What Kinds of Photovoltaic Projects Do Lenders Prefer to Finance?

  • Florian Lüdeke-Freund
  • Moritz Loock


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).


Renewable Energy Business Model United Nations Environment Programme International Energy Agency International Energy Agency 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

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

Authors and Affiliations

  • Florian Lüdeke-Freund
    • 1
  • Moritz Loock
    • 2
  1. 1.Centre for Sustainability Management (CSM), Leuphana University of LüneburgLüneburgGermany
  2. 2.Institute for Economy and the Environment at the University of St. GallenSt. GallenSwitzerland

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