Sub-prime credit crunch affecting energy project finance

[bananas]

http://www.platts.com/Electric%20Power/News/6720646.xml

Sub-prime credit crunch affecting energy project finance: Pace

Washington (Platts)--16Jan2008

The sub-prime credit crunch has "already been felt in energy project
finance markets and will continue to be a factor during 2008," Rutherford
Poats, an executive vice president with Fairfax, Virginia-based energy analyst
Pace said Wednesday.

Poats added that, despite significant concerns, the "credit squeeze can
be dealt with via prudent project and capital structuring and careful
selection of capital sources."

Speaking at a Pace forum in Washington, Poats said the credit crunch has
led to a "significant slowdown in energy project finance, particularly in the
power sector." This has come at the same time the power industry is looking at
adding about 120,000 MW of capacity over the next 10 years.

<snip>

[ursi]

1. if we could cut the corporate greed in America ...it's might be amazing to see

[Ganja Ninja]

2. Well then perhaps the government needs to directly fund wind &

solar project. Sounds to me like the powers that be are trying to kill renewable energy projects.

[phantom power]

3. there is no pain, you are receding -- distant ships move on the horizon

[NickB79]

4. I hate being right

A year ago, I stated in a discussion that Peak Energy would derail many renewable energy projects before they even got off the ground because it would cause our economy to go into a depression, and capital for new construction would disappear. I was promptly told not to worry, because investors have PLENTY of money to build solar panels/wind turbines/ethanol plants/whatever.

Oops.

[bananas]

5. This wasn't caused by Peak Energy, so you're wrong

HTH!

[NickB79]

6. No, it wasn't

But the effect is the same nonetheless. A recession/depression caused money available for investments into new energy sources to be reduced significantly. In this case, the recession was caused by the housing crisis/sub-prime crunch. I expect the Peak Oil depression we'll be entering will be far worse than what we are currently seeing, so it is likely that even less money will be available then.

This is just a taste of things to come.