In this book, Christian Hürlimann examines valuation methods and their application in the context of managerial finance within renewable energy investments. Besides a review of classical finance models, the application of other contemporary techniques are discussed. Based on a mixed-methods approach, current practices in performing valuation are empirically analyzed among German and Swiss investors. The developed concepts provide practitioners tools to define equity value drivers, consider risk treatments and value investments along the two dimensions of value creation and value protection.​

The future of clean energy is no longer about science and technology; it's all about access to finance. The fossil fuel industry has been subsidized for decades with tax breaks and government backing, while renewables have struggled to compete. But now clean energy is the safe bet for investors, as is argued in Renewable Energy Finance: Powering the Future, edited by Dr Charles Donovan, Principal Teaching Fellow at Imperial College Business School.With a foreword by Lord Brown and contributions from some of the world's leading experts in energy finance, this timely book documents how investors are spending over US$250 billion each year on new renewable energy projects and positioning themselves in a global investment market that will continue to expand at double-digit growth rates until 2020. It documents first-hand experiences of the challenges of balancing risk and return amid volatile market conditions and rapid shifts in government policy.Renewable Energy Finance provides an insider's perspective on renewable energy transactions, and insight into how countries like the US, India and China are responding to the global energy challenge. Drawing together contributions from senior executives and leading academics, Renewable Energy Finance serves an audience of readers craving intelligent, practical perspectives on the future of clean energy investment.

The first systematic, quantitative appraisal of power density, offering detailed reviews of power densities of renewable energy flows, fossil fuels, and all common energy uses. “There's no author whose books I look forward to more than Vaclav Smil.” —Bill Gates In this book, Vaclav Smil argues that power density is a key determinant of the nature and dynamics of energy systems. Any understanding of complex energy systems must rely on quantitative measures of many fundamental variables. Power density—the rate of energy flux per unit of area—is an important but largely overlooked measure. Smil provides the first systematic, quantitative appraisal of power density, offering detailed reviews of the power densities of renewable energy flows, fossil fuels, thermal electricity generation, and all common energy uses. Smil shows that careful quantification, critical appraisals, and revealing comparisons of power densities make possible a deeper understanding of the ways we harness, convert, and use energies. Conscientious assessment of power densities, he argues, proves particularly revealing when contrasting the fossil fuel–based energy system with renewable energy conversions. Smil explains that modern civilization has evolved as a direct expression of the high power densities of fossil fuel extraction. He argues that our inevitable (and desirable) move to new energy arrangements involving conversions of lower-density renewable energy sources will require our society—currently dominated by megacities and concentrated industrial production—to undergo a profound spatial restructuring of its energy system.

This book examines the technical, market, and policy innovations for unlocking sustainable investment in the energy sector. While finalizing this book, the COVID-19 pandemic is cutting a devastating swath through the global economy, causing the biggest fall in energy sector investment, exacerbating the global trade finance gap, worsening signs of growing income inequality, and devastating the health and livelihoods of millions. What is the parallel between the COVID-19 pandemic and the climate change crisis? The impacts of the global pandemic are expected to last for a few years, whereas those associated with the climate crisis will play out over several decades with potentially irreversible consequences. However, both show that the cost of inaction or delay in addressing the risks can lead to devastating outcomes or a greater probability of irreversible, catastrophic damages. In the context of sustainable energy investment and the transition to a low-carbon, climate-resilient economy, what ways can financial markets and institutions support net-zero-emission activities and the shift to a sustainable economy, including investment in energy efficiency, low-carbon and renewable energy technologies? This book provides students, policymakers, and energy investment professionals with the knowledge and theoretical tools necessary to address related questions in sustainable energy investment, risk management, and energy innovation agendas.

What is project finance? What makes project or structured finance so relevant for large renewable energy infrastructure? Which vocabulary do I need to know in order to speak the same language during meetings with lawyers, investors, bankers and engineers? These questions and many more are answered throughout this book, offering real world examples to bridge the gap between theory and practice. The book details the role of each stakeholder in the development of renewable energy projects, the interconnection between all the agreements, the financial process from fundraising to financial close, the processes of due diligence, risk analysis, project investment valuation and much more. It also provides with an introduction to Portfolio Management using renewable energy assets and an explanation of the role of Climate Finance in green energy investments. The commented glossary enables readers to unpick the jargon used in project finance for renewable energy, and the numerous creative figures and comprehensive tables aid with understanding. Offering a complete picture of the discipline, Introduction to Project Finance in Renewable Energy Infrastructure will be of value to professionals, engineers and academics alike interested in understanding the process and components of project finance in renewable energy infrastructures, in both private and public-private contexts.

Real R&D options are among the earliest modelled real options, with now ten primary practical uses: general R&D planning, planning R&D in stages, evaluating test information, new product development timing, operations, abandonment, risk sharing, market funding, industry strategy and regulation. This book was partly motivated by requests to identify and develop real option models for R&D in telecommunications, petroleum technology and biotechnology. Nine new models cover information and implementation costs, analytical solutions for mean reverting, or fat tailed revenues, endogenous learning and exogenous and experiential shocks, American sequential options, and innovator advantages. Four new applications include forward start development options, exploration options, innovation with information costs, and innovator's real values with changing market share. R&D directors and researchers will find several uses for these models: - general R&D planning - evaluating test information - new product development timing - risk sharing - industry strategy and regulation - A practical guide to how organizations can use Real Option techniques to effectively value research and development by companies - Provides a rigorous theoretical underpinning of the use of Real Option techniques - Real Options applications are orientated around the economies of North America, Europe and Asia, for an international perspective

This book will discuss the legal tools offered by international law that can support foreign direct investment (FDI) in the renewable energy sector in the Global South. Promoting and increasing investment in the renewable energy sector is crucial for limiting global temperature rise to 1.5°C and addressing energy poverty in the Global South. In this volume, Avidan Kent explores the various home-country measures (HCMs) offered by international law that support FDI in the renewable energy sector. This book provides a bird’s eye evaluation of HCMs from fields such as trade law, investment law, environmental law, development law and more. It reveals that while international law indeed offers many legal tools to support investors’ needs, the current legal framework is fragmented; most legal instruments were designed in isolation and the potential for mutually supportive, synergetic policies has been explored only to a limited extent. This fragmented reality is in contradiction to the notion of Policy Coherence for Development, which is increasingly gaining support in leading institutions in Europe and elsewhere. This book will provide recommendations on the manner in which HCMs can be connected in order to maximise their potential and boost investment in renewable energies in the developing world. International Law and Renewable Energy Investment in the Global South will be of great interest to scholars, students and practitioners of international law, energy studies, development studies and IR more broadly.

This book presents the application of real options approach (ROA) to analyze investment decisions for switching energy sources from fossil fuels to alternative energy. Using the Philippines as a case, the ROA models presented here explore how uncertainties including fossil fuel prices, electricity prices, discount rates, externality, renewable energy (RE) costs, and RE investment growth affect investment decisions that focus on developing countries, particularly to fossil-importing countries. The book is a collection of academic papers published in peer-reviewed journals. The first paper analyzes investments in various RE sources including wind, solar, hydropower, and geothermal over using coal. The second paper compares investments between RE and nuclear energy considering the risk of nuclear accident. The third paper applies the proposed ROA model with the case of Palawan island and analyzes investment in RE over diesel fuel for electricity generation. The fourth paper focuses on investment drivers that make RE sources as a better option than using fossil fuels.

This publication provides host country governments with guidance on the policy options that are available to make the most of investment opportunities in clean energy infrastructure, drawing on the expertise of climate and investment communities among others. It identifies key issues in investment policy, investment promotion and facilitation, competition, financial markets, and public governance. It also addresses cross-cutting issues, including the implications of regional co-operation and of international trade for investment in clean energy infrastructure.

For all of their focus on asset prices, financial economists rarely ask if assets are priced ethically—that is, if their prices are compatible with the public good. Yet in a world facing major, possibly catastrophic problems—global warming, for instance, and growing inequality—it is now more important than ever that we allocate capital to projects that will benefit society as a whole, not just today but far into the future. In this book, Christian Gollier develops a powerful method for transforming our societal goals of collective prosperity into the cornerstone of our financial decision making. Ethical Asset Valuation and the Good Society starts by stating transparent moral principles and, from these, derives simple rules that can be used to evaluate saving and investment decisions in terms of the public good. Rather than trying to explain observed asset prices, Gollier derives what these prices ought to be in order to direct capital toward socially desirable investments. He focuses especially on the two prices that drive most financial decisions—the price of time as reflected in the interest rate and the price of risk—and explores the role these play in our long-term planning. If investment projects in renewable energy could be financed at a lower interest rate than those linked to fossil fuels, for instance, the energy transition would be easier to accomplish. Building on criticism of the short-term thinking of financial markets, Gollier suggests ways to shift investment toward the future through the discounting of the valuation of assets and investments with long-term benefits. In this sophisticated but accessible work, Gollier builds a bridge between welfare economics and finance theory to provide a framework for ethical valuation capable of establishing what asset prices should be on the basis of our shared moral values.