• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 3 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day Iran Captures British Tanker sailing through Straits of Hormuz
  • 19 hours Renewables provided only about 4% of total global energy needs in 2018
  • 10 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 2 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Today in Energy
  • 2 days Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 hours Shale Oil will it self destruct?
  • 24 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 6 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 5 hours N.Y. Governor Signs Climate Bill
  • 2 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 3 days LA Solar Power/Storage Contract
  • 3 days Why Natural Gas is Natural
Alt Text

India’s Solution To A 100% Surge In Energy Demand

India’s increasing hunger for energy…

Alt Text

What’s Behind The Drop In Renewable Spending?

Renewable spending is dwindling across…

Alt Text

Electric Vehicle Sales Are Exploding In Europe

European electric vehicle sales are…

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