Posts tagged “wind”
The biggest constraint to renewable energy growth in the US is the availability of tax equity to support project investment. There is not nearly as much tax equity investment as is needed to support financing and building all of the renewable energy projects in development – as a result the pace of project financing and construction is being severely constrained. Many new investors will begin to enter this tax equity investment space in pursuit of outsized returns with virtually no risk created by a significantly undersupplied investment market. These new tax investors will usher in a period of unprecedented growth in the construction of renewable energy projects.
The Strange Market of Tax Equity Investing
Investment in renewable energy comes from three sources. (1) Project Equity –the investment that actually owns the clean energy facility, this includes the risk of operation and the long-term value of the asset, and there are plenty of investors willing to participate as part of (or all of) this investment. (2) Debt – this is generally traditional project equity lending, and as with project equity there are plenty of lenders – big banks, small banks, private debt funds – ready to lend to all kinds of renewable energy projects. For these traditional sources of project financing project risks are increasingly well understood and, provided there is enough project revenue to cover debt repayment, this money is readily available. (3) Tax Equity – this third, and vital source of capital are investments made in the project that will be repaid primarily through tax credits and other tax savings to the tax equity investor. There simply is not currently enough tax equity to support the pace of growth in renewable power development in the U.S. CONTINUE»
What’s with the green parrots you may be asking? A parrot repeats what it hears without understanding what it’s saying. And by “green” I’m referring to people who, like myself, consider themselves to be environmentalists (whatever exactly that means). To the left of the green parrots is a screenshot of the “shares” from a guest post on the Clean Technica website, which has at least 99 parrots sitting on their wire.
It all started when an apparent shale gas enthusiast (Nick Grealy) wrote a 1,100 word article at his blog about the use of shale gas in France which contained the following rather cryptic throwaway sentence:
French nuclear exports help Germany, the UK, Italy and Spain accelerate their renewable uptake.
The argument goes something like this:
Real environmentalist: “We should not allow the destruction of orangutan habitat for palm oil biodiesel!”
Apologist: “In fact by displacing fossil fuels, palm oil biodiesel is helping orangutans, as well as everything else that is alive on the planet! Orangutans are at serious risk due to climate change. Some primate species are forecast to to lose more than 95% of their current ranges!” CONTINUE»
Who could have dreamed solving climate change would be so easy? A new paper in Environmental Research Letters called “Greenhouse gases, climate change and the transition from coal to low-carbon electricity” concludes that replacement of all of the world’s currently operating coal-fired power plants — which produce about 40% of the world’s electricity — and replacing them with renewable energy would have an impact of 0.2 degrees Celsius 100 years from now.
Cherry-Picking Conclusions According to One’s Viewpoint
However, a number of climate change websites took away a very different message than I took away from the paper. Here is Joe Romm’s view:
I seem to recall another “bombshell” that he recently reported upon on the same theme: Natural Gas Bombshell: Switching From Coal to Gas Increases Warming for Decades, Has Minimal Benefit Even in 2100. I debunked that by showing that in that particular study, every possible alternative — including wind power, solar power, and even simply shutting down all of the coal plants — was projected to increase global warming in the short term: BOMBSHELL: Solar and Wind Power Would Speed Up, Not Reduce, Global Warming.
But Joe is back with the hyperbolic titles and exaggerations (which I get into below), and he missed the biggest story in the paper.
Britain has 2,906 wind turbines spread over 264 sites with a further 7,000 turbines planned for the next 12 years.
The wind farms, to be built between 2011 and 2017, will eventually add 1,500 megawatts of capacity to Romania’s energy grid.
A study suggests that by 2030, more jobs will be available in the energy field if governments make the switch to renewables. If they stick to coal, the number of jobs will drop by half a million.