Asset-backed Securities
Similar to mortgages and car loans, cash flows from renewable energy project leases or power purchase agreements can be pooled and sold to investors in the form of a tradable instrument. The income payments from the securities are collateralized by the renewable energy installations. Securitizing renewable energy projects helps remove debt and equity obligations from the project owner’s balance sheet and ideally brings in a lower cost of capital, with the interest rate paid on the securities matching the risk profile of the portfolio of assets.
Resources CESC
Publication
Accessing Secondary Markets as a Capital Source for Energy Efficiency Finance Programs: Program Design Considerations for Policymakers and Administrators
Sources:
State and Local Energy Efficiency Action Network
Date:
1 February 2015
Publication
Global Trends in Renewable Energy Investment Report
Sources:
United Nations
Bloomberg New Energy Finance
Date:
1 June 2014
Publication
Green Bonds in Public-Private Partnerships
Sources:
International Institute for Sustainable Development (IISD)
Date:
4 May 2015
Publication
Guidebook to Geothermal Power Finance
Sources:
United States National Renewable Energy Laboratory
Date:
1 April 2011
Tools and Websites
Training Materials
Asset-backed Securities: A Complete Clean Energy Finance Guide
Sources:
Clean Energy Finance Solutions Center