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Posts tagged “levelized cost of energy”

By Elias Hinckley on Aug 16, 2012 with 6 responses

Introduction to Banking Energy

Welcome to “Banking Energy”. This is a new column and in it I will be writing and facilitating articles and discussions about the uniquely challenging world of finance for energy projects and technologies. The column will cover the spectrum of energy types and technologies, with some special attention paid to the challenges of financing new energy technologies and new applications of old energy sources.

The column will include some review of established aspects of energy finance, but I will focus primarily on emerging issues and how energy finance affects things like market development, project development and adoption of emerging technologies.

I plan to have regular guest contributors and co-authors who can help add relevance, expertise and context. Additionally please don’t hesitate to make suggestions for future topics.

My background (at least the relevant bits) is a mix of finance, law and policy, primarily helping companies and investors find innovative and efficient ways to put energy deals together. I currently lead the clean energy practice at a large international law firm, have held a similar role for another law firm as well as one of the Big 4 accounting firms, and have also taught international energy policy at Georgetown University.

The focus here will be energy finance, but I expect to incorporate many aspects of energy law and energy policy, for the simple reason that energy finance, energy policy, and energy law are inextricably linked. Successfully navigating energy deals requires an understanding of the intersection and intricacies of finance, law, and policy. Direct government financial supports, from tax credits for solar power, to special deductions for oil drilling, exist in some form across virtually every energy source and technology. Indirect supports also influence the competitive landscape. Whether direct or indirect, fully realizing the value of government-based economic support is vital in making project economics work for energy projects. Similarly, legal and policy issues how energy can be sold, the regulation of prices, and, of course the environmental aspects of energy production overlay every part of the industry. How these regulatory programs operate, when they apply, and how they come into and out of existence can be vital to the financial viability of a project.