Analysis: Solyndra Casts Shadow On U.S. Energy Loan Aid
Professor Dan Reicher spoke with Roberta Rampton and Ayesha Rascoe from Reuters on the Solyndra bankruptcy and how it has put support of other loan guarantees at serious risk.
Political furor over the Solyndra bankruptcy has dealt a body blow to the idea that the government should try to help clean tech start-ups through the costly "valley of death" to commercial viability.
The capital needed to commercialize cutting-edge, renewable energy technology is seen as too risky for both venture capitalists and for the banks.
"Obviously, loan guarantees are at serious risk at this point in terms of their support," said Dan Reicher, head of Stanford University's Steyer-Taylor Center for Energy Policy.and Finance.
A coalition of technology developers from the nuclear, advanced fossil fuels, energy efficiency and renewable sectors could be a powerful lobby force on the issue, said Stanford's Reicher, who was an Energy Department official in the Clinton administration.
"How do we send the right message to people in Congress and the White House for the need for something smart and strategic coming out of this Solyndra controversy, as opposed to just wholesale dismantling of government support?" said Reicher, who has also worked in private equity and for Google's energy projects.