Initial funding has been allocated for NY Green Bank, a bold, new market-oriented approach to accelerate clean energy deployment and create jobs, New York State Governor Andrew Cuomo said Thursday.

The initial capitalization for the bank amounts to 210 million US Dollars, combining 165 million dollars redirected from other programs and approved by the regulatory agency Public Service Commission (PSC) and 45 million dollars from the Regional Greenhouse Gas Initiative.

"With this funding we will attract greater investment in New York, accelerate clean energy deployment, and modernize our grid," Cuomo said.

"Working hand-in-hand with the private sector, the New York Green Bank will also promote job growth, improve air quality, and provide New Yorkers with greater choice and value for their money."

With the PSC approval, the NY Green Bank is expected to open for business and offer its first financial products in early 2014.

Cuomo proposed the creation of a 1-billion-dollar Green Bank in his 2013 State of the State address as the financial engine that will mobilize private investment in clean energy projects.

The NY Green Bank will partner with the private sector institutions by providing financial products such as credit enhancement, loan loss reserves and loan bundling to support securitization and build secondary markets.

These products will support economically viable clean energy projects that cannot currently access financing due to market barriers, such as federal policy uncertainty, insufficient performance data, and the lack of publicly traded capital markets for clean energy.

As part of its oversight function, the PSC will work with the NY Green Bank to ensure financial offerings meet the investment criteria set forth in the PSC Order and will review and monitor quarterly progress reports.