List of Current Renewable Energy Hurdles – 2009

1. Low margins and high capital costs (nature of the investment means that costs must be amortized over a long period of time, increasing all other risks)
2. Low operating costs (creating tax disadvantages vs. fossil fuel generation)
3. Technology risk premiums (unproven technologies such as biomass gasification, cellulosic ethanol and new advanced wind turbines)
4. Market risk premiums (uncertainty of resource availability and continued policy support)
5. Reduced capacity payments ability to sell into the spot market (due to intermittency of resource or unreliability of plant operation)
6. Inconsistent regulation in the form of subsidies and tax credits make renewable power a risky investment