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

Bioscience Conferences Held at Marylhurst

Two conferences focusing on trends and technology in bioscience, OregonBio 2014 and the Medical Electronics Symposium, will be held on the Marylhurst campus in September 2014.

Music Therapy Faculty Present at OHCA Conference

Marylhurst music therapy faculty will present a workshop at the annual Oregon Health Care Association conference in September 2014.

Calendar

See All Events

September 15, 2014 – September 17, 2014

Oregon Bio 2014 Annual Conference

Theme: An Industry Inflection Point. The event will feature internationally known guest speakers from companies such as 23andme, the Fogarty Instit...

READ MORE

September 18, 2014 – September 19, 2014

Medical Electronics Symposium

SMTA, iNEMI, MEPTEC and OregonBio have joined forces to host this year’s international symposium, which will focus on advances in electronic tech...

READ MORE

September 23, 2014

Information Session: Professional Development Center - Mini-MBA Program

Join us for our fall information session to learn more about our new business seminars and Mini-MBA program. 20% discount off ALL professional dev...

READ MORE

GIVE

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

DONATE NOW

©2013 Marylhurst University