Navigating Renewable Energy Financing

This chapter explores the financial dynamics and risks in project financing within the renewable energy sector, emphasizing the importance of price stability and market risk management. It discusses the need for banks to diversify their financing strategies to tap into the growing $20 trillion energy transition market while highlighting the complexities of negotiating Power Purchase Agreements (PPAs) and accessing various debt markets. Additionally, the chapter delves into the relationship between banks and borrowers, the significance of project preparation, and the implications of debt structures throughout different project development phases.