Funding the California-cation of U.S. Energy


I’ve posted a couple of times about the trouble the “green” energy sector is having accessing financing for their projects. Time for an update, courtesy of today’s Wall Street Journal (subscription required) . . .

1. Credit Suisee Group plans to cut part of its carbon-trading desk, writing that ”Sluggish economic growth has taken a toll on banks’ carbon businesses, as industrial companies are dumping credits that they deem are no longer needed while some emission-reduction projects are being delayed due to lack of financing, often from Wall Street firms. Carbon prices, measured by the December 2008 European Union allowance contracts at the European Climate Exchange, fell 44% from a high of €29.33 ($37) a metric ton on July 1 to Wednesday’s €16.33.”

2. Ethanol producer VeraSun posts a $476 million loss for the 3rd quarter, more than 4 times the amount of the company’s loss prediction for the quarter.

3. From “Clean Energy Confronts Messy Reality”:Clear Skies Solar Inc. canceled plans for a 1-MW solar facility in the Mojave Desert due to the inability to attain financing, even though they had a buyer for the plant’s entire output.

  • Duke Energy reduced by half a planned $100 million solar-power project.
  • New Jersey’s largest utility is slashing up to 15% next year’s budget for capital expenditures, with as much as 40% of the cut coming from renewable energy expenditures.
  • FPL Group is cutting capital spending for wind energy by almost $1 billion, lowering by 27% the capacity of planned projects.
  • American Electric Power Co. is cutting next year’s capital spending by 23%, with over half of the cut coming from environmental spending.
  • John Eber, JP Morgan Capital Corp’s head of renewable energy investing, says that equity investment in renewable-energy projects may drop 20% this year. 


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