Changing a historical perspective
It is well known that risks profiles shape the cost of capital for energy projects. Equity and lending institutions that invest in independent power believe renewable energy projects generally carry greater risks than conventional gas, oil, or coal-fired facilities. Consequently, developers of renewable energy -including wind, geothermal, hydropower, solar, or biomass- often pay premium prices for development capital and face contractual restrictions that developers of the more conventional resources do not encounter. Earlier this year, a focus group was conducted in conjunction with a series of interviews with investors, lenders, and investment bankers which revealed that unfavorable institutional memories and a lack of good information lead to this restricted, higher cost financing.
- OSTI ID:
- 28592
- Journal Information:
- Independent Energy, Journal Name: Independent Energy Journal Issue: 7 Vol. 24; ISSN 1043-7320; ISSN IDPEEW
- Country of Publication:
- United States
- Language:
- English
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