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Definitions

Net Metering

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on their roof, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backward to provide a credit against what electricity is consumed at night or other periods when the home's electricity use exceeds the system's output. Customers are only billed for their "net" energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid, and this exported solar electricity serves nearby customers’ loads.

Power Purchase Agreements

Power purchase agreements are contracts or formal agreements between a producer of electricity and a purchaser, typically a utility or a large corporation, where the producer agrees to sell a specified amount of electrical energy over a defined period. For example, the mutual agreements outline the price at which the electricity will be sold and the duration of the agreements. These are commonly used in renewable energy projects, enabling developers to secure financing by guaranteeing revenue for the generated electricity. These agreements have played a significant role in expanding renewable energy infrastructure.

Distributed Generation

This form of energy generation refers to the production of electricity from small-scale sources located near the point of consumption. Distributed generation in the context of renewable energy typically involves the installation of solar panels, wind turbines, or other renewable technologies for harnessing renewable energy on rooftops, in neighborhoods, at local businesses, etc. Oftentimes, it is integrated into existing energy infrastructure. Distributed generation empowers communities, businesses, and individuals in region to generate and store clean energy.

Utility Scale

Utility-scale energy facilities are designed to produce electricity at a substantial scale. Typically, offtakers for this scale of power generation includes utility companies and large electricity consumers, often feeding directly into the main electricity grid. Utility-scale renewable energy projects have been on the rise and these projects benefit economies of scale. They drive down the cost of electricity generation and enable significant contributions to the overall production of energy.

Community Solar

Community Solar refers to a shared renewable energy project where multiple individuals or organizations invest in a portion of a larger solar energy installation located within or near their specific community. People who don’t have suitable rooftops or financial means to install a solar-powered energy system can benefit from the electricity generated by the community solar project. Community solar fosters the feasibility of accessing renewable energy to promote clean energy generation without the need for individual installations. The electricity generated by the project is fed into the grid and members of this investment can receive discounts on their energy bills.

Transmission

In the Gulf Coast and elsewhere, energy transmission infrastructure is essential for delivering electricity generated from various sources (offtake). With the growing energy demand, transmission must also adapt. Energy transmission is a critical part of the energy industry because it helps to maintain a reliable and steady supply of electricity to consumers and helps with the overall function of the energy supply chain.

Offshore Wind Supply Chain

Roughly 80% of Americans live within 200 miles of a coast. Offshore wind can generate significant amounts of electricity close to consumers. Offshore wind prices can be locked in for 20 years or more, acting as a hedge against other volatile energy prices. The U.S. has world-class offshore wind resources, capable of supplying large amounts of affordable, reliable power. Offshore wind taps into the skills of U.S. oil & gas workers, who have decades of experience with ocean energy infrastructure. The oil & gas assets and expertise of Louisiana and Mississippi companies currently provide vital services for offshore wind development to other parts of the U.S., and are essential to offshore wind development in the Gulf of Mexico.