About 75% of the capital flows for renewable energy are applied to asset or project financing;the reminder is applied to R&D, VC, PE, IPO, and M&A.Today and in the recent past, wind, solar and other renewable electricity projects have been financed on a one-by-one basis using sponsor and investor equity plus bank debt.Each financing is unique.There are two serious problems with this approach: higher cost and lack of scalability.Cost is higher because of project finance soft costs (legal bill, etc.) and higher cost of capital.To reduce cost and scale up the financing of renewable energy, the industry must move to balance sheet financing that can tap the capital markets, especially the debt capital (bond) markets, and the corporate equity markets.This will require the formation and development of multi-project generation companies, that would be like utilities without geographic service territories.Citigroup sees this is a major theme of the next ten years.