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

Morgan Gary Launches Sustainable Laundromat

Morgan Gary's capstone project for her MBA in Sustainable Business evolved into Spin Laundry Lounge, turning her vision of a community-oriented, sustainably focused laundromat into a reality.

Luis De Vore Introduces Responsibly-Sourced Produce

Luis De Vore, MBA in Sustainable Business alum, announced the launch of Feliz, a new product line of "responsibly-sourced" produce from Procacci Bros., in October 2014.

Calendar

See All Events

October 22, 2014

Lean Boot Camp

This intensive 3-day course (10/22, 10/23, 10/24) guides you through a structured learning and personal development process for driving lean princi...

READ MORE

October 22, 2014

Solutions Group Mediation Praxis

A mediation practice. Learn about conflict resolution, negotiation and mediation. No experience required. Participate or observe. Open to all. Held...

READ MORE

October 24, 2014 – October 26, 2014

Alumni Reunion 2014

Save the date for 2014 Marylhurst Alumni Reunion. For more information, contact Kelly Ann Chee, Office of Alumni Relations, at 503.534.4059 or alu...

READ MORE

GIVE

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

DONATE NOW

©2013 Marylhurst University