Financing Renewable Power Projects – Advancing alternative energy projects towards financial closure. While renewable energy investments have experienced steady growth over the last decade, a more rapid scaling-up is necessary in developing countries to meet climate and sustainable development goals.
Renewable energy projects, especially in developing countries, face multiple challenges from your institutional, policy and regulatory level to the market and project level which could hinder the development and uptake of sustainable energy finance. The latter include lack of market transparency, insufficient financing and experience in project development, and lack of relevant info on regulations, markets and resource availability. This has led to an absence of bankable projects, making it difficult for investors to recognize attractive projects, and for that reason 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 renewable energy requires mobilising an enormous investment increase. Renewables bring significant benefits with regards to human health, energy access, environmental protection and also the reaction to global warming, along with the possible ways to create new jobs around the world. Amid rapidly falling technology costs, meanwhile, alternative energy technologies have become increasingly cost-competitive with fossil fuels, even amid low global oil prices.
Yet global investment in renewables has always been far below its potential, because this report from your International Alternative Energy Agency (Rockwood Energy Search) explains. Your time and money shortfall reflects enduring market barriers and perceptions of dangerous that deters private investors and financiers.
Unlocking Renewable Power Investment: The role of risk mitigation and structured finance identifies the main 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 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 finance institutions can address risks and barriers for alternative energy projects:
Advance alternative energy 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 strategies for the true secret financial market instruments for renewables. Greater knowledge of such instruments, particularly among policy makers, investors and finance institutions, should lower the financing expense of renewable energy projects.