Renewable Energy Funds: Challenges and Solutions to Achieve Sustainability Goals (SDG 13)

Renewable Energy Funds: Challenges and Solutions to Achieve Sustainability Goals (SDG 13)

Pooja Kaushik, Vikas Garg
Copyright: © 2024 |Pages: 24
DOI: 10.4018/979-8-3693-3932-9.ch009
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Abstract

Renewable energy funds play a crucial role in financing sustainable energy projects, which are critical for meeting environmental and climate objectives. However, these funds face many complex problems that must be considered in order to maximise their impact and efficacy. This chapter digs into the major issues confronting renewable energy funds and suggests possible methods to address them. Limited funding access, regulatory uncertainty, and risk perceptions associated with developing technology are some of the major challenges. Furthermore, concerns about project scalability and the necessity for standardised frameworks for evaluating investment opportunities are discussed. To attain sustainability goals, novel options such as blended finance models, improved risk-sharing systems, and more stakeholder involvement are presented. The chapter emphasises the need to combine green finance concepts with technical improvements to fully realise the promise of renewable energy funds in driving the transition to a green future.
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Introduction

Renewable energy funds are investment vehicles that are dedicated to financing renewable energy projects such as solar, wind, hydropower, and biomass ventures. These funds allow investors to assist the development of renewable energy technology while potentially earning financial benefits.

Renewable energy funds often combine investments from a number of sources, including institutional investors, private investors, and, in certain cases, governments or development banks. The funds then utilise this money to fund renewable energy projects ranging from large-scale utility projects to local community-based initiatives.

One example of a renewable energy fund is Australia's Clean Energy Finance Corporation (CEFC). Established by the Australian government in 2012, the CEFC is a clean energy financier that invests in renewable energy, energy efficiency, and low-emission technology. The CEFC maintains a wide portfolio of investments in several renewable energy sectors, which helps Australia move to a more sustainable energy landscape. Hence, renewable energy funds play a key role in advancing the adoption of renewable energy technology by providing critical financial support and investment opportunities. These funds are critical in promoting innovation and sustainability in the energy sector.

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