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Clean Energy Investment Predicted to be Steady in 2012

February 24, 2012, 07:30 AM
Filed Under: Energy

Clean Edge recently published Cascadia Capital’s 2012 predictions for the clean energy industry. According to the article Cascadia Capital’s Co-Founder, Michael Butler believes that upcoming political and economic debates will drive increasing interest throughout the sustainable industries in 2012.
The article notes that the state of the renewable project financing market is in turmoil and  many European banks are pulling out of the U.S. project finance market for renewable energy products, which will likely result in an overall downturn in financial activity across the sector.

However, the report also states that Cascadia Capital expects that this void in European investments will be filled by US regional banks along with private placements/144A financing throughout the next year. These investments will likely come from insurance companies as well as various U.S. banks such as Union Bank, Wells Fargo, and Key Bank. Furthermore, tax-exempt bonds are increasingly being used to fund qualifying projects.

Additionally, the article notes that solar will continue to dominate the renewable energy industry. As the cost curve of panels continues downward, Cascadia Capital predicts the growth of solar will continue to accelerate and reach price parity with traditional energy sources in certain geographic regions such as California and areas in the Southwestern United States.
Despite some uncertainty in the market, Butler believes renewable energy project financing will remain steady in 2012 due to investment from alternative sources.

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