Monday, September 15, 2008
Lehman Brothers Bankruptcy and Renewable Energy
The Lehman Brothers bankruptcy will have a massive impact on the financial markets today. I think there will be an impact in the renewable energy sector as well. While the Lehman press release says that the subsidiaries and other holdings are not included in the bankruptcy filing. I believe Lehman Brothers owns a company called Skypower that is involved in renewable electricity generation. If they have other investments they may need to be liquidated which might create some changes in the investment climate for these types of companies. Also, another source of financing may dry up as investment banks are increasingly vulnerable and are tightening credit availability. Regardless of how promising this sector looks the money may not be there and the dreams of cheap, renewable energy may be sidelined. Add falling commodity prices and global economic slowdown and the environmental focus of recent years may move to "saving the economy".