Renewable Energy | June 20, 2008 |
Help Wanted: Friendly President, Generous Creditors
Experts at the Renewable Energy Finance Forum have outlined key factors that are necessary to see green energy really proliferate. Not surprisingly, they include a stable, encouraging regulatory environment, standardized manufacturing processes and cash... lots of cash. Market forces, the finance experts say, are prime for green industry growth, and indeed, the industry has been growing. We have all seen proof of that in the last two years. However, for long-term permanence, financiers point to policy issues over any other influencing factor.Credit crunch: Renewable deals that rely on debt-equity or lease-back models to finance their projects got pulled into the mortgage pit of doom with everybody else and are only beginning to recover.
Tax incentives short term: Key tax incentives, like the one floundering in the Senate right now, really have to be renewed to encourage investment. Understandably, people don’t want to invest if they're afraid the tax rug will be yanked right out from under them. Andy Karsner, assistant secretary of energy efficiency and renewable energy at the Department of Energy asked at the Forum, "Where would we have been without erratic policy? We must end the yo-yo...and hold Congress to account."
Standardized distribution, manufacturing: Clean tech has to move from a band of thousands of rogue engineers to products that can be distributed in the mainstream. Yet all green energy sectors are having issues with getting the production scale, procedures and infrastructure to actual deliver their products to mainstream venues.
Cash: There needs to be about four times the current level of investment to get enough greentech going on to meet climate and fuel needs to replace fossil. With enough of the green stuff wisely spent, renewables can be brought up to where they need to be in order to give fossil fuels a run for their, well... money.
Greentech, cleantech and green energy have come a long way, baby. However, most of us are still not driving around with alternative fuel in our tanks. On the contrary, we’re forking out $5.00 per gallon. Aside from the policy issues mentioned, fossil industries themselves are backed by an intimidating political machine that, trapped in a vicious cycle, we help power.


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