Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments

Shigeru Kimura, Youngho Chang and Yanfei Li

in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This research aims to identify and update the most effective policies in the Asian context, especially for member states of the Association of Southeast Asian Nations (ASEAN), China, and India. Specifically, it addresses what policies could effectively mitigate the most prominent risks related to renewable energy investments and, therefore, facilitate the application of the most promising financial mechanism in the region. The studies of this project highlight policies that address the following issues regarding more effective promotion of renewable energy investment in the region: (i) to develop viable and innovative business models and financial mechanisms/structures, especially for distributed generation from renewable sources; (ii) to facilitate market creation through the implementation of market-based mechanisms; (iii) to provide stability of policies and the need for renewable energy legislation; (iv) to enhance the availability of high-quality and high-accuracy renewable energy resource data and other technical assistance to reduce the uncertainty of renewable energy production; (v) to rationalise electricity market design that internalises not only the positive externality of renewable energy but also its negative externality (especially the impact on the grid capacity and grid balancing); and (vi) to improve the availability of financial resources in the region through market creation and enhancement of innovative financial instruments, such as Green Bond, which may be familiar and attractive to Asian investors. The other innovative instrument to reduce the cost of debt financing is public foreign exchange hedging facility for renewable energy financing.

Date: Written 2015-09 Originally published 2015-09.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.eria.org/RPR-FY2014-27.pdf

Chapters in this book:

Ch 1 Financing Renewable Energy in the Developing Countries of the EAS Region

Fukunari Kimura, Shigeru Kimura, Youngho Chang and Yanfei Li

Ch 2 Renewable Energy Policies in Promoting Financing and Investment among the East Asia Summit Countries: Quantitative Assessment and Policy Implications

Youngho Chang, Zheng Fang and Yanfei Li

Ch 3 Assessment of Instruments in Facilitating Investment in Off-grid Renewable Energy Projects Global Experience and Implications for ASEAN Countries

Xunpeng Shi, Xiying Liu and Lixia Yao

Ch 4 Business Models and Financing Options for a Rapid Scale-up of Rooftop Solar Power Systems in Thailand

Sopitsuda Tongsopit, Sunee Moungchareon, Apinya Aksornkij and Tanai Potisat

Ch 5 Analysis of Distributed Solar Photovoltaic (DSPV) Power Policy in China

Sufang Zhang

Ch 6 Innovative Business Models and Financing Mechanisms for Distributed Solar Photovoltaic (DSPV) Deployment in China

Sufang Zhang

Ch 7 Exuberance in China's Renewable Energy Investment: Rationality, Capital Structure, and Implications with Firm Level Evidence

Dayong Zhang, Hong Cao and Peijiang Zou

Ch 8 The Impacts and Interaction of Upstream and Downstream Policies for the Solar Photovoltaic Industries of China

Wang Hongwei, Zhang Kai and Vanessa Zhang

Ch 9 Retail Electricity Tariff and Mechanism Design to Incentivise Distributed Generation

Ramteen Sioshansi

Ch 10 Financing Solar PV Projects: Energy Production Risk Reduction and Debt Capacity Improvement

Romeo Pacudan

Ch 11 Bond Financing for Renewable Energy in Asia

Thiam Ng

Ch 12 Utilising Green Bonds for Financing Renewable Energy Projects in Developing Asian Countries

Jacqueline Yujia Tao

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Persistent link: https://EconPapers.repec.org/RePEc:era:eriabk:2014-rpr-27

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