Reverse the slowdown in Renewable Energy....

Today’s post: Wednesday, 4-29-2009

We need an 80% reduction in fossil fuel use by 2050 to avoid the worst global warming effects. And, practically speaking, we need to also double our electricity generation and double the useful work done per unit of electricity & other energy sources as well during that same time to have a decent economy.

At about the time of the Presidential election or slightly before that, it looked like we were on our way to a very rapid build up of renewable energy companies and construction of large scale solar electrical generation operations. Clearly doing just that is a critical path part of the solution to solve our problems just listed.

Since the need was so great, that was very good news indeed. Solar companies had contracts with utilities to build these solar “farms.” But suddenly, the banks who would have financed these projects in normal times, would not do so or could not do so due to their own fear or liquidity problems.

Some solar companies sold assets and laid off over 90 % of their employees; some changed to a business model that no longer included building large scale solar electrical generation operations; & others simply disappeared.

Now that we need these companies to exist and be hiring new people to work 3 shifts to build all the renewable energy we now know we need – AND our economy needs MORE jobs instead of less, this is a disaster times TEN !!

So, let’s ensure renewable energy projects and companies will be financed 100 % of the time instead of almost never. And let’s do it as close to immediately as we can manage!

As I’ve posted, feed-in tariffs are one solution. They make the repayment of the debt financing to build renewable energy generation of electricity projects predictable and very safe. One clean tech CEO said he knew of a boom and bust problem with Feed-in Tariffs in two locations. But the boom we need is so large and we need it so soon, I think that may be a problem to solve later or gradually as we get the needed feedback.

But for right now, we have hardly any Feed-in Tariffs in place in the United States. And, even if we begin using them it will take years to get done.

Here is a second and potentially faster way to regain or surpass the financing for renewable energy we once had.:

Ben Bernanke, the Chairman of the Board of Governors of the Federal Reserve, is reported to have asked his board members to submit ideas for ways the Federal Reserve can use its powers to add jobs right away and be listening for usable answers.

There almost certainly is a way that the Federal Reserve can back banks that make renewable energy loans and do so in a way that also gives those banks an incentive to do so.

If several of us suggest that to him and to the Governor in our own Federal Reserve district, maybe it might happen.

Dramatic increases in solar for California....

Today’s post: Wednesday, 4-1-2009

Two weeks ago, we posted “How renewable energy can reverse the recession....” on Wednesday, 3-18-2009.

In that post we described how a policy called Feed-in tariffs has incredibly positive effects that create new jobs, produce massive amounts of new renewable energy installations, & actually reduce the cost of the renewable energy by lowering the cost to finance it.

We described how Germany, with solar potential similar to British Columbia, has used it to produce half the world’s installed solar in just 15 years. (Since they also created 300,000 jobs and the United States has so much more solar potential, using the Feed-in Tariff everywhere here has the potential to create up to 6 million jobs here.)

We also note that the financing is so safe for the banks that the Feed-in tariff makes renewable energy financeable even in today’s economic conditions.

In addition, we quote a news story that Gainesville, Florida has begun to use the Feed-in tariff policy and which describes the real economic boom that this has produced there.

The reaction of many people when they really hear all about the Feed-in tariff is, “If it has been so well proven to do all these things, WHY on earth aren’t we already using it?”

There are several reasons. One is the political leaders and their key supporters and voters from their districts have to find out about it. They haven’t yet done so or have not done so in nearly enough numbers.

Then actual legislation has to be passed with the technical details included and which gets the important principles right that have made the Feed-in tariff work in place enough to have the legislation work well once enacted.

Here’s the good news. This looks to be about to happen in California. Such a detailed plan has been created and is called the REESA FIT. (FIT is an acronym for FeedInTariff.)

And, bills based on it will be introduced soon in both houses of the California legislature.

This is incredibly important news because if it is passed and signed into law, the following things all become likely.

California will build enough renewable energy capacity to meet its percentage of renewable energy goals on time.

It will create over 300,000 jobs in California.

And, it will revivify the renewable energy companies in California that have been so slammed lately by lack of normal financing. (Financing FIT projects is about as safe as investing in T Bills; and it pays better.)

But of even greater importance, every state in the United States that has somehow missed what the Feed-in tariff has done for Germany will see that it produces the benefits it provides and does so in this country. As a result, many if not most of them will also adopt it.

So, if you know any leader or politician in California, please pass on this post & our www.RenewableEnergyArrives.blogspot.com URL to them.

And, if you can only pass it on to ONE person, please do that. You never know, that one person may make a key difference it getting the FIT bill enacted in California.

Renewable Energy Financing News...

Today’s post: Weds, 6-25-2008

We’ve posted before on how individuals, small businesses, & larger companies & government & other nonprofit organizations often cannot afford to lay out the capital or startup funds for installing solar or wind generation or energy efficiency upgrades – even when they would like to do so or even cut their energy & operating costs on a monthly basis by doing so.

In our area today it was announced that a large solar power installation for the new biotech campus of UCSF in San Francisco is being financed by a national company that specializes in exactly such financing.

The company is MMA Renewable Ventures & its website is:

http://www.mmarenewableventures.com/

Here is their company overview directly from their website:

“MMA Renewable Ventures coordinates the financing, installation, and operation of renewable energy systems and energy efficiency projects. As a comprehensive power solutions provider, we partner with investors, energy project developers, and customers to design and implement innovative green energy solutions. Our mission is to deliver exceptional investment opportunities while providing competitively priced renewable energy and energy efficiency products.

As a wholly owned subsidiary of MuniMae (OTC: MMAB.PK), MMA Renewable Ventures is uniquely positioned to bring considerable investment management expertise to renewable energy projects and energy efficiency solutions. Driven by MuniMae’s mission of “Integrity, Innovation and Service,” MMA Renewable Ventures’ portfolio and pipeline of projects elevate the sustainable energy and energy conservation industries to meet the rigorous investment standards of low-income housing and other tax credit funds.

In 2006, MMA Renewable Ventures closed $39 million of solar photovoltaic (“PV”) projects, capitalized 1 MW of solar PV capacity, and provided capital for 3.5 MW of solar PV capacity in two solar investment funds. Solar Funds III and IV are scheduled to close in 2007. Our growing portfolio and pipeline include $400 million of solar projects and $900 million of wind and bioenergy projects.’

They do solar, energy efficiency, wind, & bioenergy financing. And they also do financing of desirable combinations of these.

Here are some of the customer benefits to setting up a power purchase agreement with them for a solar installation.

“Advantages of a Power Purchase Agreement

No capital outlay--projects can be cash flow positive from day one

Customer only pays for power the system generates

Predictability-- features long-term fixed energy price for term of contract
Includes option to purchase system after sixth year of operation”

That is also from their website.

Let me repeat the important one for emphasis.

“No capital outlay--projects can be cash flow positive from day one“

The bad news is that the credit crunch has somewhat restricted the funds available.

The good news is that both for social benefit reasons & expected superior returns to their investors, their parent company is giving renewable energy financing priority, favored, status as a place to invest their funds.

And, the other piece of good news is that they have offices all over the United States & one in London.

In the Western half of the US, they are in San Francisco, Irvine, & Denver.

Int the East, they are in Baltimore, Boston, Tampa, New York, Atlanta, & Washington DC.

In the Mid West, they are in Chicago, Dallas, Detroit, & St Paul.

And, the following quote from their about us section reveals they very likely have coverage through their growing list of partners almost everywhere in the United States.:

I’ve put that part in bold.

“"MMA Renewable Ventures is helping to reduce dependence on fossil fuels by directing strategic, institutional investments into renewable energy and energy efficiency projects for customers using innovative financing solutions.

What sets us apart is our business model: we finance, own and operate renewable energy systems and assets. Our in-depth understanding of innovative project financing allows us to carefully manage risks and returns. And our deep technical expertise in the technologies and operations of solar, wind and other renewable energies ensure our customer projects are led by industry leading developers.

The result? MMA Renewable Ventures can help drive significant growth in alternative energy adoption while delivering sound institutional investments.

MMA Renewable Ventures partners with project developers, contractors and suppliers throughout the country to provide flexible financing solutions that can be customized and combined to meet short and long-term needs.

A wholly owned subsidiary of MuniMae, MMA Renewable Ventures is uniquely positioned to bring considerable investment management expertise to finance clean energy projects."

In my view, this company & its efforts are some of the best news I’ve seen on energy in the last ten years.

To solve global warming, we need a huge amount of renewable energy & energy efficiency development & we need it everywhere in the United States. And we need it right away.

This company looks to be a big step in that direction.