Mobilizing Finance and Investment

Updates from July 2020

This month, USAID Clean Power Asia investment mobilization staff finalized an update to the Bankability Guidelines for Utility-Scale Solar Projects in Vietnam, originally published in 2019. The revised guidelines incorporate the new regulations and feed-in tariff for solar promulgated by the Vietnam government on April 6. Once the revised guidelines are published on our website, USAID Clean Power Asia will host a webinar to promote the guidelines and our transaction advisory services.

USAID Clean Power Asia is coordinating with the Clean Energy Investment Accelerator on a webinar on rooftop solar targeted towards the private sector. The partners will also jointly develop a standard financial model for rooftop solar applicable to Southeast Asian markets, similar to the utility-scale solar, wind, and biomass financial models published earlier this year. This new financial model will be launched and showcased during the webinar planned for November 2020.

 

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.