Financial Mechanisms for Clean Energy in Small Island Developing States

This report explores the potential financing mechanism options that can be employed to catalyze more private sector investment in clean energy (renewable energy and energy efficiency) in the small island developing states (SIDS). Various financial instruments that have been used successfully to date are described and placed in the context of the issues and constraints of the SIDS, with suggested options for discussion and follow up. Green infrastructure finance, as defined in the report, makes the important point that is the combination of financial and nonfinancial interventions and instruments that can make green investments in infrastructure more affordable and less risky to private sponsors, financial markets, and governments. The objective of this report is to identify and assess options that can help increase investment in renewable energy and energy efficiency in SIDS through the adoption and funding of financing mechanisms by SIDS and development partners with special attention given to the role that the private sector can play. Many renewable energy technologies are characterized by high initial capital costs with relatively low operating costs compared to thermal alternatives. By providing an analysis of options for a financing facility to catalyze renewable energy and energy efficiency, this work is intended to inform the discussions among SIDS and development partners interested in actions to stimulate investment in renewable energy and energy efficiency. This report summarizes the results of the two stages. The assessment and selection of options identifies a number of measures that will be needed to stimulate increased private sector participation - project sponsors and developers, equity funds, lending institutions - for energy efficiency and renewable energy. The background material reviewed for this report has been summarized in the annexes.

Bibliographic Details

Main Author:	World Bank Group
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-01
Subjects:	FACILITY FUND, BORROWER, FINANCE INITIATIVE, ECONOMIC GROWTH, DEVELOPMENT ASSISTANCE, PROPERTY TAX, FINANCING, INTEREST, SOFT LOANS, ENTREPRENEURS, REPAYMENTS, EQUITY FINANCING, CAPACITY BUILDING, LOAN, FEE, ENDOWMENT, BORROWERS, PAYMENTS, DEVELOPMENT FINANCE INSTITUTIONS, CASH FLOWS, MFIS, CREDIT OFFICERS, FUNDING SOURCES, REVOLVING FUNDS, ACCESS TO FUNDS, EQUITY CAPITAL, HOUSING LOANS, TECHNICAL ASSISTANCE, EQUIPMENT PURCHASES, INDEBTEDNESS, FINANCIAL INSTITUTION, LOAN FUND, MARKET DEVELOPMENT, HIGH INTEREST RATES, LOAN DEFAULTS, COMMERCIAL BANK, MORAL HAZARD, PARTIAL CREDIT, LOAN PRODUCTS, FINANCES, CREDIT RISKS, FINANCIAL INSTITUTIONS, PAYMENT, DEBT, SOURCE OF FUNDS, MICRO LOANS, MICRO-CREDIT SCHEME, LOAN REPAYMENTS, PUBLIC FINANCE, FINANCIAL • MARKET, VENTURE CAPITAL, ENTERPRISES, INVESTMENT OPPORTUNITIES, DEBT SERVICE, APPROVAL PROCESS, COMMERCIAL BANKING, LOAN SIZES, DONOR FUNDS, BANK FINANCING, FUTURE CASH FLOWS, TERM CREDIT, SEED FUNDING, BANKS, INVESTMENT DECISIONS, UNIONS, DEBT FINANCING, AFFORDABILITY, CAPITAL, BUSINESS PLAN, CUSTOMER BASE, CAPITAL INJECTION, ACCESS TO FINANCE, BUSINESS DEVELOPMENT, DEVELOPMENT BANKS, BANK, EQUITY FUNDS, LOAN GUARANTEES, EXTERNAL FUNDS, DEBT FINANCE, INSTITUTIONAL CAPACITY, MEZZANINE FUND, CREDIT GUARANTEE, CREDIT RISK, PROFITABILITY, GOVERNMENT POLICIES, MICROFINANCE, ECONOMIC DEVELOPMENT, BANK LOAN, LOAN APPLICATIONS, SOURCES OF FUNDS, EQUITY FUND, CREDIT GUARANTEES, FINANCIAL INTERMEDIATION, FINANCIAL INTERMEDIARIES, RATES OF RETURN, COMMERCIAL BANKS, HOUSEHOLDS, LOAN SIZE, PRIVATE INVESTORS, EQUIPMENT PURCHASE, DEVELOPMENT FINANCE, FINANCIAL SUPPORT, LENDING POLICY, INVESTMENT PLAN, CAPITAL INVESTMENT, CAPITAL COSTS, CREDIT LINES, PROFITABLE BUSINESS, DOWN PAYMENTS, DEVELOPMENT BANK, CASH FLOW, MFI, MICROFINANCE INSTITUTION, TARIFFS, ADVISORY SERVICES, LINE OF CREDIT, CAPITAL MARKETS, CAPITAL FUNDS, FACILITATION, MATCHING FUNDS, GUARANTEES, EQUITABLE ACCESS, INTEREST RATE, PROPERTY RIGHTS, REVOLVING FUND, DIRECT CREDIT, FINANCIAL RESOURCES, COMMERCIAL FINANCE, MORTGAGE, SOURCES OF FINANCE, SUBSIDY, TRANSACTION COST, INTERNATIONAL BANK, AGRICULTURE ORGANIZATION, LENDER, FINANCING FACILITY, BANK LENDING, INTERNATIONAL FINANCE, CREDITS, FINANCIAL SUSTAINABILITY, SAVINGS, START-UP, PUBLIC-PRIVATE PARTNERSHIP, CREDIT UNIONS, LOAN FUNDS, MICRO-FINANCE INSTITUTIONS, UNION, ADMINISTRATIVE CAPACITY, PUBLIC FUNDS, REVOLVING LOAN, INTEREST RATES, LIMITED ACCESS, ELIGIBILITY CRITERIA, FINANCIAL VIABILITY, FINANCIAL PRODUCTS, LENDERS, BANKERS, LOANS, PRIVATE EQUITY, FINANCE, ADMINISTRATIVE COSTS, FREE LOANS, CREDIT LINE, COLLATERAL REQUIREMENTS, MICRO-CREDIT, EQUITY, GRANT, CREDIT CONSTRAINTS, LOAN GUARANTEE, OPERATING COSTS, PROPERTY TAXES, DONOR RESOURCES, ACCESS TO CAPITAL, CREDIT, EQUITY INVESTMENTS, UNIVERSAL ACCESS, INVESTMENT BANK, FINANCIAL INSTRUMENTS, REPAYMENT, ENTERPRISE, APPROVAL PROCESSES, PROPERTY, EQUITY INVESTORS, BALANCE SHEET, TRANSACTION COSTS, BANK ACCOUNTS, CREDIT SCHEME, INTERESTS, ECONOMIC BARRIERS, SPECIAL FUNDS, BANK LOANS, SECURITY, FINANCIAL MARKET, INVESTMENT, BALANCE SHEETS, COLLATERAL, MICRO-FINANCE, FINANCIAL MARKETS, TARIFF, COOPERATION, FINANCIAL INTERMEDIARY, INITIAL FUNDING, BORROWING, INVESTMENTS, RETURN ON INVESTMENT, TECHNICAL SUPPORT, IMPORT DUTY, BARRIERS TO INVESTMENT, GUARANTEE,
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25256052/financial-mechanisms-clean-energy-small-island-developing-states https://hdl.handle.net/10986/22914
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