Energy Exchange

$200 Million in Private Capital Financing Signals Investors’ Support for Clean Energy

By Victor A. Rojas / Published: January 29, 2014

(Source: www.poonamsagar.com)

While 2014 is only just getting underway, it is already shaping up to be a banner year for clean energy finance. Capital investments are being made, funds developed, and securitization tools crafted — all with remarkable speed. And private capital markets are aggressively rallying around these efforts, which will only increase the momentum of our collective efforts to drive investments into essential energy efficiency and renewable energy projects.

Funding for homeowner energy efficiency loans could lead to securitization

Early this year, clean energy consumer finance company, Kilowatt Financial, closed a $100 million deal with Citi to finance 10-12 year unsecured loans of up to $30,000 for homeowners making energy efficiency improvements to their HVAC (heating, ventilation, and air conditioning) systems, water heaters, windows, roofing, insulation, lighting, and appliances.

The transaction is designed to facilitate a securitization of loans (which promotes liquidity in the marketplace), help establish a secondary market, and spur energy efficiency investments. Kilowatt and Citi expect to create term asset-backed securities from the loans that will provide a sustainable source of capital for homeowners looking to make home energy upgrades. Read More »

Posted in Energy Efficiency, General, Investor Confidence Project, On-bill repayment, Renewable Energy / Tagged Clean Energy, Clean Energy Financing | Comments are closed

Is Texas the Next Global Leader in Water? It’s Up to State Leaders to Decide.

By Kate Zerrenner / Published: January 28, 2014

This commentary originally appeared on our Texas Clean Air Matters Blog.

The Texas Comptroller, Susan Combs, recently released the Texas Water Report: Going Deeper for the Solution, which proposes a sort of revolution to solve Texas’ water woes. As Combs notes, Texas is a global energy leader, but the state should be a global water leader too. And her initiative couldn’t come fast enough. Texas, already prone to cycles of drought, is facing new water pressures, including population growth and a changing economy, which only make it harder to preserve our diminishing water supply. To rouse the state’s water recovery plan, the report prioritizes water-saving technological innovations (while stressing the need for conservation) and lauds various Texas cities for water management practices. But the report misses some key elements that are essential to keeping our water flowing. In the same way that new energy technologies have brought us closer to a cleaner, more reliable electric grid, innovations in the water arena can seamlessly reduce our water use and set the state on a sustainable path.

The report says conservation is not enough, and it’s right. However, efficiency is the most significant first step and conservation achieved through technology is a welcome counter to the infrastructure-heavy plans typically heard at the Capitol and in the State Water Plan. (What good is a new reservoir, if there’s no water to put in it?) Some of the technologies evaluated in the report include aquifer storage and recovery, inter-basin transfers, low-water fracking technologies and desalinization – what some call “game changers.” These technologies could potentially relieve our future water woes, but these projects are expensive and don’t alleviate our immediate or even mid-term water stresses. Read More »

Posted in Climate, Energy Efficiency / Tagged Clean Energy, Energy-Water Nexus, texas | Comments are closed

EDF Is Going to Court to Secure Healthier Air for Millions of Texans

By Tomas Carbonell / Published: January 28, 2014

This commentary originally appeared on our Texas Clean Air Matters blog.

This post was co-authored by Tomás Carbonell, EDF Attorney, and Brian Korpics, EDF Legal Fellow.

Source: Texas Tribune
Haze over Dallas Area

Last week, EDF took one more step toward protecting Texans from harmful levels of ozone pollution that have afflicted the state for far too long.

Ozone pollution, better known as “smog,” is one of the most severe and persistent public health problems affecting Texans. Smog causes a range of health issues — including aggravation of asthma and other respiratory illnesses, decreased lung function, increased hospital and emergency room visits for respiratory conditions — and it is associated with premature mortality in urban areas.

According to the American Lung Association (ALA), Dallas-Fort Worth is the eighth most affected area in the country for smog. ALA estimates the city is home to millions of people who are sensitive to ozone-related health problems — including 1.6 million people suffering cardiovascular disease; nearly 1.9 million children; nearly 650,000 elderly residents; and over 520,000 people with asthma.

EDF and its dedicated staff in Texas have long worked to protect Texans from unhealthy levels of smog by reducing the pollution that leads to harmful ozone levels. Most recently, we have been litigating in the United States Court of Appeals for the District of Columbia Circuit to secure important Clean Air Act protections in all areas that are contributing to the serious ozone problems in Dallas-Fort Worth. Read More »

Posted in Air Quality, Climate, Natural Gas, Texas / Comments are closed

Scaling NYC Clean Heat’s Unique Public-Private Partnership for Energy Efficiency

By Abbey Brown / Published: January 27, 2014

Recently, New Yorkers bid farewell to our Mayor of twelve years, Mike Bloomberg. Under Bloomberg’s prevue, EDF helped catalyze the NYC Clean Heat program – which led to the cleanest air the City has seen in the last fifty years. Through NYC Clean Heat’s efforts over the past few years to phase out the use of highly-polluting No. 6 heating oil in more than 3,000 buildings across NYC, sulfur pollution fell by more than two-thirds while soot pollution dropped by a quarter.

NYC Clean Heat has made great strides in helping buildings become cleaner and more efficient, but there is still much work to be done. EDF is wasting no time in capitalizing on the effective public-private partnership we helped assemble of community and union leaders, policymakers and leaders in the utility, real estate and finance sectors to bring more environmental and public health gains to the City. Our next target: All that energy wasted by old and inefficient buildings.

Nearly 40% of U.S. energy is consumed by residential and commercial buildings, which are responsible for more than a third of our country’s greenhouse gases. The building sector presents one of the greatest untapped opportunities for major gains in energy savings and pollution reductions over the next several years. Read More »

Posted in Energy Efficiency, New York / Tagged NYC Clean Heat | Comments are closed

PACE 2.0: California Leading the Next Evolution in Clean Energy Finance

By EDF Blogs / Published: January 23, 2014

Property Assessed Clean Energy (PACE) is an innovative financing technique for clean energy retrofits that was first developed in Berkeley in 2008, giving energy efficiency projects a huge boost throughout the U.S.

Here’s how it works: Property owners agree to a long-term tax assessment on their home or building in exchange for the upfront funding to pay for a retrofit. What’s great about the program is its ability to essentially eliminate one of the biggest barriers to energy efficiency retrofits: up-front costs.

And, just as with any other property tax assessment, the obligation transfers to the new owner upon a sale of the property. This transferability allows property owners to consider projects with longer payback periods as the obligation does not become immediately due upon sale. Read More »

Posted in California, Clean Energy, Energy Financing, State / Tagged PACE, PACE 2.0 | Comments are closed

Innovative Strategies for Utilities in the Face of Increased On-Site, Distributed Generation

By Brad Copithorne / Published: January 22, 2014

Last year, the trade association for the utility industry, the Edison Electric Institute (EEI), published a whitepaper on the disruptive challenges facing the utility industry. In summary, EEI’s thesis was that the existing utility business model (centralized, fossil-fuel based generation) is under threat from on-site, distributed generation as more customers switch to cleaner, and often cheaper, solar power. The white paper poses an important question: How can utilities acquire the revenue needed to keep the electric grid humming and provide reliable power to all customers if a growing number of people are producing their own electricity?

In business, one of the most difficult problems that companies face is how to adapt a successful business model to technological or social changes that threaten that business model. Wang, Unisys, DEC and Amdahl were all big computer companies in the 1970’s that clung to an obsolete business model in the face of distributed computing. IBM and HP, on the other hand, adapted their business models and generally thrived.

Over the past year, we have seen several utilities tackling this challenge head-on by investing in distributed, renewable energy projects. In September, I wrote about how NextEra and NRG were voluntarily developing solar investments and how Direct Energy and Viridian were investing in solar installations developed by SolarCity. Read More »

Posted in Demand Response, Grid Modernization, On-bill repayment, Renewable Energy / Tagged Clean Energy, Hawaii, Utility Business Models | Read 3 Responses