Energy Exchange

Growth in Green Bond Market Underscores Need for Market Standards

By Victor A. Rojas / Published: June 26, 2014

The significant growth that we have seen in the past year in green/climate bond issuances – $11.4 billion in 2013 and an estimated $40 billion in 2014 – strongly suggests a threshold market acknowledgement of the enormous potential in these instruments. Growth in the market and a rapid increase in the volume of climate/green bonds strongly suggest that we are approaching a broad yet fundamental market acceptance of this new asset class. If so, it is important that we begin to shift gears and move from proving the model to creating the market infrastructure that incorporates meaningful standards to support a wider and more liquid market for climate/green bonds.

Green bonds and climate bonds are issued to pay for environmental projects. These are often issued by large institutions, such as World Bank, Bank of America, and Toyota that invest in both environmental and non-environmental projects. However, the proceeds from these bonds are invested exclusively in environmental projects. Many, but not all green bonds are climate-focused. Climate bonds, however, are totally linked to assets that encourage a rapid transition to a low-carbon and climate resilient economy. Read More »

New York Energy Week Gives Clear Vision of Modern, Clean Energy Future

By EDF Blogs / Published: June 24, 2014

By: Max Wycisk, Communications Intern

The second annual New York Energy Week, held last week, brought together more than 4,000 industry leaders and innovators – double the number last year – to discuss the dynamic changes the state’s energy sector has seen in the last twelve months, including the state’s historic move to re-examine its utility business model. In a series of panel discussions held throughout New York City, state, national, and international energy leaders reviewed key topics such as energy storage, building efficiency, and the rapidly evolving utility industry itself. While the topic of discussion varied, a number of consistent themes emerged, giving attendees a clear vision of the steps industry is taking toward adopting a modern, decentralized, clean energy future.

Communication drives innovation

One of the main themes of the conference, which was organized by research firm Enerknol, was the shift in how the energy industry will interact with consumers as well as the way in which it interacts with itself. Speakers frequently described the current energy industry as ‘fragmented’ or ‘acting within silos’ and questions arose at nearly every panel about how to stimulate conversation between different energy sectors that will lead to collaboration, investment, and innovation. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Grid Modernization, New York, Renewable Energy, Utility Business Models / Tagged Energy Storage | Read 2 Responses

Clean Energy Finance 101

By Rachel Neil / Published: June 5, 2014

Library of Congress, Prints and Photographs Collections.

As innovative energy products and services come to market, so do new mechanisms to fund them. And existing funding options become more popular. This has resulted in a boom of finance jargon, especially regarding energy efficiency and renewable generation. Though many of the finance terms used in clean energy finance are similar to those used in traditional finance, it’s easy to get lost. We hope this glossary will help those in clean energy navigate the new and growing world of clean energy finance.

Asset Class: A grouping of similar types of investments that behave similarly in the marketplace and are subject to the same laws and regulations. Broad examples of asset classes include:

Equities (also known as stocks) – assets that represent ownership of part of a company.
Bonds – assets that guarantee a fixed payment stream.

Bonds are often further categorized based on structure or source of the payments. Examples of these subclasses include municipal, corporate and mortgage bonds. Read More »

Also posted in Clean Energy, Electricity Pricing, Energy Efficiency, Grid Modernization, On-bill repayment, Renewable Energy / Read 2 Responses

Connecticut’s Green Bank Gives Commercial PACE a $24 Million Boost

By Brad Copithorne / Published: May 28, 2014

Last week, Connecticut’s Clean Energy Finance and Investment Authority (“CEFIA”), the state’s Green Bank, announced the sale of $24 million in loans for clean energy retrofits of commercial properties. The loans were originated through the state’s Property Assessed Clean Energy (PACE) program, which allows property owners to access 100 percent up-front financing for energy efficiency and renewable energy improvements on their buildings. Repayment is attached to a lien on the property tax bill, making PACE loans very attractive assets for investors.

According to Jessica Bailey, Director of PACE for CEFIA, “Connecticut’s PACE program is able to provide financing for commercial property owners to implement money saving clean energy projects. Without PACE, most of these property owners might not have access to attractive financing and these projects would not be completed.” Read More »

Also posted in Clean Energy, Energy Efficiency, Investor Confidence Project, On-bill repayment, Renewable Energy / Tagged PACE | Read 1 Response

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

By Brad Copithorne / Published: May 13, 2014

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 »

Also posted in Clean Energy, Renewable Energy / Tagged Green Bank | Comments are closed

Renewable Energy Policy in Europe is Faltering: What are the Lessons for the Rest of Us?

By EDF Blogs / Published: April 29, 2014

By: Gavin Purchas, Policy Director, Clean Energy, and Eric Gimon, Philanthropist

Fântânele-Cogealac Wind Farm, Romania

For those of you who are avid viewers of the TV show, “House,” you are probably all too familiar with Dr. House’s chaotic yet extremely effective style. He solves cases and achieves fame and notoriety, while those working with him try to learn valuable lessons along the way, hoping none of the crazy will rub off on them. So too it is with Europe and the many countries around the world looking to learn a thing or two from its experience with implementing one of the most aggressive set of renewable energy targets in the world.

The European Union’s (EU) attitude towards renewable energy started out as a rational set of targets followed by supporting financial mechanisms, but has ended up as a chaotic series of missteps that have resulted in the region losing its number one spot as the world’s clean energy leader. For countries following the EU (House’s team and colleagues in this metaphor) the message is simple: Do what we did in the beginning and not what we’re doing now…or else you’ll end up losing your license. Read More »

Also posted in Clean Energy, Renewable Energy / Read 2 Responses