How Green Banks Can Meet U.S. Total Clean Energy Investment Needs in 6 Years

Reed Hundt, CEO, Coalition for Green Capital

Climate Change Implementation Project Workshop November 19, 2015

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This is easy, $200B per year for 20 years pays for clean power platform

Source: Robert Pollin, Heidi Garrett-Pelitier, James Heintz, and Bracken Hendricks, “Green Growth – A U.S. Program for Controlling Climate Change and Expanding Job Opportunities,” Center for American Progress and Political Economy Research Center at UMass Amherst, September 2014.

Required Annual U.S. Clean En-ergy Investment Over 20 Year

Period (Bn)

Center for American Progress: $200 billion of annual

investment for 20 years will reduce U.S.

CO2 Emissions by 40%

Renewables $107

Efficiency $88

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014$0.00

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Cost to Consumer Subsidy Installed Capacity

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CGB launched

Connecticut Green Bank launches solar market, even with falling subsidies

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Connecticut Green Bank achieves in 1 year what previously took 10 years

FY 2000 – FY 2011(CCEF)

FY 2012 – FY 2014(CGB)

FY 2015(CGB)

Model Subsidy Financing Financing

Years 11 3 1

Energy (MW) 43.1 65.3 62.6

Investment ($MM) $350 $350 $365

Leverage Ratio 1:1 5:1 5-10:1

Investment % Loans

9% 57% 77%

Connecticut Grant-Making Authority versus Connecticut Green Bank

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In one year, the Connecticut Green Bank was responsible for a lot of clean energy market growth

$365 Million in Clean Energy

Investment

79 MW of Clean Energy

Capacity

700,000 MMBTUs in

Annual Efficiency Savings

In FY15, the Connecticut Green Bank yielded:

For FY16, these figures are projected to grow by >75%

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If every state in the U.S. had a green bank, with same growth rate and public-private leverage ratio

>$200 Billion in Clean Energy

Investment

>100 GW of Clean Energy

Capacity

>1000 Trillion BTUs in Annual

Efficiency Savings

In 5 years, a Green Bank in every state in America would yield:

This would provide the needed level of investment in the U.S.

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Clean energy investment in CT has grown from $15M to $365M in 3 years with Green Bank

$15M

$365M

Exp $670M

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Extrapolated to the Country, US would hit $200B target in 2018 if all had Green banks in 2012

$206M in ‘18

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How CT GB Extrapolation Gets to US target investment

• CT Green Bank generated $365M in clean energy investment in ‘15, and will grow to $670M in ‘16

• On a per capita basis, that is equivalent to $33B total investment across the US in ‘15, $61B in ‘16

• At that growth rate, US would surpass $200B in total clean energy investment in 2018

• If all states created a green bank today, $200B in total investment could be reached by 2022

Thank You

Comments and Questions:Reed Hundt, CEO Reed