The costs of renewable energy projects are highly sensitive to financing terms. Consequently, as the electricity industry is moving to renewable energy, it is important for policymakers to consider the impacts of renewables policy design on project financing. A predictable regulatory framework is key to attract private investors and financiers but also to establish the renewable industry and to foster innovations.
On the request of the Flemish energy agency (VEA), 3E therefore provided a training seminar on the key mechanisms and implications of project finance of the different types of renewable energy projects. The key objective of the program was to strengthen the overall level of knowledge of the VEA staff to be fluent in the economics and the ‘financial language’ of renewable energy. From project level investor returns and its ratio’s to the different capital employed during each stage of development due to the nature of the risk/return relationship.
Each of the different renewable energy technologies has its characteristics with regards of financing but the common question for all is still “how will renewables be financed in an era of regulatory uncertainty over subsidies and support schemes”? As part of our consultancy services, we support companies and governments in the renewable energy sector with extensive strategic and financial advisory.