US Recovery Plan Boosts Renewables - hep

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US Reco­very Plan Boosts Renewables

Apr 30, 2021

hep With 4,800 MWp Strong Pipe­line in the USA

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The USA is taking action
Ener­gy tran­si­ti­on by 2035, CO2-neu­tral eco­no­my by 2050, 1.3 tril­li­on US dol­lars for imple­men­ta­ti­on – Pre­si­dent Biden is set­ting the cour­se for a cli­ma­te-neu­tral eco­no­mic sys­tem. The focus is par­ti­cu­lar­ly on expan­ding the power grid and rene­wa­ble ener­gies. In addi­ti­on, Biden is hol­ding out the pro­spect of tax reli­ef for pro­ject deve­lo­pers. Good news for the Swa­bi­an solar com­pa­ny hep, which cur­r­ent­ly has a pipe­line of 4,800 MWp in the USA.

1.3 tril­li­on US dol­lars for clean ener­gy and infra­st­ruc­tu­re
On 22 April, the sym­bo­lic Earth Day, the Pre­si­dent of the United Sta­tes of Ame­ri­ca under­li­nes that from now on, the USA will take a lea­ding role on the sta­ge of cli­ma­te pro­tec­tion. At the world cli­ma­te sum­mit, which he has con­ve­ned, he is making it clear how he intends to live up to this claim to lea­ders­hip. The most important instru­ment here is the plan­ned infra­st­ruc­tu­re pro­gram worth billions.

Invest­ments tota­ling 1.3 tril­li­on US dol­lars are to be used to com­ple­te­ly over­haul the ailing infra­st­ruc­tu­re sys­tem. 100 bil­li­on US dol­lars alo­ne are to be spent on repla­cing defec­ti­ve power lines and buil­ding new ones. Sup­port is also to be given to decen­tra­li­zed local power grids, so-cal­led “micro grids”, which are fed by rene­wa­ble ener­gy sources. The­se are inten­ded to make com­mu­nities inde­pen­dent in terms of power sup­ply in the event of envi­ron­men­tal dis­as­ters and thus bet­ter pro­tect them from the con­se­quen­ces of cli­ma­te change.

Plan­ned “Direct Pay Invest­ment Credit” Revo­lu­ti­on for Solar Pro­ject Deve­lo­pers 
While tax advan­ta­ges for fos­sil ener­gy sources are to be abolis­hed, an exten­si­on of the “tax credit” for rene­wa­ble ener­gy pro­jects by at least ten years as well as chan­ges in the tax code are of gre­at impor­t­ance for hep’s busi­ness model.
The so-cal­led “direct pay” opti­on, which has alrea­dy been pro­po­sed by both Biden and Con­gress, would bring sim­pli­fied mecha­nisms in finan­cing and thus the pos­si­bi­li­ty to imple­ment plan­ned solar pro­jects even fas­ter – espe­cial­ly if in the future, the­re is the pos­si­bi­li­ty to wai­ve the invol­ve­ment of tax equi­ty investors.

“The announ­ced infra­st­ruc­tu­re pro­gram is excel­lent news for hep. It will enab­le us to imple­ment pro­jects from our pro­ject pipe­line even more effi­ci­ent­ly and thus con­tri­bu­te to the rapid expan­si­on of rene­wa­ble ener­gies in the U.S.,” says Dr. Alex­an­der Zhou, Chief Pro­ject Offi­cer, adding, “In the U.S. solar mar­ket, we are ide­al­ly posi­tio­ned thanks to our exis­ting con­ta­cts and com­pre­hen­si­ve exper­ti­se and are in a posi­ti­on to pro­fi­ta­b­ly bene­fit from the announ­ced resolutions.”

Cor­po­ra­te bond finan­ces “ear­ly sta­ge” pro­jects
After hep has finan­ced pro­ject deve­lo­p­ment ser­vices pri­ma­ri­ly through its own pro­ject deve­lo­p­ment funds in the last ten years, the so-cal­led ear­ly-sta­ge and acti­ve deve­lo­p­ment pro­ject deve­lo­p­ment is now car­ri­ed out on its own account.

Recent­ly, hep glo­bal GmbH deci­ded to issue a cor­po­ra­te bond to finan­ce future pho­to­vol­taic pro­jects in the­se sta­ges. Chris­ti­an Hamann, foun­der and CEO of hep glo­bal GmbH: “We have a huge pro­ject pipe­line of 5.3 GWp, which we now want to deve­lop and fur­ther expand on our own account with our exper­ti­se built up over many years.”

As ear­ly as 2020, hep deci­ded to expand in the USA, the second stron­gest solar mar­ket in the world. The acqui­si­ti­on of pro­ject deve­lo­per Solo­ps was fol­lo­wed by a majo­ri­ty sta­ke in pro­ject deve­lo­per ReNew Petra, which holds con­struc­tion licen­ses in 14 US sta­tes. With deep mar­ket know­ledge, an exten­si­ve net­work and a pro­ject pipe­line of 4,800 MWp, hep is well posi­tio­ned for upco­m­ing deve­lo­p­ments in the USA.

More about the “Green Bond” from hep here