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

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.

Zach Henkin Featured on Go Star Energy

Zach Henkin, MBA alum and program manager at Drive Oregon, talked about the benefits of electronic vehicles as the featured guest on a Go Star Energy podcast in July 2014.

Calendar

See All Events

August 22, 2014

Krebsic Orkestar

This 14-piece brass band plays loud, fast, danceable Balkan beats. You are encouraged to bring a blanket, beach or lawn chair and a picnic dinner...

READ MORE

August 23, 2014

Viva Vivaldi

Featuring Peter Zisa, guitar; Jonathan Hwang, violin; Tristan Roland & Ivan Caluya, cello. Bring a blanket, beach or lawn chair and a picnic dinne...

READ MORE

August 24, 2014

Three-Leg Torso performs

Portland's unique high-octane chamber ensemble performs original compositions and traditional favorites from around the globe at Marylhurst's outdo...

READ MORE

GIVE

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

DONATE NOW

©2013 Marylhurst University