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

Natalie Serber Featured in New York Times

Natalie Serber, English faculty, published a review of Eliza Robertson's Wallflowers in The New York Times' Book Review section in October 2014.

Library Survey Results Published

Shoen Library has published the findings from a service satisfaction survey conducted in late 2013 through an in-kind grant enabling the use of a standardized LibQual+ survey instrument.

Calendar

See All Events

October 20, 2014 – December 12, 2014

Mayer Gallery: Josh Gross & Kate Simmons

Artwork of two BFA graduates from Marylhurst: The graphic work of Josh Gross and the sculptural work of Kate Simmons. The show will be on display i...

READ MORE

November 01, 2014 – December 14, 2014

Streff Gallery: Diane Flack, Inkworks V

Just in time for the holidays, Diane Flack is selling block prints, acrylics, blank books, calligraphy, handmade cards and artist books which are p...

READ MORE

November 22, 2014

Marylhurst Department of Music Presents: TESTAMENT OF FREEDOM

Marylhurst Choirs perform Randall Thompson's rousing patriotic masterpiece, a setting of the writings of Thomas Jefferson for large chorus and wind...

READ MORE

GIVE

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

DONATE NOW

©2013 Marylhurst University