Financing Renewable Power Projects – Advancing renewable energy projects towards financial closure. While renewable power investments have seen steady growth during the last decade, a far more rapid scaling-up is essential in developing countries to meet climate and sustainable development goals.
Alternative energy projects, specifically in developing countries, face multiple challenges through the institutional, policy and regulatory level to the market and project level which may hinder the development and uptake of solar energy jobs. The latter include insufficient market transparency, insufficient financing and expertise in project development, and lack of relevant information about regulations, markets and resource availability. This has triggered an absence of bankable projects, making it challenging for investors to recognize attractive projects, and therefore reducing available capital for those that are prepared 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 alternative energy calls for mobilising a massive investment increase. Renewables bring significant benefits with regards to human health, energy access, environmental protection as well as the response to climate change, along with the possibility to create new jobs around the globe. Amid rapidly falling technology costs, meanwhile, renewable energy technologies have grown to be increasingly cost-competitive with standard fuels, even amid low global oil prices.
Yet global investment in renewables has always been far below its potential, since this report from your International Alternative Energy Agency (Rockwood Energy Search) explains. An investment 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; additionally, 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 different markets. Rockwood Energy Search complied these real-world examples and conducted survey questionnaires through engagement with 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 financial institutions in renewable power finance. Mitigate risks to attract private investors. Mobilise more capital market investment. Create facilities dedicated to scaling up alternative energy investment. More broadly, the report functions as strategies for the real key financial market instruments for renewables. Greater familiarity with such instruments, particularly among policy makers, investors and financial institutions, should lower the financing expense of renewable energy projects.