Clean Energy Financing

The ability to overcome financing barriers is critical for scaling up clean energy, energy efficiency, and renewable energy resources. The major financing barriers are:

• Limited Availability of Internal and External Financing
• Lack of Adequate Information and Communication Regarding Financing Needs and Issues
• High Project Development and Transaction Costs
• Limited Capability for Identification and Management of Risks
• Lack of Technical and Institutional Capacity
• Limited Understanding and Access to Tax Equity, Cash Equity, and Debt Financing
• Optimum Use of Investment and Production Tax Credits

While a wide range of financing programs and approaches have been utilized by project developers, governments, and IFIs (such as debt and equity financing; incentives, grants and subsidies; and fiscal initiatives), financing remains a major barrier to the scaling up of clean energy deployment.

• Identification of International and Local Financing Sources
• Development of Innovative Financing Mechanisms
• Identification of Sources for Tax Equity, Cash Equity, and Debt Financing
• Training of Clean Energy Project Developers with Respect to Needs of Financing Organizations
• Development of Templates and Checklists for Financing Proposals
• Preparation of Cash Flow Projections and Financial Pro-Formas
• Technical and Financial Due Diligence of Clean Energy Projects
• Identification of Risks and Development of Risk Management Techniques