XBRL Extension for Construction, Energy and Transportation
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SGIP PAP 25 XBRL-CET
K. Dixon Wright
Matthias R. Heinze
Convenor IECRE Working Group 404
TUV Rheinland Group
Manuel Carmona Segura
Abengoa Solar as case study for SGIP PAP25
The future of Solar Bankability will be impacted by how challenging situations like those Abengoa Solar and project stakeholders are resolved. An orderly process, with predictability and reliability for loss mitigation, will serve to enhance solar bankability, regardless if the financial security posted is a letter of credit or surety bond.
The distinction between a letter of credit and a surety bond is often defined as “On Demand” vs. “On Default”. Another more important distinction is how potential defaults are managed, “Foreclosure” or “Cure”.
The recent publicity surrounding the challenges faced by Abengoa Solar provide an interesting opportunity to examine how a surety structure envisioned by SGIP PAP25 would work, and allow for an examination on the differences between letters of credit and surety bonds in responding to potential defaults.
The Abengoa challenge is a high profile public situation that a number of entities are already involved with XBRL-CET, SGIP PAP25 and SB-Data are familiar with, and while our effort is focused towards using the case study and public facts to explore and validate concepts in the long run, it would be great for the industry to provide viable options in the short term.
SGIP PAP25 is not in a position to offer Abengoa Solar any solutions, or to act as their representative in any capacity, and SGIP PAP25’s exploration and use of public data as part of examining a case study in a collaborative environment is just that, a case study using public information independent of Abengoa.
The XBRL-CET working group has been active in exploring ways that emerging data interoperability could enable innovations for creating more effective surety products and services to provide predictability and reliability, improve access to surety credit, and to contribute to the evolution of open data standards so that the potential benefits of data analytics could be realized for all stakeholders.
The XBRL-CET effort was expanded with the Smart Grid Interoperability Panel Priority Action Plan 25, Harmonized Financial Data (SGIP PAP25) with a focus on how standardized data related to building the nation’s energy infrastructure, the Smart Grid, could be utilized to make solar more bankable.
The nature of the XBRL-CET/SGIP PAP25 exploration is in large measure abstract and theoretical, and requires a wide range of entities to participate and engage to develop consensus, what we refer to as the “cat herd”.
The DOE sponsored Solar Bankability Data Funding Opportunity Announcement (SB-Data) seeks to explore common principles and provides an excellent platform for collaboration and the exchange of ideas and concepts, with the objective of making solar more bankable by enabling data analytics.
The basic premise advocated by SGIP PAP25 is that data, such as the IECRE 61724 Data Set for Solar Facility Performance, can not only provide credible and reliable data to the financial markets but can also detect default risk before it escalates so that it can be mitigated, changing the surety from the last to know about a problem to a proactive risk management resource.
Ms. Sarah Kurtz
National Renewable Energy Laboratory (NREL)
15013 Denver West Parkway
Golden, Colorado 80401
SGIP PAP25 / XBRL-CET / IECRE 61724 Public Case Study
Does having reliable performance data provided by IECRE 61724 improve the terms and conditions for financial guarantee products from traditional banks, specialty markets and/or surety companies, thereby making solar more bankable.
Are the data fields contained in the current draft of the IECRE 621724 enough to achieve the highest degree of valuable data analytics throughout the various components of the supply chain.
Does IEC 61724-3 adequately communicate the differences between the metrics?
How can IECRE 61724 cover more than just PV
How can IECRE 61724 address the operational state of a system to address the broader question of a facilities quality of maintenance and repair.
How does the data reporting standard IECRE 61724 get recognized, and synergized with financial industry data reporting standards XBRL and FIBO for data interoperability.
How does the IECRE 61724 data from the O&M systems in the field get exchanged between stakeholders, including the financial markets.
How can financial markets use the IECRE 61724 data set for predicative analytics, and for proactive default risk management.
XBRL and FIBO
The value of the IECRE 61724 data for managing a default and implementing a cure, or processing a foreclosure.
How are cybersecurity risks being addressed in that data exchange along the supply chain to protect the Smart Grid.
See symposium posted on EDM Council webwsite: SB-Data Symposium on Cybersecurity and FIBO, October 2015