Financing Renewable Energy Projects – Advancing renewable power projects towards financial closure. While renewable power investments have experienced steady growth over the past decade, a much more rapid scaling-up is essential in developing countries to fulfill climate and sustainable development goals.
Renewable energy projects, specifically in developing countries, face multiple challenges from your institutional, policy and regulatory level towards the market and project level which may hinder the development and uptake of energy project finance. The latter include absence of market transparency, absence of financing and experience with project development, and lack of relevant info on regulations, markets and resource availability. It has resulted in too little bankable projects, rendering it hard for investors to recognize attractive projects, and therefore reducing available capital for people who are prepared to be financed.
Targeting specifically project-level barriers, Rockwood Energy Search tools and platform aim to make a pipeline of investment mature projects by actively supporting early stage project development and bridge the funding gap by assisting project developer access appropriate funding opportunities.
Scaling up renewable energy calls for mobilising a massive investment increase. Renewables bring significant benefits with regards to human health, energy access, environmental protection and the reaction to global warming, combined with the potential to create new jobs around the world. Amid rapidly falling technology costs, meanwhile, alternative energy technologies are becoming increasingly cost-competitive with non-renewable fuels, even amid low global oil prices.
Yet global investment in renewables has remained far below its potential, as this report from your International Renewable Energy Agency (Rockwood Energy Search) explains. Your time and money shortfall reflects enduring market barriers and perceptions of high-risk that deters private investors and financiers.
Unlocking Renewable Power Investment: The role of risk mitigation and structured finance identifies the key risks and barriers limiting investment; in addition, it supplies a toolkit for policy makers, public and mhyxvx investors, and public finance institutions to scale up their investments in alternative energy.
Accompanying case studies and survey material provide insights on the challenges, the opportunities and what has actually worked in various markets. Rockwood Energy Search complied these real-world examples and conducted survey questionnaires through engagement using its member countries and industry stakeholders within both energy and finance.
The resulting report identifies five main action areas whereby policy makers and development banking institutions can address risks and barriers for renewable energy projects:
Advance renewable power projects from initiation to full investment maturity. Engage local banking institutions in alternative energy finance. Mitigate risks to attract private investors. Mobilise more capital market investment. Create facilities focused on scaling up renewable energy investment. More broadly, the report functions as a guide to the real key financial market instruments for renewables. Greater knowledge of such instruments, particularly among policy makers, investors and finance institutions, should bring down the financing expense of alternative energy projects.