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Finance

The clean energy policy resources—reports, data, and tools—that are provided here encompass deployment programs, financial incentives and regulations.

Incentive/Instrument

Governments, utilities, development banks, green banks and the private sector have several tools at their disposal that can help address barriers to clean energy investments. Incentives are policies that reduce the capital expenditures for an investment and in some cases can also help reduce the cost of financing. Instruments are financial structures and agreements that provide financial products or contractual agreements that provide cash flows.

Investor

Investors include those who can provide cash, can purchase stocks or bonds, or can loan to clean energy projects. Investors have their own appetite for risk and preference for types of projects, investment lengths and return rates. Accordingly, investors may focus on specific technologies and applications, markets, and stages of the business development cycle.

Investment

Each type of capital maps to different investor classes and may come with specific stipulations. For example, equity investments imply ownership. Clean energy companies, project developers and direct investors will likely use a portfolio of different types of content, depending on the stage of development the project or company is in and considering the overall cost of capital.

Barriers

Despite being widely deployed in a variety of markets and being considered as proven and commercialized technologies, clean energy projects and companies may face challenges accessing investment and finance owing to systemic risks and a lack of experience through the project development and financing process. Public and private sector incentives and instruments and other efforts, such as capacity building programs and the policy and regulatory environment are potential solutions.

Market Stage

The level of market activity and size of the ecosystem of local technologies supplier, developers, financiers and investors can impact risks and thus the types of incentives and instruments needed to support project development. Nascent markets are likely to require stronger policy signals and programs that address higher risks and resulting cost of capital, whereas mature markets with significant project pipelines are less reliant on public sector programs.

Economy

Economic development can affect the overall financing and investment ecosystem. There are also often general correlations between stage of economic growth and the number and degree that barriers exist. Policymakers will need to consider the economic profile of their jurisdiction when designing incentives and instruments.

Jurisdiction

Policymakers, utilities and development banks focus on specific geographic areas, including at the regional level, at the country level or at the municipal or county/provincial level. Certain incentives and instruments may make more sense for a given jurisdiction.

See Also

Resources CESC

Sectors-cesc
Resources countries

Publication

Cost-Benefit Analysis for Energy Efficient Refrigerators and Freezers in Uganda

Refrigeration appliances and equipment available on the market are manufactured with a wide range of energy performance. The goal of…

Sources:

Lawrence Berkeley National Laboratory

Date:

1 March 2022

Tools and Websites

Levelised Cost of Electricity Calculator

This calculator allows for easy download of all data tables in the 2020 edition of Projected Costs of Generating Electricity…

Sources:

Nuclear Energy Agency

Tools and Websites

Energy Saving Trust (Website)

Energy Saving Trust is an organisation that works towards a smart, decarbonised, decentralised energy system by helping households make better…

Sources:

Energy Saving Trust

Tools and Websites

Innovation in Isolation: Islands and the Energy Transition

This article discusses how islands, despite facing challenges such as limited resources and financing, have the potential to lead the…

Sources:

Kleinmnan Center for Energy Policy

Date:

1 December 2020

Tools and Websites

A Canadian Approach to Innovative Financing for Sustainable Development

This document lays out why, how and when Canada will draw on innovative financial instruments to support the achievement of…

Sources:

Government of Canada

Date:

10 October 2020

Publication

Mexico Clean Energy Report - Executive Summary

The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) released an in-depth report on the potential for clean energy…

Sources:

National Renewable Energy Laboratory

Date:

1 April 2022

Tools and Websites

Energy Program: Sri Lanka

In June 2020, USAID provided a $600,000 grant to the National Association of Regulatory Utility Commissioners (NARUC) to support the…

Sources:

United States Agency for International Development

Date:

1 November 2021

Tools and Websites

Green Credit Lines for SMEs in Guatemala: Supporting a Commercial Bank to Develop their Green and SME Financing Strategy

There are many barriers faced by the financial institutions to lend credit to small and medium-sized enterprises (SMEs) projects in…

Sources:

BASE

Publication

Scaling Up Private Finance for Clean Energy in Emerging and Developing Technologies

This report highlights the necessity for a substantial increase in annual clean energy investments in emerging and developing economies. To…

Sources:

International Finance Corporation

Date:

1 June 2023

Publication

U.S. Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 2022

The National Renewable Energy Laboratory (NREL) publishes benchmark reports that disaggregate photovoltaic (PV) and energy storage (battery) system installation costs…

Sources:

National Renewable Energy Laboratory

Date:

1 September 2022

Publication

Manufacturing the Energy Revolution Australia’s Position in the Global Race for Sustainable Manufacturing

Australia needs to respond quickly to powerful new incentives for sustainable manufacturing now on offer in the U.S. and several…

Sources:

The Australia Institute

Date:

1 August 2023

Publication

Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision

This publication explores Canada’s vision to achieve net-zero greenhouse gas emissions by 2050. It identifies some of the specific measures…

Sources:

Canadian Renewable Energy Association

Date:

1 January 2021

Publication

Clean Energy Finance Corporation Annual Report 2021-22

This report highlights the global focus on emissions action post-COP26 and in the face of record temperatures. The Clean Energy…

Sources:

Clean Energy Finance Corporation

Date:

1 September 2022

Tools and Websites

Green Energy Finance

In this Q&A session, Farhad Taghizadeh-Hesary, who is an associate professor of economics at Tokal University in Japan and co-founder…

Sources:

Nature Sustainability

Date:

1 October 2022

Publication

Expectations for Renewable Energy Finance in 2023-2026

The American Council on Renewable Energy (ACORE) has released an analysis examining the effects of the Inflation Reduction Act (IRA)…

Sources:

American Council on Renewable Energy

Date:

1 June 2023

Publication

Global Landscape of Renewable Energy Finance 2023

Global investments in energy transition technologies, specifically energy efficiency, surged to a record $1.3 trillion in 2022. To achieve the…

Sources:

Climate Policy Incentive

International Renewable Energy Agency

Date:

16 February 2023

Publication

Financing Clean Energy Transitions in Emerging and Developing Economies

This report addresses the challenge of securing investments for clean energy transitions in emerging and developing nations. It analyzes successful…

Sources:

International Energy Agency (IEA)

Date:

1 June 2021

Publication

Tools and Websites

Training Materials

2010 China-United States Renewable Energy Grid Integration Workshop (Website)

This website provides 16 presentations from a workshop held in Beijing, 7-8 December 2010, as well as a workshop summary.…

Sources:

The China Sustainable Energy Program