Increasing power generation capacity based on renewables is one important part of the required and on-going structural change towards a low-carbon, climate resilient economy.
This transformation asks for investment in new technologies. At the same time, the grids and the electricity markets have to cope with the integration – and eventually the dominant supply – of renewables-based electricity.
These developments at the level of technologies, market structure as well as the related regulation create substantial challenges for investors, power producers and policy makers alike. Financing renewable energy requires understanding the interplay of regulation, market structure and technologies. The investor needs to be able to form expectations about how this will eventually drive his medium- and long-term expectations about returns and corresponding risks. What is the influence of regulatory changes and what role can public investment support instruments play.
Frankfurt School of Finance & Management – in particular the FS-UNEP Collaborating Centre for Climate and Sustainable Energy Finance – is contributing to this emerging field of “sustainable finance” and offering expertise on many levels: academic programmes, executive education, academic research as well as in numerous consultancy activities across the globe.