Financing Renewable Energy An Update on Barriers and Proposed Solutions By Kathleen Wade
Barriers to Investment Risk is greater for renewable energy projects than traditional energy projects –Intermittency –Grid connection –Economies of scale Perceived as a high-risk, low-return investment
New Financial Models boo
New Policies Feed-in tariffs –Utilities required to purchase power from renewable sources at fixed rate –Rate rachets down over time to account for technological improvements –Reduces uncertainty in rate of return
International Partnerships Clean Energy Ministerial- July 19-20, 2010
Carbon Markets Certified emissions reductions can be sold at market price UN Clean Development Mechanism certifies offsets for European market –Not yet a significant source of finance for renewable energy Certified emissions reductions can be sold at market price UN Clean Development Mechanism certifies offsets for European market –Not yet a significant source of finance for renewable energy
Go Green?