Category Archives: Energy Financing

Barriers to Clean Energy Financing Could Fall with EPA Plan

windows_378x235Considering installing solar panels or weatherization to go along with the remodeling project you’ve been thinking about? Energy bills would drop and your carbon footprint would shrink, a true win-win.

Whether it’s financially doable may depend on where you live, of course. Clean energy financing in the United States is a hodgepodge of public and private-sector programs that vary considerably across, and within, state boundaries.

What will it take?

Connecticut homeowners in some – but not all – cities can tap into the state’s Smart-E loans available from five- to 12-year terms at an interest rate that won’t exceed 6.99 percent, and with no equity down. Read More »

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Germany’s Energiewende is Shifting the Energy Paradigm – Now it’s Time to Optimize

solar-cells-491701_640Revolutionary paradigm shifts often require cohesive development of many moving parts, some of which advance more quickly than others in practice. Germany’s revolutionary Energiewende (or “energy transition”) is no exception. Set to achieve nearly 100 percent renewable energy by 2050, Germany’s Energiewende is one of the most aggressive clean energy declarations in the world. While growth of Germany’s installed renewables capacity has been explosive in recent years, optimization measures designed for Energiewende have manifested at a relatively slow pace.

Germany already has one of the most reliable electric grids in the world, but as implementation of Energiewende continues, optimization will be key to its future success. This will require better sources of backup generation to accommodate the intermittency of wind and solar, a dynamic energy market that ensures fair compensation for this backup, and a more flexible, resilient grid enabled by smart grid technologies to fully optimize demand side resources and a growing renewable energy portfolio. Read More »

Also posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Energy Storage, Natural Gas, Renewable Energy, Smart Grid, Utility Business Models| Tagged | 3 Responses

Investor Confidence Project Releases “Soup-To-Nuts” Guide for Energy Efficiency Project Development

By: Tracy Phillips, ICP Technical Lead

pds logoThere is a simple question that haunts building owners, energy services companies, and even utilities who invest in energy efficiency: “How do I know if I will really see the savings?

To answer this question, EDF’s energy efficiency initiative, the Investor Confidence Project (ICP), is implementing a system that creates confidence in energy savings and cash flows.

Today, ICP is pleased to launch a new component of this initiative: the Project Development Specification. This product launch, along with the recently unveiled Software Provider Credential, is part of a larger effort by ICP to accelerate the development of a global energy efficiency market by standardizing how Investor Ready Energy Efficiency™ (IREE) projects are developed and verified leading to increased investor confidence in savings. Read More »

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New York Green Bank’s First Deals Underscore State’s Commitment to Clean Energy Future

ny-green-bankClean energy finance is thriving in New York State. This week, Governor Cuomo announced the New York Green Bank’s first set of deals, totaling an impressive $800 million in clean energy investments across the state. The projects funded by this investment will yield an impressive annual reduction of 575,000 tons of carbon dioxide emissions, roughly equivalent to removing 120,000 cars from the road or planting 15 million trees per year. This move helps cement New York’s role as a leading state in the clean energy economy.

By offering attractive interest rates and other incentives to stimulate interest from the private sector, green banks encourage investment in clean energy projects that may otherwise have difficulty obtaining private financing. Ideally, these initial deals then set the stage for an active and self-sustaining market in renewable energy and energy efficiency finance.

And the NY Green Bank is starting off swinging: its initial investment of $200 million catalyzed $600 million more in investment from prominent financial institutions, such as Bank of America Merrill Lynch and Deutsche Bank. Read More »

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Mad Global Props: The International Energy Agency Hearts ICP

By: Panama Bartholomy, Director of ICP Europe

iea ee reportThe Investor Confidence Project (ICP), was recognized by the International Energy Agency (IEA), a global organization for 29 member countries, in its annual energy efficiency report, released today.

The IEA’s Energy Efficiency Market Report 2014 highlighted ICP as a program that will accelerate the development of a global energy efficiency finance market, saying in its energy efficiency finance chapter that the EDF initiative will “facilitate a global market for financings by institutional investors that look to rely on standardized products.”

For investors, the IEA puts the financial market for energy efficiency in the range of $120bn, with the launch of new products, such as green bonds, corporate green bonds, energy performance contracts, and expanded sources of finance likely to expand that figure. Lending from multilateral development banks and bilateral banks alone amounted to more than $22bn in 2012. Read More »

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While Critics Debate Energiewende, Germany is Gaining a Global Advantage

Source: Frank M. Rafik

Source: Frank M. Rafik

Economics is the focus of many debates surrounding Germany’s aggressive “energy transition” (or Energiewende), which plans to move the country to nearly 100 percent renewable energy by 2050. Critics say Energiewende’s costs are unjustifiable, arguing they hurt the country’s international competitiveness and systemic inefficiencies exacerbate these costs.

At first glance, it’s hard to argue with them. The scale of investment in Energiewende can seem intimidating: So far, Bloomberg New Energy Finance estimates the total cost of Germany’s clean energy expansion at €106 billion. Furthermore, the Wall Street Journal quotes government sources when predicting total costs through 2040 to be about €1 trillion.

By contrast, however, Germany’s annual investment in fossil fuels has been €90 billion; and, investments in Energiewende go into electric grid upgrades that would need to happen in Germany anyway, whereas fossil fuel investments leave the country.

When viewed in context, there are many reasons to believe investments in Energiewende will reap economy-wide rewards, giving Germany a competitive global advantage over other countries that lagged behind investing in the future.

Read More »

Also posted in Clean Energy, Electricity Pricing, Renewable Energy| 3 Responses, comments now closed