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Financing for green building projects may be easier to get from smaller banks who are competing with other smaller banks

Bank of America says it has decided to start factoring a cost of carbon-dioxide emissions into its decisions about whether to underwrite debt for new coal-fired plants. Specifically, the bank says it anticipates a federal cap that would require a utility to pay between $20 and $40 for every ton of CO2 its power plants emit. Today in Europe, which already has imposed caps, a permit to emit a ton of CO2 is trading at about $29. Bank of America’s announcement comes a week after three other big banks – Citigroup, J.P. Morgan and Morgan Stanley – announced their own “Carbon Principles” – voluntary standards those banks say will make them less likely to underwrite financing on conventional coal-fired power plants.

Xcel Energy, (NYSE: XEL)in partnership with the University of Minnesota, the National Renewable Energy Laboratory and the Great Plains Institute, will soon begin testing a one-megawatt sodium-sulfur battery storage system to demonstrate its ability to store wind energy and dispatch it to the electricity grid when needed.

After safety, the longevity of the batteries in a plug-in hybrid is the greatest unknown. Can a plug-in hybrid’s battery pack retain the bulk of its energy capacity over 10 years of daily use and more than 4000 full-discharge cycles? (For a deeper look at the challenges facing plug-in hybrid batteries, see “Lithium Batteries Take to the Road”.)[ LINK: http://www.spectrum.ieee.org/sep07/5490 ] As Don Hillebrand of Argonne National Laboratory, in Illinois, said tartly, “Batteries are the showstopper.” Periodic demands from the grid, even for only a small fraction of the battery’s stored energy, would clearly affect the cells’ life span—but no one has data on how much. Another open issue is the development of creative financing models for replacement battery packs costing several thousand U.S. dollars even after mass production is achieved. Third-party battery leasing could be one answer, if combined with a secondary market for batteries whose performance has fallen below automotive levels. Carmakers, electric utilities, and large consumer-financing groups are quietly batting around these notions to see if they can build a financial model that makes sense for all three parties.

it must be developed fairly quickly and a central question is how it should be financed."

"We must ensure that the growth trend in wind energy continues,"