Mobilizing Finance and Investment

Updates from November 2019

USAID Clean Power Asia Investment mobilization staff is putting the finishing touches on a financial model for utility-scale solar projects in Southeast Asia. The new model will be applicable to major markets in the region and will allow developers and investors to conduct a financial assessment and cash flow analysis of a project opportunity. The Excel-based model will be made publicly available on our website in early December.

 

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.