Mobilizing Finance and Investment

Updates from January 2020

USAID Clean Power Asia is coordinating with the Global Wind Energy Council to organize a training workshop on project finance for wind power in Vietnam, targeted towards local developers and bankers. The workshop, taking place in Ho Chi Minh City on February 19, aims to build a practical understanding of project finance aspects for wind power projects, including cash flow analysis, risk assessment, and financial modeling. For more information on this event, please contact us.

 

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.