Financing Renewable Energy Projects – Advancing alternative energy projects towards financial closure. While renewable energy investments have seen steady growth during the last decade, a much more rapid scaling-up is essential in developing countries to fulfill climate and sustainable development goals.
Renewable power projects, especially in developing countries, face multiple challenges from your institutional, policy and regulatory level to the market and project level which can hinder the development and uptake of energy jobs. The second include insufficient market transparency, lack of financing and experience in project development, and insufficient relevant info on regulations, markets and resource availability. It has triggered a lack of bankable projects, which makes it challenging for investors to identify attractive projects, and for that reason reducing available capital for those that are ready to be financed.
Targeting specifically project-level barriers, Rockwood Energy Search tools and platform aim to produce 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 an enormous investment increase. Renewables bring significant benefits when it comes to human health, energy access, environmental protection as well as the response to climate change, combined with the possibility to create new jobs all over the world. Amid rapidly falling technology costs, meanwhile, renewable energy technologies have become increasingly cost-competitive with non-renewable fuels, even amid low global oil prices.
Yet global investment in renewables has remained far below its potential, since this report from the International Renewable Power 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 Energy Investment: The role of risk mitigation and structured finance identifies the key risks and barriers limiting investment; it also 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 different markets. Rockwood Energy Search complied these real-world examples and conducted survey questionnaires through engagement featuring 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 energy projects from initiation to full investment maturity. Engage local financial institutions in renewable energy finance. Mitigate risks to draw in private investors. Mobilise more capital market investment. Create facilities committed to scaling up renewable power investment. More broadly, the report can serve as a guide to the real key financial market instruments for renewables. Greater understanding of such instruments, particularly among policy makers, investors and finance institutions, should lower the financing expense of renewable energy projects.