1 Reply Latest reply: Jan 26, 2014 11:49 AM by halady.prabhu RSS

    Finance Mechanisms for Lowering the Cost of Renewable Energy in Rapidly Developing Countries

    C4D Enthusiast

       

      If debt were available at terms and interest rates similar to those found in developed countries, the cost to governments and consumers of financing renewable energy in rapidly developing economies could be as much as 30% lower.

      How to reduce the costs in RE debts, here is a paper from CPI

       

       

        • Re: Finance Mechanisms for Lowering the Cost of Renewable Energy in Rapidly Developing Countries
          C4D Explorer

          Great paper and touches on most of the financing issues related to debt.  I wanted to draw attention to Nigeria, the Power and Airline Intervention Fund (PAIF) of 300 Billion Naira (~ USD 2 Billion) was introduced to provide debt in local currency at 7% interest rate in local currency for power and airlines to invest in Nigeria.  This was a step in the right direction and in line with what the paper outlines.

           

          Now a days, the competition to supply renewable energy has become so competitive, that the PPA price in the RFP in the latest bids in South Africa and India for solar is around USD 100 / MWh or less (at the exchange rate prevailing at that time).

           

          Though, lower interest rates are not a silver bullet, it is a part of the solution that can make clean power affordable in the emerging and poorer nations and bring about development and alleviate poverty.