Bond financing for renewable energy in Asia

Thiam Hee Ng and Jacqueline Yujia Tao

Energy Policy, 2016, vol. 95, issue C, 509-517

Abstract: Addressing the financing gap for renewable energy (RE) projects in Asia is critical to ensure that the rapidly increasing energy needs could be met sustainably. This paper explores the cause of the financing gap in Asia and proposes the use of bond financing to address the financing gap. Specifically, three fixed income instruments, namely local currency denominated (LCY) corporate bonds, asset backed project bonds and financial green bonds, will be assessed. Whilst the potential for these three instruments to mobilize large flows of private sector financing is great, key supportive policies aimed at reducing the capital market bias for conventional power generation technologies and supportive RE policies are required. Another key aspect would be the necessary deepening of local and regional fixed income markets before such capital market instruments are able to play a big role.

Keywords: Renewable energy financing; Fixed income; Green bond; Renewable energy bonds (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (63)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:95:y:2016:i:c:p:509-517

DOI: 10.1016/j.enpol.2016.03.015

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