How to Match the Financing Needs of Distributed Energy with the Investment Appetite of Investors?
(Room Garuda 10A, 1st Floor)
20 Sep 18
9:30 AM
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11:00 AM
Tracks:
TRACK B - Finance & Investment
An underlying and overarching trend of energy transition is the gravity shift from large, centralized, and unidirectional power systems towards smaller, decentralized and bidirectional structures. In India for example, according to Bloomberg New Energy Finance, rooftop PV was the fastest growing market segments with a compound annual growth rate of installations of 117% between FY13 and FY17. At the same time sustainable investment has become mainstream, and large institutional investors are looking to invest in clean technology and sustainable projects. These investors however have investment requirements that do not match the profiles of distributed energy projects: they are looking for very large and liquid investments. Therefore, how can we attract the huge amount of investments that are needed towards distributed energy under those constraints? The presentation will showcase existing and new / innovative models which could be structured to tackle this issue. This could include: - Financing Facilities such as the Government of Indonesia / UNEP tropical landscape financing facility - Randomized sampling methodology for due diligence of multiple small projects - Asset Backed Securities for smart meters and SHS - Blockchain enabled project funding - Targeted equity investment of infrastructure funds in project developers to secure project pipeline