Private Financing of Renewable Energy: A Guide for Policymakers
This Guide provides an outline of how financing Renewable Energy works, with a particular focus on more mature end of the market i.e. the proven technologies that can be deployed now and at scale. It aims to show how policy looks and where it fits in from a financing perspective; as well as the range of other factors that need to be taken into account in doing an actual project or deal. A broad range of financial institutions are now investing or lending money into the Renewable Energy (RE) sector. Global investment grew exponentially from $22 billion in 2002 to $155 billion in 2008 when, for the first time, investment in new RE power generation capacity (including large hydro) was greater than investment in fossil fuel generation. The financial crisis in late 2008, first quarter 2009 did hit the sector heavily, although a bounceback was subsequently observed, and investor interest in the sector remained throughout (discussed below).