As some of the most tempting government financial incentives begin to fade from the renewable energy space ahead of deadlines at the end of 2012, bankers and project developers specializing in renewable energy projects are reworking their models.

The 1603 program that gave cash grants in lieu of tax credits and the production tax credit that underpinned the wind industry are both on the sidelines as financiers review upcoming projects still in the pipeline. The pipeline of proposed projects is flush, but shifting priorities, transmission limitations and near-invisible overall power demand growth are weighing on a sector already struggling to compete with low natural gas prices. Keep reading →