As demand for renewable energy grows, traditional sources of funding are becoming increasingly saturated. Demand for innovative financing structures and the allure of green energy bonds are bringing securitization of renewable receivables contracts into the foreground. A report released by Barclays and Accenture estimates that $1.9 trillion in financing could be created by renewables securitization and renewable energy companies are making high profile moves to prepare solar panel, EV leases and energy bill contracts for securitization.

Despite the initial excitement, many roadblocks exist such as the lack of standardization in methods and a need for consensus among ratings agencies. In this meeting, we examine the present and future of renewable securitization by examining the current risks and coordination failures that are stymieing its development as well as its forecasted size and impact.

Stumbling Blocks in Renewables Securitization

• Where has the political climate been most favorable towards securitization of renewables? Where has the most progress been made? What aspects of the financial regulatory framework increased the viability of renewables securitization in those countries?
• How important are national objectives and incentives such as a RPS and feed-in-tariffs to the future of green energy bonds?
• What steps are needed to ensure investor confidence? What financial tools are available to abate risk and uncertainty? How is risk calculated?
• What are the attributes of an optimal portfolio? (i.e. geographical diversity)
• What have the current ratings been for renewables securities and what are the difficulties faced by ratings agencies in issuing a rating?
• Where will green energy bonds be traded?

Most Promising Clean Technologies and Contract Types 

• What have been the recent movements among clean technology players and banks towards securitization?
• What technologies and contract types look most ripe for securitization and why?
• What effect will renewables securitization have on clean technology market maturity and grid parity? What is the projected amount of liquidity that securitization can bring about?
• How can behavior by clean technology companies be incentivized so as to facilitate renewable energy securitization?
• Case studies of failures and successful securitizations.

Speakers:

CapitalFusion Partners/Fincap Solutions, John Joshi, Managing Director

Standard & Poor’s, Andrew Giudici, Director

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