Financing Renewable Energy

De-risking Renewable Energy Investments in Developing Countries: A Multilateral Guarantee Mechanism

Review of fossil fuels and future energy technologies

Renewable energy (RE) can play an important role in Sustainable Development in India. India is a growing economy, and it would need an assured supply of 3–4 times than the whole energy consumed today. This research paper discussed about RE sources, drivers, challenges and policies. It can be concluded from review of literature and other information provided in paper that RE have a huge potential in India and with latest technologies use it can fulfill India’s energy demand in future. Quality of life can be improved with the help of RE. It is predictable that large number of domestic jobs can be created in future in green energy and RE. The study found that RE can reduce environment pollution issues, carbon emission and scarcity of nonrenewable energy sources .RE has a positive relation with economic growth, job creation and welfare. This paper recommends some suggestions for strategic policy in sustainable energy sources.

The Republic of Azerbaijan is among the countries with a fairly high potential for renewable energy sources (RES). According to preliminary estimates, the total potential of the country's economically viable and technically usable BEMs is 26,940 MW, including 3,000 MW for wind energy, 23,040 MW for solar energy, 380 MW for bioenergy and 520 MW for mountain rivers[1]. At present, the country is using this potential to some extent. Over the past seven years, the production of energy from BEMs in Azerbaijan has increased many times. According to the Ministry of Energy, wind and solar power plants generated 408 million kWh of electricity in Azerbaijan in 2013-2019. Thus, in 2013, these stations produced only 1.6 million kWh of electricity. In 2019 this figure was 149 million. kWh, which is an increase of 93 times in the last 7 years. At present, Azerbaijan's total power generation capacity is 7,516 MW, and the capacity of renewable energy power plants, including large hydropower plants, is 1,278 MW, which is 17% of the total capacity, including 1,135 MW of hydropower capacity (22 HPP, 12 small hydroelectric power plants), wind power capacity 66 MW (5 plants, 1 hybrid), bioenergy capacity 38 MW (2 plants, 1 hybrid), solar power capacity 40 MW (9 plants, 1 hybrid). One hybrid power plant (Gobustan) is equipped with wind - 2.7 MW, solar - 3 MW and bioenergy - 1 MW. There are 2 solar power plants with a total capacity of 27 MW in the Nakhchivan Autonomous Republic. The installed capacity of renewable energy sources, excluding large hydropower plants, in 2020 was 168.3 MW, which is 2.2% of the total electricity generation capacity. In 2020, the country's electricity production amounted to 25.8 billion kWh. During this period, electricity production was 24.3 billion kWh at thermal power plants and 1,069.5 million kWh at hydro power plants and 343.55 mln. kWh at other sources (WPP, SPP and Waste-to-Power). During the year, 96.1 mln. kWh of power generated at WPPs, 46.9 million kWh in solar power plants, 200.6 million kWh at the Solid Waste Incineration Plant. Electricity generated by RES accounted for about 6% of total production. In 2014, a Memorandum of Understanding was signed with the State Agency and the Ministry of Energy of the Islamic Republic of Iran, as well as in 2015 between the State Administration of Energy of the People's Republic of China. The main goal is to increase the country's renewable energy investment capacity to 30% by 2030 [3]. Within the framework of pilot projects on RES (wind and solar), the project "Strengthening the network to support renewable energy projects in Azerbaijan" was implemented with the involvement of an international consulting company in connection with the connection of power plants to the power grid and the integration of BEMs into the power grid. According to a report prepared by VPC, in order to achieve the 30% target, new renewable power plants with an installed capacity of 1,500 MW must be installed, which will increase the total capacity to 440 MW in 2020-2022 and 460 MW in 2023-2025. MW, 600 MW in 2026-2030, it was considered expedient to integrate into the network in 3 periods. At the same time, along with public investment, measures are being taken to launch new production facilities at the expense of private and foreign investment.. On January 9, 2021, the Ministry of Energy of Azerbaijan and ACWA Power of Saudi Arabia and Masdar of the United Arab Emirates signed executive agreements on the implementation of pilot projects on renewable energy. According to the agreements, pilot projects will be implemented in Azerbaijan with ACWA Power for the construction of 240 MW wind farms, and with Masdar for the construction of 200 MW solar power plants. In total, about 1.4 billion kWh/year of electricity is forecasted to be produced by wind and solar energy projects. These companies will invest about $ 400 million in pilot projects in the field of renewable energy in Azerbaijan. The projects will take about 2 years to implement and will be implemented in stages. The commissioning of these production facilities will save 300 million cubic meters of gas per year, which is equal to 10% of gas consumption in Azerbaijan. The development of alternative energy sources will also increase the country's export potential due to the saved gas. Azerbaijan cooperates with the following international organizations on the application of BEMs: Azerbaijan State Agency for Alternative Renewable Energy Sources, European Economic Commission of the UN, UNDP, European Union, World Bank, Asian Development Bank, German KFW Bank, France's International Development Agency, US Development Agency, Economic Cooperation Organization, Black Sea Economic Cooperation Organization, Japan International Cooperation Agency, Korea International Cooperation Agency, European Interstate Oil and Gas Transport Program, etc. as well as Germany, Turkey, France, Iran, Lithuania, UAE, Sweden and others. Keyswords: renewable energy sources (RES), wind power plant (WPP), solar power plant (SPP), bioenergy station, hybrid station, integration.

This paper outlines to explore the influencing factors of unachieved target of the energy mix from renewable energy (RE) sources in Indonesia, to develop an integrated Islamic blended finance model for financing RE projects in Indonesia, and to analyse the costs and benefits of the proposed model. This research employs an exploratory sequential mixed method with the qualitative phase through in-depth interviews and Focus Group Discussions (FGD) and quantitative phases using primary and secondary data to simulate the Agent-Based Model (ABM) of the proposed model. The paper found three main financing issues on RE sector in Indonesia, including high investment costs and long payback period of RE projects, high risk perception to finance RE projects, and the uncertainty of investment return for RE developers. Besides, based on ABM simulation, Islamic blended finance can contribute to reduce the required period to achieve the energy mix target. Despite the less familiarity of Islamic finance instrument for the RE sector, an initial of a pilot project in place of the proposed business model might increase common awareness regarding this potential. Hence, policy implication delivered in this paper should be a key component to scale up RE sector via Islamic blended finance instrument.

Debt as catalyst: Empowering renewable energy in developing countries

PurposeThe aim of the paper is to examine the renewable energy resources for enhancing a green energy development in the face of energy crisis and climate change, and to explore the prospects for “new” renewable energy sources and the green energy initiatives taken in the Pacific Island countries (PICs).Design/methodology/approachThe data were collated from a wide variety of sources including policy documents, road maps, reports, research articles on renewable and green energy sources. The methodology adopted was primarily a qualitative one based on a “content analysis”.FindingsThe findings reveal that increasing emphases have been given recently to “new” renewable and green energy sources in the Pacific Island countries as mitigation and adaptation strategies to fuel crisis and climate change. PICs have taken a wide range of green energy initiatives including “biomass”, solar, wind and other non‐traditional renewable energy sources and bio‐fuels development. Prospects for coconut, copra and palm‐oil based bio‐fuels do exist in many PICs. Opportunities for ethanol bio‐fuels also exist especially in Fiji.Practical implicationsRenewable and green energy sources are of practical implications to PICs. There is, however, a greater need for framing sound energy policies by the PICs.Originality/valueThe author has brought out clear linkages between climate change and green energy development and analyzed the importance of new renewable energy sources, especially in PICs. The paper has higher policy relevance and it is of great value in the context of sustainable energy development in PICs.

This paper employs the K-Nearest Neighbor (k-NN) algorithm to examine the relationship between electricity generation—using renewable and non-renewable energy sources—and carbon dioxide (CO₂) emissions. The model achieved strong predictive accuracy, with a mean squared error (MSE) of 134.9 and an R² value of 0.915. Two analytical approaches were applied: the first included both renewable and non-renewable energy sources to determine the largest contribution of each energy source, and the second excluded non-renewable sources to assess the relative importance of different types of renewable energy. In the first approach, fossil fuel-fired electricity generation contributed 98.04% of the impact on carbon dioxide emissions, confirming its dominant role in increasing global carbon emissions. Renewable energy sources, however, had limited contributions: solar (1.16%), wind (0.71%), hydropower (0.09%), and bioenergy showed a negligible impact. In the second approach—excluding fossil fuels—renewable energy sources gained relative importance, with wind energy emerging as the most influential factor in the model (80.24%), followed by solar (10.92%), and hydropower (8.84%). Bioenergy remained insignificant in both models. The study concludes that fossil fuel–based electricity generation remains the principal driver of CO₂ emissions globally. though, among renewable sources, wind energy exhibits the greatest potential for reducing emissions when fossil fuels are excluded, highlighting its strategic importance in future clean energy transitions. The findings confirm the need for global energy policies that prioritize expanding renewable energy infrastructure, particularly solar and hydropower, while phasing out reliance on fossil fuels. countries should focus on stimulating investment in clean energy, developing efficiency-enhancing technologies, and expanding renewable energy generation to achieve long-term carbon reduction and environmental sustainability while maintaining economic growth.

Solar systems integrated with absorption heat pumps and thermal energy storages: state of art

The implementation of measures to promote renewable energy sources (RES) has shown to have a significant impact in reducing CO2 emissions and, at the same time, promotes technology substitution and changes in the energy production and consumption mix. In this paper, we look at RES regulation measures together with variables capturing economic freedom, business and investment freedom, difficulty of starting a business and cost of contract enforcement and look at assessing the effects of these on the development of new installations of RES. Our analysis shows that not only RES regulation is significant in promoting increased RES capacity but it does so in the presence of the correct signs of these other market variables: higher economic and investment freedom, less complicated procedures for starting up a business and lower cost of contract enforcement, all have a positive effect in installed RES capacity. Our results have significant policy implications as they point out that RES regulation and market initiatives go in tandem in promoting higher use of RES in energy production. These are separate channels with which policy makers can work to affect many positive spillovers that extend from higher investment activity, to energy innovation and lower emissions.

The paper concerns the role of the banking sector in renewable energy financing in Poland. The main goal of the paper is to provide recommendations for the banking sector in Poland, which can be used in the process of financing RES. The main methods used in the paper are the thorough analysis of the solutions used to finance RES in different countries and multivariate analysis of options presented on the ordinal scale. The first finding is the answer to the question of which financial instruments used by banks are the most effective in the financing of RES. It is based on the prepared ranking of different instruments used by banks in the process of renewable energy financing, by assessing the structure and value of required financing for renewable energy based on future scenarios. The second finding in the paper is the set of recommendations for the banking sector and policymakers as to financing renewable energy sources in Poland. The main conclusion is that renewable energy financing through the instruments available in the banking sector is efficient and is characterized by relatively low risk.

This study presents a detailed literature review on financing for renewable and sustainable energy through bibliometric analysis and scientific mapping, utilizing the Scopus database from 2000 to 2023. Using network analysis techniques, it identifies eight main clusters, each focusing on different aspects of financing renewable energy and their geographic and technical contexts. The study highlights the most frequently cited articles, notable authors, key institutions, affiliations, and journals in sustainable energy finance. A random effects model meta-analysis was also conducted to assess the overall effect size of each research stream. Findings indicate that the literature on renewable energy finance has expanded since 2000 and exhibits considerable diversity. The study pinpoints five major themes suitable for discussion and exploration of new research questions: (i) the role of Fintech in renewable energy finance, (ii) the regulatory framework governing renewable energy finance, (iii) the economic feasibility of renewable energy in emerging markets, (iv) the influence of private and public finance on renewable energy development, and (v) the relationship between renewable energy finance and sustainable development goals. The insights from this study aim to inspire and equip readers as they embark on their inquiries into the connections between energy investment, policy, finance, and behavioral sciences. Following identifying research gaps, this paper outlines potential future research directions. It serves as a thorough resource on current trends in sustainable energy investments and recommends viable research topics, thus benefiting researchers, professionals, and policymakers alike.

As global climate warming and the continued use of fossil energy are unsustainable, it has become imperative to accelerate the development of renewable energy. As one of the largest developing countries, this is especially true for future sustainable development in China; therefore, focusing on renewable energy can significantly reduce its dependence on imported fossil fuels. With policy support, China’s renewable energy industries have had rapid development and are now at the international forefront level in some fields. However, the renewable energy industries are facing challenges, particularly in terms of energy finance. Basically, the renewable energy industry in China is facing a contradictory dilemma because of funding shortages and inefficient investment strategies, due in part to government-centered renewable energy investment and financing. In view of this, the renewable energy financing and the corresponding polices in China are discussed in detail in this paper. Issues of energy finance are also analyzed.

Renewable energy for continuous energy sustainability in Malaysia

Clean and low-carbon energy sources and technologies have emerged as a critical driver in delivering the energy transition and achieving net zero-carbon emissions. All energy sources and power systems produce greenhouse gases (GHGs) and hence they contribute to anthropogenic greenhouse gas emissions and resultant climate change besides contributing to other negative environmental impacts. Energy sustainability remains a major challenge globally due to current heavy reliance on depletable and polluting fossil fuels for most of global energy needs. This study examines the energy transition strategies and proposes a roadmap for sustainable energy transition for sustainable energy planning and grid electricity generation and supply in wake of commitments made by the world community to the Paris Agreement aimed at reducing greenhouse gas emissions and limiting the rise in global average temperature to 2oC and preferably 1.5oC above the preindustrial level and realisation of the sustainable development goal of the United Nations. The sustainable transition strategies typically consist of three major technological changes namely, energy savings on the demand side, generation efficiency at production level and fossil fuel substitution by various renewable energy sources and low carbon non-renewable sources like nuclear power and carbon emission reduction strategies like carbon capture and sequestration and a conversion from high carbon fossil fuels like coal and oil to natural gas which remains the cleanest fossil fuel. The study demonstrated that decentralised generation with application of both demand side management and behind the meter management (BTM) strategies are effective measures to increase the use of renewable energy resources which are often locally available leading to higher uptake of renewable energy sources and conversion of consumers to prosumers making the transition economically sustainable. Waste to energy options have a significant potential to contribute to the energy transition e.g. use of biowaste for biogas production, slaughterhouse waste biodigestion for biogas and electricity generation and waste treatment and disposal, waste heat recovery from used geothermal for extra power generation and reinjection to improve the reservoir sustainability and use of bagasse and sugarcane trash for grid-based power production in sugar factories. Therefore, domestic, and industrial scale waste to energy conversion can enhance the economic sustainability of waste management process by offering useful energy substitutes for fossil fuels and enhanced energy security through decentralisation of generation. Whereas sustainable development has social, economic, and environmental pillars, energy sustainability is best analysed by five-dimensional approach consisting of environmental, economic, social, technical, and institutional/political sustainability to determine energy resource sustainability. The study recommends the adoption of sustainability-based planning for energy development and optimisation of electricity generation and supply where energy sources are analysed and ranked based on the five dimensions of energy sustainability instead of Least Cost Development Planning (LCDP) often applied by many countries. On this basis, the sustainable energy transition and optimisation of power generation will rely on both renewable and non-renewable energy since both have an important role in the realisation of the energy transition plans even though the desire is to shift entirely to renewable energy sources by the year 2050. The sustainability of various energy sources was assessed with hydrogen, wind, solar, sugarcane bagasse and cane trash, biogas and ocean energy technologies proving to be among the most sustainable renewable energy and sustainable sources. The study also examined various power plants and energy conversion systems for electricity generation in terms of their specific role and potential in grid-based power generation with hydro power plants, geothermal, nuclear, fuel cells, raking high on performance indicators like load and capacity factors making them ideal for base load power supply. Diesel engines and gas turbines using cogeneration and dual cycle systems powered by cleaner fuels like natural gas, hydrogen and biomethane will play an important role in supplying intermediate and peak load power. The study highlighted enabling technologies and concepts in the energy transition which include decentralisation of generation, cogeneration and trigeneration, demand side and behind the meter management microgrids and smart grid technologies, energy and generation planning and optimisation models, energy storage, electrification of transport and use of electric cars as decentralised electricity sources through the V2X technologies like the G2V and V2G, and carbon capture and sequestration for emissions reduction in fossil fuel power plants making them more sustainable. The study classifies electric vehicles as distributed power plants and variable loads with extensive use of energy storage while sugar cane bagasse is noted as a sustainable energy resource for power generation by cane sugar factories by application of more efficient grid connected cogeneration power plants. The study identified long project gestation period as the main factor limiting nuclear and geothermal energy deployment and recommends the adoption of modularised wellhead generators and small modular nuclear reactors (SMRs) as a solution to enhance exploitation of these sustainable energy and technologies through faster deployment with high degree of flexibility. Biogas and biomethane demonstrated significant potential as renewable energy sources for power generation and substitute fuels in all applications of fossil natural gas. The study recommends sustainability-based planning for the energy sector and power generation and use of both renewable and non-renewable but sustainable sources of energy, adoption of smart energy concept by all sectors and investment in energy technology and infrastructure development for hydrogen and other promising energy sources like ocean thermal, wave and tidal energy and the conversion of the transition from the traditional to smart grid systems and a shift from centralised to decentralised power generation. Since the transport sector accounts for a significant portion of the global greenhouse gas emissions, electrification of the transport sector and coupling with the power sector is a key strategy recommended for the transition with the smart grid and microgrids playing an enabling role. Since energy sources and generation technologies have associated emissions occurring at different sections of the lifecycle, the use of lifecycle costs and emissions are helpful in long term energy and generation planning which demonstrate that renewable sources and nuclear are the most sustainable when analysed within the five dimensions of energy sustainability, but with the non-renewable sources playing a critical role as dispatchable sources for sustainable grid power generation, while the smart grids and use of energy storage can increase the uptake of variable renewables to as high as 95% to 100% up from a low of 20-25% uptake of variable renewables with the traditional grid. This will significantly help the world in achieving the global emissions and climate targets as. stipulated in the Paris Agreement as well as the sustainable development goals (SDGs). Graphical Abstract The overall objective of the study was to provide solutions to build global energy systems based on renewable and sustainable energy resources and optimise power generation and consumption by use of sustainable energy resources and generation technologies based on the five dimensions of energy sustainability. A sustainable energy system should intergrade electricity and other sectors through smart electricity grids, smart gas grids and smart heat grids as demonstrated below.