Petition of New York State Energy Research and Development Authority
to Provide Initial Capitalization for the New York Green Bank
About the Initiative:
In January 2013, Governor Cuomo called for the establishment of a $1 billion New York Green Bank to mobilize private sector capital to finance the transition to a more cost-effective, resilient, and clean energy system. The Green Bank would accelerate the deployment of clean energy through a variety of financing tools targeted at alleviating financial market barriers and harnessing capital markets.
The primary socioeconomic objectives of the proposed Green Bank are to:
- · Increase the amount of clean energy deployed for every dollar of state money spent;
· Spur economic development and clean energy jobs across the state;
· Leverage private sector capital to develop sustainable clean energy financing markets; and
· Animate capital markets so as to reduce the cost of capital and the need for government support.
Market barriers vary across different technologies and real estate sectors, but there are a number of financing issues that are constraining private capital in the clean energy sector as a whole. The Green Bank would operate on a wholesale level, partnering with intermediaries to alleviate market barriers.
In order to address these barriers, the Green Bank would follow several important operating principles:
- · By providing credit support and/or aggregation mechanisms designed to scale clean energy generation and energy efficiency projects, the Green Bank would enhance total market participation.
· The Green Bank would partner, rather than compete, with market intermediaries — such as project developers, energy service companies, or financial institutions — that are already making progress in the market, but where that progress is constrained by the lack of availability of reasonably priced financing.
· It would look to leverage both the capital and institutional capabilities of its private sector partners.
· The Green Bank would reduce the need for direct subsidies by earning a return on investments to preserve and grow its capital base, recycling that capital into new clean energy projects when its initial investments mature, ultimately creating a fully self-sustaining $1B support system for the clean energy finance market.
The long-term objective of the proposed Green Bank is to provide a bridge to a sustainable and efficient private sector clean energy financing market. Throughout all of its activities, the Green Bank would also collect and disseminate project and loan data, thereby improving investor confidence.
How to Submit Comments and Participate:
The New York State Public Service Commission is actively seeking and encouraging public comments on the New York Green Bank.
Initial comments should be submitted by October 28, 2013 and replies to those comments by November 12, 2013.
You can submit a public comment by filling out the comment form.
Active parties and stakeholders should submit comments electronically to firstname.lastname@example.org.
Information and instructions related to becoming a party, subscribing to the service list, or otherwise monitoring the status of any of these proceedings can found on the Commission’s Web site.
A New York Green Bank technical conference will be held between 3:00 P.M. and 5:00 P.M., on Tuesday, October 15, 2013, at the New York State Department of Public Service’s Albany Offices, 19th floor, 3 Empire State Plaza. The purpose of the technical conference is to review and receive comments on NYSERDA’s petition seeking funding for the New York Green Bank. To view the webcast of the technical conference, go to: http://220.127.116.11 , and click on "DPS Greenbank."
Related Documents & Resources:
Documents and public comments submitted as part of the New York Green Bank proceeding are publicly available.
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