New York funds state bank to support clean energy projects
New York Governor Andrew Cuomo
New York Governor Andrew Cuomo wants to fund the bank to the tune of USD 1 billion (Governor Cuomo)
Andrew Cuomo, the governor of the U.S. state of New York, has dedicated USD 210 million in initial funding for a state bank to support renewable energy and energy efficiency projects.
Initial funding for the NY Green Bank includes USD 165 million redirected from other programs and approved by New York Public Service Commission (NYPSC), and USD 45 million from the Regional Greenhouse Gas Initiative. The NY Green Bank is expected to open for business and offer its first financial products in early 2014.
“New York’s Green Bank will target existing market barriers which currently prevent the widespread deployment of clean energy,” said New York State Chairman of Energy & Finance Richard Kauffman.
“Given these obstacles in financing, merely setting up a competitive market that offers the promise of choice offers only that: a promise unrealized if projects cannot obtain financing. The Green Bank is just one component of the State’s new chapter on energy policy that focuses on enabling self-sustaining private markets and reducing dependence on subsidies.”
New York Governor Cuomo's goal is to fund the bank to the tune of USD 1 billion, and the bank also seeks to mobilize private sector capital, in a model which is based on partnering with market intermediaries. New York State officials are quick to point out that the bank will not provide subsidies, but rather earn a return on investment for the state of New York.
This model appears similar to the U.S. Overseas Private Investment Corporation (OPIC), which loans money to international projects by U.S. companies, including renewable energy projects, and is a net contributor to the federal budget. Another related model is the U.S. Department of Energy Loan Guarantee Program, which has also provided a net return on investments, a detail rarely mentioned by the media.
NYPSC to oversee Green Bank
As part of its oversight function, NYPSC will work with the NY Green Bank to ensure financial offerings meet the investment criteria in its internal rules and will review and monitor quarterly progress reports.
The NY Green Bank is a division of the New York State Energy Research and Development Authority (NYSERDA, Albany, New York, U.S.), a public benefit corporation.
2013-12-19 | Courtesy: New York Governor Andrew Cuomo | solarserver.com © Heindl Server GmbH