Einowski Sees Growing Investor Confidence in Wind Energy Industry
Stoel Rives attorney Ed Einowski was recently interviewed by Graham Jesmer of Renewable Energy World.com on wind energy financing models and investor confidence. Traditionally, wind project finance was based on monetizing federal production tax credits (PTCs) via large institutional investors. With the onset of the global financial crisis last fall, this market underwent a dramatic contraction, with the number of major investors in PTCs shrinking from 24 to as little as 4.
There are now signs that investor confidence is turning around, according to Einowski. In particular, the U.S. economic stimulus package has played a significant role in building confidence, with the creation of additional financing models focused on investment tax credits (ITCs) and federal cash grants in lieu of PTCs. Einowski said these options create additional investment flexibility from a tax planning and project type perspective, and predicted that additional federal legislation on carbon trading and a renewable portfolio standard (RPS) will help advance wind energy investment even further.
Watch the video interview
"Wind Energy Finance Picture Remains Unclear" was posted by Renewable Energy World.com, May 8, 2009.