Showing posts with label climate policy initiative. Show all posts
Showing posts with label climate policy initiative. Show all posts

October 6, 2011

Climate policy initiative finds long-term, stable policy support key to reducing cost of financing renewable energy projects

Feed-in-Tariffs (FiTs), Feed-in-Premia (FiPs), and Renewable Portfolio Standards (RPS) met through long-term power or premium contracts, lowered financing costs in case studies

Climate Policy Initiative (CPI)'s analysis of six large-scale renewable projects in the United States and Europe found that policies can deliver the largest reductions in project financing costs by providing long-term revenue support, offering revenue certainty, and reducing investor perceptions of risk. CPI identified specific ways in which policies affected the cost of finance for these projects and estimated the size of these effects by modeling a range of policy scenarios for each project. The analysis found that: