Financial Mechanisms for Clean Energy in Small Island Developing States

This report explores the potential financing mechanism options that can be employed to catalyze more private sector investment in clean energy (renewable energy and energy efficiency) in the small island developing states (SIDS). Various financial...

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Bibliographic Details
Main Author: World Bank Group
Format: Report
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
FEE
MFI
Online Access:http://documents.worldbank.org/curated/en/2015/11/25256052/financial-mechanisms-clean-energy-small-island-developing-states
http://hdl.handle.net/10986/22914
id okr-10986-22914
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic FACILITY FUND
BORROWER
FINANCE INITIATIVE
ECONOMIC GROWTH
DEVELOPMENT ASSISTANCE
PROPERTY TAX
FINANCING
INTEREST
SOFT LOANS
ENTREPRENEURS
REPAYMENTS
EQUITY FINANCING
CAPACITY BUILDING
LOAN
FEE
ENDOWMENT
BORROWERS
PAYMENTS
DEVELOPMENT FINANCE INSTITUTIONS
CASH FLOWS
MFIS
CREDIT OFFICERS
FUNDING SOURCES
REVOLVING FUNDS
ACCESS TO FUNDS
EQUITY CAPITAL
HOUSING LOANS
TECHNICAL ASSISTANCE
EQUIPMENT PURCHASES
INDEBTEDNESS
FINANCIAL INSTITUTION
LOAN FUND
MARKET DEVELOPMENT
HIGH INTEREST RATES
LOAN DEFAULTS
COMMERCIAL BANK
MORAL HAZARD
PARTIAL CREDIT
LOAN PRODUCTS
FINANCES
CREDIT RISKS
FINANCIAL INSTITUTIONS
PAYMENT
DEBT
SOURCE OF FUNDS
MICRO LOANS
MICRO-CREDIT SCHEME
LOAN REPAYMENTS
PUBLIC FINANCE
FINANCIAL • MARKET
VENTURE CAPITAL
ENTERPRISES
INVESTMENT OPPORTUNITIES
DEBT SERVICE
APPROVAL PROCESS
COMMERCIAL BANKING
LOAN SIZES
DONOR FUNDS
BANK FINANCING
FUTURE CASH FLOWS
TERM CREDIT
SEED FUNDING
BANKS
INVESTMENT DECISIONS
UNIONS
DEBT FINANCING
AFFORDABILITY
CAPITAL
BUSINESS PLAN
CUSTOMER BASE
CAPITAL INJECTION
ACCESS TO FINANCE
BUSINESS DEVELOPMENT
DEVELOPMENT BANKS
BANK
EQUITY FUNDS
LOAN GUARANTEES
EXTERNAL FUNDS
DEBT FINANCE
INSTITUTIONAL CAPACITY
MEZZANINE FUND
CREDIT GUARANTEE
CREDIT RISK
PROFITABILITY
GOVERNMENT POLICIES
MICROFINANCE
ECONOMIC DEVELOPMENT
BANK LOAN
LOAN APPLICATIONS
SOURCES OF FUNDS
EQUITY FUND
CREDIT GUARANTEES
FINANCIAL INTERMEDIATION
FINANCIAL INTERMEDIARIES
RATES OF RETURN
COMMERCIAL BANKS
HOUSEHOLDS
LOAN SIZE
PRIVATE INVESTORS
EQUIPMENT PURCHASE
DEVELOPMENT FINANCE
FINANCIAL SUPPORT
LENDING POLICY
INVESTMENT PLAN
CAPITAL INVESTMENT
CAPITAL COSTS
CREDIT LINES
PROFITABLE BUSINESS
DOWN PAYMENTS
DEVELOPMENT BANK
CASH FLOW
MFI
MICROFINANCE INSTITUTION
TARIFFS
ADVISORY SERVICES
LINE OF CREDIT
CAPITAL MARKETS
CAPITAL FUNDS
FACILITATION
MATCHING FUNDS
GUARANTEES
EQUITABLE ACCESS
INTEREST RATE
PROPERTY RIGHTS
REVOLVING FUND
DIRECT CREDIT
FINANCIAL RESOURCES
COMMERCIAL FINANCE
MORTGAGE
SOURCES OF FINANCE
SUBSIDY
TRANSACTION COST
INTERNATIONAL BANK
AGRICULTURE ORGANIZATION
LENDER
FINANCING FACILITY
BANK LENDING
INTERNATIONAL FINANCE
CREDITS
FINANCIAL SUSTAINABILITY
SAVINGS
START-UP
PUBLIC-PRIVATE PARTNERSHIP
CREDIT UNIONS
LOAN FUNDS
MICRO-FINANCE INSTITUTIONS
UNION
ADMINISTRATIVE CAPACITY
PUBLIC FUNDS
REVOLVING LOAN
INTEREST RATES
LIMITED ACCESS
ELIGIBILITY CRITERIA
FINANCIAL VIABILITY
FINANCIAL PRODUCTS
LENDERS
BANKERS
LOANS
PRIVATE EQUITY
FINANCE
ADMINISTRATIVE COSTS
FREE LOANS
CREDIT LINE
COLLATERAL REQUIREMENTS
MICRO-CREDIT
EQUITY
GRANT
CREDIT CONSTRAINTS
LOAN GUARANTEE
OPERATING COSTS
PROPERTY TAXES
DONOR RESOURCES
ACCESS TO CAPITAL
CREDIT
EQUITY INVESTMENTS
UNIVERSAL ACCESS
INVESTMENT BANK
FINANCIAL INSTRUMENTS
REPAYMENT
ENTERPRISE
APPROVAL PROCESSES
PROPERTY
EQUITY INVESTORS
BALANCE SHEET
TRANSACTION COSTS
BANK ACCOUNTS
CREDIT SCHEME
INTERESTS
ECONOMIC BARRIERS
SPECIAL FUNDS
BANK LOANS
SECURITY
FINANCIAL MARKET
INVESTMENT
BALANCE SHEETS
COLLATERAL
MICRO-FINANCE
FINANCIAL MARKETS
TARIFF
COOPERATION
FINANCIAL INTERMEDIARY
INITIAL FUNDING
BORROWING
INVESTMENTS
RETURN ON INVESTMENT
TECHNICAL SUPPORT
IMPORT DUTY
BARRIERS TO INVESTMENT
GUARANTEE
spellingShingle FACILITY FUND
BORROWER
FINANCE INITIATIVE
ECONOMIC GROWTH
DEVELOPMENT ASSISTANCE
PROPERTY TAX
FINANCING
INTEREST
SOFT LOANS
ENTREPRENEURS
REPAYMENTS
EQUITY FINANCING
CAPACITY BUILDING
LOAN
FEE
ENDOWMENT
BORROWERS
PAYMENTS
DEVELOPMENT FINANCE INSTITUTIONS
CASH FLOWS
MFIS
CREDIT OFFICERS
FUNDING SOURCES
REVOLVING FUNDS
ACCESS TO FUNDS
EQUITY CAPITAL
HOUSING LOANS
TECHNICAL ASSISTANCE
EQUIPMENT PURCHASES
INDEBTEDNESS
FINANCIAL INSTITUTION
LOAN FUND
MARKET DEVELOPMENT
HIGH INTEREST RATES
LOAN DEFAULTS
COMMERCIAL BANK
MORAL HAZARD
PARTIAL CREDIT
LOAN PRODUCTS
FINANCES
CREDIT RISKS
FINANCIAL INSTITUTIONS
PAYMENT
DEBT
SOURCE OF FUNDS
MICRO LOANS
MICRO-CREDIT SCHEME
LOAN REPAYMENTS
PUBLIC FINANCE
FINANCIAL • MARKET
VENTURE CAPITAL
ENTERPRISES
INVESTMENT OPPORTUNITIES
DEBT SERVICE
APPROVAL PROCESS
COMMERCIAL BANKING
LOAN SIZES
DONOR FUNDS
BANK FINANCING
FUTURE CASH FLOWS
TERM CREDIT
SEED FUNDING
BANKS
INVESTMENT DECISIONS
UNIONS
DEBT FINANCING
AFFORDABILITY
CAPITAL
BUSINESS PLAN
CUSTOMER BASE
CAPITAL INJECTION
ACCESS TO FINANCE
BUSINESS DEVELOPMENT
DEVELOPMENT BANKS
BANK
EQUITY FUNDS
LOAN GUARANTEES
EXTERNAL FUNDS
DEBT FINANCE
INSTITUTIONAL CAPACITY
MEZZANINE FUND
CREDIT GUARANTEE
CREDIT RISK
PROFITABILITY
GOVERNMENT POLICIES
MICROFINANCE
ECONOMIC DEVELOPMENT
BANK LOAN
LOAN APPLICATIONS
SOURCES OF FUNDS
EQUITY FUND
CREDIT GUARANTEES
FINANCIAL INTERMEDIATION
FINANCIAL INTERMEDIARIES
RATES OF RETURN
COMMERCIAL BANKS
HOUSEHOLDS
LOAN SIZE
PRIVATE INVESTORS
EQUIPMENT PURCHASE
DEVELOPMENT FINANCE
FINANCIAL SUPPORT
LENDING POLICY
INVESTMENT PLAN
CAPITAL INVESTMENT
CAPITAL COSTS
CREDIT LINES
PROFITABLE BUSINESS
DOWN PAYMENTS
DEVELOPMENT BANK
CASH FLOW
MFI
MICROFINANCE INSTITUTION
TARIFFS
ADVISORY SERVICES
LINE OF CREDIT
CAPITAL MARKETS
CAPITAL FUNDS
FACILITATION
MATCHING FUNDS
GUARANTEES
EQUITABLE ACCESS
INTEREST RATE
PROPERTY RIGHTS
REVOLVING FUND
DIRECT CREDIT
FINANCIAL RESOURCES
COMMERCIAL FINANCE
MORTGAGE
SOURCES OF FINANCE
SUBSIDY
TRANSACTION COST
INTERNATIONAL BANK
AGRICULTURE ORGANIZATION
LENDER
FINANCING FACILITY
BANK LENDING
INTERNATIONAL FINANCE
CREDITS
FINANCIAL SUSTAINABILITY
SAVINGS
START-UP
PUBLIC-PRIVATE PARTNERSHIP
CREDIT UNIONS
LOAN FUNDS
MICRO-FINANCE INSTITUTIONS
UNION
ADMINISTRATIVE CAPACITY
PUBLIC FUNDS
REVOLVING LOAN
INTEREST RATES
LIMITED ACCESS
ELIGIBILITY CRITERIA
FINANCIAL VIABILITY
FINANCIAL PRODUCTS
LENDERS
BANKERS
LOANS
PRIVATE EQUITY
FINANCE
ADMINISTRATIVE COSTS
FREE LOANS
CREDIT LINE
COLLATERAL REQUIREMENTS
MICRO-CREDIT
EQUITY
GRANT
CREDIT CONSTRAINTS
LOAN GUARANTEE
OPERATING COSTS
PROPERTY TAXES
DONOR RESOURCES
ACCESS TO CAPITAL
CREDIT
EQUITY INVESTMENTS
UNIVERSAL ACCESS
INVESTMENT BANK
FINANCIAL INSTRUMENTS
REPAYMENT
ENTERPRISE
APPROVAL PROCESSES
PROPERTY
EQUITY INVESTORS
BALANCE SHEET
TRANSACTION COSTS
BANK ACCOUNTS
CREDIT SCHEME
INTERESTS
ECONOMIC BARRIERS
SPECIAL FUNDS
BANK LOANS
SECURITY
FINANCIAL MARKET
INVESTMENT
BALANCE SHEETS
COLLATERAL
MICRO-FINANCE
FINANCIAL MARKETS
TARIFF
COOPERATION
FINANCIAL INTERMEDIARY
INITIAL FUNDING
BORROWING
INVESTMENTS
RETURN ON INVESTMENT
TECHNICAL SUPPORT
IMPORT DUTY
BARRIERS TO INVESTMENT
GUARANTEE
World Bank Group
Financial Mechanisms for Clean Energy in Small Island Developing States
description This report explores the potential financing mechanism options that can be employed to catalyze more private sector investment in clean energy (renewable energy and energy efficiency) in the small island developing states (SIDS). Various financial instruments that have been used successfully to date are described and placed in the context of the issues and constraints of the SIDS, with suggested options for discussion and follow up. Green infrastructure finance, as defined in the report, makes the important point that is the combination of financial and nonfinancial interventions and instruments that can make green investments in infrastructure more affordable and less risky to private sponsors, financial markets, and governments. The objective of this report is to identify and assess options that can help increase investment in renewable energy and energy efficiency in SIDS through the adoption and funding of financing mechanisms by SIDS and development partners with special attention given to the role that the private sector can play. Many renewable energy technologies are characterized by high initial capital costs with relatively low operating costs compared to thermal alternatives. By providing an analysis of options for a financing facility to catalyze renewable energy and energy efficiency, this work is intended to inform the discussions among SIDS and development partners interested in actions to stimulate investment in renewable energy and energy efficiency. This report summarizes the results of the two stages. The assessment and selection of options identifies a number of measures that will be needed to stimulate increased private sector participation - project sponsors and developers, equity funds, lending institutions - for energy efficiency and renewable energy. The background material reviewed for this report has been summarized in the annexes.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Financial Mechanisms for Clean Energy in Small Island Developing States
title_short Financial Mechanisms for Clean Energy in Small Island Developing States
title_full Financial Mechanisms for Clean Energy in Small Island Developing States
title_fullStr Financial Mechanisms for Clean Energy in Small Island Developing States
title_full_unstemmed Financial Mechanisms for Clean Energy in Small Island Developing States
title_sort financial mechanisms for clean energy in small island developing states
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/11/25256052/financial-mechanisms-clean-energy-small-island-developing-states
http://hdl.handle.net/10986/22914
_version_ 1764452423750909952
spelling okr-10986-229142021-04-23T14:04:11Z Financial Mechanisms for Clean Energy in Small Island Developing States World Bank Group FACILITY FUND BORROWER FINANCE INITIATIVE ECONOMIC GROWTH DEVELOPMENT ASSISTANCE PROPERTY TAX FINANCING INTEREST SOFT LOANS ENTREPRENEURS REPAYMENTS EQUITY FINANCING CAPACITY BUILDING LOAN FEE ENDOWMENT BORROWERS PAYMENTS DEVELOPMENT FINANCE INSTITUTIONS CASH FLOWS MFIS CREDIT OFFICERS FUNDING SOURCES REVOLVING FUNDS ACCESS TO FUNDS EQUITY CAPITAL HOUSING LOANS TECHNICAL ASSISTANCE EQUIPMENT PURCHASES INDEBTEDNESS FINANCIAL INSTITUTION LOAN FUND MARKET DEVELOPMENT HIGH INTEREST RATES LOAN DEFAULTS COMMERCIAL BANK MORAL HAZARD PARTIAL CREDIT LOAN PRODUCTS FINANCES CREDIT RISKS FINANCIAL INSTITUTIONS PAYMENT DEBT SOURCE OF FUNDS MICRO LOANS MICRO-CREDIT SCHEME LOAN REPAYMENTS PUBLIC FINANCE FINANCIAL • MARKET VENTURE CAPITAL ENTERPRISES INVESTMENT OPPORTUNITIES DEBT SERVICE APPROVAL PROCESS COMMERCIAL BANKING LOAN SIZES DONOR FUNDS BANK FINANCING FUTURE CASH FLOWS TERM CREDIT SEED FUNDING BANKS INVESTMENT DECISIONS UNIONS DEBT FINANCING AFFORDABILITY CAPITAL BUSINESS PLAN CUSTOMER BASE CAPITAL INJECTION ACCESS TO FINANCE BUSINESS DEVELOPMENT DEVELOPMENT BANKS BANK EQUITY FUNDS LOAN GUARANTEES EXTERNAL FUNDS DEBT FINANCE INSTITUTIONAL CAPACITY MEZZANINE FUND CREDIT GUARANTEE CREDIT RISK PROFITABILITY GOVERNMENT POLICIES MICROFINANCE ECONOMIC DEVELOPMENT BANK LOAN LOAN APPLICATIONS SOURCES OF FUNDS EQUITY FUND CREDIT GUARANTEES FINANCIAL INTERMEDIATION FINANCIAL INTERMEDIARIES RATES OF RETURN COMMERCIAL BANKS HOUSEHOLDS LOAN SIZE PRIVATE INVESTORS EQUIPMENT PURCHASE DEVELOPMENT FINANCE FINANCIAL SUPPORT LENDING POLICY INVESTMENT PLAN CAPITAL INVESTMENT CAPITAL COSTS CREDIT LINES PROFITABLE BUSINESS DOWN PAYMENTS DEVELOPMENT BANK CASH FLOW MFI MICROFINANCE INSTITUTION TARIFFS ADVISORY SERVICES LINE OF CREDIT CAPITAL MARKETS CAPITAL FUNDS FACILITATION MATCHING FUNDS GUARANTEES EQUITABLE ACCESS INTEREST RATE PROPERTY RIGHTS REVOLVING FUND DIRECT CREDIT FINANCIAL RESOURCES COMMERCIAL FINANCE MORTGAGE SOURCES OF FINANCE SUBSIDY TRANSACTION COST INTERNATIONAL BANK AGRICULTURE ORGANIZATION LENDER FINANCING FACILITY BANK LENDING INTERNATIONAL FINANCE CREDITS FINANCIAL SUSTAINABILITY SAVINGS START-UP PUBLIC-PRIVATE PARTNERSHIP CREDIT UNIONS LOAN FUNDS MICRO-FINANCE INSTITUTIONS UNION ADMINISTRATIVE CAPACITY PUBLIC FUNDS REVOLVING LOAN INTEREST RATES LIMITED ACCESS ELIGIBILITY CRITERIA FINANCIAL VIABILITY FINANCIAL PRODUCTS LENDERS BANKERS LOANS PRIVATE EQUITY FINANCE ADMINISTRATIVE COSTS FREE LOANS CREDIT LINE COLLATERAL REQUIREMENTS MICRO-CREDIT EQUITY GRANT CREDIT CONSTRAINTS LOAN GUARANTEE OPERATING COSTS PROPERTY TAXES DONOR RESOURCES ACCESS TO CAPITAL CREDIT EQUITY INVESTMENTS UNIVERSAL ACCESS INVESTMENT BANK FINANCIAL INSTRUMENTS REPAYMENT ENTERPRISE APPROVAL PROCESSES PROPERTY EQUITY INVESTORS BALANCE SHEET TRANSACTION COSTS BANK ACCOUNTS CREDIT SCHEME INTERESTS ECONOMIC BARRIERS SPECIAL FUNDS BANK LOANS SECURITY FINANCIAL MARKET INVESTMENT BALANCE SHEETS COLLATERAL MICRO-FINANCE FINANCIAL MARKETS TARIFF COOPERATION FINANCIAL INTERMEDIARY INITIAL FUNDING BORROWING INVESTMENTS RETURN ON INVESTMENT TECHNICAL SUPPORT IMPORT DUTY BARRIERS TO INVESTMENT GUARANTEE This report explores the potential financing mechanism options that can be employed to catalyze more private sector investment in clean energy (renewable energy and energy efficiency) in the small island developing states (SIDS). Various financial instruments that have been used successfully to date are described and placed in the context of the issues and constraints of the SIDS, with suggested options for discussion and follow up. Green infrastructure finance, as defined in the report, makes the important point that is the combination of financial and nonfinancial interventions and instruments that can make green investments in infrastructure more affordable and less risky to private sponsors, financial markets, and governments. The objective of this report is to identify and assess options that can help increase investment in renewable energy and energy efficiency in SIDS through the adoption and funding of financing mechanisms by SIDS and development partners with special attention given to the role that the private sector can play. Many renewable energy technologies are characterized by high initial capital costs with relatively low operating costs compared to thermal alternatives. By providing an analysis of options for a financing facility to catalyze renewable energy and energy efficiency, this work is intended to inform the discussions among SIDS and development partners interested in actions to stimulate investment in renewable energy and energy efficiency. This report summarizes the results of the two stages. The assessment and selection of options identifies a number of measures that will be needed to stimulate increased private sector participation - project sponsors and developers, equity funds, lending institutions - for energy efficiency and renewable energy. The background material reviewed for this report has been summarized in the annexes. 2015-11-09T18:27:09Z 2015-11-09T18:27:09Z 2015-01 Report http://documents.worldbank.org/curated/en/2015/11/25256052/financial-mechanisms-clean-energy-small-island-developing-states http://hdl.handle.net/10986/22914 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Investment Climate Assessment