Financing Renewable Power Projects – Advancing alternative energy projects towards financial closure. While renewable energy investments have seen steady growth over the last decade, a far more rapid scaling-up is necessary in developing countries to meet climate and sustainable development goals.
Alternative energy projects, specifically in developing countries, face multiple challenges from your institutional, policy and regulatory level for the market and project level which can hinder the development and uptake of solar energy jobs. The latter include insufficient market transparency, absence of financing and expertise in project development, and lack of relevant information about regulations, markets and resource availability. It has resulted in a lack of bankable projects, making it difficult for investors to identify 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 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 demands mobilising an enormous investment increase. Renewables bring significant benefits with regards to human health, energy access, environmental protection and also the reaction to climate change, combined with the possible ways to create new jobs around the globe. Amid rapidly falling technology costs, meanwhile, renewable power technologies have grown to be increasingly cost-competitive with standard 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 Power Investment: The role of risk mitigation and structured finance identifies the main 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 renewable power.
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 banking institutions in alternative energy finance. Mitigate risks to draw in private investors. Mobilise more capital market investment. Create facilities focused on scaling up renewable energy investment. More broadly, the report can serve as helpful tips for the real key financial market instruments for renewables. Greater understanding of such instruments, particularly among policy makers, investors and banking institutions, should lower the financing price of renewable energy projects.