 Financing and risk management of renewable energy projects with a hybrid bondCheuk Wing Lee and Jin Zhong Renewable Energy, 2015, vol. 75, issue C, 779-787 Abstract: Although many incentive schemes and renewable energy policies, such as feed-in tariffs and tax credits, have been imposed to boost renewable energy investment, renewable energy investment still necessitates huge initial capital costs and involves numerous uncertainties. Unless the problems are well addressed, renewable energy developments are hindered. In this paper, we present a new financing instrument, called hybrid bond, to build renewable energy projects. The hybrid bond consists of a portfolio of renewable energy projects. It does not only financially support the initial capital costs, but also manages the risks associated with renewable energy investment. Key risks including market risks, credit risks, liquidity risks, operational risks and political risks are identified and managed. In the proposed framework, it reveals that the sale of a hybrid bond can finance a substantial share of upfront capital costs of renewable energy projects and the use of hybrid bond is able to manage major uncertainties. Keywords: Renewable energy financing; Renewable energy policy; Risk management (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:75:y:2015:i:c:p:779-787 DOI: 10.1016/j.renene.2014.10.052 Access Statistics for this article Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides More articles in Renewable Energy from Elsevier |
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