Risk Mitigation Strategies for Renewable Energy Project Financing.

Autor: Agrawal, Ashutosh
Předmět:
Zdroj: Strategic Planning for Energy & the Environment; Fall012, Vol. 32 Issue 2, p9-20, 12p
Abstrakt: Project finance has emerged as a preferred financing vehicle for renewable energy projects. Advanced application of project finance (structured finance) can further spur investment from institutional investors. A key challenge is the perception of renewable energy projects as high-risk. This article attempts to cover the entire breadth of risk factors and spell out the corresponding risk mitigation strategies. Risk mitigation strategies mentioned in the article cover a wide spectrum, ranging from standard insurance covers/contracts to the judicious selection of project attributes. The key, broad areas that influence project selection and attractiveness are credit worthiness of project participants; attractiveness and guarantee of future cash flows; host country profile; and the legal, political, and market environment. This article should help project developers and investors alike to select/structure good projects and improve their investment worthiness. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index