Edward Zaelke Speaks with Stratton Report About Solar Power in the Corporate Market
Edward Zaelke, chair of Akin Gump’s global project finance practice, was interviewed by Stratton Report to discuss his expectations for the growth of the corporate market for solar power in the next three years.
Zaelke said the corporate market for solar primarily pertains to projects that are built offsite that sell their power to corporate offtakers. He said this can be done in one of several ways:
- through a community solar program where there are sites that have developed solar that have many corporate offtakers
- through a direct sale or direct delivery of power if the corporation’s operations are the same node as the power that’s being produced or you are in a state that allows community choice
- through a contract of differences or a virtual power purchase contract where the corporation issues a hedge for power produced offsite and will either pay or receive payments if the power price goes above or below the strike price
Zaelke predicted that if solar power becomes less expensive, “we will see more corporate contracts for differences or virtual power purchase agreements in the solar market.” He added that he hopes to see some relaxation of the community choice rules “so that there can be more direct sales of power from solar projects to corporate offtakers.”