You need JavaScript to view this

Financing renewable energy in developing countries. Drivers and barriers for private finance in sub-Saharan Africa

Abstract

The focus of this report is to identify and portray current barriers to the scaling up of private investment and finance for electricity generation from renewable energy sources in the sub-Saharan region. Best practice in tackling these barriers is identified, partly from a literature review but especially from the results of a survey conducted among 36 financial institutions that are UNEP Finance Initiative members and two non-member banks (all survey respondents have experience in the field of energy infrastructure finance). Promising avenues in the areas of local policy reform, incentive mechanisms and international de-risking instruments are highlighted. In particular, this report addresses the following questions: (a) Why are sub-Saharan Africa and developing countries elsewhere failing to expand electricity generation from renewable sources? What are the barriers to such expansion? What is keeping the risk-return profile of renewable energy investments in sub-Saharan Africa unattractive and projects commercially unviable?; (b) What have been the experiences of private sector lenders and investors in the area of renewable energy projects in developing countries? What barriers and drivers have they encountered, and how can these experiences be of use in sub-Saharan Africa?; (c) What can be learned from the modest but encouraging successes of a  More>>
Publication Date:
Feb 15, 2012
Product Type:
Miscellaneous
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; DEVELOPING COUNTRIES; INVESTMENT; RENEWABLE ENERGY SOURCES; AFRICA; FINANCING; POWER GENERATION; FINANCIAL INCENTIVES; PROGRAM MANAGEMENT
OSTI ID:
22022560
Research Organizations:
UNEP Finance Initiative, International Environment House 15, Chemin des Anemones, CH-1219 Chatelaine, Geneva (Switzerland)
Country of Origin:
Netherlands
Language:
English
Other Identifying Numbers:
TRN: NL12E0834
Availability:
Available at http://www.unepfi.org/fileadmin/documents/Financing_Renewable_Energy_in_subSaharan_Africa.pdf
Submitting Site:
ECN
Size:
56 page(s)
Announcement Date:
Jan 14, 2013

Citation Formats

None. Financing renewable energy in developing countries. Drivers and barriers for private finance in sub-Saharan Africa. Netherlands: N. p., 2012. Web.
None. Financing renewable energy in developing countries. Drivers and barriers for private finance in sub-Saharan Africa. Netherlands.
None. 2012. "Financing renewable energy in developing countries. Drivers and barriers for private finance in sub-Saharan Africa." Netherlands.
@misc{etde_22022560,
title = {Financing renewable energy in developing countries. Drivers and barriers for private finance in sub-Saharan Africa}
author = {None}
abstractNote = {The focus of this report is to identify and portray current barriers to the scaling up of private investment and finance for electricity generation from renewable energy sources in the sub-Saharan region. Best practice in tackling these barriers is identified, partly from a literature review but especially from the results of a survey conducted among 36 financial institutions that are UNEP Finance Initiative members and two non-member banks (all survey respondents have experience in the field of energy infrastructure finance). Promising avenues in the areas of local policy reform, incentive mechanisms and international de-risking instruments are highlighted. In particular, this report addresses the following questions: (a) Why are sub-Saharan Africa and developing countries elsewhere failing to expand electricity generation from renewable sources? What are the barriers to such expansion? What is keeping the risk-return profile of renewable energy investments in sub-Saharan Africa unattractive and projects commercially unviable?; (b) What have been the experiences of private sector lenders and investors in the area of renewable energy projects in developing countries? What barriers and drivers have they encountered, and how can these experiences be of use in sub-Saharan Africa?; (c) What can be learned from the modest but encouraging successes of a few sub-Saharan African countries? Can these results be replicated? What was done in these countries to improve the risk-return profile of renewable energy and unlock private finance?.}
place = {Netherlands}
year = {2012}
month = {Feb}
}