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Summary
Workshop
Resulting Action

Summary

From Innovation to Infrastructure: Funding First Commercial Clean Energy Projects

Author: Eliot Jamison

Many emerging clean energy companies risk falling into the chasm between traditional venture capital and commercial debt project financing. Equity investment combined with government grants and other nondilutive funding sources can fund a clean energy technology company to the point of initial pilot projects and reference demonstrations at a small scale. Yet, in order to compete in RPS auctions or meaningfully impact the fuels marketplace, companies must be able to rapidly structure and execute deployments at the utility or refinery scale. For many promising clean energy technologies and project development companies, the struggle to find a source of project finance for early commercial-scale projects will prove to be the proverbial valley of death. Is there a role for government or public/private partnerships—perhaps as a lender, loan guarantor or insurer of large-scale clean energy first projects?

Workshop

From Innovation to Infrastructure: Funding First Commercial Clean Energy Projects - CalCEF

CalCEF—along with Clean Energy Group, New Energy Finance and Perkins Coie—hosted a focused discussion on the topic of “Improving Access to Capital for ‘First Commercial’ Clean Energy Projects” at the Energy Foundation on November 4, 2009. It was well attended by over 35 key industry participants who are committed to solving this challenge. Our aim was to develop and support the implementation of potential policy and financial solutions that treat this financing gap.

Resulting Action

From Innovation to Infrastructure: Funding First Commercial Clean Energy Projects - CalCEF

  • State “Emerging Renewables” Programs: collaborating with California state regulators to create a package of policies that support the scale-up of new or emerging renewable energy technologies.
  • Support Development of New Insurance Products: working with a group of private insurance underwriters and brokers to apply novel and existing insurance products in this field.
  • Advocate for Flexibility in Proposed CEDA: supporting federal authorization and funding to create a clean energy deployment administration with detail regarding a full range of tools, products and authorities.