Bond financing for renewable energy in Asia

Abstract

Chapter 11 Bond Financing for Renewable Energy in Asia Thiam Hee Ng April 2016 This chapter should be cited as Kimura, F., S. Kimura, Y. Chang, and Y. Li (2015), ‘Financing Renewable Energy in the Developing Countries of the EAS Region’, in Kimura, S., Y. Chang and Y. Li (eds.), Financing Renewable Energy Development in East Asia Summit Countries. ERIA Research Project Report 2014-27, Jakarta: ERIA, pp.1-11. Chapter 11 Bond Financing for Renewable Energy in Asia41 Thiam Hee Ng42 Abstract Energy needs in Asia are huge. Meeting these needs in a sustainable way will require a shift in investment away from fossil fuels towards renewable energy sources. Significant upfront costs and long payback periods of renewable energy projects have often discouraged investors from financing these projects. With government finances already overstretched in many countries, the public sector will find it hard to meet the large financing needs of renewable energy. Improving the financing mechanisms for renewable energy projects is essential to lower the financing cost and make the transition towards renewable energy more affordable for investors, governments, and consumers. The large pool of investable funds available in Asia suggests that the private sector can play a major role in providing financing. With heightened interest in investing in renewable energy, there is a large pool of potential investors. To attract these investors however, the investment will have to be packaged in a form that …

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