Abstract
In recent years, environmental issues are attracting widespread attention by various countries around the world. In this context, the renewable energy industry has become a stimulus point for economic development and has great potential for development. Renewable energy industry financing is difficult due to its characteristics of high risk and long-term investment returns, and relying on existing financing channels make it present a glut of excess capacity. It is key to realize resource optimal allocation, solve overcapacity phenomenon and select the valid financing mode. This paper used Bloomberg New Energy Finance (BNEF) data and the data envelopment analysis (DEA) method to analyze the financing efficiency different parts of the global renewable energy industry and different ways of financing. It could be found that although the financing efficiency showed a trend of increasing year by year, the financing efficiency of each industry presented generally weak DEA efficiency, the comprehensive financing efficiency of wind power industry was higher. The article also found that the financing efficiency of project financing and Research and Development (R&D) were relatively high, and the equity market and venture capital and private equity were less efficient. The results of this paper play an important role in the overall financing status cognizance of the renewable energy industry and give suggestions about valid financing mode choice.
Highlights
At present, the energy industry is faced with major challenges
According to the relevant output statistics of the “global new energy development report 2016” [2], in 2015, fossil energy accounted for 66% of the global electricity, continued the trend of decline, while the proportion of new energy power generation continued the trend of rapid growth, the annual output growth increased to 18.1% year-on-year, accounting for 7.3% of the world’s total electricity generation, and the growth speed is higher than overall output growth
The Malmquist index reflects that the pure technical efficiency and scale efficiency of the dual influence the change of technical efficiency, technical efficiency and technical progress affect the change of total factor productivity
Summary
The energy industry is faced with major challenges. For example, that there exists overcapacity in traditional energy and that the clean alternative of terminal energy consumption has many obstacles. According to the relevant output statistics of the “global new energy development report 2016” [2], in 2015, fossil energy accounted for 66% of the global electricity, continued the trend of decline, while the proportion of new energy power generation continued the trend of rapid growth, the annual output growth increased to 18.1% year-on-year, accounting for 7.3% of the world’s total electricity generation, and the growth speed is higher than overall output growth. In the statistics of financing, a new global energy financing reached a record $328.88 billion, solar power ($161.04 billion) and wind ($109.64 billion) accounted for the vast proportion. New energy power generation project financing presented began rising year by year, while the fossil fuel power generation project finance was declining (Figure 1). Due to the influence of global environmental change, the traditional energy financing will continue falling, and the growth of renewable energy finance will continue rising
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
