Publication: The Role of the Public Sector in Mobilizing Commercial Finance for Grid-Connected Solar Projects: Lessons Learned and Case Studies
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2019-06-29
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2019-08-06
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This report assesses the role of public interventions in mobilizing commercial financing for grid-connected solar projects in seven developing countries - Chile, India, Maldives, Morocco, the Philippines, Senegal, and South Africa. Desktop research is complemented by interviews with development professionals, academics, and public officials, and the results of an online survey developed to gain insights and perspective from private developers and other commercial capital providers. The focus is on the ability to attract commercial investors and lenders, without analysis of the financing terms. The scope is limited to utility-scale, grid-connected projects because of the risk concentration inherent to large projects and the importance of large-scale investments in clean energy for the transition toward low carbon development pathways. The analysis puts into perspective the linkages between global and country-specific factors, the complexity and multifaceted nature of the choices that decision makers face, and their rationale for pursuing a specific course of action. The report is intended for policy makers and development partners, including development banks and other donors providing technical assistance in developing countries. It should also be of interest to investment and commercial banks, developers, investors, and other players active in the solar market. For governments and policy makers, the findings are expected to inform decisions on allocating public financing for leveraging commercial investments and inform their decision-making process. For development partners, the report provides a useful perspective on their efforts to attract non-public sources of financing in support of the development agenda.
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“Toga Makang, Monyl Nefer; Dobrotkova, Zuzana. 2019. The Role of the Public Sector in Mobilizing Commercial Finance for Grid-Connected Solar Projects: Lessons Learned and Case Studies. © World Bank. http://hdl.handle.net/10986/32185 License: CC BY 3.0 IGO.”
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Publication The Role of the Public Sector in Mobilizing Commercial Finance for Grid-Connected Solar Projects(World Bank, Washington, DC, 2019-06-29)This report assesses the role of public interventions in mobilizing commercial financing for grid-connected solar projects in seven developing countries - Chile, India, Maldives, Morocco, the Philippines, Senegal, and South Africa. Desktop research is complemented by interviews with development professionals, academics, and public officials, and the results of an online survey developed to gain insights and perspective from private developers and other commercial capital providers. The focus is on the ability to attract commercial investors and lenders, without analysis of the financing terms. The scope is limited to utility-scale, grid-connected projects because of the risk concentration inherent to large projects and the importance of large-scale investments in clean energy for the transition toward low carbon development pathways. The analysis puts into perspective the linkages between global and country-specific factors, the complexity and multifaceted nature of the choices that decision makers face, and their rationale for pursuing a specific course of action. This report is the first chapter of The Role of the Public Sector in Mobilizing Commercial Finance for Grid-Connected Solar Projects: Lessons Learned and Case Studies, that comprises the case studies that have supported the analysis.Publication Surge in Solar-Powered Homes : Experience in Off-Grid Rural Bangladesh(World Bank, Washington, DC, 2014-10-08)Bangladesh has made remarkable progress in raising living standards and reducing poverty, particularly in previously lagging regions. Rapid solar home system (SHS) expansion in Bangladesh to some 3 million rural households by early 2014 has drawn the attention of donors and governments of other countries. 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It also gives the results of an econometric study that explores which types of incentives and variables matter most to PPPs when they are weighing entering the power sector, especially in renewables, and what influences the ongoing level of investment. The idea is to provide a powerful benchmarking tool at the sector and country levels against which governments and policy makers can evaluate progress on this issue. Chapter three examines four case studies-in China, Brazil, Peru, and Mexico-to identify, disseminate, and promote best practices on alternative ways to attract PPPs.Publication Paving the Way for a Transformational Future : Lessons from Jawaharlal Nehru National Solar Mission Phase I(Washington, DC, 2013)Renewable energy, especially solar power, has been garnering a lot of interest from governments, international development organizations, civil society, and the private sector for the last few years. There has been a huge surge in the popularity of this important energy source from various stakeholders in India as well. On the other hand, solar power presents a formidable option for addressing pertinent issues being faced in international geopolitical and national macroeconomic arenas for the Government of India (GoI). Though the World Bank, India considers all market segments of solar power to be important; this report specifically looks at the utility-scale grid-connected segment of solar power in India. As one of the eight missions under India's National Action Plan for Climate Change (NAPCC), the Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January 2010 with the aim of accelerating India's march toward grid parity in solar power. 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The GoI took several proactive steps in phase one of the mission, such as offering a bundling of solar power with unallocated coal-based power through the National Thermal Power Corporation (NTPC) Vidyut Vyapar Nigam (NVVN), implementing a renewable purchase obligation (RPO) for solar power, instituting a payment security scheme (PSS), and undertaking certain measures for promoting local manufacturing, which all combined to ensure the success of phase one.
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