Emerging Energy Infrastructure Finance Opportunities

1
Storage
Roger D. Feldmanrogerfeldman_at_andrewskurth.com
RETECH 2011Washington, DC
2
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• Diverse Industry Characteristics

3
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• The View from 60,000 Feet Existing and
  Potential Functions
• Firming intermittent renewable supply sources
• Moderating price swings
• Improving transmission reliability overcoming
  TD line limitations
• Ramp control and protection/resulting
  efficiencies
• Expansion of smart grids microgrid possibilities
  
• System protection control

4
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• The Granular Views
• Different operational uses of storage and ability
  to provide storage benefits, depending on the
  maximum duration of output energy
• Different benefits for monetizing the value of
  storage based on storage capacity, and discharge
  capacity

5
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• The Regulatory ModelsBroadly speaking, there are
  three basic regulatory modes with obviously
  different consequences for different
  technologies
• Focus on the legal jurisdictional issuestry to
  tap benefits through incremental creative
  flexibility (FERC)
• Postulate benefits which are to be optimized and
  focus on facilitating them (CA)
• Focus on leveling regulatory playing field
  between storage and other alternatives,
  competition work out optimal use (TX)

6
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• The Financing Models
• While none of these regulatory models chooses
  technologies, they inevitability affect the
  competitive financeability of different players
• Utilities
• Third parties
• Corporate and equipment providers

Consequence Systemic failure to optimize
introduction of storage as a solution to ongoing
operational problems
7
Roger D. Feldman, Andrews Kurth, LLP

• Chair, Clean and Renewable Energy Group (D.C.
  Office)
• 40 years of practice (energy and environmental
  finance and regulation)
• Director, American Councel on Renewable Energy
• Chair, ABA Renewable, Alternative, and
  Distributed Energy Committee
• Best Lawyers in America 2005-2012 Whos Who in
  American Law 1990-2012
• Rogerfeldman_at_andrewskurth.com 202-662-3048