Renewable Energy Finance

Renewable Energy Finance: Theory and Practice, Second Edition integrates the special characteristics of renewable energy with key elements of project finance. Through a mixture of fundamental analysis and real-life examples, readers learn how renewable energy project finance deals mix finance, public policy, legal, engineering and environmental issues. This book investigates the economics of large-scale green power production and incentive mechanisms, and how they fit into the global energy industries. It also examines how distributed energy resources such as residential solar and batteries can be financed at the scale needed to play a significant role in the future energy mix. The authors examine how renewable energy projects get financed and built using modern non-recourse project finance structures. It also highlights recent innovations such as Green Bonds and Sustainability Linked Loans that have emerged in the context of ESG investments. The scope of the book is global, and it illustrates how renewable energy project finance has evolved in various places (such as the tax-equity structures used in the United States, due to the corporate tax incentives used there) to cope with local regulatory and policy environments. This book serves as a valuable resource for students and professionals without extensive background on energy and environmental projects and a limited knowledge of finance, and it offers a refresher on core concepts in basic finance necessary to understand renewable energy project finance—ultimately helping the reader understand how the various come together to make a green energy project financeable. Supports efforts to achieve environmental sustainability through renewable financing projects and cleaner production techniquesProvides some real-life case studies to help readers to understand how a project gets financed and built, including the critical interplays between the different financing elements based on how real deals are doneOffers project finance models on a companion website—for wind and solar projects, for example—based on real investment banking experience that can form the basis for student projects and independent studyNew to this edition: two new chapters on Addressing Technology Risks for Successful Clean Energy Transition and Financing Green Hydrogen Projects bring the text up to date