Jason Barton

Professional Information and Energy News

Energy Plant Tragedy Puts a Light on Banks, Private Equity Funds Pushing into Electricity

without comments

Wall Street’s Power Surge

By RICH BLAKE
Feb. 11, 2010

Goldman Sachs has attracted a long line of critics and conspiracy theorists convinced the Wall Street bank is at the root of many an economic catastrophe.

Photo: Federal officials to investigate Connecticut blast

The Kleen Energy plant is seen in this aerial photo after an explosion in Middletown, Conn., Sunday, Feb. 7, 2010.

(Jessica Hill/AP Photo)

But after a deadly power plant explosion in Middletown, Conn., involving a company called Kleen Energy, even members of the conspiracy crowd might have been surprised to learn that the natural gas-fueled plant was being built by a private equity fund and that it had been bankrolled by Goldman.

And while no one is suggesting the bank’s involvement underwriting the nearly $1 billion project would have in any way compromised safety — indeed, the exact cause of the explosion is still under investigation — the incident does call attention to the ever-growing alignment between a shifting national energy policy and the Wall Street financiers who hope to profit from the green movement.

[…]

While coal fired plants still produce roughly half of all the kilowatt hours of electricity consumed in the United States, natural gas, which a decade ago accounted for just 10 percent of electricity produced, now accounts for upwards of 20 percent, according to the Edison Electric Institute. Hydro and alternative sources make up the balance.

Read the entire article here.

Written by Jason

February 11th, 2010 at 7:24 am