Improving the Forward Curve for Green Power

The development of renewable energy resources in the U.S. is constrained by a difficulty in obtaining project financing. The growth of the markets for the green attributes of renewable energy (RECs) provides a built-in solution. But, the market must first develop a forward curve to give project developers and the financial community the certainty in cash flows necessary to get additional renewable power resources online.
As renewable energy project developers know full well, financial institutions demand certainty. Financial resources for traditional power projects are conditioned on the existence of long-term power purchase agreements (PPAs). But due to the cost of doing business renewable energy project developers are asked to demonstrate long-term commitments for the purchase of not only the electricity, but also the RECs.

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