Jan Borchert, Current Hydro and Dana Hall, Esq. We’ve seen that PPA’s can look rather complex if you consider all participants. But when does it make sense to use a PPA? What are ideal circumstances to have your microhydro system developed as a PPA? How do we set up a successful PPA? When to Use […]
Jan Borchert, Current Hydro and Dana Hall, Esq. When we talk about legal considerations, proper environmental and engineering permits to install and operate the hydro-project comes to mind first. But there are several other things a potential CDG host needs to consider: CDG registration, CDG oversight and business practices and even learn about Essential CDG […]
Jan Borchert, Current Hydro Applying for a Small Hydropower Exemption If a hydropower project falls under federal jurisdiction, a license for its construction and operation will need to be obtained from the Federal Energy Regulatory Commission (FERC). Instead of applying for a “standard” hydropower license, FERC offers an “exemption from licensing” for small / low-impact […]
Jan Borchert, Current Hydro and Dana Hall, Esq. Central to the success of CDG is the acquisition of subscribers (customers or members) who buy the project’s electricity. CDG economics depend on it. Once you have decided how to organize subscriptions in your CDG it’s time to consider how to go about finding subscribers, develop marketing […]
Jan Borchert, Current Hydro and Dana Hall, Esq. Off-grid hydropower, is a noteworthy alternative to a grid-connected system. You design the hydropower system to match the on-site load, and directly wire the system to the buildings using the power and energy – with no connection to the distribution utility. This is referred to as an […]
Jan Borchert, Current Hydro and Dana Hall, Esq. The Value Stack can play an important role in the CDG economics and in the marketing efforts necessary to sign up subscribers. The value stack is literally a “stack” of different categories of value, including: the sum of the energy value; the capacity value; the environmental value […]
Jan Borchert, Current Hydro and Dana Hall, Esq. Understanding CDG economics is essential for both the host and subscribers. For the host, the economics depend on determining future revenue streams to meet financing goals and/or satisfy investors, and to clearly explain the product the CDG host is offering to subscribers. For subscribers there is a […]
Jan Borchert, Current Hydro and Dana Hall, Esq. The central contract in the PPA structure is a service contract between the developer of the micro-hydropower plant and the offtaker or buyer (in most cases also the owner of the hydro-site) of the electricity output (as discussed before). These two parties negotiate an agreement where the […]
Jan Borchert, Current Hydro and Dana Hall, Esq. Community renewable programs almost always involve the distribution utility which meters the host generation and applies credits to customer accounts. Based on the CDG Key Requirements, a CDG host and all subscribers must be located within the same utility service territory and NYISO zone overlay. The load […]
Jan Borchert, Current Hydro and Dana Hall, Esq. CDG Subscription Models While the business model and ownership structure of the CDG host primarily affect the hydro site owner, CDG membership is defined by the rules and stipulations of the membership contract between host and subscribers. The way the CDG is set up and the rules […]