Financing Renewable Energy Projects – Advancing renewable power projects towards financial closure. While renewable energy investments have seen steady growth during the last decade, a much more rapid scaling-up is important in developing countries to fulfill climate and sustainable development goals.
Alternative energy projects, particularly 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 lack of market transparency, absence of financing and expertise in project development, and lack of relevant information on regulations, markets and resource availability. This has resulted in too little bankable projects, rendering it challenging for investors to identify attractive projects, and therefore reducing available capital for people who 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 requires mobilising a tremendous investment increase. Renewables bring far reaching benefits when it comes to human health, energy access, environmental protection and also the reply to climate change, combined with the possibility to create new jobs around the globe. 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, because this report from your International Renewable Power 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; in addition, it supplies a toolkit for policy makers, public and mhyxvx investors, and public finance institutions to scale up their investments in renewable power.
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 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 finance institutions can address risks and barriers for alternative energy projects:
Advance renewable energy projects from initiation to full investment maturity. Engage local financial institutions in alternative energy finance. Mitigate risks to draw in 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 true secret financial market instruments for renewables. Greater familiarity with such instruments, particularly among policy makers, investors and banking institutions, should bring down the financing cost of renewable power projects.