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Cross-Sector Leadership for the Green Economy pp 107–124Cite as

Palgrave Macmillan

What Kinds of Photovoltaic Projects Do Lenders Prefer to Finance?

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Abstract

Discussions of innovation in renewable energy have covered different types of energy production (e.g., Nguyen, Gheewala, & Sagisaka, 2010; Sookkumnerd, Ito, & Kito, 2007; Yusoff, 2006), different industries (e.g., Narodoslawsky, Niederl-Schmidinger, & Halasz, 2008; Smyth, ó Gallachóir, Korres, & Murphy, 2010), or have focused on different geographic regions (e.g., Kaldellis, Simotas, Zafirakis, & Kondili, 2009; Smyth et al., 2010; Sookkumnerd et al., 2007; Zuluaga & Dyner, 2007). However, a crucial aspect has been rarely discussed: financing. Project financing is a central challenge for the diffusion of renewable energies, as it claims a major percentage of overall renewable energy investments (United Nations Environment Programme [UNEP], 2010) and requires huge amounts of debt capital: Debt ratios of 80 percent or even 90 percent are common (Johnson, 2009; Böttcher, 2009; Wuppertal Institute [WI], 2010).

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Author information

Authors and Affiliations

  1. Centre for Sustainability Management (CSM), Leuphana University of Lüneburg, Lüneburg, Germany

    Florian Lüdeke-Freund

  2. Institute for Economy and the Environment at the University of St. Gallen, St. Gallen, Switzerland

    Moritz Loock

Authors
  1. Florian Lüdeke-Freund
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  2. Moritz Loock
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Editor information

Alfred Marcus Paul Shrivastava Sanjay Sharma Stefano Pogutz

Copyright information

© 2011 Alfred Marcus, Paul Shrivastava, Sanjay Sharma, and Stefano Pogutz

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Lüdeke-Freund, F., Loock, M. (2011). What Kinds of Photovoltaic Projects Do Lenders Prefer to Finance?. In: Marcus, A., Shrivastava, P., Sharma, S., Pogutz, S. (eds) Cross-Sector Leadership for the Green Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137015891_6

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