Three articles appeared in my in-box this morning about financing of renewable energy. Coincidence? I think not…

All mock paranoia aside, we’re still in the early stages of the financial markets adjusting to the new reality brought about by the mainstreaming of global warming awareness and therefore the importance of renewable energy. This transition isn’t nearly as sexy for energy geeks as (for example) news about a higher efficiency solar cell or a new way to extra wave or tidal energy, but it’s every bit as important. Without major flows of money there’s no R&D and no deployment of all that sexy new technology, and therefore no benefit from it.

Who knows–maybe we should bring back the green eye shades for the money movers. (Green–get it?)

From REFF: Investment Trends & the Global Renewables Market:

Despite its government’s slow action on the issue of climate change, the U.S. financial community has done what it has always done so well, and that is pour money at an opportunity, i.e., the renewable energy sector. That was just one of the messages heard by the nearly 700 attendees during the 4th Annual Renewable Energy Finance Forum (REFF) Wall Street last week.

Welcoming everyone to the “great renewable technology intersection” of markets, projects and people, American Council On Renewable Energy (ACORE) President Michael Eckhart addressed an audience of financiers, corporate executives, project developers, and financial professionals during his opening remarks on the state of the renewable energy industry at New York City’s Waldorf-Astoria on Park Avenue.

The two-day event, hosted by ACORE in conjunction with Euromoney, featured sessions on financing techniques, transactions, project lending, project investing, corporate finance, venture capital and institutional investment—as well as featured industry and government speakers analyzing current and future renewable investment trend in biofuels, solar and wind.

From Global Annual Investment in Renewable Energy Hits $100 Billion:

The investment capital flowing into renewable energy technologies reached $100 billion in 2006, according to an analysis by the United Nations Environment Programme (UNEP). Of that, a record $71 billion was invested in companies and new sector opportunities, up 43% from 2005, while roughly $30 billion was due to mergers, acquisitions, leveraged buyouts, and asset refinancing. Wind power, solar energy, and biofuels are drawing most of the investments, including roughly $28 billion invested in new generating capacity. In addition, venture capital and private equity investors poured $2.3 billion into biofuels, $1.4 billion into solar energy, and $1.3 billion into wind power, mainly to increase manufacturing capacity. According to the report, renewable energy investment is nearly evenly split between the United States and Europe.

While some may be tempted to compare the renewable energy investment boom to the earlier dotcom boom, the UNEP report notes that the renewable energy boom is underpinned by real demand, growing regulatory support, the considerable backing of tangible assets, and increasing revenues. Most if not all of these factors were lacking during the dotcom boom, which ultimately became a burst bubble. See the UNEP press release (PDF 392 KB) and the full report (PDF 2.7 MB).

From Trends in Renewable Energy Finance:

Here’s an audio postcard from the Wall Street Renewable Energy Finance Forum held in New York City this past week. The forum brought together policy makers, financiers and project developers to discuss current trends and future projections for investment opportunities in the renewable energy industries. The event was hosted by Euromoney and the American Council On Renewable Energy.

The podcast is available here.