What Does Solar Need to Keep Investment Flowing
In its latest monthly column for <b>pv magazine</b>, SolarPower Europe describes which policy tools are expected to help Europe move at a faster pace in solar and renewable energy deployment. The European trade body discusses the upcoming support schemes, the transformation of the PPA market and the rise of green finance.
PV Magazine International 11:39 am on April 12, 2024
The text discusses the challenges and opportunities in advancing the solar energy sector through various financial mechanisms. Solar is becoming increasingly competitive due to its low levelized cost of electricity (LCOE) but requires significant upfront investment. European Central Bank's (ECB) potential implementation of a green interest rate could help unlock financing for renewable projects, while guarantee and counter-guarantee instruments from the European Investment Bank can provide access to cheaper financing. Industry uptake of corporate power purchase agreements (PPAs) is being hindered by bankability concerns, but government PPA guarantee schemes and harmonized certification systems are potential solutions.
- The text discusses the challenges and opportunities for advancing solar energy through financial mechanisms
- ECB's potential green interest rate could help unlock financing for renewables, making them more competitive
- Guarantee and counter-guarantee instruments from European Investment Bank provide access to cheaper financing
- Industry uptake of corporate PPAs hindered by bankability concerns but potential solutions include government PPA guarantee schemes and harmonized certification systems
- Mentioned challenges include proving bankability for long-term PPAs, remaining barriers to be unlocked to accelerate corporate PPAs as a route to market for new wind and solar power plants
https://www.pv-magazine.com/2024/04/12/what-does-solar-need-to-keep-investment-flowing/