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This workshop offers an insightful industry overview on renewable energy finance strategies. Key topics include monetizing tax incentives efficiently, exploring remedies like REITs and MLPs, leveraging DOD's energy program, and creating markets at the state level. Discussions focus on clean energy contracting, standard forms, and data collection to bridge the gap between oil/gas and renewables financing. Learn about innovative risk mitigation tools and the importance of data banks in renewable energy investments.
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Renewable Energy Finance Workshop Industry Overview
The ITC continues to be very valuable. Need to be able to monetize tax-incentives in an efficient, standardized streamlined way, e.g. refundability. Certain proposed remedies, such as REITs and MLPs, have potential. The DOD’s program for renewable energy could be a big boost. Market creation at the state level is critical. Policies need to consider energy buyer impacts and whether such policies create barriers for the buyers to drive demand. There needs to be long-term clean energy contracting authority for the entire executive branch. Common Themes
Standard contract forms are a big opportunities for renewable energy financing. Standard contract forms have been shared with the NREL team working on contract standardization. These forms: Have been used with tens of thousands of customers; Have been scrubbed in diligence literally dozens of times by more than a dozen investors; and Have hundreds of man hours of review by a cast of dozens. Common Theme: Contracts
Better data could explore and act to remedy, where possible, any differences in the financing of oil and gas versus renewables. Data collection will need to balance sharing enough data on projects to make investors comfortable and proprietary information in a competitive market. Common Theme: Data
Banks need to figure out alternatives to traditional asset security. In many projects, there is growing trend that the energy efficiency contractor and solar contractor offers a savings/production guarantee. In order to de-risk the project, innovative risk mitigation tools via insurance exist to help provide the necessary security to lenders and help to settle their concerns. Emerging Trends