Financing Renewable Power 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.
Alternative energy projects, particularly in developing countries, face multiple challenges through the institutional, policy and regulatory level towards the market and project level which may hinder the development and uptake of renewable energy finance. The latter include absence of market transparency, insufficient financing and experience in project development, and absence of relevant information about regulations, markets and resource availability. It has triggered an absence of bankable projects, making it hard for investors to distinguish attractive projects, and thus reducing available capital for people who are ready to be financed.
Targeting specifically project-level barriers, Rockwood Energy Search tools and platform aim to create 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 requires mobilising a massive investment increase. Renewables bring far reaching benefits with regards to human health, energy access, environmental protection as well as the reaction to global warming, along with the potential to create new jobs around the world. Amid rapidly falling technology costs, meanwhile, alternative 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 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 Alternative Energy Investment: The role of risk mitigation and structured finance identifies the primary 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 energy.
Accompanying case studies and survey material provide insights on the challenges, the opportunities and what has actually worked in numerous markets. Rockwood Energy Search complied these real-world examples and conducted survey questionnaires through engagement using its member countries and industry stakeholders in 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 power projects:
Advance alternative energy projects from initiation to full investment maturity. Engage local banking institutions in renewable energy finance. Mitigate risks to bring in private investors. Mobilise more capital market investment. Create facilities committed to scaling up renewable energy investment. More broadly, the report functions as a guide to the real key financial market instruments for renewables. Greater understanding of such instruments, particularly among policy makers, investors and financial institutions, should decrease the financing price of alternative energy projects.