shared solar power installation that enables multiple participants to benefit from a single solar array. This model is designed to provide access to solar energy for individuals and businesses that may not have the means or suitable property to install solar panels on their own. In a community solar farm, a large-scale solar photovoltaic (PV) system is typically installed in a centralized location, such as an open field, rooftop, or dedicated facility. Unlike utility-scale solar projects, which are large installations generating power primarily for the grid and are usually owned by utilities or large companies, community solar projects allow participants to invest in or subscribe to a portion of the energy produced, making solar energy more accessible without the need for personal installations. For instance, Minnesota's Community Solar Garden program offers various incentives, including a Solar Rewards program that provides financial benefits to developers of community solar projects. Subscribers receive credits on their utility bills based on the energy produced by the solar garden, enhancing financial accessibility for participants. Similarly, Colorado has enacted the Community Solar Gardens Act, which allows customers to subscribe to community solar projects and receive utility bill credits. This program also offers financial incentives for developers, such as the ability to earn Renewable Energy Credits (RECs) and grants from the Colorado Energy Office specifically for low-income community solar initiatives. Together, these programs illustrate how community solar farms can broaden access to renewable energy and foster local engagement.

As we stand in the threshold of an era defined by climate change and environmental challenges, the energy landscape is undergoing a radical transformation. Traditional sources such as coal and oil are making way for more sustainable alternatives, with wind and solar power leading the charge. The article delves into the reasons why wind and solar power are not just environmentally sound choices, but also economically viable options for investors and developers in the renewable energy sector. As the world grapples with the devastating impacts of climate change, the push for renewable energy has never been more critical. From reducing greenhouse gas emissions to promoting energy security, the benefits of wind and solar power are manifold. In this increasingly green-conscious world, it is time for us to delve deeper into the transformative potential of wind and solar energy. This article aims to provide a comprehensive understanding of the current energy scenario, highlighting the pivotal role of renewable energy sources in steering us towards a more sustainable and resilient future. Stay with us as we navigate the winds of change and bask in the light of a solar-powered world. The Rise of Wind and Solar Energy The rise of utility-scale wind and solar energy development marks a pivotal chapter in the history of renewable energy. Historically, coal- or natural gas–fired power plants dominated the energy landscape due to their ability to produce large amounts of power from a relatively small area. However, the environmental impacts of these traditional energy sources and the urgent need for sustainable alternatives have shifted the focus towards renewable energy. Wind and solar energy have emerged as frontrunners in this transition. Despite requiring at least ten times as much space per unit of power as traditional power plants, the growth of utility-scale wind and solar farms has been nothing short of unprecedented . This growth has been fueled by several factors, including advances in technology, supportive government policies, and increasing awareness about the importance of sustainability. As of today, wind and solar are not only growing faster than other new energy technologies of the post-war era but are also poised to play a crucial role in the future of energy. According to a report, wind and solar projects are on track to account for more than  a third of the world's electricity  by 2030. In the U.S, wind, solar, and battery storage are growing  as a share of new electric-generating capacity each year. Despite this growth, they currently account for roughly 14 percent  of U.S. power generation. However, the path to increased adoption of wind and solar energy is not without its challenges. The costs of electricity generation from new utility-scale onshore wind and solar PV plants are expected to decline by 2024 . Locational marginal pricing must also be taken into consideration. Additionally, issues such as rising prices, interconnection, supply chain inflation, and land permits pose significant hurdles. Despite these challenges, the trajectory of wind and solar energy development remains promising. With the right mix of policy support, technological innovation, and investment, wind and solar power can continue to be a smart choice for renewable energy developers and investors, leading us towards a more sustainable future. Why Wind & Solar Energy are Smart Choices for Developers Wind and solar energy have emerged as the smart choice for energy developers for several reasons. Firstly, market demand for renewable energy is at an all-time high. As the world becomes increasingly aware of the environmental impacts of fossil fuels, consumers and businesses alike are demanding cleaner, more sustainable energy options . This shift in consumer behavior, coupled with the urgency to mitigate climate change, has created a lucrative market for wind and solar energy. Government incentives also play a significant role in attracting developers to the renewable energy sector and determining how to develop land for these purposes. Many countries have implemented policies and incentives to promote the adoption of renewable energy. These range from tax credits and feed-in tariffs to renewable portfolio standards and power purchase agreements . Such incentives not only reduce the financial risk associated with renewable energy projects but also improve their profitability. In addition, technological advancements and economies of scale have significantly lowered the barriers to entry in the wind and solar energy sectors. The costs of wind turbines and solar panels have dropped dramatically over the past decade, making it easier for new players  to enter the market. Furthermore, the rise of innovative business models and financing mechanisms, such as third-party ownership and green bonds , has made renewable energy projects more accessible and attractive to developers. Lastly, wind and solar energy offer long-term profitability. Unlike fossil fuels, which are subject to volatile price fluctuations, wind and solar energy provide a stable and predictable return on investment. The sun and the wind are free and unlimited resources, meaning that once a wind or solar farm is up and running, the cost of generating electricity is virtually zero . This makes wind and solar energy not only environmentally sustainable but also economically sustainable. In conclusion, the combination of strong market demand, favorable government incentives, lowered barriers to entry, and long-term profitability make wind and solar energy the smart choice for energy developers. As the world continues to transition towards a more sustainable energy future, the opportunities for wind and solar energy development are expected to grow even further. Why Wind and Solar Energy are Smart Choices for Investors Utility-scale wind and solar energy have emerged as attractive investment opportunities for a variety of reasons. Firstly, in terms of risk and return, wind and solar projects offer stable cash flows and attractive returns. Wind and solar resources are free and unlimited, and once a project is operational, the cost of generating electricity is virtually zero. This provides a predictable and steady stream of revenue, which in turn offers a reliable return on investment. Furthermore, renewable energy projects typically have long-term power purchase agreements (PPAs) with utilities or other off-takers. These PPAs provide a guaranteed market for the power produced and a fixed price for that power over the term of the agreement. This reduces the market risk associated with fluctuating energy prices and further enhances the stability of returns. Secondly, there's a growing trend towards ESG (Environmental, Social, and Governance)  investing. Investors are increasingly recognizing the importance of investing in businesses that align with their values and contribute to a sustainable future. Wind and solar projects tick all the boxes in this regard. They not only help reduce greenhouse gas emissions but also create jobs and stimulate local economies. Lastly, the future growth potential of wind and solar energy is immense. As the world continues to grapple with climate change, the transition towards renewable energy is expected to accelerate. According to the International Renewable Energy Agency , the share of renewables in global power should more than double by 2030. This presents a significant growth opportunity for investors in the wind and solar sectors. Tools & Solutions for Renewable Energy Developers & Investors Wind  and solar energy  have emerged as the smart choice for both developers and investors in the renewable energy sector. The reasons are manifold: robust market demand for sustainable energy; favorable government policies and incentives; lowered barriers to entry due to technological advancements and innovative financing mechanisms; and long-term profitability owing to stable and predictable returns. For investors, the attractive risk-return profile of wind and solar projects, alignment with ESG investing trends, and significant future growth potential further bolster the case for investment in these sectors. However, the journey from identifying an opportunity to realizing a successful project or investment can be complex and challenging. This is where renewables software solutions like those offered by LandGate come into play. LandGate provides critical data and insights that can help developers and investors navigate the renewable energy landscape. From site selection and layout to evaluating the potential return on investment, LandGate's tools and services  can support every step of the way, helping developers and investors make informed decisions and ultimately achieve their goals in the burgeoning wind and solar energy sectors. To learn more about accessing LandGate’s platform, book a demo  with a member of the dedicated energy markets team.

Energy storage plays a vital role in renewable energy systems, helping to address the inherent intermittency of solar and wind energy sources. Unlike conventional energy sources like fossil fuels, renewable energy creates clean power without producing harmful greenhouse gases as a byproduct. However, one of the significant challenges for renewable energy resources is the inconsistent power output. This issue can be significantly mitigated with the right energy storage solutions. Energy storage systems provide a solution to the imbalance between electrical energy supply and demand by consumers. They act as a buffer, storing excess electricity when production exceeds consumption and releasing it when demand outstrips supply. This capability is critical to achieving high levels of renewable energy on the grid, as it allows the stored electricity to be used at a later time when needed. Comprehensive Understanding of Renewable Power Systems Renewable power systems are energy systems that harness resources which are naturally replenished on a human timescale. These include sunlight, wind, rain, tides, waves, and geothermal heat. Unlike nonrenewable energy sources such as fossil fuels - coal, oil, and natural gas - renewable energy is not depleted when used. As such, it presents a more sustainable and environmentally friendly solution to meet the world's increasing energy demands. There are several types of renewable power systems that a clean energy developers can employ, each utilizing a different source of renewable energy: Solar Power Systems:  These systems capture energy from the sun and convert it into electricity. This is usually done through photovoltaic cells (solar panels) that convert sunlight directly into electricity, or through concentrated solar power systems that focus a large area of sunlight into a small beam to produce high-temperature heat, which is then used to generate electricity. Wind Power Systems:  Wind turbines are used in these systems to convert the kinetic energy from wind into electrical power. The wind turns the blades, which spin a shaft connected to a generator that produces electricity. Hydropower Systems:  By harnessing the energy of falling or flowing water, hydropower systems generate electricity. This is typically achieved by using a dam to store water in a reservoir; when released, the water flows through a turbine, causing it to spin, which activates a generator to produce electricity. Geothermal Power Systems:  These systems use heat from the earth to generate power. They drill wells into geothermal reservoirs and use the steam or hot water to operate a turbine that drives a generator. Biomass Power Systems:  Biomass power systems use organic materials—like wood, agricultural crops or waste, and dedicated energy crops—to generate electricity. These materials are burned to heat water, producing steam that spins an electric generator. Tidal and Wave Power Systems:  Tidal power systems generate electricity through the use of tidal stream generators or by barrage generation. The former uses the kinetic energy of moving water to power turbines, while the latter uses potential energy in the difference in height (or head) between high and low tides. Wave power systems, on the other hand, capture energy from surface waves or from pressure fluctuations below the surface. Each of these renewable power systems has its own advantages and challenges, but all contribute to a more sustainable and resilient energy future. Their integration into our energy mix is a critical part of efforts to reduce dependence on fossil fuels, mitigate climate change, and secure energy independence. The Role of Energy Storage in Renewable Power Systems The role of energy storage in renewable power systems is critical, primarily because of the intermittent nature of most renewable energy sources. Sunlight and wind, two of the chief resources for renewable power, are not constantly available. The sun doesn't shine at night or on cloudy days, and wind isn't always blowing. Therefore, to ensure a steady supply of power, we need a way to store the excess energy produced during peak production times for use during periods of low production or high demand. Energy storage works within these systems by capturing the generated energy and storing it for later use. When the renewable power system generates more electricity than is needed, the excess energy is sent to the storage system. Later, when the power production is low or the demand is high, the stored energy can be released back into the grid. This ability to balance supply and demand improves the reliability and efficiency of renewable power systems. There are several types of energy storage techniques used in renewable power systems: Batteries:  Battery energy storage systems, especially lithium-ion batteries, are commonly used due to their high efficiency and decreasing costs. They store energy in a chemical form and convert it back into electricity when needed. Pumped Hydro Storage:  This is the most widely used form of grid energy storage. In these systems, excess energy is used to pump water up to a reservoir. When energy is required, the water is released to flow down through turbines and generate electricity. Thermal Storage:  In thermal storage systems, excess energy is used to heat a material like water, molten salts, or rocks, or to cool an element, which can later be used for power generation or heating/cooling purposes. Compressed Air Energy Storage (CAES):  CAES systems store energy by compressing air in underground reservoirs. When power is needed, the pressurized air is heated and expanded in an expansion turbine driving a generator for power production. Flywheel Storage:  Flywheels store electricity in the form of kinetic energy. When electricity is plentiful, it is used to spin up the flywheel. When electricity is needed, the spinning flywheel drives a device similar to a turbine to produce electricity. Each storage technique has its own set of benefits and challenges. For instance, while batteries are efficient and increasingly affordable, they have a shorter lifespan compared to other techniques and may contain materials that are harmful to the environment. Pumped hydro storage is highly efficient and can store large amounts of energy, but it requires specific geographical locations and has high initial costs. Thermal storage is efficient and can be cost-effective, but it often requires large-scale facilities. CAES is relatively inexpensive and can store large amounts of energy, but it also requires specific geological formations. Flywheels have a long lifespan and are highly efficient, but they have high initial costs and can lose energy over time due to air resistance. Understanding Energy Data Analytics Energy data analytics play a crucial role in the operation and optimization of renewable energy storage systems. These technologie s contribute to intelligent monitoring, control, and operation of energy storage systems in line with supply and demand characteristics, allowing for a more efficient use of stored energy. This is particularly relevant in the context of intermittent renewable energy sources like solar and wind power, where energy production can be inconsistent. With the help of energy data analytics software, renewable energy storage systems can monitor real-time energy demand and distribute the stored energy accordingly. This capability maximizes the synergy between different renewable energy sources and enhances their integration into the grid. In addition, data analytics can significantly enhance the operation and dispatch of energy storage systems based on various factors such as electricity prices and demand patterns. Moreover, data analytics can assist in optimizing battery storage integration  by enabling accurate energy forecasting and developing optimized charging and discharging strategies. This not only improves the efficiency of the storage system but also extends the lifespan of the batteries, thereby contributing to the economic feasibility of renewable energy storage systems. Access to comprehensive and stored battery data from the energy storage system  is also essential for effective battery analytics. It helps in assessing the performance of the storage system and identifying any potential issues that might affect its efficiency or lifespan. Trends in Energy Storage and Data Analytics LandGate provides powerful tools for energy analytics that can greatly assist developers in integrating energy data analytics into their renewable energy storage efforts. By offering comprehensive and real-time data on energy markets and software for renewable energy, LandGate's tools allow developers to make informed decisions about when and how to store or release energy based on market conditions. For instance, with accurate and timely data on electricity prices, a renewable energy storage system can optimize its operations to store energy when prices are low (and thus production costs are lower), and release it when prices are high. This not only maximizes the profitability of the storage system for renewable developers but also helps stabilize the grid by supplying energy when it is most needed. Furthermore, LandGate's renewables software tools can provide valuable insights into trends and patterns in the energy market for energy storage developers. This could include seasonal variations in energy demand, the impact of weather conditions on renewable energy production, or the influence of regulatory changes on energy prices. These insights can inform the development of predictive models and strategies for the operation of energy storage systems. By integrating LandGate's energy market data with data from the energy storage system itself, developers can perform detailed performance analysis and identify opportunities for improvement. For example, they might find that adjusting the charging and discharging cycles of a battery storage system could improve its efficiency or extend its lifespan. To talk more with LandGate’s dedicated energy markets  team about a customized renewable energy software solution, book a demo  to discuss personalized options for your project portfolio.