Friday, May 01, 2009

Financing obstacle to renewable energy becoming next green bubble

NPR aired a story this morning covering the potential for renewable energy to be the next investment bubble.

According to NPR, "credit is a problem right now for renewable energy developers" and is one obstacle to there being a "green bubble" in the near future. However, the story suggestions that "legislation that would limit greenhouse gas emissions and then turn them into a commodity that can be traded . . .[s]uch a cap-and-trade system might be the seed for creating the credit necessary to get a renewable energy bubble going . . .Some think the investment banks will get into the cap-and-trade business and figure out a way to use that market to create securities that can then be the foundation for an asset price inflation." We will see.

The NPR www site also has some excellent interactive maps worth a look that depict existing and possible future locations for power grid connections, along with wind and solar power capacity.

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