Energy Exchange

Can New York Beat California in the Clean Energy Race?

Source: Martineric/Flickr

Source: Martineric/Flickr

This post was adapted from an op-ed piece published in Morning Consult.

New York doesn’t have California’s sunshine or Texas’ wind. But it has a vision and willpower that is quickly turning the Empire State into a leader for clean energy solutions.

In the year and a half since the devastating impact of Hurricane Sandy, New York Gov. Cuomo has appointed strong leadership and devoted large-scale investment to develop a resilient energy infrastructure that can withstand the extreme weather events brought on by climate change.

And the state is now digging into a major evaluation of how energy is produced, distributed, and priced – while ramping up funding for renewable energy. Read More »

Posted in Clean Energy, Energy Financing, New York, Renewable Energy / Read 1 Response

The Spread of Green Banking Paves the Way for Clean Energy Investments

Source: 401kcalculator.org

Source: 401kcalculator.org

While no two “green banks” are exactly the same, the idea behind these government-created financial institutions is to dramatically expand the clean energy market. Rather than providing grants to stimulate clean energy investment, green banks use attractive interest rates and other incentives to leverage money from the private sector.

In addition to offering attractive interest rates, loan-loss reserves, and other market supports, these innovative banks draw on deep expertise from the public and private sectors to help demonstrate the profitability of clean energy investments.

By the end of the year, green banks should be up and running in Connecticut, New York, and Hawaii. We hope that California will follow soon. These states form a vanguard that has recognized the value of using a small amount of public capital to generate significant private investment in clean energy. Read More »

Posted in Clean Energy, Energy Financing, Renewable Energy / Tagged | Comments are closed

Resiliency+: Renewable Energy Can Boost Grid Resilience in Vulnerable New Jersey

Resiliency+ is a new blog series, which highlights the ways in which different clean energy resources and technologies can play an important part in increasing energy resiliency in New Jersey and around the country. Check back every two weeks, or sign up to receive Energy Exchange blog posts via email.

BAPV_solar-facadeRenewable energy, such as solar and wind power, provides clean and sustainable power to our electricity grid. But it also offers other benefits beyond environmentally-friendly electricity. Renewable energy can increase energy resiliency by keeping the lights on, including at critical facilities in the wake of a natural disaster. That’s why it has the potential to play a particularly pivotal role in New Jersey, which is vulnerable to vicious storms such as Superstorm Sandy.

Renewable energy, unlike other forms of energy, is less vulnerable to sustained disruption. Other, more traditional forms of energy, such as fossil fuels, require an input (coal, oil and gas, etc.) that needs to be shipped, often via pipeline, to create electricity, leaving them vulnerable to a natural disaster that might interrupt transport. On the other hand, renewable energy has the ability to generate stable, on-site power from sources such as solar and wind when it operates from a microgrid. A microgrid can generate power both connected to and independently from the main, centralized grid. They can vary in size, providing power to several city blocks or to an individual home, but microgrids have the unique potential to “island” from the main electricity system. This is important during and/or in the wake of a natural disaster like Superstorm Sandy because this autonomous electricity system is able to power local buildings regardless of whether or not the main electric grid is down. Read More »

Posted in Clean Energy, Climate, Demand Response, Energy Efficiency, Energy Storage, Grid Modernization, New Jersey, Renewable Energy / Tagged | Comments are closed

Conference on Clean Energy Financing Signals a Shift in Funding the Low-Carbon Economy

Source: eProGuide

Source: eProGuide

In 2010, I began working on financial policy at EDF. Our objective was to implement policies that would allow private sector companies to profitably deliver financing solutions to residential and commercial property owners footing the upfront cost of money-saving energy efficiency and clean distributed generation (such as rooftop solar) projects. While the residential solar market was already gaining steam at the time, most of the other markets had very limited momentum. But after attending the clean energy finance conference that EDF co-hosted yesterday with Citi, energy efficiency solutions provider Elevate Energy, and law firm Wilson Sonsini Goodrich & Rosati, it appears that the market for financing clean energy projects is beginning to accelerate rapidly.

The agenda featured 12 private companies from the clean energy sector (Kilowatt Financial, Clean Power Finance, Renovate America, AFC First Financial Corp., Renewable Funding, Clean Fund, Joule Assets, Noesis Energy, SCIEnergy, Metrus Energy, Hannon Armstrong, and Honest Buildings), plus a few more in the audience, that are executing a wide range of transactions using Property Assessed Clean Energy (PACE), On-Bill Repayment, Energy Services Agreements (ESAs), and many other innovative techniques to fund the transition to a low-carbon economy. Read More »

Posted in Energy Financing, Grid Modernization, Investor Confidence Project, New York, On-bill repayment, Renewable Energy / Read 1 Response

On World Water Day, Why Talk About Energy?

Source: UN Water

Source: UN Water

The theme of this year’s World Water Day on March 22nd is the “energy-water nexus,” and the timing couldn’t be better. According to the United Nations (who first established World Water Day in 1993):

  • 780 million people worldwide lack access to safe drinking water.
  • 1.3 billion people worldwide lack access to electricity.
  • 90 percent of the power generation in the world comes from water-intensive fossil fuels.
  • As countries progress and develop, there is an increased risk of conflict between power generators, other water users, and environmental concerns.
  • By 2035, global water withdrawals for energy are predicted to increase by 20 percent, and water consumption for energy is expected to increase by 85 percent.

For the past year, I’ve been trying to bring awareness to the connection between energy and water in Texas, but this issue is much bigger than a single state. Energy and water are both basic components of life and economic progress, and they are also inextricably linked. Energy is used to secure, deliver, treat, and distribute water, while water is used (and often degraded) to develop, process and deliver energy. Read More »

Posted in Clean Energy, Climate, Energy Efficiency, Energy-Water Nexus, Utility Business Models / Tagged | Read 2 Responses

NY Governor Cuomo launches Green Bank in Aggressive Move to Tackle Climate Change

Rory Christian PhotoOne of the worst hit states by last year’s Superstorm Sandy, New York is moving aggressively to avert future climate-related weather events.  Governor Cuomo announced the launch of a Green Bank last week, giving the state a timely and much-needed Christmas gift.

The move shows the state’s strong commitment to the acceleration of a clean, low-carbon energy economy.  New York joins the ranks of several other states, including Connecticut and Hawaii, in addressing a key issue holding clean energy in America back, namely financing.  The Green Bank, which has $210 million in initial funding originating from existing ratepayer and Regional Greenhouse Gas Initiative funds, targets market barriers to private financing of renewable energy and energy efficiency projects. 

Working with private sector financial institutions, the Green Bank will offer financial products such as credit enhancement, loan loss reserves and loan bundling to support securitization (which promotes liquidity in the marketplace) and help build secondary markets.  These products have long-proven successful in stimulating market developments and creating investment-quality, asset-backed securities that can be bought and traded. Read More »

Posted in Energy Efficiency, New York, Renewable Energy / Tagged , , | Read 1 Response