Dialogue with Experts and Practitioners in Germany on Renewable Energy Finance
Public finance alone will not be adequate to fulfil financing needs of climate mitigation and adaptation. However, there is a lack of understanding on how the private sector can be effectively included in the implementation of climate change activities; a positive investment decision has to be based on a stringent illustration of key economic facts and quantifiable indicators of the political, technical and economic risks of climate change projects.
GIZ through the Study and Experts Funds Programme, together with the Indonesia NAMAs Financing Support (INFIS) aimed to contribute to finding a solution on how to mobilise private investment on Renewable Energy Projects in Indonesia. Frankfurt School, in cooperation with E-Quadrat, organised and facilitated an Expert Dialogue on “Renewable Energy Project Finance in Germany”, an exchange between key representatives from the public and private sectors in Indonesia and experts and practitioners in Germany on their experiences on how to mobilise private investments for renewable energy (RE) projects.
The 5 day programme guided participants through renewable energy project finance, climate finance, capital flows and the role of financial development cooperation. Representatives of commercial banks presented the financial structuring, risk assessment and challenges of RE projects, key success factors and lessons learned from Germany and Europe. Speakers from insurance companies presented project insurance and quality, including implementation and performance, quality assurance for bankability, benchmarking and the investment strategy of institutional investors. Germany’s Energiewende concluded the week with a presentation on the Energy Policy Scheme and future outlook. The participants also took part in an excursion to a biomass-to-energy power plant and a solar PV power plant, where they discussed technical and financial aspects for practical insights in RE project finance.