The role of financing cost and de-risking strategies for clean energy investment

Content Provider	Semantic Scholar
Author	Steckel, Jan Christoph Jakob, Michael
Copyright Year	2018
Abstract	Abstract Even though costs for renewable energy sources keep falling, the initial investments required for their build-up can pose a substantial challenge in countries with high capital costs. In this paper, we start from the observation that when capital costs are high, carbon pricing alone is unlikely to be sufficient to achieve high shares of renewable energy sources in the power sector. Instead, complementary measures to decrease investors' capital costs are required. We then discuss how financing costs can be lowered by either addressing the underlying sources of investment risk (policy de-risking) or shifting risk away from private sector investors (financial de-risking) on the domestic and the international level.
Starting Page	19
Ending Page	28
Page Count	10
File Format	PDF HTM / HTML
DOI	10.1016/j.inteco.2018.02.003
Volume Number	155
Alternate Webpage(s)	http://isiarticles.com/bundles/Article/pre/pdf/96677.pdf
Alternate Webpage(s)	https://doi.org/10.1016/j.inteco.2018.02.003
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article