scholarly journals Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects

Energies ◽  
2020 ◽  
Vol 13 (4) ◽  
pp. 788 ◽  
Author(s):  
Farhad Taghizadeh-Hesary ◽  
Naoyuki Yoshino
Keyword(s):  
Renewable Energy ◽  
Financial Institutions ◽  
Green Energy ◽  
Rate Of Return ◽  
Insurance Companies ◽  
Sustainable Solutions ◽  
Energy Projects ◽  
Green Investment ◽  
Financing And Investment

The lack of long-term financing, the low rate of return, the existence of various risks, and the lack of capacity of market players are major challenges for the development of green energy projects. This paper aimed to highlight the challenges of green financing and investment in renewable energy projects and to provide practical solutions for filling the green financing gap. Practical solutions include increasing the role of public financial institutions and non-banking financial institutions (pension funds and insurance companies) in long-term green investments, utilizing the spillover tax to increase the rate of return of green projects, developing green credit guarantee schemes to reduce the credit risk, establishing community-based trust funds, and addressing green investment risks via financial and policy de-risking. The paper also provides a practical example of the implementation of the proposed tools.

scholarly journals The state of green energy transition in regional industrial centres—The case study of Székesfehérvár

2021 ◽  
Keyword(s):  
Renewable Energy ◽  
Local Governance ◽  
Economic Value ◽  
Value Added ◽  
Energy Transition ◽  
Local Environment ◽  
Green Energy ◽  
Urban Region ◽  
Renewable Energy Resources ◽  
Sustainable Solutions

Abstract Industrial parks may be high pollutants of the local environment, but also engines of regional development, employment, and economic value added. To make them more sustainable, regional planning often purports to promote a transition to a greener approach, but in reality, many green measures oppose business logic and profitability, while those companies that do invest in sustainable solutions do so without having a clear strategy. This complicated setup is to be explored and modelled in this article which is focused on a remarkable area, the urban region of Székesfehérvár, an industrial city in Hungary having an impressive economic development and hosting significant domestic and international companies. The disharmony between greening policies, intentions and actions is observable in Székesfehérvár, despite the considerable local and regional potentials of renewable energy resources. Findings indicate that systemic thinking and future-oriented decision making will be necessary to achieve true sustainability, which also requires a mutually proactive attitude and the cooperation of different sectors. A legitimate strategy aiming at greening the local and regional economy (with renewable energy concerns), implemented by both public and business actors can be the key element of a successful transition. This strategy needs to be stimulated by local governance.

scholarly journals Renewable Energy for Long-Term Growth and Development: Bangladesh Perspective

2021 ◽  
Author(s):  
Taskin Jamal ◽  
Prof Christopher J. Fogwill ◽  
Ashraf Hossain Bhuiyan
Keyword(s):  
Renewable Energy ◽  
Growth And Development ◽  
Electricity Generation ◽  
Energy Systems ◽  
Influential Factor ◽  
Renewable Energy Systems ◽  
Cost Of Energy ◽  
Energy Projects ◽  
The Cost

Abstract Beneficiaries prefer renewable energy-based systems over grid-connected electricity. The cost of energy is viewed as the most influential factor while choosing renewable energy systems. Beneficiaries chose to stay linked with renewa­ble energy systems even when they received grid-connected electricity at a lower tariff.Net-metering and feed-in tariff mechanisms, as well as tax cuts and subsidies for renewable energy projects, could be the catalyst for fostering greater uptake of renewables in the electricity generation mix.

GREEN BONDS AS AN INSTRUMENT FOR FINANCING RENEWABLE ENERGY PROJECTS

2020 ◽  
Author(s):  
Dragica Stojanović ◽  
Keyword(s):  
Renewable Energy ◽  
Financial Markets ◽  
Bond Market ◽  
Minimum Volume ◽  
Energy Projects ◽  
Green Investment ◽  
Guidelines And Standards ◽  
The Right ◽  
Further Development ◽  
Mitigation Projects

The paper analyses green bonds as sources of financing renewable energy projects. Green bonds are a relatively new form of financing and thanks to increased investors’ climate awareness, the market has seen an enormous growth in the last few years. Therefore, the guidelines and standards adopted in financial markets clearly indicate what should be considered a green investment and are a key to further development of the market and achieving the goals of green financing. The goal of the theoretical approach to green bond market in the paper is to identify the key barriers that prevent many countries from taking advantage of this new but growing source of financing renewable energy. The lack of appropriate institutional arrangements for managing green bonds, issuing a minimum volume and high transaction costs are the key obstacles to the development of green bond market. The overall conclusion of the paper is that with just the right measures, many countries could make full use of green bonds to finance climate change adaptation and mitigation projects and thus increase renewable energy capacities.

Financing renewable energy: La Esperanza Hydroelectric Project

2014 ◽  
Vol 52 (9) ◽  
pp. 1724-1749 ◽  
Author(s):  
Mauricio Jenkins ◽  
Leo Miguel Guevara
Keyword(s):  
Renewable Energy ◽  
Financial Institutions ◽  
Financial Analysis ◽  
Developing Economies ◽  
Financial Institution ◽  
Value Added ◽  
Project Finance ◽  
Content Type ◽  
Investment Projects ◽  
Energy Projects

Purpose – This is a teaching case to be used in courses on funding and execution of renewable-energy projects, sustainable development, project finance or management of financial institutions. The case has been successfully used in courses at the graduate level as well as in executive education. The purpose of this paper is to achieve the following specific objectives. First, to illustrate the adjusted present value (APV) methodology to value investment projects in a project finance setting. Second, to show how APV methodologies can be used to value investment projects with subsidized financing and temporary fiscal incentives. Third, to understand how financial institutions use debt service coverage ratios to measure the capacity of projects to repay debt obligations. Design/methodology/approach – The primary source of information for the study case came from in-depth interviews with senior officials from E+Co and project sponsors. Documents from E+Co's loan approval process and investment committee minutes were also consulted. Also a site visit was performed. Findings – The case is quite interesting along several dimensions. To begin with the case deals with an important (and somewhat difficult decision) the general manager of a financial institution has to make. From a technical point of view, the case involves an APV analysis and requires the estimation of the value added (or destroyed) by several collateral effects of debt in the capital structure of the project (something seldom treated in formal courses or standard finance textbooks). In addition, even though standard financial analysis would probably have led to select on alternative course of action, the authors know the protagonist of the case actually decided to do something different based on an additional analysis (a nice postscript for the case, therefore). Research limitations/implications – Been a case study, the findings may be quite particular of the particular situation and context. However, the case provides good insight into the difficulties and problems entrepreneurs face in developing economies as well as in funding small renewable energy projects around the world. Practical implications – The case provides a number of important lessons and learning opportunities for sponsors of renewable energy power projects and managers of financial institutions. Originality/value – Please refer to the findings section above.

scholarly journals Renewable energy as an integral part of the Bulgarian energy mix

2021 ◽  
Vol 286 ◽  
pp. 02011
Author(s):  
Todorka Stankova ◽  
Daniela Toneva
Keyword(s):  
Renewable Energy ◽  
Energy Production ◽  
Green Energy ◽  
Energy Mix ◽  
Promotion Policy ◽  
Strategic Objective ◽  
Net Zero ◽  
Production And Consumption ◽  
Key Factor

An economy with net-zero greenhouse gas emissions is the new EU 2050 is a main long– term strategic objective, which follows the EU RES promotion policy. Investment in renewable energy is a key factor for reduction of the conventional energy sources’ carbon footprint. The transition from conventional to green energy is an on-going process. The renewable energy becomes an integral part from the energy mix of EU countries, including Bulgaria. Current research on RES component of Bulgarian energy mix covers the period from 2007 to 2019. It reveals the internal renewable energy subsector structure. The preconditions for solar and wind energy project are analysed, together with the levels of RES energy production in Bulgaria. The Bulgaria RES sector incoherence is highlighted. Some trends of RES development in the context of gross final energy production and consumption are revealed. Some gaps in Bulgarian practices regarding RES promotion policy implementation are identified and discussed.

scholarly journals EUROPEAN GREEN DEAL AND NEW OPPORTUNITIES FOR THE DEVELOPMENT OF RENEWABLE ENERGY

2021 ◽  
Vol 43 (1) ◽  
pp. 75-81
Author(s):  
T.A. Zheliezna
Keyword(s):  
Renewable Energy ◽  
Renewable Energy Sources ◽  
Sustainable Use ◽  
Energy Transition ◽  
Clean Energy ◽  
Green Energy ◽  
Low Carbon ◽  
Climate Neutrality ◽  
Goals And Objectives

The aim of the work is to develop recommendations for Ukraine on setting long-term integrated climate and energy goals and identifying ways to achieve them. The preconditions, main goals and objectives of the European Green Deal, which was presented by the European Commission in December 2019, are analyzed. The European Green Deal is a comprehensive strategy for the transition to a sustainable economy, clean energy and climate neutrality, i.e., zero greenhouse gas emissions, in Europe by 2050. The adoption of this Deal was preceded by several stages of a coherent EU policy in the relevant sectors. Possibilities for renewable energy development within the framework of the European Green Deal are considered. It is determined that preference is given to the production of green electricity, mobilization of the potential of offshore renewable energy, production of biogas and biofuels from biomass of agricultural origin, sustainable use of low-carbon and renewable fuels, including biomass and hydrogen, in hard-to-electricity sectors. In Ukraine, the document that is closest by its contents to the European Green Deal is the draft Concept of green energy transition until 2050 presented in January 2020. The draft Concept states the goal of achieving 70% of renewable energy sources in electricity generation by 2050 and the climate-neutral economy of Ukraine by 2070. It is recommended that this document should be finalized and adopted formally as soon as possible.

scholarly journals Russian energy projects in South Africa

2020 ◽  
Vol 31 (3) ◽  
pp. 58-64 ◽  
Author(s):  
J. An ◽  
A. Mikhaylov
Keyword(s):  
South Africa ◽  
Renewable Energy ◽  
Green Energy ◽  
Management Decision ◽  
High Tech ◽  
Energy Technologies ◽  
Energy Projects ◽  
Energy Trade ◽  
Management Decision Making ◽  
The Cost

From early 2019, South Africa and Russia have planned to increase their energy trade. Russia can become one of the world’s five largest energy exporters. This study examines of the cost of a kilowatt of electricity generated by coal power projects in South Africa and compares nuclear electricity with other types of green energy. This method must help to improve the management decision-making process in South Africa for energy exporta. Reasons for this persistence include the marketing strategies of Russian companies for seeking new markets in industrialised and postindustrial countries where, due to intensive competition, sales of Russian high-tech products are often unsuccessful. Renewable energy gives a chance to potentially reduce poverty in South Africa. The study concludes that imported crude oil is more suited to the needs of the refining industry of South Africa. The consumption for this type of energy in areas not concerning industry is insignificant and its increase is unlikely to be observed in the future. Highlights• Nuclear energy is popular energy source in South Africa now.• Provision of sustainable energy services helps to find the sources for economic growth. • Renewable energy technologies have opportunity for reduce nuclear production in South Africa.• Bio-energy can become the main source of energy in South Africa.

The Role of Green Finance in Community Renewable Energy Projects of main Region and Taiwan

2021 ◽  
Vol 19 (3) ◽  
pp. 503-519
Author(s):  
Wen-Hsiang Chiu ◽  
Wen Cheng Lin ◽  
Chiung-Ju Liang
Keyword(s):  
Renewable Energy ◽  
Green Energy ◽  
Renewable Energy Resources ◽  
Financing Channels ◽  
Green Finance ◽  
Start Up ◽  
Energy Projects ◽  
The Masses ◽  
Main Region

In order to achieve the goal of "non-nuclear homeland and realize the policy target that renewable energy accounts for 20% of power generation, the Taiwan government has actively promoted the integration of energy generation. Many small and medium-sized enterprises or start-up companies are faced with the challenge of financing their business expansion. This paper adopted document analysis method to seek more diversified financing channels compared with traditional ways of financing and lending from financial institutions, the combination of fintech and the power of the masses, such as crowdfunding, has become one of the emerging financial instruments for the development of green energy industry. Finally, the empirical result is compared main region about the community renewable energy projects and realized how to obtain renewable energy resources through new financing source. The study will be providing related reference to decision-making of country which plan to develop renewable energy projects.

The Other Side: Negative Impacts of Exploiting Renewable Energy Sources

2021 ◽  
Vol 6 (3) ◽  
pp. 30-33
Author(s):  
Orisa F. Ebube ◽  
Etim E. Akan
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Fossil Fuels ◽  
Renewable Energy Sources ◽  
Global Scale ◽  
Green Energy ◽  
Insurance Companies ◽  
Energy Sources ◽  
Regulatory Policies ◽  
The Cost

The increasing demand for energy threatens the earth with climate change due to emission of greenhouse gases from the burning of fossil fuels. This has been the major driver for green energy. Renewable energy has the potential to reduce the negative effects of energy production on the environment at a global scale. However, the technology to harness the energy from renewable sources have only been well developed for the electricity market. Expanding the scope to supply other markets and sectors would lead to increase in demand on rare earth minerals which will reciprocally create negative environmental and socio-economic impacts.  In order to mitigate such impacts, strong regulatory policies will be required to control different aspects of renewable energy sources, the scale of production and footprint on the environment. Recycling renewable energy technology is a step in the right direction. However, the cost of recycling is found to be 5 times the cost of mining. This would affect the price of energy generated from renewable energy sources on a long run. A shift from fossil fuel would imply at least 20 trillion dollars in stranded assets which would trigger a financial collapse. This collapse would possibly lead to the complete loss of the oil, gas and coal industries, power producers, insurance companies and banks that hold loans for these industries.

scholarly journals Environmental Policy Integration in the Energy Sector of China: The Roles of the Institutional Context

2020 ◽  
Vol 17 (24) ◽  
pp. 9388
Author(s):  
Xiang Ruan ◽  
Rong Sheng ◽  
Tuo Lin
Keyword(s):  
Renewable Energy ◽  
Environmental Policy ◽  
Production Capacity ◽  
Analytical Framework ◽  
Energy Sector ◽  
Green Energy ◽  
Policy Integration ◽  
Quantitative Evidence ◽  
Environmental Policy Integration

The rapid growth of China’s renewable energy market and production capacity has attracted worldwide attention. Environmental policy integration in the energy sector and the institutional background behind this growth have seen little examination. In this paper, we present an assessment of environmental policy integration (EPI), attempting to reveal how the institutional factors facilitate EPI in the energy sector of China. A qualitative analytical framework involving normative, organizational, and procedural dimensions, incorporating multiple pieces of quantitative evidence, was applied. The results show that an ambitious and long-term normative vision covering political will, social backing, and cultural foundation in China is indispensable to the EPI process in the energy sector. The energy agency’s trans-sector cooperation in policy-making has been established to overcome the sectoral compartmentalization. China’s EPI in energy has a relatively complete and stable regulating system but, at the same time, it is expected to obtain more benefits from market cultivation and public participation. In this process, advantages such as the co-evolution of the green energy innovation, market, and society do exist; however, this market-oriented approach may bring the risk of economic and societal disturbances when interest-driven production capacity growth far surpasses market and societal requirements. This potential risk needs to be handled and prevented by strong governmental guidance and support. The continuous ambitious and long-term visioning of EPI, sufficient governmental funds, and a proactive industrial plan for renewable energy, are suggested.

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