Mobilizing Finance and Investment

Updates from May 2020

USAID Clean Power Asia is coordinating with the Global Wind Energy Council (GWEC) to support the online edition of GWEC’s Vietnam Wind Power Conference from June 9-10. During the event, we will organize a matchmaking session between local developers and international investors, to facilitate the establishment of partnerships for wind project development and investment in Vietnam. During the session, 8-10 developers will have five minutes to present their company and project portfolio. Afterwards each developer will have a virtual room where they can have follow up discussions with interested investors.

In Thailand, USAID Clean Power Asia investment mobilization staff are supporting a food company in the development of rooftop solar at its facilities. The company has received proposals for several solar companies and program staff are assisting the company in evaluating the proposals and making an investment decision.

USAID Clean Power Asia investment mobilization staff are following up on the second webinar in USAID Clean Power Asia’s RElearning series on Financial Modeling for Utility-Scale Solar, Wind and Biomass Power in Southeast Asia hosted on April 29. The event provided background information and insights into the three financial models published by the program (utility-scale solar, wind, and biomass power). We prepared a webinar report compiling the results from an audience poll and post-event survey, and are currently following up with participants who indicated they have an interest to learn more about our financial advisory services.

 

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.