Challenges in mobilising financial resources for renewable energy-The cases of biomass gasification and offshore wind power
Journal article, 2016

To mitigate climate change, substantial investments are needed in emerging renewable energy technologies. However, developers of the technologies - both capital goods suppliers and utilities - lack the capital to make the required investments, and other investors hesitate because of the high risks and low returns involved. This article analyses the challenges of financing the development and large-scale diffusion of biomass gasification and offshore wind power in Europe. Biomass gasification needs to take the step from public to private finance and find investors willing to make a sizable investment with high risk. Mobilising the amount of capital needed to bring about large-scale diffusion of offshore wind power will require innovative financial solutions. To overcome these challenges, changes are needed in both the financial sector and in firms in the energy sector. Amongst other suggestions this article points to bonds specially designed for renewable energy as one way to increase investment.

Biomass gasification

Resource mobilisation

Finance

Technological innovation system

Offshore wind power

Author

Kersti Karltorp

Chalmers, Energy and Environment, Environmental Systems Analysis

Environmental Innovation and Societal Transitions

22104224 (eISSN)

Vol. 19 96-110

Subject Categories

Earth and Related Environmental Sciences

DOI

10.1016/j.eist.2015.10.002

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4/5/2022 6