Renewable energy country attractiveness index
Crowd and community-sourced finance’s contribution to the global energy transition should not be understated as small suddenly becomes big.
With smaller-scale distributed generation in particular becoming more critical to both developed markets facing grid and balancing constraints, and emerging economies trying to address rural electrification, the outlet for localized financing models has suddenly expanded.
The pool of capital available for these also has real potential to increase if the risk reward profile can be structured to become a viable alternative to other retail investment channels.
These models could also be scaled up to support larger projects or collaborate with more mainstream investors, and encourage innovative business models, particularly in emerging markets.
In short, local finance has an important role in democratizing energy, and channeling capital to where it is most needed.
Many of the world’s island nations’ energy markets are characterized by high fuel costs, high emissions and vulnerable energy security, mainly because of their size and location. They face an unprecedented energy crisis, with imported fossil fuel costs a burden on trade deficits, and energy security a major risk for industry and tourism. In this environment, renewables are an affordable alternative.
The challenge, and opportunity, is to help these islands transition, creating investment and deployment opportunities, and the potential to lead the creation of new energy microsystems.
Our focus on island renewables also features insights from:
Jose Maria Figureres
President of the Carbon War Room
Head of Renewable Energy and Sustainable Development at OPIC