Marylhurst University

Skip to content »

Guest Column: Leaps and Bonds

Excerpt from a guest column by John Cusack on SustainableIndustries.com, April 2012. Marylhurst University is a sponsor.

Sustainable energy projects are growing by leaps and bounds for several reasons. First, a number of countries and states have set strict goals for the future share of energy from renewable sources, typically around 20% in many US states, and up to a goal of 100% renewable energy in countries like Denmark. The question that arises is how do you finance these projects, especially when in some parts of the world fossil fuels are still very price effective due to direct and indirect government subsidies and credits, and when the financial markets still perceive these projects as "risky" investments.

One of the ways the financial world is looking to finance sustainable energy is through moving from an equity-based investment model to a "green bonds" debt model. Why is this happening? Sustainable energy projects tend to be capital intensive, but with low operating costs and zero fuel cost risks. However, once the projects are up and running, the permitting and development risks end and these new projects start producing long-term consistent positive cash flows. The private equity owners are then looking to re-finance the operating wind and solar energy farms by selling "green" bonds with fixed returns to replace their equity capital, and then reinvesting that equity capital in more new wind and solar energy project development efforts.

Of course, the most efficient form of renewable energy is energy efficiency, and innovative ways of financing this form of sustainable energy are also emerging.

Read the Full Article on SustainableIndustries.com

Related News

See All News

Sunny Liston Published in Critical Thinking Journal

Dr. Sunny Liston, business faculty, is the lead author of Smart and Micro-Grid Applications for Commercial Buildings: Economic and Environmental Considerations, an article to be published in the June 2016 issue of Franklin Publishing Company's Feature Edition Journal: Critical Thinking Series.

Anna Marie Spindler Speaks on Humanitarian Issues

MBA alum Anna Marie Spindler will give a talk titled One Woman's Humanitarian Experiences at the Columbia Center for the Arts in Hood River on May 25, 2016.

Calendar

See All Events

May 25, 2016

Science Lab Wednesday: Fire & Flame

Join us on select Wednesdays, anytime between 12 noon and 3 pm, for a demonstration in the science lab. On every Science Wednesday we will also h...

READ MORE

May 25, 2016

Jazz Ensemble: Bend Tour Gig

The Marylhurst Jazz Ensemble hits the road, traveling to Bend and Sisters in May 2016. Come hear them perform at The Lot.

READ MORE

May 26, 2016

Jazz Ensemble: Bend Tour Gig

The Marylhurst Jazz Ensemble hits the road, traveling to Bend and Sisters in May 2016. Come hear them perform at Crux Fermantation Project. Time TBD.

READ MORE

GIVE

Support Marylhurst University. Gifts of all sizes make a difference!

DONATE NOW

© Marylhurst University