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Table of Contents
Introduction / 01
The Ontario Green Energy and Green Economy Act (GEA) / 01
Eliminating “dirty coal” / 01
Accelerating the development and adoption of renewable energy / 01
Ontario’s feed-in tariff program / 01
Successful renewable energy programs are an economic driver / 05
US renewable energy policy / 07
Financing renewable energy assets / 07
Private equity / 08
Venture capital / 08
Public markets / 08
Deal structures in the renewable energy sector / 08
European practices in renewable energy financing / 09
Loan guarantees, on-lending and co-lending from national and supra-national financial institutions and infrastructure banks / 10
Commercial banks / 12
Tax exemptions, tax credits and low-interest loans / 13
Large-scale renewable energy projects in Ontario / 13
Skypower “First Light” / 14
First Solar / 14
Starwood SSM1 / 14
Adoption of renewable energy in Ontario / 14
Opportunity for Canadian leadership in renewable energy finance / 14
Capital mobilization / 15
Popular support for renewable energy / 15
Carbon trading / 15
The road ahead / 16
Further reading / 16
References / 17
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MaRS Discovery District, © January 2010
CHP—Combined heat and power
CSP—Concentrated solar power
FIT—Feed-in tariff
GEA—The Ontario Green Energy and Green Economy Act, 2009
kW—Kilowatts
mW—Megawatts
PV—Photovoltaic
RE—Renewable energy
REC—Renewable energy certificates
RPS—Renewable portfolio standards
Acronyms
__01
According to the Ontario Power Authority (OPA), an
estimated 25% of Ontario’s electricity is generated from
renewable energy sources.1 While this is commendable,
hydroelectric power accounts for the vast majority of the
province’s renewable energy production. Solar and wind-
based energies make up only a small fraction of our overall
energy supply. With the recent passage of new renewable
energy laws, the OPA projects that 4,200 MW in wind and
1,760 MW in solar and biomass generating capacity will
come online by 2014.2
With attractive renewable energy resources and strong
support from the province’s lawmakers, renewable energy
is set to play a significant role in Ontario’s economic
future. The province’s commitment to a new renewable
energy feed-in tariff creates an opportunity for lenders
and investors to profit from renewable energy projects and
manufacturing centres established in Ontario. What follows
is a discussion of Ontario’s new renewable energy laws as
well as renewable energy legislation in other nations, and
the funding practices that have helped European countries
to emerge as world leaders in renewable energy generation.
Under the purview of the Ontario Ministry of Energy and
Infrastructure, the GEA is the cornerstone of Ontario’s
strategic response to climate change. The purpose of the
Act is to “facilitate the development of a sustainable energy
economy that protects the environment while streamlining
the approvals process, mitigating climate change, engaging
communities and building a world-class green industrial
sector.”3 The GEA is expected to result in the creation of
more than 50,000 green collar jobs and billions of dollars of
economic activity within the first three years.
As part of Ontario’s Climate Change Strategy, the Green
Energy Act is designed to help the province to reach the
following goals:
• Eliminate “dirty coal” as a power source by 2014;
The Green Energy Act will enable the province to eliminate
“dirty coal” as a power source by 2014. This is anticipated
to reduce greenhouse gas emissions by 30 megatonnes.
Ontario’s commitment to eliminate “dirty coal” represents
one of the most ambitious climate change initiatives in
North America. The GEA will help achieve this target by:
• Expanding the development of renewable energy
projects across the province;
• Investing in new forms of renewable peaking power to
help balance the intermittent nature of some forms of
renewable energy;
• Providing Ontario residents, businesses and institutions
with the tools needed to monitor and reduce their
energy usage; and
• Creating a 21st century “smart” energy system to
better manage the energy supply mix, allowing for
broader utilization of renewable power.5
Ontario’s Green Energy Act proposes to expedite the growth
of clean, renewable sources of energy, such as wind, solar,
hydro, biomass and biogas. It will ensure that renewable
energy projects are able to come online more quickly by
removing administrative barriers, and streamlining the
application process.
The GEA will help to encourage the development of more
renewable energy by:
• Delivering a feed-in tariff to provide guaranteed pricing
structures to help boost investor confidence and
increase access to financing for projects of varying sizes;
Introduction
The Ontario Green Energy and Green Economy Act (GEA)
• Conserve 6,000 megawatts (MW) of provincial energy
use by 2015, with an additional 2.5% annual reduction
in energy resource needs thereafter;
• Install 10,000 MW of new renewable energy capacity by
2015 (above 2003 levels);
• Install 1,500 MW of new clean distributed energy by
2015, up to 3,000 MW by 2025; and
• Achieve a 30% reduction in natural gas consumption
by 2017.4
Eliminating “dirty coal”
Accelerating the development and adoption of renewable energy
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02
Ontario’s Feed-In Tariff (FIT) Program is the first program
of its kind in North America. It provides a comprehensive,
guaranteed pricing structure for electricity production from
The planning, organization, development, ownership
and operation of electricity generating facilities in most
countries has traditionally been financed with public dollars.
In recent years, many countries have begun the slow
Ontario’s feed-in tariff program The purpose of feed-in tariffs
• Providing “As of Right” grid connections to ensure that
renewable energy projects meeting technical, economic
and other regulatory requirements are able to connect
to the grid;
• Creating service guarantees to ensure that wait
times for approvals are more transparent and that
information is publicly accessible;
• Streamlining the approvals process for renewable
energy projects, eliminating duplication and barriers
while ensuring that health, safety and environmental
concerns are adequately addressed;
• Establishing a Renewable Energy Facilitator to help
community proponents to navigate the project
approvals process, ensuring compliance with necessary
requirements; and
• Investing in a “smart grid” to facilitate and maximize the
development of new renewable energy projects, making
it easier to connect to the system and setting the stage
for new technologies such as plug-in electric cars.6
renewable sources. The FIT Program includes standardized
program rules, prices and contracts in order to undertake a
renewable energy project. The Program is administered by
the Ontario Power Authority (OPA). FIT prices are designed
to help developers cover renewable energy project costs
and provide a reasonable return on investment over the
term of each contract.
Renewable energy sources qualifying for FIT funding include:
• Bioenergy—biogas, biomass, landfill gas;
• Solar photovoltaic (PV);
• Water power; and
• Wind
The program is divided into two streams—FIT and microFIT.
The FIT Program is for renewable energy projects that are
able to generate more than 10 kilowatts (kW) of electricity.
Very small projects, such as residential installations, that
are able to generate 10 kW or less are eligible for the
microFIT Program.
__03
Technology
Biomass
Landfill Gas
FIGURE 1
Biogas
On-farm
On-farm
Biogas
Biogas
Biogas
Solar PV
Any type
Rooftop
Rooftop
Rooftop
Ground-mounted
Wind
On-shore
Off-shore
Waterpower
≤ 10 MW
> 10 MW
≤ 10 MW
> 10 MW
≤ 100 kW
> 100kW ≤ 250kW
≤ 500 kW
> 500 kW ≤ 10MW
> 10 MW
≤ 10 kW
> 1 0kW ≤ 250 kW
> 250 kW ≤ 500kW
> 500 kW
> 10 kW ≤ 10 MW
Any size
Any size
≤ 10 MW
> 10 MW ≤ 50MW
13.8
13.0
11.1
10.3
19.5
18.5
16.0
14.7
10.4
80.2
71.3
63.5
53.9
44.3
13.5
19.0
13.1
12.2
CapacityContract price ¢/kWh
Source: Reproduced from Ontario Power Authority: FIT Price Schedule. Updated September 30, 2009.9
Parties interested in establishing a qualifying renewable
energy generating system enter into a contract agreement
with the OPA. Under this FIT agreement, the OPA agrees
to pay the renewable energy generator a fixed rate per
kilowatt hour of energy produced. The renewable energy
generator connects their energy generation system to the
grid, and the OPA pays the generator the agreed-upon rate
for the duration of the contract. Contracts are long term,
and are designed to effectively guarantee a particular rate
of return to the provider of renewable energy. For France,
Germany and Spain, investor internal rates of return
(IRRs) tend to be in the 7% to 10% range. Ontario’s policy
estimates a target return on equity of 11% based on a debt/
equity ratio of 30/70. 8
Contract rates for renewable energy projects of varying
sizes are listed in Figure 1.
How the FIT program works
transformation of their energy infrastructure from fossil-
fuels to renewable energies and from publicly financed,
owned and operated, to private.
Unlike public energy utilities, the cost of renewable energy
generation is most commonly paid for by electricity
consumers, or “ratepayers”. As such, feed-in tariff schemes
help to unlock private cash flows for energy infrastructure.
Many predict that in the future only energy distribution will
remain the responsibility of public entities.
One study, conducted by the Cleantech Group, LLC sets
the price of transitioning the world’s energy generation
infrastructure to 100% renewable sources at $9 trillion dollars.
While this sum would be crippling to government budgets, it is
not unrealistic to imagine that FIT programs will play a role in
this privately-managed renewable energy future, lessening the
taxpayer burden, and accelerating the transition.
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Wind
Water
Biogas
Biomass
Solar PV (ground-mounted)
Landfill Gas
FIGURE 2
FIGURE 3
FIT program (> 1 0kW)
Wind Solar
MicroFIT program (< or = >10kW)
Wind Solar
1.5
0.9
0.6
0.6
1.5
0.6
1.0
0.6
0.4
0.4
1.0
0.4
Maximum Aboriginal price adder (cents/kWh)
Maximum communityprice adder (cents/kWh)Renewable Fuel
Source: Reproduced from Ontario Power Authority: FIT Price Schedule. Updated September 30, 2009.10
Source: Ontario Power Authority, FIT Program FAQ11
In addition to the contract FIT rates, renewable energy
producers are also eligible to receive an additional
amount per kWh of energy produced based on the equity
participation of community or aboriginal groups, as seen in
Fugre 2.
Since these so-called “adders” can increase the income per
kWh of renewable energy projects by as much as 4%, there is
substantial value in aboriginal and community involvement.
To qualify for a FIT agreement, wind and solar energy
producers must fulfill a “domestic content requirement.”
The domestic content requirement indicates that a certain
Domestic content requirement
System Type/Size
25%50%
not applicable40%
25%60%
not applicable60%
50%60%
not applicable60%
From 10/01/2009
From 01/02/2011
From 01/02/2012
percentage of the proposed project content (activities, not
financial value) must come from Ontario sources. Figure
3 highlights domestic content requirements for certain
system types.
The domestic content requirement provides a guaranteed
customer base for national and international corporations
that elect to establish a location in Ontario, integrating
into the value chain to meet gaps in areas that may not be
currently met by Ontario manufacturers.
One example is the recently announced deal struck between
the Ontario government and a consortium led by South
Korean industrial and electronics powerhouse, Samsung.
Samsung and its partners have committed to build 2,500
MW of wind and solar energy generation capacity in the
province.12 The deal also calls for Samsung to establish an
Ontario base of operations for the manufacture of wind and
solar energy equipment.13 The Korean consortium plans
to work with major partners to build four manufacturing
plants in Ontario, and has pledged to create 16,000 direct
and indirect jobs over the next five years.14 If Samsung
fulfills these commitments, the company will receive $437
million in incentive payments over the course of the 25-year
agreement from the Ontario government.15 Ontario has
also guaranteed Samsung priority access to the province’s
electricity grid.16
Other companies considering expanding manufacturing
operations or relocating to Ontario include Atlantic Wind and
Solar and ATS Automation Tooling Systems. ATS has entered
into a joint venture with French company, Photowatt for their
Ontario operations. GE Canada is considering retrofitting an
__05
Western European countries have a long record of
experience in FIT design and implementation. Despite its
often cloudy skies, Germany has had a FIT program in
place since 1990, and has become a world leader in solar
energy.18 France and Spain have also enjoyed a substantial
increase in renewable energy production capacity since
they implemented FIT programs.
At their core, successful FIT programs set expectations
and reduce investor risk. They do so by creating conditions
that allow investors to closely predict their returns from
financing renewable energy projects.
In their comparison of FIT programs implemented in
different countries, Deutsche Bank, an industry leader in
renewable energy financing, noted several “core principles”
that underpin successful FIT programs.23
• Must-take regulations: Both Germany and Ontario’s
FIT programs regulate that the purchase of energy
from renewable sources by grid operators must take
priority over carbon-based fuel sources. This effectively
guarantees that 100% of the energy produced from
renewable sources will be bought.24
• Mandatory interconnection: In Germany, Spain
and Ontario, interconnection rules legislate that
renewable energy generation installations must receive
guaranteed access to the grid.25
• Guaranteed payments: Guaranteed payments are a
key feature of all successful FIT programs. Payment of
the FIT rates for an agreed-upon time period that is
contractually or legislatively assured relieves capital
providers of a substantial portion of the risk involved in
financing renewable energy projects.26
• Setting the price based on generation cost plus a
profit: The most successful FIT programs establish
FIT pricing for renewable energy through a formula
that utilizes the cost of generating energy plus a
sufficient profit margin for a reasonable return. Many
The German FIT regime has enabled the
German renewable energy sector to expand
by 75% since 2000. Cumulative investment
in renewables grew to €30 billion in 2008
and installed renewable energy capacity
has tripled in eight years.19 Employment in
the sector has risen to more than 300,000,
with an estimated 42,000 working in
photovoltaic manufacturing.20
In France, the number of individuals
employed directly in the wind sector has
risen from fewer than 100 in 1993 to 7,000
in 2007.21
As of 2007, 188,000 work directly and indirectly
in Spain’s renewable energy sector. 22
Successful renewable energy programs are an econmic driver
Key success factors in FIT program design
Germany
France
Spain
existing plant for solar manufacturing and Canadian Solar
plans to open a manufacturing plant in Ontario for solar
modules, although cells will still be built in China.17
__06
FIT programs target specific rates of return based on
common project debt/equity ratios.27
• Streamlined application process: Germany and Ontario
have gone to significant lengths to enhance transparency
and reduce administrative costs for government and
investors seeking to participate in renewable energy
projects. Ontario recently introduced a Renewable
Energy Facilitation Office designed specifically to assist in
launching new renewable energy projects.28
• Grid parity: While FIT programs are designed to
compensate energy generators for the additional
cost of renewable energy projects (over coal-based
energy), the ultimate goal is for energy generated from
renewable sources to become cost competitive with
conventional fossil fuels. To this end, FIT rates for new
renewable energy projects are generally reviewed on
a periodic basis. Where appropriate, these rates are
adjusted downward to reflect scale advantages achieved
by equipment manufacturers.29
The following is drawn from information presented by
Deutsche Bank in their December 2009 study entitled
“Paying for Renewable Energy: Transparency, Longevity and
Certainty at the Right Price.”30 The table compares various
dimensions of FIT policy among countries with successful
feed-in tariff programs.
FIT Design Feature
Year first FIT established 2001 1990 2003 2009 1997
Eligible Technologies
Specified tariff by technology
Guaranteed payment
Guaranteed interconnection
Contract term
“Must take” provision
Internal rate of return target
Periodic FIT rate review
Grid parity target
Project size cap
Eligible for other incentives
FIT costs borne by
wind, solar, geothermal, small hydro, biomass, biogas
yes
yes
yes
15-20 years
no
8%
no
no
varies
yes
ratepayer
wind, solar, geothermal, small hydro, biomass, biogas
yes
yes
yes
20 years
yes
5-7%
yes
yes
no
yes
ratepayer
wind, solar, biomass, biogas, CHP
yes
yes
yes
15 years
no
no
yes
no
yes
yes
taxpayer
wind, solar, hydro, biomass, biogas
yes
yes
yes
20 years
yes
11%
yes
no
PV only
yes
ratepayer
wind, solar (PV & CSP), geothermal, small hydro, biomass, biogas
yes
yes
yes
15-25 years
yes
7-10%
yes
no
yes
yes
ratepayer & taxpayer
France Germany Ontario SpainNetherlands
Source: Reproduced from Deutsche Bank Climate Change Advisors analysis, December 2009, Paying for Renewable Energy: TLC at the Right Price31
__07
The US renewable energy policy framework is highly complex.
At its core are the Renewable Portfolio Standards (RPS),
which have been implemented in 35 states, and have been
put forward as a national strategy in the 2009 American
Clean Energy and Security Act.32 Renewable Portfolio
Standards establish targets for renewable energy in the
energy supply mix, frequently by technology. Compliance
with Renewable Portfolio Standards is tracked by Renewable
Energy Certificates (RECs).33 These certificates are issued
when a renewable energy generator delivers renewable-
based power to a grid operator. RECs are tradable by utilities
across grid operator borders.34 RECs are often bundled into
power purchase agreements (PPAs) between electricity
generators and electricity retailers.35 Unlike FITs, PPAs are not
standard offers, do not include provisions for mandatory grid
interconnection and have no “must take” provisions.36 PPAs
are negotiated bilaterally on a case-by-case basis, creating
an overall lack of transparency for potential investors in
renewable energy projects.
PPAs attempt to capture the value of renewable energy
incentives, which include federal production tax credits
(PTCs) and investment tax credits (ITCs), convertible ITCs and
ITC cash grants, as well as state and local tax credits, loan
guarantees and the tax equity market.37 These incentives are
used to counterbalance the cost premium of renewable energy
over fossil fuel- based energy generation and to generate
a profit for investors. Since these incentives often expire or
are subject to frequent amendment, this adds risk to the
renewable energy generation market and deters investors.
Several US states, including Vermont, New Jersey and
California have or are planning to implement programs similar
to FITs. A proposal for a national FIT bill is also underway,
alongside a national cap-and-trade program and a national
RPS program in the US.
While FIT programs ensure a reasonable return on
investment for renewable energy projects, the construction
of large-scale renewable energy assets can cost hundreds
of millions of dollars. Financing for the construction of
US renewable energy policy
Financing renewable energy assets
renewable energy facilities comes primarily from debt in
the form of project financing from major banks and banking
syndicates. A smaller portion comes from equity from the
project developers and sponsors, as well as private equity
investors. Equity investors in clean energy assets include
developers who identify the clean energy resource and put the
project together, equity sponsors who help fund the project
through its construction phase with the goal of selling the
completed asset, and those that invest in operating renewable
energy assets. A negligible amount of renewable energy asset
financing also comes from the issuance of bonds. Participation
in the project bond market requires that bonds be rated as
investment grade. Onerous rating requirements for investment
grade renewable bonds have made renewable energy project
bond issuance a relative rarity.38
In 2008, the financing of renewable energy assets accounted
for the majority of new investment in clean energy. A total of
$136.1 billion flowed to renewable energy assets in 2008, a
23% increase over the previous year.39
2002 2003 2004 2005 2006 2007 2008
97
85
50
28
1410
6
2002 2003 2004 2005 2006 2007 2008
97
85
50
28
1410
6
Source: Reproduced from Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. Pg. 37.41
Bond/other
Project finance
Balance sheet/syndicated equity
Middle East & Africa
South America
Asia & Oceania
North America
Europe
Figure 4 New renewable energy asset financing by security type, 2002-2008 ($ US billions)
Figure 5 New renewable energy asset financing by region ($US billions)
Bank A(mandated
lead arranger)
Tax Credits
Project developer /
owner
Consumers
CO2 Credit Buyers
INSURERBank
BBank
CBank
D
DEBT
RENEWABLE ENERGY
PROJECT
PROFIT
CAR
BON
CR
EDIT
S
RAT
E /
CO2
cred
it
FIT rate/kwhElectricity
equity investors
Opertional maintenance
company
$
$
$
Electricitybuyer
Electricityretailers
Source: Reproduced from Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. Pg. 36. 40
__08
With well-established and transparent FIT programs that
contractually guarantee a certain return, European countries
have an advantage over North America in attracting
financing for renewable energy projects.
2002 2003 2004 2005 2006 2007 2008
97
85
50
28
1410
6
2002 2003 2004 2005 2006 2007 2008
97
85
50
28
1410
6
Source: Reproduced from Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. Pg. 37.41
Bond/other
Project finance
Balance sheet/syndicated equity
Middle East & Africa
South America
Asia & Oceania
North America
Europe
Figure 4 New renewable energy asset financing by security type, 2002-2008 ($ US billions)
Figure 5 New renewable energy asset financing by region ($US billions)
Bank A(mandated
lead arranger)
Tax Credits
Project developer /
owner
Consumers
CO2 Credit Buyers
INSURERBank
BBank
CBank
D
DEBT
RENEWABLE ENERGY
PROJECT
PROFIT
CAR
BON
CR
EDIT
S
RAT
E /
CO2
cred
it
FIT rate/kwhElectricity
equity investors
Opertional maintenance
company
$
$
$
Electricitybuyer
Electricityretailers
Source: Reproduced from Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. Pg. 36. 40
Rather than funding the construction of individual renewable
energy installations, private equity funds participate in the
renewable energy market by taking an equity stake in, or
buying out, promising renewable energy project developers
or equipment manufacturers. In 2008, Grupo Naturener, a
Spanish renewable energy developer, raised €132 million from
existing private equity investors.42 In another major 2008
private equity deal, German thin-film module maker Sulfurcel
secured €85 million from a syndicate of major private equity
firms, including Intel Capital and Climate Change Capital.43
Although venture capital investors typically do not play
a role in financing the construction of renewable energy
assets, venture investors fund promising renewable energy
technologies in the initial stages of the commercialization
process. In 2008, there was strong interest from venture
investors in thin-film technology as the next evolution in solar
panel design.
Public markets offer indirect financing to renewable
energy projects by channelling capital to renewable energy
technology manufacturers and project developers. Due to
the financial crisis, public companies in the renewable energy
sector received substantially less capital through the public
markets in 2008 than in previous years. Total public market
investment in the renewable sector in 2008 was $11.8 billion.46
This is down more than 50% from 2007’s $23.4 billion.47
Major renewable energy projects require the participation of
numerous debt and equity funders, assessment consultants,
insurers, project developers, equipment suppliers, project
operation and maintenance companies, energy purchasing
and distribution companies, as well as the carbon markets and
government players who administer FIT programs, tax credits
and other incentives in the renewable energy sector. As energy
production capacity for a given project increases, so does the
complexity of its financial structure. The following diagram
illustrates the major financial flows typical of a large renewable
energy project.
Private equity
Venture capital
Public markets
Deal structures in the renewable energy sector
While the financial crisis and onset of the economic recession
led to plummeting share values, private equity funds with
cash to invest, such as pension funds, have taken advantage
of opportunities in the clean energy sector. Danish pension
fund ATP has committed to investing up to US$400 million
in late-stage private equity firm, Hudson Clean Energy
Partners.44 CalPERS, the retirement fund for California state
employees and a leading California clean technology investor,
announced that it had committed US$200 million to a new
US$1 billion clean technology investment fund set up by Sun
Microsystems founder Vinod Khosla.45
__09
With the recent turmoil in the credit markets, many
commercial lenders active in the renewable energy sector
are unwilling to take the lead in major financings. The result
has been an increase in “club deals,” where all parties to a
debt financing agree to the same terms. Since all financiers
must agree to identical terms, protracted negotiation periods
are common. Also, since risk-averse banks prefer to take a
relatively smaller stake in club deals, a financing of US$500
million can involve up to 10 different lending institutions.48
Bank A(mandated
lead arranger)
Tax Credits
Project developer /
owner
Consumers
CO2 Credit Buyers
INSURERBank
BBank
CBank
D
DEBT
}
RENEWABLE ENERGY
PROJECT
Profit
Deb
t P
aym
ents
Carb
on C
redi
ts
RAT
E /
CO2
cred
it
FIT rate/kWhElectricity
Electricity
equity investors
Operation & maintenance
company
$
$
$
$
Electricitybuyer
Electricityretailers
Club deals
Europe is home to supra-national financial institutions such
as the European Investment Bank, the European Bank for
Reconstruction and Development, and the financial arm of
the European Commission. Acting on pan-European energy
policy directives, these institutions are able to mobilize
substantial capital to support major renewable energy
projects, reducing commercial bank risk by providing loan
guarantees and funds for on-lending from commercial
European practices in renewable energy financing
__10
project financing syndicates to the project developers.
In April of 2009, the European Commission welcomed the
formal adoption of an Energy and Climate Change package.
The package sets legally binding targets to cut greenhouse
gas emissions to 20% below 1990 levels and to increase
the share of renewable energy to 20%, both by 2020. It will
also help to achieve the EU’s objective of improving energy
efficiency by 20% within the same timeframe.49
Following the announcement, German environment minister
Sigmar Gabriel noted, “Our task is now to join together
with our European neighbours to move towards those
targets. A massive increase in the use of renewable energies
and in energy efficiency will make a vital contribution to
Europe’s energy security, to climate protection and to peace
building.”50 In Germany and throughout Europe, public and
private financing institutions are carrying out this pledge
in support of renewable energy by channelling significant
capital to the sector.
Several major European commercial banks have divisions
dedicated to mobilizing and facilitating capital deployment
for renewable energy projects. This expertise has led to
global leadership in renewable energy project financing.51
Many public and private European banks also offer
assessment services, technical expertise, industry linkages
and other supporting services to assist their renewable
energy sector clients. European banks are extremely active
outside of Europe as well, participating in and leading
renewable asset financing syndicates for projects in the US
and Canada, and other developed and developing nations.
The European Investment Bank is the European Union’s
financing institution. The shareholders of the EIB include
the 27 member states of the EU. The EIB borrows funds on
the capital markets, which it lends on favourable terms to
projects furthering EU policy objectives. One of the main
missions of the EIB is to provide financing to projects that
enhance Europe’s energy security and increase the share of
renewable energy in the EU’s energy mix. The EIB supports
A major financing initiative announced in late December
2009 sees the EIB entering into a partnership with EDF
Energies Nouvelles (EDF EN), a France-based developer
of renewable energy projects.55 Through this partnership,
the EIB and EDF EN will establish a financing vehicle for a
portfolio of solar PV projects in France and Italy. Based on
financing terms established for two pilot projects that will
be funded in early 2010, subsequent projects will replicate
these financial structures.56 This is expected to simplify
and streamline the funding process for future projects
funded by the partners. The EIB plans to allocate €500
million in financing to these initiatives. Each project will
be implemented with the financial participation of several
commercial banks.57
Another example of strong EIB support in the renewables
sector is the Belwind offshore wind project being developed
by a consortium of Belgian and Dutch investors off the
Belgian coast. The project is being financed with €482.5
million in non-recourse debt, with a maturity of 15 years
after construction, and a €63.43 million non-recourse
mezzanine facility.58
The Belwind project involves a broad set of private and
public financing institutions. The EIB is providing €300
million to the 165 MW project, half of which is being
guaranteed by Eksport Kredit Fondend (EKF), Denmark’s
state export credit agency.59 Cleantech, climate and
energy are some of EKF’s key business areas, and the
Loan guarantees, on-lending and co-lending from national and supra-national financial institutions and infrastructure banks
European Investment Bank (EIB)
EIB and EDF Energies Nouvelles partnership
Belwind offshore wind installation
the construction of renewable energy assets by lending
funds either directly to developers or to commercial banks
that are arranging project financing.52 In general, the EIB’s
contribution represents no more than 50% of the total
financing for each project.
In 2008, the EIB provided €2.2 billion in financing to
renewable energy projects. This represents a fourfold
increase over 2006 financing levels. Wind projects received
34% of the funding, while 28% went to solar.53 In 2009,
the EIB provided approximately €3 billion in financing to
renewable energy projects. 54
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EKF is owned and guaranteed by the Danish state. The
balance of debt financing will be raised by, and channelled
through, mandated lead arrangers Dexia and Rabobank in
the amount of €182.50 million.60 The mezzanine facility
will be provided by Rabobank and Participatie Maatschappij
Vlaanderen.61
Once Belwind becomes operational, the electricity it
generates will be sold to Electrabel, Europe’s fifth largest
energy generator and distributor, under a long-term FIT
contract.62 The carbon credits allocated to Belwind for
renewable energy generation will be sold to Elia, Belgium’s
grid operator, at prevailing rates.63
The Belwind deal exemplifies the typical interplay of public
and private financing institutions, insurers, energy purchasers,
carbon credit sales and FIT tariffs that characterize most
major renewable energy projects in Europe.
The Southeast Europe Energy Efficiency Fund (SE4F) was
established by the United Nations Economic Commission for
Europe in December of 2009. The goal of the Fund will be
to finance energy efficiency and renewable energy projects
undertaken by small and medium-sized enterprises and
households in Albania, Bosnia-Herzegovina, Croatia, FYR
Macedonia, Montenegro, Serbia and Turkey.64 The SE4F is
financed by the European Investment Bank (EIB), German
infrastructure bank KfW Bankengruppe, the European Bank for
Reconstruction and Development (EBRD) and the European
Commission (EC).65 The EIB, KfW and the EBRD are each
planning to contribute €25 million and the EC is providing
close to €20 million to the Fund.66 The founding institutions
aim to increase the Fund’s size to €400 million by attracting
additional capital from public and private investors. 67
The Fund will be an accredited investment vehicle within
the UN system, allowing it to participate in special project
financing initiatives and to receive UN grants for Kyoto
Protocol and climate change-related projects. 68
The Fund’s financing will be provided mainly as loans to
financial institutions, which will on-lend to small and medium
enterprises and residential customers. A part of the SE4F’s
funds will also be available for direct investment in specialist
In 2003, the French environment agency ADEME and the
French commercial bank Natixis launched FIDEME, a €45
million public-private mezzanine fund aimed at addressing
the funding gap that had prevented the establishment of wind
and other renewable energy projects in France.70 ADEME
contributed €15 million to FIDEME as a subordinated tranche
within the public-private fund.71 The fund then provided
subordinated financing to commercial banking syndicates,
helping to attract senior lenders.72 By helping commercial
lenders reduce their risk, this double leverage structure
allowed France’s environment agency to mobilize an amount of
capital 20 times greater than its own contribution.73
FIDEME financed 30 renewable energy projects and created
more than 300 MW of energy generation capacity.74 In 2006,
this accounted for more than one-third of France’s total wind
energy generation capabilities.75
Natixis has since launched its second FIDEME fund, this
time on a fully commercial basis, since the renewable
market in France has matured beyond the need for public
financial support from ADEME. Announced in June of 2008,
EuroFIDEME, a €250 million fund, has dedicated 60% of its
assets for the provision of subordinated debt to projects,
while the remaining 40% will be invested as equity, either
in renewable energy projects or in project development
companies. The fund has an EU-wide mandate, but focuses on
opportunities in southern Europe.
The BEERECL is a renewable energy financing facility
established by the European Bank of Reconstruction and
Development. The BEERECL provides assistance to seven
Bulgaria-based commercial banks that on-lend the funds to
private sector industrial energy efficiency and renewable
energy projects. 78 Development assistance is also provided
for projects, including energy auditing, financial analysis,
risk assessment, formulation of loan applications and deal
structuring.79 The facility is partly supported by the nuclear
Southeast Europe Energy Efficiency Fund
Natixis and ADEME
The Bulgarian Energy Efficiency and Renewable
Energy Credit Line (BEERECL)
energy service companies, energy efficiency service and
supply companies, and renewable energy projects.69
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power plant Kozloduy International Decommissioning Support
Fund (KIDSF).80 Borrowers receive an incentive grant from the
KIDSF upon successful project commissioning, worth 15% of
the loan for efficiency projects and 20% for renewables.81
Several public financial institutions in Europe have recently
launched a pan-European infrastructure fund, dubbed
Marguerite. The EIB, Caisse des Dépôts (France), Cassa
Depositi e Prestiti (Italy), KfW (Germany), Instituto de Crédito
Oficial (Spain) and PKO Bank Polski (Poland) have each
agreed to commit €100 million to the new fund to finance
infrastructure projects linked to key EU policies in the areas of
climate change, energy security and trans-European transport
and energy networks.82 With the participation of a broader
pool of investors, it is expected that the fund will reach a final
closing of €1.5 billion by 2011.83 Marguerite is anticipated to
serve as a model for the establishment of other similar equity
funds in the EU wishing to combine market-based equity
financing principles with the pursuit of public policy objectives.
Marguerite is among the first “post-crisis” equity funds to be
launched and was also one of the largest fundraising exercises
in Europe in late 2009.84 It will provide equity or quasi-equity
to companies proposing to create renewable energy assets
and other infrastructure projects. With a 20-year timeframe,
Marguerite is a long-term investor and is intended to be fully
invested by 2014. The participants in the fund also intend to
establish a debt co-financing mechanism with up to €5 billion
available as a source of long-term debt for the projects that
Marguerite invests in.85
Many other European funds providing loans to renewable
energy projects are established jointly between domestic
banks and national energy or infrastructure agencies in
Europe.
Several Europe-based commercial banks have leading clean
energy financing practices, including France and Belgium-
based Dexia, through Dexia Renewable Energy Project
Finance, and Germany’s Deutsche Bank, through DE Asset
Management.
With a €1.6 billion exposure to the wind sector and €0.9 billion
exposure to the solar sector, Dexia is one of the top three
arrangers and lenders in renewable energy.93 According to a
recent industry presentation, Dexia has the most diversified
renewable energy portfolio of any bank in the sector, spanning
16 countries and five continents, and has completed more
than 90 transactions in renewable energy.94 With expertise in
offshore wind farms, Dexia is particularly strong in the wind
sector, having acted as mandated lead arranger in more than
50 projects in the past 15 years.
Deutsche Bank also has a strong renewable energy financing
practice. The asset management arm of Deutsche Bank has
more than $4 billion in assets under management in the
The German development and reconstruction bank, KfW,
spends approximately 20% of its total financing volume
on national and international climate projects. 86 The bank
recently overtook the World Bank as the largest funder of
renewable energy projects in developing countries. KfW
has developed several financing facilities for the purpose
Marguerite
Commercial banks
KfW BankenGruppe
of supporting renewable energy projects in Germany
and abroad. Within its “Programme for the Promotion of
Renewable Energies,” KfW offers a series of soft loan credit
lines for smaller renewable energy projects.87 Partner
banks on-lend the financing provided by KfW and assume
the credit risk in return for risk-adjusted margins. Loans can
be granted for up to €5 million with a maximum three-year
interest-free grace period and partial debt relief provided by
the German Federal Ministry for the Environment (BMU).88
In 2007, a total of approximately €11 billion went to fund
the expansion of renewable energies in Germany.89 KfW
contributed nearly half of this amount, and continues to
aggressively fund renewable energy projects in Germany
and elsewhere.90
KfW’s Special Facility for Renewable Energies and
Energy Efficiency has been particularly effective at
spurring investment in renewable energies in developing
economies. Acting on behalf of the German Federal
Ministry for Economic Cooperation and Development, KfW
Entwicklungsbank committed €300 million in 2008 to fund
nine projects.91 KfW is currently planning to dedicate a
further €500 million to this initiative.92
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Several European countries provide generous tax exemptions,
tax credits and low-interest loans for the development of
renewable energy projects. The following are some examples
of programs currently in place.
The Netherlands provides tax exemptions through an
Energy Investment Deduction scheme. The program gives
tax relief to Dutch companies that invest in sustainable
energy and/or energy efficient equipment. The EIA
subtracts up to 44% of the purchase and production costs
of the investment from annual profits.96 A maximum of
€111 million can be deducted under this program, reducing
the taxable profits of a company. 97 Other Dutch incentives
include exempting generators from the eco-tax levied on
electricity consumption and providing low-interest loans
from designated “Green Funds.”98
France recently implemented a “Sustainable Development
Tax Credit” similar to the system in place in the
Netherlands.99 Corporations can effectively reduce their
tax liability by claiming part of the cost of renewable
energy production equipment. France also provides low-
interest loans to support the purchase of renewable energy
infrastructure.
Several German states provide renewable subsidies and low-
interest loans.100 Regional and community banks also provide
incentives to small-scale projects. Germany’s national
infrastructure bank, the KfW, also provides low-interest loans.
Tax exemptions, tax credits and low-interest loans
The Netherlands
France
Germany
renewable energy sector. This makes DeAM one of the largest
climate change investors in the world.95
Other banks that are extremely active in renewable energy
project financing include BNP Paribas, Netherlands-based
Rabobank and Standard Chartered Bank based in the UK.
Despite a lack of domestic, government-backed debt
instruments for the renewable energy sector, several large-
scale projects are planned or have recently come online
in Ontario with the help of foreign lenders. These projects
were undertaken under the Renewable Energy Standard
Offer Program (RESOP). This renewable energy pricing
regime preceded the implementation of the FIT Program.
Large-scale renewable energy projects in Ontario
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First Light is a 9.1 MW solar energy project brought online on
September 30, 2009. The project had originally negotiated
financing from Lehman Bros., but this deal collapsed alongside
the recent financial crisis and the disappearance of Lehman
from the market. German bank, Norddeutsche Landesbank
then stepped into the role of lead project financier.101 Project
contributors include Sun Edison, a solar energy services
provider and financial backer, and SkyPower, a leading
developer of renewable energy projects in Canada. Project
supporters also include Hydro One and the OPA.102
The First Light ground-mounted solar farm covers 90 acres of
limited use, non-agricultural land with approximately 126,000
thin-film PV solar panels.103 During the first year of operation,
First Light is projected to produce more than 11.5 million
kilowatt hours of solar energy, which is enough to power
nearly 1,000 average Canadian homes.104
Construction is currently underway on what is to become the
largest photovoltaic solar energy production facility in North
America, located near Sarnia, Ontario. Currently with 20 MW
of production capacity online, Arizona-based First Solar and
facility-owner Enbridge propose to expand production capacity
to 80 MW by December of 2010.105 Originally developed by
OptiSolar, the company’s development rights for the Sarnia-
based solar installation were purchased by First Solar in March
of 2009. First Solar then sold the installation to Enbridge with
an agreement to expand the solar farm a further 60 MW at a
cost of $300 million.106
The power output of the 80 MW facility will be sold to OPA
pursuant to 20-year power purchase agreements under the
terms of the Ontario Government’s RESOP program.107
Skypower “First Light”
First Solar
Under RESOP, solar projects were guaranteed a price
of $0.42/kWh of energy delivered to the Ontario power
grid. RESOP arrangements did not include local content
requirements for equipment or labour.
On January 7, 2010, the Canadian affiliate of Connecticut-
based Starwood Energy Group LLC announced that with
Starwood SSM1
Opportunity for Canadian leadership in renewable energy finance
As the first region to adopt an uncapped feed-in tariff in
North America, Ontario’s FIT creates broad opportunities
for players in Canada’s financial sector. There is an
urgent need to develop innovative financial mechanisms
appropriate for renewable energy asset leasing, large
project financing and financing for the consumer renewable
energy product market in North America. Compared to US
banks, Canadian financial institutions are well positioned
to meet this need. They are relatively solvent, and have
experience financing the development and operation of
large resource-based projects. The result is that for a brief
moment in time, Canadian banks have an uncontested
opportunity to enter and dominate the renewable energy
finance market in North America.
To do so, banks may first choose to participate in the
renewable energy market on an experimental basis by
investing in or financing smaller projects. This would
alleviate the financial risk to the bank while simultaneously
Adoption of renewable energy in Ontario
financing from Norddeutsche Landesbank, the company will
fund the construction of two 10 MW solar photovoltaic power
generation facilities near the city of Sault Ste. Marie, Ontario.
Starwood, which is providing equity financing for the facilities,
recently acquired the project from Pod Generating Group, a
developer of community-scale solar power generating facilities
and the original developer of the project. The Sault Ste. Marie
facility is being financed with an investment from Starwood
Energy Infrastructure Fund, L.P. The Fund has total equity
capital commitments of $433 million and targets investments
in energy generation and transmission assets in North
America.
The facility is scheduled to come online in the third quarter of
2010. The 20 MW project, once built, will provide power for up
to 8,000 Ontario homes. The facilities will also reduce yearly
carbon emissions by an amount equivalent to planting more
than 16 million trees in Ontario’s forests.108
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Capital mobilization
Popular support for renewable energy
Carbon trading
The availability of sufficient capital is a challenge for
Canadian projects. This is due to the high initial cost of
constructing major renewable energy projects, and the lack
of a Canada-wide financing institution willing and able to
mobilize capital and mitigate the risk of providing sums on
the order of hundreds of millions of dollars to renewable
energy projects. To date, most of Canada’s major renewable
energy projects have been financed by American and
European banks and banking syndicates.
Since the Ontario FIT regime is modelled closely on the
German system, it is likely that in the very near term, German
banks will continue to play a lead role in financing large-scale
renewable energy projects in Ontario. As the credit markets
relax and success stories begin to circulate as a result of the
Europe enjoys a stable, well-understood regulatory
framework and strong popular and political support for
renewable energy. When asked in a recent survey how they
felt about a large increase in the number of wind farms in
their home country, 87% of Europeans surveyed responded
that they were in favour of such a move.109 This sentiment
is partly driven by energy security concerns, and partly by a
strong culture of environmental responsibility in Europe.
With a natural resource base rich in fossil fuels, Canadians
are not subject to the same energy security concerns that
are top-of-mind in many European countries. As such,
the development of renewable energies at an additional
expense for electricity consumers in Ontario may not enjoy
the same popular support as in Europe.
The slow-developing demand for renewable energies in
Ontario may also be due to the absence of a local carbon-
trading program. Cap-and-trade systems increase the
effective price of producing energy with fossil-fuels. By
helping to bring the cost of fossil-fuel- based energy
production in line with renewable energy production,
carbon trading plays an important role in fostering green
energy demand. Although plans for an Ontario-Quebec
cap-and-trade program were announced in June 2008, little
progress has been made on this front.
creating a local base of financing experience in renewable
energy. Alternatively, Canadian banks may elect to de-risk
renewable energy finance by setting specific agreement
terms. Banks could specify the regions, technologies and
project development partners they would be willing to
finance. Some Canadian banks have begun this process
by indicating that they are prepared to work with project
developers as long as they have at least 5 years experience.
While this is an excellent start, renewable energy production
incentives have only been in place in Ontario for 3 years.
One workaround might be for Canadian banks to agree
to participate in projects that involve an experienced
renewable energy developer from outside the country,
working alongside a Canadian firm through a joint venture.
With regard to renewable energy technology, many
Canadian banks perceive renewable energy projects as
having extremely high technology risk. In most cases, this
is a cultural hang-up rather than a well-founded objection.
Many renewable energy technologies have rigorously
proven their value and “bankability” and have been steadily
generating investor returns in other countries for decades.
The new Ontario FIT program represents a one-time
opportunity to establish Canadian leadership in renewable
energy finance in North America. With the industry looking
on, it is hoped that 2010 will mark the beginning of a lasting
and profitable tenure for renewable energy in Canada and
the US.
new Ontario FIT program, it is reasonable to expect that
Canadian lenders will begin to participate more actively in
renewable energy project financings in Ontario.
__16
Further reading
For two excellent reports on renewable energy finance
around the world, see:
Fulton, Mark and Kevin Parker. (December 2009). Paying
for Renewable Energy: TLC at the Right Price. DB Climate
Change Advisors, Deutsche Bank Group. Available for
download: http://www.dbcca.com/dbcca/EN/investment-
research/investment_research_2144.jsp
Greenwood, Chris et al. (2009). Global Trends in Sustainable
Energy Investment 2009: Analysis of Trends and Issues in
the Financing of Renewable Energy and Energy Efficiency.
United Nations Environment Programme, Sustainable
Energy Finance Initiative. Available for download: http://
sefi.unep.org/english/globaltrends2009.html
Based on the most successful FIT programs worldwide,
Ontario’s feed-in tariff scheme will play an important role
in jumpstarting the province’s green economy through
job creation, the development of local expertise in the
construction and operation of renewable energy projects,
and establishing Ontario as a North American leader in the
manufacture of renewable energy equipment.
While financing major renewable energy projects continues
to present challenges to risk-averse lenders, particularly in
the current economy, Ontario’s new FIT program creates
significant opportunities to profit from renewable energy
projects in the province. For lenders and equity investors,
Ontario’s FIT program guarantees generous and predictable
rates of return for solar, wind, waterpower and bioenergy
projects, large and small.
The road ahead
__17
1. Ontario Power Authority. Retrieved from: http://www.opa.com (accessed December 18, 2009).
2. Ontario Power Authority. Retrieved from: http://www.opa.com (accessed December 18, 2009).
3. The Liberal Party of Ontario’s official Green Energy Act Website. (2009). Renewable Green Energy for Ontario. Retrieved from: http://www.ontariogreenenergyact.ca/renew.html (accessed December 18, 2009).
4. The Liberal Party of Ontario’s official Green Energy Act Website. (2009). Renewable Green Energy for Ontario. Retrieved from: http://www.ontariogreenenergyact.ca/green.html (accessed December 18, 2009).
5. The Liberal Party of Ontario’s official Green Energy Act Website. (2009). Renewable Green Energy for Ontario. Retrieved from: http://www.ontariogreenenergyact.ca/green.html (accessed December 18, 2009).
6. The Liberal Party of Ontario’s official Green Energy Act Website. (2009). Renewable Green Energy for Ontario. Retrieved from: http://www.ontariogreenenergyact.ca/renew.html (accessed December 18, 2009).
7. Parker, Nick. (September, 2008). Presentation: Cleantech—A Global Innovation Industry Emerges. The Cleantech Group, LLC. Pg. 8.
8. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
9. Ontario Power Authority. (2009, September). FIT Price Schedule. Retrieved from: http://fit.powerauthority.on.ca/Page.asp?PageID=1115&SiteNodeID=1052 (accessed December 17, 2009).
10. Ontario Power Authority. (2009, September). FIT Price Schedule. Retrieved from: http://fit.powerauthority.on.ca/Page.asp?PageID=1115&SiteNodeID=1052 (accessed December 17, 2009).
11. Ontario Power Authority: FIT Program FAQs.
12. Ontario Ministry of Energy and Infrastructure. (January 21, 2010). Ontario Delivers $7 Billion Green Investment. Retrieved from: http://news.ontario.ca/mei/en/2010/01/backgrounder-20100121.html (accessed January 25, 2010).
13. Ontario Ministry of Energy and Infrastructure. (January 21, 2010). Ontario Delivers $7 Billion Green Investment. Retrieved from: http://news.ontario.ca/mei/en/2010/01/backgrounder-20100121.html (accessed January 25, 2010).
14. Ontario Ministry of Energy and Infrastructure. (January 21, 2010). Ontario Delivers $7 Billion Green Investment. Retrieved from: http://news.ontario.ca/mei/en/2010/01/backgrounder-20100121.html (accessed January 25, 2010).
15. Ontario Ministry of Energy and Infrastructure. (January 21, 2010). Ontario Delivers $7 Billion Green Investment. Retrieved from: http://news.ontario.ca/mei/en/2010/01/backgrounder-20100121.html (accessed January 25, 2010).
16. Ontario Ministry of Energy and Infrastructure. (January 21, 2010). Ontario Delivers $7 Billion Green Investment. Retrieved from: http://news.ontario.ca/mei/en/2010/01/backgrounder-20100121.html (accessed January 25, 2010).
17. Fulton, Mark and Kevin Parker. (2009, December). Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group.
18. Bayley, Caroline. (January 10, 2008). Germany’s sunny revolution. Retrieved from: http://news.bbc.co.uk/2/hi/business/7181866.stm (accessed January 25, 2010).
19. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
20. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
21. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009
22. Renner, Michael et al. (September, 2008). Green Jobs: Towards Decent Work in a Sustainable, Low-Carbon World. United Nations Environment Programme and the International Labour Organization.
23. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
24. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
25. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group. December 2009.
26. Fulton, Mark and Kevin Parker. Paying for Renewable Energy: TLC at the Right Price. DB Climate Change Advisors, Deutsche Bank Group.
References
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December 2009.
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44. Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. United Nations Environment Programme, Sustainable Energy Finance Initiative. Pg. 29.
45. Greenwood, Chris et al. (2009). Global Trends in Sustainable Energy Investment 2009: Analysis of Trends and Issues in the Financing for Renewable Energy and Energy Efficiency. United Nations Environment Programme, Sustainable Energy Finance Initiative. Pg. 29.
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48. Justice, Sophie. (December, 2009). Private Financing of Renewable Energy—A Guide for Policymakers. United Nations Environment Programme, Sustainable Energy Finance Initiative. Pg. 24.
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51. Stromsta, Karl-Erik. (July 27, 2009). EIB throws lifeline to Belgium’s Belwind project. Retrieved from: http://www.rechargenews.com/energy/wind/article184412.ece (accessed December 20, 2009).
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