Top engineering, procurement and construction firms gathered to network, learn and do business with corporate-level project developers at the PGI Financial Forum, one of four co-located events that took place in Orlando, Fla. earlier this month. Richard Kauffman, Senior Advisor to the Secretary of the U.S. Department of Energy, gave the keynote address during a luncheon that took place during the conference.

During the luncheon, Kauffman explained to the 100 attendees that as someone who originated from the private sector, in his DOE role he is trying to understand where market forces can be harnessed in order to unleash the flood of investment that is needed to bring about large renewable energy projects.

Kauffman explained what he sees as a disconnect between returns in renewable energy projects compared to returns in other investments.  On the one hand, today, renewable energy projects are financed in what he called an “old-fashioned, archaic way” where for the most part, projects rely on private sector money that is looking for high rates of returns, typically around 12-14 percent.  On the other hand, money managers, wary of the stock market and its risks, have returned to the bond markets, which offer more steady (but lower) rates of return, in the 5 or 6 percent range.

via Renewable Energy REITs or MLPs Would Unlock Billions for Project Development | Renewable Energy News Article.