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
Go Green?