White House lures $4bn in renewables investments

OREANDA-NEWS. June 18, 2015. Private-sector stakeholders have committed \\$4bn in funding for renewable energy projects, the White House said today.

The pledges round out the administration's original proposal to lure \\$2bn in private money to fund early-stage renewable energy technology and commercial-scale generation projects. President Barack Obama last year called on major US banks, institutional investors, philanthropies and others to take positions in renewable holdings, including unconventional assets, like energy storage, fuel cells and micro grid projects, which are seen as inconsistent with portfolio objectives or more risky.

The funding comes mostly from institutional investors in endowments, pension funds, philanthropies and family offices, which manage investments for wealthy family trusts. Investors include the University of California, New Zealand Superannuation Fund, Alaska Permanent Fund and the newly formed CREO Syndicate.

CREO, which represents over \\$50bn in family office asset holdings, plans to invest \\$2bn in renewable energy projects over the next five years, on top of a previous effort totaling \\$1.5bn.

A consortium of institutional investors, including the University of California Regents, will combine to invest \\$1.2bn initially, with a goal of reaching \\$2.5bn in five years.

"No matter how we look at our asset allocations, companies today are bracing these new concepts in maturing renewable technologies," University of California chief investment officer Jagdeep Singh Bachher said at a White House clean energy summit today. "So it is about finding these opportunities and investing in them now."

Goldman Sachs committed \\$500mn for distributed renewable technology, including micro grids and storage. Wells Fargo bank originally committed to supplying \\$100m in grants for renewable technology incubator projects through 2020.

The US Department of Energy (DOE) will roll out a new platform to facilitate investments in renewable energy, and streamline loan programs operated by the US Small Business Administration for private funds requesting capital assistance.

DOE plans to offer \\$10mn in capital to renewable energy startups in midwestern states, with a longer-term goal of supplying \\$100mn in combined public-private funding by 2025 throughout the region.