Publications
Long-term contracting the way to renewable energy investment: lessons from Brazil applied to the United States
11th July 2013
Topic(s): Project financing, Renewables
This comment from Emory Law Journal argues that the current legal framework in the United States is inefficient in stimulating continuous investment in electricity generation from renewable resources. The start-and-stop approach created by reliance on tax incentives, a patchwork of state laws, and the inability of many power producers to secure long-term power purchase agreements fail to provide potential investors with the long-term predictability they need. An examination of Brazil’s legal framework for investment in renewable energy demonstrates that a mechanism that assures a certain return on investment over a long period of time is crucial to promote continuous investment in renewable energy projects and related industries.
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