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Q: "Renewable Energy Project Finance" ( Answered,   1 Comment )
Question  
Subject: "Renewable Energy Project Finance"
Category: Business and Money > Finance
Asked by: chrisallen27-ga
List Price: $50.00
Posted: 15 Mar 2003 07:40 PST
Expires: 14 Apr 2003 08:40 PDT
Question ID: 176527
What are the generic risks and specific risks by technology for
investing in renewable energy projects?
Answer  
Subject: Re: "Renewable Energy Project Finance"
Answered By: journalist-ga on 15 Mar 2003 09:11 PST
 
Greetings Chrisallen27:

After examining many links concerning your query, I believe that the
risks involved in renewable energy finance (both generic and specific)
are best discussed in detail at
http://www.greentie.org/finance/riskmanagement.php and they include:

Operating and Technology Risk
http://www.greentie.org/finance/riskmanagement.php#_Toc531145672

Construction and Sponsor Risk
http://www.greentie.org/finance/riskmanagement.php#_Toc531145673

Technology Risk
http://www.greentie.org/finance/riskmanagement.php#_Toc531145674

Economic, Inflation and Environmental Risks
http://www.greentie.org/finance/riskmanagement.php#_Toc531145675

Country, Political. Legal, Foreign Exchange and Force Majeure Risks
http://www.greentie.org/finance/riskmanagement.php#_Toc531145676

*************

The site at http://216.239.33.100/search?q=cache:Xkeqn3VJwKsC:www.germanwatch-ev.de/download/rio/siws1102/jones.pdf+%22renewable+energy%22+finance+risks&hl=en&ie=UTF-8
also reviews risks including "economic & competitive risks from
climate change itself (e.g., weather-related effects)" and "exposure
to the regulatory and competitive implications of attempts to mitigate
GHG" - there are other risks assessed as well as opportunities
assessed at that link.  The PDF link is
http://www.germanwatch-ev.de/download/rio/siws1102/jones.pdf

Also, there are numerous publications listed at
http://www.energycentral.com/sections/directories/periodicals/ that
deal with power finance.  You must register to access the publications
and the registration is free.

*************

OTHER LINKS THAT MAY BE OF INTEREST:

There are some good links at http://solstice.crest.org/efficiency/cef/
under the heading "News About Renewable Energy and Energy Efficiency
Investment in Emerging Markets" - They are PDF documents that I
believe you will find helpful.

The Emergence, Opportunities and Challenges of Renewable Energy
Finance
http://216.239.39.100/search?q=cache:n5suhnN-HAUC:www.ecosecurities.com/200about_us/222world_press/PowerEconomics-Nov01.pdf+%22renewable+energy%22+finance+risk+technology&hl=en&ie=UTF-8
PDF link is http://www.ecosecurities.com/200about_us/222world_press/PowerEconomics-Nov01.pdf

CLIMATE-FRIENDLY ENERGY TECHNOLOGY: How to finance the
commercialisation
of new technology?
http://www.vtt.fi/pro/climtech/material/9_02eng.pdf

Introduction to Project Appraisal & Financing
http://www.greentie.org/finance/index.php

Notes on the Renewable Energy Finance Conference - September 25th,
1996
http://www.sleeping-giant.ie/list/enviro/REIOrep.html

Renewable Energy Technology [suggests projects for finance]
http://www.renewingindia.org/finren.html

Interview with Mason Willrich from EnergyBoard L.L.C. concerning
renewable energy finance trends
http://216.239.39.100/search?q=cache:pG6IULHEGiQC:www.winrock.org/REEP/PDF_Pubs/finance.pdf+%22renewable+energy%22+finance&hl=en&ie=UTF-8
PDF link is http://www.winrock.org/REEP/PDF_Pubs/finance.pdf

Project Appraisals
http://www.greentie.org/finance/projectappraisal.php

Building a Renewable Energy Portfolio
http://216.239.33.100/search?q=cache:8uTX7GKu5R0C:www.pmaconference.com/200303renewables_bro3_pma.pdf+%22renewable+energy%22+finance+risks&hl=en&ie=UTF-8
PDF link is http://www.pmaconference.com/200303renewables_bro3_pma.pdf

Renewable Energy Site Survey and Assessment Businesses in the World
http://energy.sourceguides.com/businesses/byB/serv/sSurv/sSurv.shtml

2nd International Investment Forumfor Sustainable Energy, Basel, 19
September 2001
http://216.239.51.100/search?q=cache:Plo2QdPpTlkC:www.energy-base.org/pdf/forum_report.pdf+%22renewable+energy%22+finance+risk+report&hl=en&ie=UTF-8
PDF link is http://www.energy-base.org/pdf/forum_report.pdf

Electric Power Trade Publications list
http://www.energycentral.com/sections/directories/periodicals/

$225 book titled "Project Finance: The Guide to Developing Renewable
Energy Projects"
"This invaluable book will ensure you adopt the best strategies for
developing, financing, assessing risk and documenting renewable energy
projects. Sectors examined include wind, solar, small-scale hydro
power, tidal, geothermal and biomass energy. Illustrated by real-life
case studies, the book assesses regulatory developments; energy
policies across the globe such as tariffs, tendering, premiums, green
certificates and emissions trading; sources of financing; methods for
assessing project viability; generic risks of renewable projects,
risks specific to individual technologies, and documentation specific
to renewables."
http://www.bharatbook.com/detail.asp?id=4032

$295 book titled "Project Finance: Risks, Structures and
Financeability"
"This new edition includes an entirely new module which examines risk
structuring and allocation in key industry sectors: power,
transportation/tollways, railways, airports, ports, mining, oil and
gas, telecoms, satellites, water/waste water."
http://www.bharatbook.com/detail.asp?id=2571

Navigant Consulting Study to Examine Impact of U.S. Electric
Industry's Regulatory and Market Changes On Renewable Energy
http://biz.yahoo.com/bw/021210/102144_1.html

Background Paper and Case Studies:Project Finance Opportunitiesfor
Climate-Friendly Energy Projects
http://216.239.53.100/search?q=cache:O-PZtXSl2EsC:www.climatetech.net/conferences/conferpdf/warsaw/16.PDF+%22renewable+energy%22+finance+risk+case+study&hl=en&ie=UTF-8
PDF link is http://www.climatetech.net/conferences/conferpdf/warsaw/16.PDF

4th Annual Renewable Energy Finance Forum [PDF download available]
http://www.euromoneyenergy.com/event_programme.asp?eventid=ECK69&site=energy

State backed energy programs prove inefficient
"In the new Cato paper "Renewable Energy: Not Cheap, Not 'Green'"
(Cato Institute Policy Analysis no. 280), Robert L. Bradley Jr.,
president of the Institute for Energy Research and author of the
two-volume Oil, Gas, and Government: The U.S. Experience, argues that
"a multi-billion-dollar government crusade to promote renewable energy
for electricity generation, now in its third decade, has resulted in
major economic costs and unintended environmental consequences."
A link from the snippet above (located about 2/3 of the way down the
page) goes to "Renewable Energy: Not Cheap, Not "Green" by Robert L.
Bradley Jr. and the full report may be downloaded at
http://www.cato.org/pubs/pas/pa-280es.html

Innovative Solutions to Financing, Buying and Selling Renewable Energy
Projects, Worldwide from Capitol Technology
http://www.capital-technology.com/
Also see link from that page
http://www.capital-technology.com/firsts.html
 

Should you require clarification of any of the links or information I
have provided, please request it and I will be happy to respond.


SEARCH STRATEGY:

"renewable energy" finance risks
"renewable energy" finance risk assessment
"renewable energy" finance risk report
"renewable energy" finance risk technology
"renewable energy" finance risk case study

Request for Answer Clarification by chrisallen27-ga on 15 Mar 2003 14:55 PST
Thank you very much for this excellent reply.  The only thing I could
have hoped for was risks associated with the various renewable energy
technologies, i.e. wind energy technology risk, biomass energy
technology risk, solar energy technology risk, geothermal technology
risk, and ocean energy technology risk.

I saw your search terms and I'm wondering if all of your searches were
conducted in Google alone...or how that works.

Thanks again and I appreciate your reply.

Best regards,

Chris

Clarification of Answer by journalist-ga on 17 Mar 2003 06:08 PST
Dear Chrisallen27:

Thank you for your clarification and I'll be happy to search those
specific terms for you.  :)  I'll post my results by tonight and I
appreciate your patience.

Regarding search engines, Google Answers Researchers use Google and
other places to locate information.  However, Google is my primary
choice because I find the most relevant information there when checked
against the other search engines.

Clarification of Answer by journalist-ga on 17 Mar 2003 13:06 PST
Greetings again, Chrisallen27:

I researched the terms you specified and discovered some links that
may be of further assistance.

From the synopsis of the book "Experience Curves for Energy Technology
Policy" -
"This book discusses issues raised by the 'experience effect', such as
price-cost cycles, competition for learning opportunities in the
market, risk of 'technology lockout' and the effects of research,
development and deployment policies on technology learning...Managing
the risks of lock-out, creating niche markets to ensure learning
investments and participating in the working out of a balance between
coherence and autonomy are issues for strategic decisions to bring in
CO2 mitigation technologies."
FREE download of the book at
http://www.iea.org/public/studies/curves.htm

Wind Energy case studies link list
http://www.rsx.co.uk/risk-index/RSX-Subject.html-subject=1105&topic=10505.htm

Wind Energy Economics link list
http://www.rsx.co.uk/risk-index/RSX-Subject.html-subject=1105&topic=10504.htm

Methodological and Technological issues in Technology Transfer
http://www.grida.no/climate/ipcc/tectran/076.htm

Opportunities for renewable energy project finance
http://216.239.37.100/search?q=cache:DAPPeKczgFgC:www.ecosecurities.com/download/MC-MDS-PowerEconomics.pdf+wind+energy+%22technology+risks%22&hl=en&ie=UTF-8

""The downside is, of course, that over-reliance on technology without
proper safeguards increases technology risks, such as sudden outages
by servers," says Michell...According to Wilson, when technology is
used to create processes for managing cash, borrowings and forex
hedging, the benefits are predominantly operational - improved
procedures, reducing double-entries and re-keying, as well as allowing
some automation of information."
From "FTA congress: A green approach" By Bernard Kellerman at
http://www.cfoweb.com.au/stories/20011001/12037.asp

Technological risks energy (actual and percieved)
http://www.managenergy.net/conference/ren0702/launay.pdf 
[I wanted to copy some text here for you but the PDF kept freezing in
my browser - there is a list of risks detailed in this document.]

Barriers to Solar energy (including technological)
http://www.ecan.govt.nz/Energy/ren-energy-report-02/section-3-2.html

Costs and benefits - ATLAS study
http://europa.eu.int/comm/energy_transport/atlas/htmlu/enrtdcost.html

The Emergence, Opportunities and Challenges of Renewable Energy
Finance
http://216.239.57.100/search?q=cache:n5suhnN-HAUC:www.ecosecurities.com/200about_us/222world_press/PowerEconomics-Nov01.pdf+biomass+energy+%22technology+risks%22&hl=en&ie=UTF-8

Energy Choices in a Competitive Era
http://www.ceednet.org/resources/rdirenewables/index.asp

The United Kingdom Parliment - "APPENDIX 25 - Memorandum submitted by
Seapower"
http://www.parliament.the-stationery-office.co.uk/pa/cm200001/cmselect/cmsctech/291/291ap27.htm

UUV Master Plan: A Vision for Navy UUV Development
http://www.spawar.navy.mil/robots/pubs/oceans2000b.pdf


I hope these additional links will be of assistance and should you
require further clarification, please request it and I will be happy
to respond.


SEARCH STRATEGY:

wind energy technology risk
biomass energy technology risk
solar energy technology risk
geothermal technology risk
ocean energy technology risk
[I also searched the plural "risks" in association with the phrases
above as well as "technological" in addition to "technology"]

Clarification of Answer by journalist-ga on 17 Mar 2003 13:35 PST
ADDITION TO ABOVE:

Energy Department Launches Thirteen New Research Projects to Capture
and Store Greenhouse Gases
http://www.fe.doe.gov/techline/tl_seq_ind1.html
Comments  
Subject: Re: "Renewable Energy Project Finance"
From: neilzero-ga on 15 Mar 2003 14:37 PST
 
I've been following details of several alternate energy ideas for
about a decade. The generic risk is: Most of the promoters exaggerate
and fail to mention likely problems. A specific is a company that
wants to build a 3400 foot = one KM tall concrete chimney that
converts sunlight to electricity. Conventional construction techniques
will work the first 500 feet. At 3000 feet bags of concrete will be
raised on ropes one bag at a time or flown in by helicopter. Waiting
for rain may be the least costly way to get water lifted 3000 feet.
Unless most of the workers stay at the top 24/7 getting them up and
down is a considerable cost. Crew quarters part way up can be
converted luxtury apartments in the sky after the chimney is completed
perhaps eventually recovering all the cost of the crew quartes and
elevators.  Neil

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