Credit-wary investors put green projects in red

Due to the distressed financial market conditions, the flow of equity and debt investment into renewable energy projects has been disrupted since the fourth quarter of 2008.

In the US, major changes in federal legislation have also had add-on effects on renewable energy financing.

According to US Department of Energy's National Renewable Energy Laboratory (NREL), tax credit incentives that had been a principal driver of investment in renewable energy projects, have become largely ineffective in the current economic climate.

Reduced corporate tax liabilities have sharply diminished the amount of tax-related investment funnelled to renewable energy projects by traditional "tax equity" investors, including large investment banks, commercial banks and insurance companies.

http://www.business24-7.ae/Articles/2009/8/Pages/30082009/08312009_ec495d6a0a0745eda49804969d9665c9.aspx