• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 7 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Instagram Now Banning Photos Of People At Gun Ranges, Claiming They Promote "Violence"
  • 14 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Famous Manufacturer of Anti-Ethanol Additives Proves Ethanol's Safety and Benefits
  • 13 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 20 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 20 hours Hong Kong protesters appeal to Trump for support.
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 10 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 13 hours Iran in the world market
Alt Text

Home Energy Storage Capacity Breaks Records In US

As costs for battery storage…

Alt Text

Oil Prices Must Drop Sharply To Compete With EVs

The long-term breakeven oil price needs to…

Alt Text

European Carmakers Face Perfect Storm

Much stricter emission caps, high…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Why Bank Profits are Good for Renewable Energy

Had a long flight home yesterday from South America. Lots of time to read through a pile of news on resource projects and financing.

Here's an important development that caught my eye.

Wind power developer EDP Renovaveis recently closed a $141 million financing with American bank Wells Fargo. The cash is going toward the development of EDP's Vento III wind portfolio, which holds projects in Oregon, Kansas and Iowa.

Wells' investment into Vento is a tax equity financing. Meaning the bank loan will be paid back (at least partly) with tax credits generated by EDP's wind projects.

Up until three years ago, tax equity financings were common. Renewable energy projects generate a wide range of tax credits. So project developers agreed to transfer these credits to bank sponsors in exchange for development funding.

Banks can then use the credits to offset their own profits. Helping maximize their bottom line. It's generally easy for a lending bank to model the credits coming from a particular operation, so this is a low-risk form of payback.

But then came the financial crisis. Suddenly most banks weren't making profits. And without profit, tax credits to shelter profits are useless. Tax equity financings ceased almost completely.

But developments like the EDP financing suggest that banks are once again making enough money to make tax equity attractive. Opening up one more project finance avenue for renewables.

A good shake for wind, solar, geothermal and run-of-river.

By. Dave Forest of Notela Resources




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play