Mobilizing Finance and Investment

Updates from September 2019

This month, USAID Clean Power Asia investment mobilization staff participated in a panel discussion on renewable energy in Southeast Asia during the Canada-ASEAN Innovation meeting, organized by the Canada ASEAN Business Council. The event provided a platform for Canadian and ASEAN governments and businesses to connect and accelerate innovative partnerships. Program staff delivered a short presentation on the opportunities and challenges of renewable energy in Southeast Asia as well as an overview of USAID Clean Power Asia activities, and connected with several businesses with an interest in developing renewable energy.


How we mobilize finance and investment

Although renewable energy investments offer a range of promising new business opportunities, project developers have faced formidable financial and regulatory challenges. In the Lower Mekong region in particular, renewable energy projects receive less interest than traditional capital investments and barriers exist for banks and financial institutions to effectively engage and invest in renewable energy.

USAID supports financial institutions, developers, and other relevant stakeholders to secure and reduce the cost of finance for renewable energy projects by helping to develop innovative business models; promoting standardized documentation and evaluation practices and approval processes for financing renewable energy projects; and providing other advisory services. A broad range of models, strategic adoption of cost-efficient technologies, and comprehensive policies and regulations are key to structuring bankable projects that appeal to commercial developers. Renewable energy offers control of energy costs and margins, while tools and business models under development will improve the risk/reward profile of new projects.