Would you find direct state funding of such initiatives, either through a state-owned bank where you would do the same work, or through some other financing mechanism, objectionable? Nil aon leigheas ar an ngra ach posadh
Barring that, public support via (i) feed-in tariffs and (ii) consistent and stable permitting procedures are enough, in nomal times, for the industry.
In today's market, if funding is still an issue, then a public entity to provide funding to banks (which would keep project risk) would certainly help and would be very simple to set up - that entity would simply take bank risk (which we're doing by the shitload already anyway) and the banks could continue their business or wind risk assessment normally. In the long run, we're all dead. John Maynard Keynes
A large Utility like EDF, or a Government agency charged with promoting wind power would be just as capable of taking on project risk - seeing the state is proving the funding in any case - so why not just cut out the banks who are acting as little more than (a poorly funded) insurance company in this case.
Unless you are arguing that Banks have some specialist consultancy expertise in project evaluation that no one else has or can develop, what use is a bank as a bank if it doesn't provide capital? notes from no w here
Unless you are arguing that Banks have some specialist consultancy expertise in project evaluation that no one else has or can develop, what use is a bank as a bank if it doesn't provide capital?
Correct.
J would not need to work for a bank to bring his unique knowledge and experience to bear. In fact, he'd probably make a lot more as a metaconsultant. But it's not exactly a secure existence...
I find the project structure most interesting for the potential it will have for refinancing once built.
I've been doing some really interesting stuff re Iran and Ecuador (in the context of a South American clearing system - Chavez's Banco del Sur concept, and the recent Ecuador debt default).
In the case of Aruba they could unitise both oil production and electricity production.
Refinancing with unitised oil production (ie selling forward units redeemable in oil or the energy equivalent) gives them an interest free loan.
Unitising and selling the electricity forward gives them a domestic pool of investment capacity, and the beginnings of an "Energy Pool" "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
then bank finance plays a useful role
But bank finance is the one thing you are currently unable to provide? I presume this is a momentary blip while the Bank works out a new strategy for its core business - but were the Bank to decide that it will in future also no longer provide such finance, I suggest your skills would be better employed by EDF or some Government agency promoting wind power - or a Bank which will provide such finance.
Once banks cease to provide such finance there is no reason why anyone would go to them for any expertise whatsoever. Why not work directly with Government agencies or banks which DO provide finance and with specialist technical/implementation consultancies which can estimate risks and quantify returns on investment. The project management/risk mitigation role effectively follows the money... notes from no w here
