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Bond financing for renewable energy projects in Asia

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Anton Setiawan

24 May 2016 – Milan, Italy – A new resource has been added to the PM World Library related to renewable energy projects. The new resource is titled “Bond financing for renewable energy projects in Asia”. This paper was recently published in Energy Policy.

Most Asian economies have embraced the need for the introduction of more renewables into their energy mix. Despite favorable policies and the increasing cost-competitiveness of renewable energy projects, a sizeable investment gap is still seen in the industry. Lack of financial diversity and immature capital market considered as the major contribution factors of the investment gap. Bond instruments are well-positioned to address the symptoms of the financing gap, namely access to finance and cost of capital.

This paper proposes the expansion of bond instruments, particularly local currency corporate bond, Asset-backed Project bonds and Financial Green bonds, to bridge the financing gap. Due to the heterogeneous nature of Asian economies, different economies would have place focus on different policy recommendations. A focus to build fixed income market and reducing financial barriers towards renewable energy projects are discussed.

To access this new resource, go to the Major Projects and Programmes section at, click on “Renewable Energy”, then scroll down to resource. Must be a registered member to access.