LS Power Flashcards
What does LS Power do?
LS power has two arms a development arm and a investment manager arm.
Dev arm has developed 13 GW and over 680 miles of long-distance transmission in the US
Investment mgmt arm manages over $10B in equity capital
How many MWs has the LS power team develop, acquired and managed?
46 GW of power gen with 680 miles of transmission
How does the LS power portfolio look like?
- National fleet of utility scale projects including solar, wind, hydro, nat gas and BESS projects
- Various customer facing Distributed Energy Resources (DER) and energy efficiency platforms: CPower Energy Mgmt, Endurant Energy, EVGo
- Dedicated renewables and energy storage: REV Renewables
- Various waste to energy initiatives
- Transmission
What is the history of LS Power?
- Founded in 1990 as a developer
- Team grew from 30 people to over 300 people
What is LS Power strategy?
- Acquire project and improve their operatonal efficiency and enhance cash flow generation
- Develop projects that are more efficient, flexible and cost-effective than traditional forms of power gen/transmission
- Acquire and scale energy efficiendy and distributed gen platforms
What is the history of LS Power?
LS Power and Monarch Energy announce a partnership to develop green hydrogen projects in the United States, with LS Power commitng to investing up to $400 million in these projects.
Monarch Energy, founded in 2021, specializes in large-scale electrolyzer projects to produce cost-competitive green hydrogen. LS Power invested $25 million in preferred equity for Monarch Energy and will have a board seat. Monarch plans to use this investment to advance its 4 GW pipeline of electrolyzer projects, expand in the US, and grow its team. They aim to provide green hydrogen to industries like refining, chemicals, and long-haul transport. LS Power’s expertise will support Monarch in project development, environmental attributes, and more. This partnership aligns with the US Department of Energy’s goal to scale low-carbon hydrogen production to 10 million tons by 2030 and 50 million tons by 2050.
“Corporations and policymakers are seeking advancements in clean fuel solutions to accelerate the energy transition,” said David Nanus, President of LS Power Equity Advisors. “Green hydrogen can play a leading role in this effort”
NY’s clean energy leadership and LS Power’s Rise Light
In October 2023 NY announced the largest state investment in renewable energy in the U.S. announced by Governor Kathy Hochul i
Investment includes 3 offshore wind and 22 land-based renewable energy projects, totaling 6.4 gigawatts of clean energy.
Enough to power 2.6 million New York homes and meet 12% of the state’s electricity needs.
Expected to create 8,300 jobs and drive $20 billion in economic development.
Aligns with New York’s goals: 70% electricity from renewables by 2030, 9 gigawatts of offshore wind by 2035.
Projects will produce 19 million megawatt-hours of renewable energy annually.
Greenhouse gas emissions to be reduced by 9.4 million metric tons yearly, equivalent to removing 2 million cars from the road.
The three offshore wind projects include:
Attentive Energy One (1.4 GW) developed by TotalEnergies, Rise Light & Power and Corio Generation. The project includes a novel fossil repurposing plan in Queens, which seeks to retire fossil fuel power generation in the heart of New York City and transition the current workforce to clean energy jobs.
Community Offshore Wind (1.3 GW) developed by RWE Offshore Renewables and National Grid Ventures. The project includes utilization of new grid interconnection being developed by Con Edison in downtown Brooklyn, made possible by the Public Service Commission Order Approving Cost Recovery for Clean Energy Hub to maximize delivery of clean electricity into New York City.
Excelsior Wind (1.3 GW) developed by Vineyard Offshore (Copenhagen Infrastructure Partners). The project includes proposed cable route options providing robust energy deliverability to Long Island, leveraging the electric grid expansion provided through the Long Island Public Policy Transmission Need outcome.
LS Power Applauds Illinois Governor Pritzker’s Landmark Veto of Energy Transmission ‘Right of First Refusal’ Legislation
Illinois Joins Other States in Rebuffing ROFR Legislation
While today’s action is the first veto of ROFR legislation, Illinois joins other states in rejecting monopoly transmission ownership. ROFR legislation has been defeated in both Missouri (2023) and Wisconsin (2022), and in March 2023 the Iowa Supreme Court issued a temporary injunction on a similar Iowa ROFR provision.
Several other states, including Texas, have ongoing disputes on the subject of competitive bidding for energy transmission projects. The United States Supreme Court in March 2023 asked the U.S. Solicitor General to file a Merits Brief at the United States Supreme Court on the Texas issue. The brief is expected this Fall.
Benefits of Competitive Transmission
A report by The Brattle Group in April 2019 examined competitive development processes for U.S. transmission projects under FERC Order No. 1000.
Competitive transmission processes have the potential to spur innovation and significantly reduce transmission investment costs, benefiting customers and the economy.
While most transmission investments still occur outside competitive planning processes, competitive projects show promise.
Estimated cost savings from competitive processes average between 20% and 30% compared to non-competitive projects.
Similar cost savings have been seen in international competitive transmission developments.
The cost of running competitive processes is small compared to the savings they generate.
If competitive processes were expanded to cover a larger portion of U.S. transmission investments, it could result in approximately $8 billion in customer benefits over five years.
Increased innovation and cost-effective transmission can reduce rate pressures and make transmission investments more attractive.
The authors recommend expanding competitive processes where possible and enhancing transparency in regional planning and project approval.
