While many forms of renewable energy are steadily approaching competitive costs, financing remains a difficulty for many of these industries. OilPrice's Jen Alic suggests that the new trend toward "Green Banks" could provide a solution to the funding crunch if kept at the proper scale.
Green banks are intended as a public-private partnership similar to previous efforts like the Export-Import Bank of the United States and the Overseas Private Investment Corporation, which have successfully funneled funding into energy and infrastructure projects.
Some early attempts to create these banks, such as in the U.K., have been slowed by the ongoing sovereign debt crisis and resultant recession in the euro zone. However, examples in states like Connecticut have helped to combine private investment with existing public funds.
The Clean Energy Finance and Investment Authority is expected to issue its first loans later this year.
Meanwhile, Reuters reports that the U.K.'s long-suffering green bank is expected to begin full operation later this year, with former investor Shaun Kingsbury being announced as its head.