Performance-Based Investment Financing

Leslie A. Solmes ()
Additional contact information
Leslie A. Solmes: LAS & Associaties

Chapter 11 in Energy Efficiency, 2009, pp 133-143 from Springer

Abstract: Abstract Mitigating risks associated with investments in energy supply efficiency require performance-based financing. The author writes about her experience with the US DOE Rebuild America program and how performance metrics and project financing are integral to energy infrastructure financing. Using stories from the Universities of CA Santa Barbara and MD, College Park, she explains the financial structures of traditional independent power projects and how they have been applied to integrated energy supply investments. She resolves client business goals with their perceived financing constraints and restates the real investment opportunity. She explains the motivation and the means to use existing state investment authorities like economic development agencies and joint powers authorities to provide low cost financing and diversify risk. Examples of how projects can be financed off-balance sheet are described as well as the benefits to customers and suppliers. Incentives for establishing investment funds that earn guaranteed rates of return are presented and a comparison made to the risks of traditional investment options especially for pension funds and other critical societal funds.

Keywords: Diversify risk; Financing constraints; Guaranteed rates of return; Independent power projects; Investment authorities/funds; Off-balance sheet financing; Performance-based financing; Performance metrics; Project financing (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-90-481-3321-5_12

Ordering information: This item can be ordered from
http://www.springer.com/9789048133215

DOI: 10.1007/978-90-481-3321-5_12

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().