Citigroup Inc. recently pledged $100 billion for lending, investing, and facilitating deals related to sustainability, renewable energy, and climate change mitigation. This is yet another sign that global capital markets are enormously interested in delivering capital into clean, renewable sources of energy. But you don’t have to be Citigroup to invest in the clean energy future.
The industry’s rapid growth presents an interesting diversity of long-term opportunities for individuals like you and me who might be looking to make investments in a low carbon economy.
Fueled by an increased demand for solar and wind energy, clean energy investment last year beat expectations, rising 16 percent to $310 billion worldwide, according to Bloomberg New Energy Finance (BNEF). Fortunately, this robust growth is representative of a general upward trend in clean energy investment over the past decade.
Although the vast majority of this money is coming from governments, corporations, and private equity and venture capital firms, people of all income levels can consider whether it is right for them to add clean energy to their investment portfolios. And, you don’t need millions in the bank to make these types of investments – any investor can consider whether to put their money to use through the four financial instruments described below. Read More
Also posted in Clean Energy
Last month, I attended the Vail Global Energy Forum in Colorado. Billed as a “mini-Davos” of energy (studiously ignoring the Aspen crowd a few hours down the highway), that moniker may have felt aspirational when the conference launched three years ago. But, this year it paid off: momentum for frank dialogue and global innovation is building on the slopes of the Vail Valley.
Here’s my take on how the clean air of the mountains cuts through the hot air of energy debates to illuminate practical, actionable ideas.
Three big ideas drove the conference:
- North American energy independence
Mexico, the United States, and Canada could, together, innovate their way to an energy marketplace that weakens dependence on overseas imports, scales up clean energy solutions, and charts a path to low-carbon prosperity. At times, the discussion was framed by the rise of unconventional oil and gas exploration (yes, “fracking”), collaboration around pipelines (yes, “Keystone”), and whether these could disrupt traditional geopolitical frames. Read More
Also posted in Air Quality, California, Cap and Trade, Clean Energy, Climate, Colorado, Energy Efficiency, Methane, Natural Gas, New York, Utility Business Models
By: Charlene Heydinger, Executive Director, Keeping PACE in Texas
Today marked a milestone for Texas’ clean energy economy. Travis County voted to adopt the Property Assessed Clean Energy (PACE) program, making it the first county in Texas to do so. This means Austin and the surrounding area will soon reap the economic and environmental benefits from giving energy-intensive, thirsty Texas a reprieve with water efficiency and clean energy.
What is PACE?
PACE, enacted during the 2013 Texas Legislature with support from both sides of the aisle, has the potential to unlock a considerable amount of private funding for clean energy projects in the state. Specifically, it is an innovative financing program – completely free of government mandates and public funding – that enables commercial, industrial, multi-family, and agricultural property owners to obtain low-cost, long-term loans for water conservation, energy-efficiency, and renewable energy projects. Participants will then repay these loans for clean energy projects through their property tax bill. Read More
Last year, global investment in clean, renewable sources of energy grew by a better-than-expected 16 percent to $310 billion, according to Bloomberg New Energy Finance (BNEF). Industry watchers applauded the strong showing, but the numbers imply more than just robust growth. A careful analysis leads us to two additional illuminating conclusions about the industry’s current level of development and its future.
- The clean energy industry is in a development phase
In 2013, China’s gross domestic product (GDP) grew 8.5 percent, with investment comprising 47 percent of GDP. By contrast, GDP in the United States expanded 1.9 percent, with investment comprising 16.8 percent. As a developing country, China’s growth rate is significantly higher, and a telling characteristic for developing countries is that investment makes up a relatively large percentage of GDP.
This pattern doesn’t just hold true for countries; we also see a similar dynamic when looking at industries. According to BNEF, the oil & gas (O&G) industry spent $913 billion on capital expenditures, or capex, last year, while the market capitalization, or market cap, for the top ten companies in the NYSE Arca Oil & Gas Index stood at $1.63 trillion. By contrast, the market cap for the top ten companies in the Wilder Hill New Energy Global Index was much smaller at $164 billion. The Wilder Hill New Energy Global Index comprises 107 companies from around the world that cover a broad spectrum of clean energy technologies. Read More
Also posted in Clean Energy
We need to have “the talk” about solar power and equity, because ignoring uncomfortable questions will invite misinformation and bad decisions. We need an informed dialogue about how local solar power can impact low-income communities and communities of color in the U.S. We need to talk about “all the good things, and the bad things, that may be.”
First things first: the price of solar panels has fallen by 80 percent since 2008. This significant decrease in cost, coupled with incentives such as net metering which allow customers to send the energy they produce from their solar systems back to the grid and receive a credit on their bill, and the emergence of new financing models like solar “leasing” programs, has led to an explosion of local solar in the U.S.
We now boast an estimated 20 gigawatts of solar energy nationwide (enough to power more than four million U.S. homes), and the United States added more solar capacity in the past two years than in the previous 30 years combined. In fact, as President Obama highlighted in his State of the Union address, “every three weeks, we bring online as much solar power as we did in all of 2008.”
By: Matt Golden, Senior Energy Finance Consultant
The Investor Confidence Project (ICP), an EDF initiative designed to unlock investment in energy efficiency, is making progress toward completing a credentialing system that would provide third-party validation of an energy efficiency project. The latest development is the Project Developer Credential, the second of three in the ICP credentialing system.
ICP is accelerating the development of a global energy efficiency market by standardizing how projects are developed and energy savings are calculated. The ICP system includes a set of protocols for developing energy efficiency projects as well as a credentialing system.
The Project Developer Credential is given to those developers who are able to properly deploy the ICP protocols when undertaking an energy efficiency retrofit. This latest development is an important step forward for investors of all types, especially building owners, who can now select developers from a growing list of credentialed providers. Read More