Cuomo Kick Off Plan to Spur Clean Energy Sector

ALBANY-Gov. Andrew Cuomo on Tuesday launched the first phase of his $1-billion New York Green Bank initiative via a New York State Energy Research and Development Authority petition to use approximately $165 million in uncommitted funds for the Green Bank's initial capitalization. Once approved by the state's Public Service Commission, the petition will allow the bank to leverage private sector financing for clean energy projects statewide.

 “Through the New York Green Bank, we will leverage public dollars to attract private sector investment into building a new clean energy economy that will help make our state greener and create jobs,” Cuomo says. “With this initiative, we will promote job growth and business development, improve resiliency and air quality, and lower costs for consumers while providing them with greater choices and value for their money.”

The Green Bank is anticipated to open for business and offer its initial financial products in early 2014. Cuomo introduced the Green Bank initiative in his 2013 State of the State address, touting it as the financial engine that will mobilize private investment to build a more cost-effective, resilient and clean energy system in the Empire State.

The Green Bank will partner with private sector lenders by providing financial products such as credit enhancement, loan loss reserves and loan bundling to support securitization and build secondary markets. When fully capitalized, it's expected to have a $1-billion balance sheet.

Preliminary models suggest that over a five-year period, the Green Bank could at least double the amount of private capital available to grow clean energy markets,and that it has the potential to deliver nearly 10 times more private capital into the current system over a 20-year period. Its ultimate goal is to enable a stand-alone, dependable private sector financing market that no longer needs government support.