Credit Enhancements and Capital Markets to Fund Solar Deployment: Leveraging Public Funds to Open Private Sector Investment

Mendelsohn, Michael; Urdanick, Marley; Joshi, John

doi:10.2172/1172934

Cited by 5 publications

(2 citation statements)

References 6 publications

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“…In TPO, the results are guaranteed by the operator and, in most cases, no upfront payments are required, so most of the financial, legal and technical complexities and risks are transferred from the farmer to the ESCO. TPO models also have the capacity to attract a higher level of investment to RES and to introduce price transparency and technical quality to the market (Joshi, 2012;Mendelsohn et al, 2015).…”

Section: Discussionmentioning

confidence: 99%

Diffusion of renewable energy technology on Spanish farms: drivers and barriers

Romero

Langeveld

Fernández-Redondo

2022

Environ Dev Sustain

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The aim of this paper is to identify the drivers and barriers of on-farm adoption of renewable energy systems (RES) in Spain and to determine how the existing mix of policies (subsidies, regulation and communication) affected the decisions of the farmers. The analysis is based on the results of a national survey that was completed by 719 farmers, representing the main types of farms and production regions. Statistically significant correlations have been observed between the probability of on-farm RES adoption and variables such as the use of contract farming, interest in new technologies and risk tolerance. Findings suggest that the diffusion of on-farm RES was at an early stage. Farmers are hesitant to adopt RES because the level of economic and regulatory uncertainty is perceived as too high in relation to the return and payback time typical of RES investments. Tailored business models and financing solutions should be implemented and promoted to overcome the described issues. Furthermore, relevant and reliable information should be available within farmers’ most common professional networks such as cooperatives and farmers’ associations. These aspects should be combined or even prioritized over providing direct economic incentives when producing on-farm RES supporting policies.

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Section: Discussionmentioning

confidence: 99%

Diffusion of renewable energy technology on Spanish farms: drivers and barriers

Romero

Langeveld

Fernández-Redondo

2022

Environ Dev Sustain

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“…The absence of performance data regarding infrastructure‐scale PV securitizations fuels a cyclical phenomenon where ‘risk perception is fed by lack of historical knowledge, which is in turn fed by risk perception. ' As such, ‘it may be realistic to assume that the first securitizations will not obtain an optimal spread between the cost of capital of securitization debt and, say, that of a commercial loan.’ Credit enhancement techniques, such as overcollateralization, first‐loss reserves, or tranching can, on the other hand contribute to lowering the cost of capital PV system output .…”

Section: Analytic Approachmentioning

confidence: 99%

Multivariate analysis of solar city economics: impact of energy prices, policy, finance, and cost on urban photovoltaic power plant implementation

Byrne

Taminiau

Kim

et al. 2017

WIREs Energy & Environment

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Previous research suggests that the potential for city‐scale photovoltaic (PV) applications is substantial across the globe. Successful implementation of ‘solar city’ options will depend on the strategic application of finance mechanisms, solar energy soft cost policies, and other policy tools, as well as the grid price of electricity. Capital markets recently have embraced the roll‐out of new financial instruments, including ‘green bonds,’ which could be incorporated into solar city project design to attract large investments at a low cost. A multivariate analysis method is employed to consider solar city possibilities for six cities: Amsterdam, London, Munich, New York, Seoul, and Tokyo. A Monte Carlo simulation is conducted to capture the probabilistic nature of uncertainties in the parameters and their relative importance to the financial viability of a solar city project. The analysis finds that solar city implementation strategies can be practical under a broad range of circumstances. WIREs Energy Environ 2017, 6:e241. doi: 10.1002/wene.241 This article is categorized under: Photovoltaics > Systems and Infrastructure Solar Heating and Cooling > Economics and Policy Energy Policy and Planning > Economics and Policy

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