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Webinar To Address The Emerging Alternative Energy Market
Posted 02/14/08
The Foundation, known to take on the most timely industry topics, is poised to help the equipment finance industry explore one of the hottest markets today – alternative energy. On March 5, from 1:00 p.m. to 2:30 p.m. Eastern time, industry members will hear from experts already engaged in this market to help them determine if renewable energy financing is a viable market for them, understand the terms, the equipment, contractual issues, energy pricing and terminology, and learn what makes a project “finance-able,” including an explanation of the credit issues, asset performance, residual values, and regulatory issues.Michael Leichtling and Craig Kline, Partners of Troutman Sanders LLP, Paul Bent, Principal, The Alta Group, LLC, Edward Sproull Sr. Vice President of Leasing, HSH Nordbank, and David Fenig, VP, Federal Government Relations, ELFA, will be presenters.
Participants in the Webinar, titled, Renewable Energy: Determine what makes a project "financeable”?, will receive a free copy of the Foundation’s study, The Future of Financing Alternative Energy Equipment. To register, interested participants should visit http://webinars.elfaonline.org/session.php?id=1172
About the Study
The study focuses on the current size of the market, both domestically and internationally, reviews transaction structures presently being used to finance alternative energy equipment, and evaluates the long-term future of this market for equipment finance companies. It also reviews alternative energy generation and the specific conversion technologies that are most advanced and most prevalent today – electricity generated from biomass, geothermal resources, solar power, and wind power.
“The Foundation is committed to raising the equipment finance community's awareness of the important and expanding opportunities for investment in renewable and alternative energy,” said Foundation Chair Michael A. Leichtling, Troutman Sanders LLP. “Although power generation by ‘old fuels’ is projected to continue to grow moderately, companies are seeking renewable options to replace the power generated by those fuels that particularly contribute to global warming. We believe this market segment has significant growth potential and we want to encourage our members to develop appropriate financial products,” Leichtling said.
Conducted for the Foundation by the Alta Group and Dr. Gilbert E. Metcalfof the Economics Department of Tufts University, the study also analyzes Europe’s experience and recommends U.S. policies that would encourage investment in renewable energy.
A survey accompanying the finance study shows that the respondents (senior executives from commercial banks or institutional lenders; independent leasing companies; captive equipment finance companies) are active in financing all types of alternative energy assets:
- 80 percent of respondents have each invested up to $10 million in alternative energy equipment and projects
- A number of companies have invested $50 million or more in these assets
- More than 71 percent of survey respondents who have invested in alternative energy equipment said they would continue to do so
- More than 90 percent responded that their level of investment in alternative energy, relative to their overall portfolio, is most likely to increase
While the development of renewable energy sources has taken significant leaps in the U.S., investment in renewable electricity generation continues to be lag behind other countries, such as Europe. Renewable capacity in the U.S. grew by 50 percent between 1990 and 2004, but grew by 750 percent in the EU during the same period, according to the study.
Sites of Reference:
http://webinars.elfaonline.org/session.php?id=1172
http://www.leasefoundation.org/Webinars.htm#ren
