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Bond Financing for Renewable Energy in Asia

In: Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments

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  • Thiam Hee Ng

Abstract

Energy needs in Asia are huge. Meeting these needs in a sustainable way will require a shift in investment away from fossil fuels towards renewable energy sources. Significant upfront costs and long payback periods of renewable energy projects have often discouraged investors from financing these projects. With government finances already overstretched in many countries, the public sector will find it hard to meet the large financing needs of renewable energy. Improving the financing mechanisms for renewable energy projects is essential to lower the financing cost and make the transition towards renewable energy more affordable for investors, governments, and consumers. The large pool of investable funds available in Asia suggests that the private sector can play a major role in providing financing. With heightened interest in investing in renewable energy, there is a large pool of potential investors. To attract these investors however, the investment will have to be packaged in a form that they are familiar with, which has traditionally been through bonds.

Suggested Citation

  • Thiam Hee Ng, . "Bond Financing for Renewable Energy in Asia," Chapters, in: Shigeru Kimura & Youngho Chang & Yanfei Li (ed.), Financing Renewable Energy Development in East Asia Summit Countries A Primer of Effective Policy Instruments, chapter 11, pages 321-342, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:chaptr:2014-rpr-27-11
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    Cited by:

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    15. Xiaohuan Lyu & Anna Shi, 2018. "Research on the Renewable Energy Industry Financing Efficiency Assessment and Mode Selection," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    16. Lam, Patrick T.I. & Yang, H.X. & Yu, Jack, S., 2017. "Critical Success Factors for integrating renewable energy development in a country with 2 systems: The case of Pearl River Delta and Hong Kong SAR in China," Energy Policy, Elsevier, vol. 107(C), pages 480-487.
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    20. Naeem, Muhammad Abubakr & Farid, Saqib & Ferrer, Román & Shahzad, Syed Jawad Hussain, 2021. "Comparative efficiency of green and conventional bonds pre- and during COVID-19: An asymmetric multifractal detrended fluctuation analysis," Energy Policy, Elsevier, vol. 153(C).
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