Abstract
The development of renewable powerprojects can be hindered by many things. Cost,public opposition, and lack of consumer un-derstanding about the effects of different power generation technologiesare just a few. A lesser known restraint, however, is the scarcity of fi-nancing options available for the development of renewable generation.Prior to deregulation, power plants were built according to needand utilities had a captive customer base and were able to charge aregulated rate for electricity. Lending institutions offered reasonable in-terest rates because there was strong assurance that the investmentwould be recouped. The market is still principally supplied by facilitiesthat were built with the guarantee that utilities would purchase thepower. In a competitive market, however, no such guarantees exist forthose building new generation facilities. Absent customer choice, themajority of power producers will construct generating capacity onlyunder favorable financing terms. Green power is still a niche market andgenerally available at premium prices which limits the number of cus-tomers a marketer might acquire
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