The global credit crisis is having a major impact on the renewable
energy sector, and the worst may be yet to come, according to some
executives.
One senior banker at a renewable energy finance conference in
London said the sector will experience a $29 billion shortfall in debt
finance by 2020, according to a Reuters report.
Andrew Marsden, managing director for Europe at GE Capital said
recent events, which include the bankruptcy filing yesterday by Lehman
Brothers (NYSE: LEH) are "the worst liquidity crisis in recent memory,"
as banks have tightened long-term lending practices in response to the
threat of increasing loan defaults.
However, Marsden said money is still available through private equity.
In order to make up the funding gap, the renewable energy sector
will need to pusue funding from pension funds or re-allocated captial
from other areas of bank finance, according to Tanja Cuppen, a
renewable investing executive at Rabobank
Read the full Reuters report.
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