April 9, 2020
Industry observers report 2019 as a record year for utility-scale solar contracts, with the market increase driven by economic competitiveness, state-level policies requiring electric utilities to increase the amount of renewable energy delivered to customers, and increased demand from corporate offtakers. Last year, 10 states raised their renewable portfolio standards goals, which created renewable energy project development opportunities.
Because of this, the utility-scale solar industry is expected to weather the COVID-19 impacts, but not without potential project delays and negative impacts from macro-economic forces. Here are some impacts to consider:
Careful consideration needs to be given to the points above, but the underlying reasons and economics for doing these projects and the state requirement timelines still offer compelling motivation for going forward with these transactions.
McGuireWoods has published additional thought leadership analyzing how companies across industries can address crucial business and legal issues related to COVID-19.