Financial Mechanisms for Clean Energy in Small Island Developing States
This report explores the potential financing mechanism options that can be employed to catalyze more private sector investment in clean energy (renewable energy and energy efficiency) in the small island developing states (SIDS). Various financial...
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| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/11/25256052/financial-mechanisms-clean-energy-small-island-developing-states http://hdl.handle.net/10986/22914 |
| Summary: | This report explores the potential
financing mechanism options that can be employed to catalyze
more private sector investment in clean energy (renewable
energy and energy efficiency) in the small island developing
states (SIDS). Various financial instruments that have been
used successfully to date are described and placed in the
context of the issues and constraints of the SIDS, with
suggested options for discussion and follow up. Green
infrastructure finance, as defined in the report, makes the
important point that is the combination of financial and
nonfinancial interventions and instruments that can make
green investments in infrastructure more affordable and less
risky to private sponsors, financial markets, and
governments. The objective of this report is to identify and
assess options that can help increase investment in
renewable energy and energy efficiency in SIDS through the
adoption and funding of financing mechanisms by SIDS and
development partners with special attention given to the
role that the private sector can play. Many renewable energy
technologies are characterized by high initial capital costs
with relatively low operating costs compared to thermal
alternatives. By providing an analysis of options for a
financing facility to catalyze renewable energy and energy
efficiency, this work is intended to inform the discussions
among SIDS and development partners interested in actions to
stimulate investment in renewable energy and energy
efficiency. This report summarizes the results of the two
stages. The assessment and selection of options identifies a
number of measures that will be needed to stimulate
increased private sector participation - project sponsors
and developers, equity funds, lending institutions - for
energy efficiency and renewable energy. The background
material reviewed for this report has been summarized in the annexes. |
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