We would like to thank all our clients for choosing Troutman Sanders to represent them in 2016. We are proud to have some of the most significant energy companies in the business as clients and we value the high caliber of knowledge, experience and relationships they bring to us. We look forward to extending our roles as trusted advisors in 2017 and invite you to contact us for further information on any of the subjects included in this newsletter, or to discuss additional issues facing your business in 2017.
Troutman Sanders successfully represented our clients in some of the most innovative renewable energy projects throughout the United States and around the world. In 2016, our work spanned 23 states and several countries and accounted for more than 2 gigawatts of installed renewable energy with a value exceeding $5.5 billion. Our first-in-class solar practice continued to shine. In 2016, we closed over 1,900 MWs of solar transactions, including:
- Representing a strategic tax equity investor in connection with its investment in a 100 MW solar facility located in Nevada and a 200 MW solar facility in California
- Advising a major solar power developer in the negotiation and documentation of three-tiered financing facilities covering several commercial and industrial (C&I) distributed generation projects sited throughout the United States
- Representing a financing party, whose aggregate investment balance exceeded $1 billion through sale leaseback and partnership flip structures, in connection with a developer's bankruptcy
- Advising a client on RES-BCT tariff and virtual net metering issues in an extensive leaseback program for a distributed generation solar project
- Representing a client in a multiple draw term loan facility, the proceeds of which were used to pay development costs associated with certain of the Borrower's proposed renewable energy projects
- Advising a client navigating novel state regulatory and permitting questions in a politically hostile environment in Vermont
We also continued to represent clients in complex transactions in other technologies, from safe-harboring over 3,000 MWs of wind projects, to helping close one of the first proxy revenue swaps as part of a 147 MW wind facility in Oklahoma. We represented buyers and sellers in organized power markets (including CAISO, NEPOOL, PJM, NYISO, MISO and ERCOT) regarding the regulatory and market rules that apply to deployment and dispatch of storage technologies. Additionally, we represented a developer in the negotiation of a comprehensive power purchase agreement in connection with a 34 MW geothermal plant under construction in Idaho, as well as a private equity firm in connection with private equity investments as a limited partner in a $250 million state-of-the-art generator facility utilizing waste renewable resources.
However, 2016 was not all positive. SunEdison, a pioneer in the renewable industry, filed bankruptcy. We at Troutman have worked with folks at SunEdison since 2007. And while we had many hard-fought negotiations with the SunEdison team, we respect their extensive experience and knowledge as well as their dedication and significant contributions to the renewable energy industry. We represented and continue to represent several secured creditors in the SunEdison bankruptcy. The bankruptcy served to test some of the key assumptions that underlie the many project financings in SunEdison's portfolio. To date the court has respected the project company financing vehicles, and projects have largely soldiered on even without the support of a solvent sponsor.
One particular feature we are proud of is the back-up servicing arrangement we structured with SunEdison for O&M and asset management services. Investors were able to exercise their rights prior to the SunEdison bankruptcy and replace SunEdison as O&M and asset management provider. With that structure in place, the investors' projects suffered no operational downtime as a result of the bankruptcy. The program has received industry recognition, capturing the attention of credit committees across financing parties.
Both the New Year and new administration present an opportunity to pause and reflect not only on exciting trends, but also on the challenges within the renewable energy field and the energy industry in general. In this newsletter, we discuss important trends and policy agenda items that will continue to be significant in 2017 and beyond. We invite you to contact us for further information on these subjects or to discuss additional issues that your business may face.
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