Public Finance


By: Lucosky Brookman


In the era of escalating climate concerns, the shift toward renewable energy has become a priority for many governments and communities. As a public finance attorney with a specialized focus on infrastructure and energy, I've had the opportunity to witness and participate in the evolution of financing mechanisms used to fund renewable energy projects. This article explores the legal challenges and opportunities in funding such projects through public finance.

The Growing Demand for Renewable Energy

The demand for renewable energy – energy produced from sustainable sources such as wind, solar, livestock waste, and hydroelectric power – is on the rise. The benefits are manifold, including a reduced carbon footprint, enhanced energy security, and potential for economic development. However, transitioning to renewable energy requires substantial investment in new infrastructure and technology, a demand that public finance is well-equipped to meet.

Challenges in Public Financing for Renewable Energy

1. Navigating Regulatory Complexity

The regulatory landscape for renewable energy is complex and multifaceted. From obtaining necessary permits and approvals to compliance with environmental laws, navigating this landscape requires a deep understanding of both energy and environmental law. As public finance attorneys, we must guide our clients through this maze, ensuring compliance while securing the most favorable financing terms.

2. Balancing Public and Private Interests

Many renewable energy projects involve some form of public-private partnership (P3), combining public funding and oversight with private sector execution. Structuring these partnerships to align the interests of all parties, distribute risk appropriately, and ensure long-term project viability can be a legal and financial challenge.  

3. Evaluating and Mitigating Risk 

Investments in renewable energy can carry risks, including technological uncertainties, fluctuations in energy prices, and changes in government policy or regulatory frameworks. As advisors, we need to identify these risks, evaluate their potential impact on the project's financial viability, and develop strategies to mitigate them.

Opportunities in Public Financing for Renewable Energy

1. Leveraging Tax Incentives 

Various tax incentives have been implemented to encourage investment in renewable energy. For example, the federal Investment Tax Credit (ITC) and Production Tax Credit (PTC) provide significant tax benefits for certain renewable energy investments. Leveraging these incentives can improve the financial viability of projects and attract private sector participation.

2. Issuing Green Bonds

Green bonds, or bonds whose proceeds are used for environmentally beneficial projects, have emerged as a significant tool for financing renewable energy. These bonds can appeal to a growing pool of investors interested in environmental sustainability, potentially broadening the investor base for renewable energy projects.

3. Promoting Economic Development and Job Creation

Renewable energy projects can be powerful drivers of local economic development, creating jobs, and generating economic activity. By effectively communicating these benefits, we can build public support for projects, potentially facilitating the approval process and improving access to public financing.


The financing of renewable energy projects presents both unique challenges and exciting opportunities. As public finance attorneys, we play a pivotal role in this process, helping to navigate complex regulatory landscapes, balance interests, mitigate risk, and maximize opportunities. Through our work, we have the privilege of facilitating the transition to renewable energy, contributing to the sustainability of our communities and our planet.

Renewable energy represents an area of significant growth in public finance. Staying abreast of changes in this dynamic field will continue to be a key focus for those of us committed to the development of renewable energy infrastructure and the legal intricacies that it entails. As we look to the future, we remain dedicated to harnessing the power of public finance to drive progress toward a more sustainable and resilient energy future.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Companies should consult with qualified legal professionals for specific guidance tailored to their individual circumstances.