Leveling the investment playing field between fossil fuels and renewables

[kristopher]

New Legislation Could Unlock Billions Of Dollars In Wind Energy Investment
by Laura DiMugno on Thursday 07 June 2012

Opening up an investment vehicle long used in fossil-fuel markets to renewable energy resources could unlock billions of dollars in wind energy investment, according to a new report released by the Maguire Energy Institute at Southern Methodist University.

According to the study, federal tax-code restrictions currently limit investment in renewable energy infrastructure by $5 billion to $6 billion while, at the same time, prohibiting thousands of jobs from being created.

If the federal production tax credit for wind energy is not renewed beyond the end of this year, up to $15 billion in private investment could disappear. Absent support for renewables at the federal level, the market will have to find other ways to keep the industry afloat and the capital flowing.

One way to secure that investment could be through master limited partnerships (MLPs), in which regular investors are allowed to purchase shares in publicly traded partnerships just like stock shares. MLPs have been a key investment tool in the oil and gas industries since the 1980s, but they are not currently available to renewables such as wind power.

MLPs have been quite successful in the energy sector...

http://www.nawindpower.com/e107_plugins/content/content.php?content.9961

[FBaggins]

1. Worthy of a kick

Sen Coons' website has a good summary

http://www.coons.senate.gov/issues/master-limited-partnerships-parity-act

[FogerRox]

2. Incentivizing capital flow to emerging tech and markets

like solar, wind, HVDC, etc can be accomplished by different means. And its time has come.

KnR