Private Investment in Renewable Energy

Similar documents
IFLR Indonesia Forum: Debt Capital Markets

Spin-Off and Listing by Introduction of Feishang Anthracite Resources Limited

Regulated Investment Companies

House and Senate Pass NOL Carryback Legislation

Alert Memo BRUSSELS AND HONG KONG FEBRUARY 18, China s State Council Issues Notice on National Security Review of Foreign Acquisitions

CROSS BORDER INVESTMENTS AND FINANCINGS. Vivian Lam, Partner, Paul Hastings

M&A ACADEMY: TAX ISSUES IN M&A TRANSACTIONS

Legislation Affecting Energy Trading: Recent Developments

German and Austrian Merger Control

COBRADesk Same Day Clearance

Alert Memo. More Documents About the Target Would Be Required

Depositary Receipts Program Payments

IRS Finalizes Regulations Relating to Allocations of Partnership Items Involving Partners That Are Look-Through Entities

Executive Summary New Section 457A (Nonqualified Deferred Compensation)

New Disclosure Requirement for Derivatives Over Basket Positions That Are Controlled by the Counterparty

TAX ISSUES IN M&A TRANSACTIONS

M&A ACADEMY: THIRD PARTY REPRESENTATIONS AND WARRANTIES INSURANCE IN STRATEGIC AND PE DEALS

New York State Paid Family Leave

Tax Election to Treat Disposition of Stock of a Subsidiary as a Sale of Its Assets

Tax Reform Bill Proposes Significant Compensation Changes

Amendments to the UK Bank Levy Regime and its Interaction with French and German Bank Levies

Proposed Dodd-Frank Section 943 Rules

Alert Memo NEW YORK & WASHINGTON, DC FEBRUARY 4, SEC Interpretive Release Establishes New Guidance on Disclosure of Climate Change Matters

Real Estate Investment Trusts

Corporate Reorganizations

Final Regulations Ease Compliance with the Loss Trafficking Rules

Amendments to the New York Non-Profit Revitalization Act

Bona Fide Hedge Exemptions for Commodity Swap Dealers

Alert Memo. SEC Adopts Final Proxy Access Rules

55 East 52nd Street, New York, NY, 10055, U.S.A. BlackRock (Netherlands) B.V. Rembrandt Tower, 17th floor, Amstelplein, Amsterdam, Netherlands

55 East 52nd Street, New York, NY, 10055, U.S.A. BlackRock (Netherlands) B.V. Rembrandt Tower, 17th floor, Amstelplein, Amsterdam, Netherlands

IRS Replaces Proposed Regulations on Disguised Sale Rules and Allocation of Partnership Liabilities

Tax Extenders 2015 SUMMARY. December 21, 2015

UK Bank Levy. Rates and Update SUMMARY. December 13, 2010

Investing in U.S. Utility Assets

Reporting Requirements for Foreign Financial Accounts Including Foreign Hedge Funds and Private Equity Funds

Proposed Treasury Exemption for Foreign Exchange Swaps and Forwards

attorney advertising

SEC Reopens Comment Period on Proposed Rules Regarding Security-Based Swaps

Proposed Legislation Affecting Energy Trading

Clearing Exemption for Inter-Affiliate Swaps

Corporate Expatriation Transactions

Tax Reform and State and Local Taxation

Money Market Fund Regulation

California Passes Legislation Requiring Placement Agents Who Solicit State Pension Systems to Register as Lobbyists

Pension Scheme Governance for Trustees Programme

CFTC Proposes to Amend CCO Rules

Why choose us? United States.

ROBERT G. ALEXANDER WEBINAR SERIES October 19, 2016

ERISA Fiduciary Rule. Fifth Circuit Vacates New ERISA Fiduciary Rule SUMMARY BACKGROUND. March 19, 2018

Proposed Dodd-Frank Section 945 Rules

Most of the provisions described below will be effective for tax years beginning after 2017.

EARLY CASE ASSESSMENT

Internal Revenue Service Directive to Examiners on Equity Swaps

New York State Budget

FATCA International Agreements

Jack Wolfskin A comprehensive yet fully consensual restructuring

New York s Highest Court Endorses Application of Separate Entity Rule to International Banks

Alert Memo. Background

Alert Memo. Second Circuit Provides Guidance on Section 13(d) Group Issues but Declines to Address Beneficial Ownership Issues in the Swap Context

PRESS RELEASE. Brussels, 6 December :40 (CET) Ageas and BlackRock: Transparency notification

United States Withdraws from the Joint Comprehensive Plan of Action with Iran

Corporate Renewable Energy Procurement

Gibson Dunn Webcast: Critical Developments and Trends in M&A Post- Closing Remedies

Trusts & Estates. Client Alert. Beijing Frankfurt Hong Kong London Los Angeles Munich New York São Paulo Singapore Tokyo Washington, DC

Economic Substance Doctrine: New Directive for IRS Examiners and Managers

Corporate Expatriation Transactions

M&A ACADEMY CHOOSING AN ACQUISITION STRUCTURE AND STRUCTURING A DEAL

Proposed Rules Under the Investment Advisers Act

Security-Based Swap Execution Facilities

Term Asset-Backed Securities Loan Facility Launches: Key Details

For 175 years, Baker Botts has been among the leading law firms in the world. Today, with 725 lawyers based in 14 offices around the world, the firm

Alert Memo. Directors Remuneration Reforms in the United Kingdom: UK Enterprise and Regulatory Reform Act 2013 Published

IRS Releases Initial Guidance on the 2017 Amendments to the Internal Revenue Code s Limitation on Deduction for Certain Executive Compensation

New York Department of Financial Services Addresses Use of External Consumer Data. and Information Sources in Underwriting for Life Insurance

Via & Mail. Re: Financial Crisis Inquiry Commission Hearing on July 1,2010. August 31, 2010

Hong Kong Rewrites Its Companies Ordinance

Auction Rate Preferred Stock

Anti-Tax Haven Measures to be Introduced in France

SEC Provides Relief to Security-Based Swap Dealers From Business Conduct Rules

PARTICIPATION NOTIFICATION BY BLACKROCK INC.

EMPLOYMENT & COMPLIANCE ISSUES & PITFALLS IN CROSS- BORDER M&A TRANSACTIONS

U.S. Regulators Propose Rules on Incentive-Based Compensation Arrangements at Large Financial Institutions

Agencies Promulgate Final Regulations on Internet Gambling

The Final SEC Rule on Political Contributions by Investment Advisers

Implementing Workforce Reductions

Disclosure of transparency notifications

January 31, See 2

Disclosure of transparency notifications

Charlie Grover 4 November Structuring Financing for RE Companies

Current and Year-End Estate Planning Issues

Proposed Amendment to Delaware Law May Increase Pressure for Private Equity-Sponsors to Use Two-Step Merger Structures in Going- Private Transactions

JOINT VENTURES. Meredith J. Kane, Esq. Paul Weiss Rifkind Wharton & Garrison LLP New York, New York. and

Recent Developments Regarding the Application of German Merger Control to International Transactions

Mandatory CFIUS Filings for Foreign Investment in Specified Critical Technologies Companies

Private Equity Portfolio Company Bulletin

SEC and CFTC Adopt Product Definitions Under Title VII of Dodd-Frank

New Regulations For PRC Holding Companies Summary and Preliminary Analysis

Reporting Requirements for Foreign Financial Accounts

New Ways to Use Your Offshore RMB: MOFCOM and PBoC Join Hands to Put Finishing Touches on RMB FDI Rules

Transcription:

Private Investment in Renewable Energy Tia S. Barancik June 19, 2013 Attorney Advertising Prior results do not guarantee a similar outcome.

Why Invest in Renewable Energy? Legislative and Regulatory Support Renewable Portfolio Standards Financial Incentives Tax Incentives Capital Intensive Growth Opportunity Social Value of Green 1

Who Are the Investors? Utility Companies Private Equity Hedge Funds Infrastructure Funds Sovereign Wealth Funds Non-U.S. State Owned Enterprises 2

Considerations Affecting the Investment Decision Nature of the Project Technology Contracted vs. Merchant Location Bilateral contract in an unregulated market Competitive market What about New Jersey? What is being sold? Single plant Portfolio of plants Interest in a single plant or portfolio Who is the Developer/Seller? 3

Considerations Affecting the Investment Decision (continued) Stage of Development Under Development Under Construction In Commercial Operation External Sources of Value Tax Incentives State Regulatory Incentives Regulatory Considerations Antitrust FERC CFIUS RTO/ISO Rules 4

Inform the Purchase/Investment Agreement Structure of the Deal Investment Vehicle Payment/Contribution Terms Representations, Warranties and Covenants Completion (if applicable) Interconnection Off-Take and Other Contracts Permitting and Regulatory Sufficiency of Assets Indemnities 5

and the Continuing Commercial Relationship (if any) Governance Capital Calls Operation and Maintenance Asset Management Transactions with Affiliates Expansion, Business Opportunities and Non-Competes Transfer and Exit Rights 6

Transfer and Exit Rights Private Sale Merger IPO Alternative Exit Strategies 7

Contracts for a Joint Venture Purchase/Investment Agreement Investment Vehicle Organizational Documents Operation & Maintenance Agreement Asset Management Agreement Support Agreements Indemnity Agreements 8

Alternative Transaction Structures Organic Development Leasing Wholesale vs. Retail 9

Regulatory Considerations Tax Nature of Incentives Eligibility and Restrictions Antitrust DOJ/FTC review is not the same as FERC review FERC Approval Market Power Ongoing Regulation CFIUS RTO/ISO Rules 10

Attorney Profile T ia Barancik is a member of Sullivan & Cromwell s General Practice Group. She has over twenty-five years of experience advising U.S. and non-u.s. companies, private equity firms and financial institutions on the design and development of complex strategic M&A, investments, financings and credit transactions, with a particular emphasis on companies and transactions subject to regulation by the Federal Energy Regulatory Commission. Tia S. Barancik New York Office Phone: +1 212 558 4415 Fax: +1 212 291 9598 barancikt@sullcrom.com Special Counsel Vanderbilt University Law School, J.D. 1986 Princeton University, B.A. 1983 Ms. Barancik s M&A transactions in the energy sector include Borealis Infrastructure Management and Ontario Teachers Pension Plan Board s $1.49 billion sale of the Express Pipeline System to Spectra Energy; Southern Union s merger with Energy Transfer; German power giant E.ON s sale of its U.S. regulated holdings to PPL; Dynegy in its attempts to sell itself to The Blackstone Group and Icahn Enterprises; UIL s acquisition of U.S. regulated gas assets from Iberdrola; Canada Pension Plan Investment Board s acquisition of Puget Energy (as part of a consortium of private investors); China Huaneng Group s acquisition of Tuas Power from Temasek Holding; Scottish Power s sale to Iberdrola; Israel Corp. s and DS Constructions acquisition of a portfolio of Latin American power companies from Globeleq; E.ON s acquisitions of gas utility Ruhrgas and British electric utility Powergen; Dominion Resource s merger with Consolidated Natural Gas; National Grid s acquisition of New England Electric System; United Water s sale to Suez; and National Grid s transmission joint venture with GridAmerica. Her recent capital markets work includes representing the underwriters of NiSource Inc. in its 2010 common stock offering and advising Colbún S.A. in its 2010 note offering. Ms. Barancik also has advised financial institutions and other energy market participants with respect to compliance matters involving their energy trading activities and in connection with the acquisition or disposition of energy trading businesses, physical assets and contracts and on specific energy industry and regulatory issues impacting credit decisions. Ms. Barancik advises on energy legislation, regulatory reform efforts and the impact of ongoing FERC regulation of the conduct of business transactions in wholesale energy markets. She is recognized by Chambers Global and Chambers USA as one of the world s leading energy and natural resource lawyers, by Best Lawyers in America for Energy, and by New York Super Lawyers for Mergers and Acquisitions and Energy & Natural Resources. Prior to joining S&C, Ms. Barancik was a corporate partner in the New York office of Atlanta-based King & Spalding LLP, prior to which she had been a partner of LeBoeuf, Lamb, Greene & MacRae, LLP. 11

Sullivan & Cromwell: Renewable Energy Practice S&C is among the leading firms in the world in the energy industry. As the global business community has evolved in response to the growing need for alternative energy sources and green initiatives, S&C has expanded its legal practice to foster this movement throughout the world by helping communities directly through innovative project financings, by working with green corporations on strategic growth transactions, and by seeking to continuously improve our environmental legal and business practices. B R O AD - R AN G I N G E X P E R T I S E Strategic project financing and M&A Private equity investments Significant debt and equity offerings Federal Loan Guarantee Program Tax incentive regimes FERC and state energy regulatory requirements Environmental advice in commercial transactions, including risk analysis and reduction of risk, the handling of a broad array of environmental policy and regulatory issues, as well as any legal implications that may arise K E Y I N D U S T R I E S Solar Hydropower Wind Geothermal Biofuel Biomass Clean Coal Ethanol Sullivan & Cromwell is a dominant force in the energy world at large. It utilizes its national expertise in corporate transactions to assist industry clients with complex M&A, securities and energy trading work. It regularly represents regulated utilities, marketers and financial institutions, and often serves as underwriters counsel on major offerings. In line with recent market developments, the firm is increasingly called upon to handle restructuring work for energy industry players. C H AM B E R S U S A, 2011 12

S&C Offices Worldwide New York Telephone: +1 212 558 4000 Facsimile: +1 212 558 3588 125 Broad Street New York, NY 10004-2498 Washington, D.C. Telephone: +1 202 956 7500 Facsimile: +1 202 293 6330 1701 Pennsylvania Avenue, N.W. Washington, D.C. 20006-5805 Los Angeles Telephone: +1 310 712 6600 Facsimile: +1 310 712 8800 1888 Century Park East Los Angeles, CA 90067-1725 Palo Alto Telephone: +1 650 461 5600 Facsimile: +1 650 461 5700 1870 Embarcadero Road Palo Alto, CA 94303-3308 WWW.SULLCROM.COM London Telephone: +44 20 7959 8900 Facsimile: +44 20 7959 8950 1 New Fetter Lane London EC4A 1AN, England Paris Telephone: +33 1 7304 1000 Facsimile: +33 1 7304 1010 24, rue Jean Goujon 75008 Paris, France Frankfurt Telephone: +49 69 4272 5200 Facsimile: +49 69 4272 5210 Neue Mainzer Strasse 52 60311 Frankfurt am Main, Germany Brussels Conference Center Telephone: +32 2 789 5055 7 Rue Joseph II, 1st Floor 1000 Brussels, Belgium Beijing Telephone: +86-10-5923-5900 Facsimile: +86-10-5923-5950 Suite 501, China World Trade Center Tower 1, One Jianguo Menwai Avenue Beijing 100004, People's Republic of China Hong Kong Telephone: +852 2826 8688 Facsimile: +852 2522 2280 28th Floor, Nine Queen s Road Central, Hong Kong Tokyo Telephone: +81 3 3213 6140 Facsimile: +81 3 3213 6470 Otemachi First Square East Tower 16F 5-1, Otemachi 1-chome Chiyoda-ku, Tokyo 100-0004, Japan Melbourne Telephone: +61 3 9635 1500 Facsimile: +61 3 9654 2422 101 Collins Street, Melbourne, Victoria 3000 Australia Sydney Telephone: +61 2 8227 6700 Facsimile: +61 2 8227 6750 Level 27, The Chifley Tower, 2 Chifley Square Sydney, New South Wales 2000 Australia 13