As his impressive resume shows, Peter Mara has been involved in multiple wind energy programs and projects on a small and large scale. A lot of what helps Mr. Mara and others make these wind projects a reality, is coming up with the proper financing. The United States wind industry in particular, relies heavily on project financing in order to pay for new projects. This is not unique to wind power however, as the other energy sectors experience a similar phenomenon. Typically, wind projects recruit two types of investments, tax equity, and project debt.

Tax equity is a kind of investing that is common in renewable energy, housing, and film-making sectors. That means that many of the projects revolving around these sectors received federal tax credits of one kind or another in order to help them obtain private capital from investors. This works because the investors often owe large sums of money to the federal government in taxes, but the government allows them to instead, invest that money through tax equity for programs such as wind power initiatives. This is usually much more attractive to the investor than simply handing over the money to the federal government. Tax equity investors typically evaluate the project with a projection of cash flows and expected output in order to generate production tax credits (PTCs).

Project debt is another investing method that tends to take place closer to the completion of construction. However, it can be coordinated with some financial savvy with construction lending in order to pay for the contractor for the project. The advantage of this is that a project finance manager can get upfront capital in order to complete the project, instead of receiving the money after the project is nearly completed. Project loans are acquired through various lenders, and are subject to a similar prescreening process as tax equity. Both are utilized in wind power projects in order to maintain a healthy cash flow to complete a large-scale project.

Peter Mara uses his substantial knowledge of finance in order to help acquire the funding necessary to complete a wind power project. Wind power finance is a vital step to the renewable energy movement.

Source(s): http://www.awea.org/Issues/Content.aspx?ItemNumber=5258&navItemNumber=708

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