Session 4.1: Global and Regional Trends in the Financing of Clean Energy

May 22nd, 2019

Developing countries across the globe are making an aggressive push toward a low-carbon economy and have set national clean energy targets. However, to achieve their targets, they will require huge capital investments and innovative mechanisms to unlock new sources of financing. Presenters in this session discussed global and regional trends in the emerging ways of doing business in financing green and clean energy infrastructure.

Moderator: Vandana Gombar, Editor - Global Policy, Bloomberg BNEF


AIIB’s Sustainable Energy Strategy and Financing
David Morgado, Senior Energy Policy Specialist, AIIB

This presentation included a brief introduction to AIIB, it's Sustainable Energy Strategy, energy investment portfolio and products focusing on clean energy and renewables, in addition to innovative project case studies.

Financing Hybrids – Creating PPAs That Cover Integration of Renewables, Storage and Thermal
Malin Ostman, Manager, Project Development, Wärtsilä Development and Financial Services

One of the key challenges to project finance of hybrid projects is creating IPP business models that are tailored for such projects. This presentation discussed key aspects of designing hybrid PPAs that fully cover the integration of different assets–and show how to create an IPP business model for hybrids that will deliver competitive and reliable clean energy to off-takers, bankability to financiers, and an acceptable risk structure to developers, investors and contractors.

The Moral Hazard of Renewable Energy and Alternative Fuels Tax and Economic Incentives
Kelly Hewitt, Principal Planning & Coordination Specialist, ADB

A change in government, strategy, or budget greatly influence public policy. This presentation focused on how acknowledging possible public policy change up front is a necessary part of an investor’s risk assessment. It also discussed the moral hazard of banking on the non-bankable.

Unlocking International Crowd-Investment for the Indian Clean Energy Market
Bhaskar Deol, CEO, Mynergy Renewables

The crowd-investment industry is rapidly growing, driven by persistent low interest rates in developed countries. This presentation focused on an innovative model that focuses on small and medium clean energy enterprises, considered risky by banks. It also discussed lessons learned from the execution of crowd-financing for projects, and shared best practices for navigating complex regulatory and compliance requirements, risk mitigation, and stakeholder management in a fast-evolving business landscape.