EurObserv'ER - Examples of innovative financing schemes 2014-2015

Under the current macro-economic trends in the EU it is difficult for public budgets to secure funds for the further support of renewables. Thus, the so far abundant support system for renewables (mainly in the form of feed-in-tariffs and quota systems) has been drastically down-turned. In many EU countries, companies are trying to find alternative ways to secure financing for their renewable energy projects. However, it has to be noted that the withdrawal of public support did not cancel the EU's green ambitions, therefore, new ways of attracting private capital for the realisation of green energy goals have to replace the old schemes. The finance and investment gap needs to be filled by the private sector, by new business and financing models. It takes effort to convince the market actors to mobilize their accumulated financial resources for the development of renewables. Perception of risk is the most important factor impeding such investments, however, good news is that there is already a significant number of good practice examples, in this document we describe some of them. Innovative financing mechanisms presented in the following pages are likely to play an increasingly important role in the allocation of risk among different investor classes and help mobilize investments for new green energy projects in the future