IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v135y2017icp913-929.html
   My bibliography  Save this article

Renewable electricity finance in the United States: A state-of-the-art review

Author

Listed:
  • Krupa, Joel
  • Harvey, L.D. Danny

Abstract

This paper discusses a range of existing and emerging options for financing renewable electricity. We use the United States as a reference case study. To contextualize the discussion, we begin with scenarios for the deployment of various renewable energy technologies globally, followed by coverage of the United States renewable energy supply, supporting policies, and an introduction to renewable electricity finance for the non-specialist reader. We subsequently cover several prominent historical delivery mechanisms for the provision of renewable electricity finance, as well as key emerging opportunities. Further research in this area is encouraged.

Suggested Citation

  • Krupa, Joel & Harvey, L.D. Danny, 2017. "Renewable electricity finance in the United States: A state-of-the-art review," Energy, Elsevier, vol. 135(C), pages 913-929.
  • Handle: RePEc:eee:energy:v:135:y:2017:i:c:p:913-929
    DOI: 10.1016/j.energy.2017.05.190
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217309866
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2017.05.190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Farmer, J. Doyne & Lafond, François, 2016. "How predictable is technological progress?," Research Policy, Elsevier, vol. 45(3), pages 647-665.
    2. Christopher Kaminker & Fiona Stewart, 2012. "The Role of Institutional Investors in Financing Clean Energy," OECD Working Papers on Finance, Insurance and Private Pensions 23, OECD Publishing.
    3. Gireesh Shrimali, 2015. "The Impact of Government Policies on Renewable Energy Investment," World Scientific Book Chapters, in: Charles W Donovan (ed.), RENEWABLE ENERGY FINANCE Powering the Future, chapter 6, pages 131-146, World Scientific Publishing Co. Pte. Ltd..
    4. Richard L. Kauffman, 2014. "Bringing down green financing costs: how a state-sponsored bank might be the key," Community Development Innovation Review, Federal Reserve Bank of San Francisco, issue 01, pages 103-107.
    5. Ng, Thiam Hee & Tao, Jacqueline Yujia, 2016. "Bond financing for renewable energy in Asia," Energy Policy, Elsevier, vol. 95(C), pages 509-517.
    6. Harvey, L.D.D., 2013. "Global climate-oriented transportation scenarios," Energy Policy, Elsevier, vol. 54(C), pages 87-103.
    7. Mills, S.J. & Taylor, Melissa, 1994. "Project finance for renewable energy," Renewable Energy, Elsevier, vol. 5(1), pages 700-708.
    8. Christa S. Clapp & Knut H. Alfsen & Asbjørn Torvanger & Harald Francke Lund, 2015. "Influence of climate science on financial decisions," Nature Climate Change, Nature, vol. 5(2), pages 84-85, February.
    9. Wiser, Ryan H., 1997. "Renewable energy finance and project ownership : The impact of alternative development structures on the cost of wind power," Energy Policy, Elsevier, vol. 25(1), pages 15-27, January.
    10. Jacobson, Mark Z. & Delucchi, Mark A., 2011. "Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials," Energy Policy, Elsevier, vol. 39(3), pages 1154-1169, March.
    11. Ondraczek, Janosch & Komendantova, Nadejda & Patt, Anthony, 2015. "WACC the dog: The effect of financing costs on the levelized cost of solar PV power," Renewable Energy, Elsevier, vol. 75(C), pages 888-898.
    12. David Nelson, 2015. "The Untapped Potential of Institutional Investors," World Scientific Book Chapters, in: Charles W Donovan (ed.), RENEWABLE ENERGY FINANCE Powering the Future, chapter 12, pages 273-305, World Scientific Publishing Co. Pte. Ltd..
    13. Brian Potskowski & Chris Hunt, 2015. "The Growing Role for Private Equity," World Scientific Book Chapters, in: Charles W Donovan (ed.), RENEWABLE ENERGY FINANCE Powering the Future, chapter 10, pages 225-244, World Scientific Publishing Co. Pte. Ltd..
    14. Harvey, L.D. Danny, 2014. "Global climate-oriented building energy use scenarios," Energy Policy, Elsevier, vol. 67(C), pages 473-487.
    15. Lam, Patrick T.I. & Law, Angel O.K., 2016. "Crowdfunding for renewable and sustainable energy projects: An exploratory case study approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 11-20.
    16. Thorsten Helms & Sarah Salm & Rolf Wüstenhagen, 2015. "Investor-Specific Cost of Capital and Renewable Energy Investment Decisions," World Scientific Book Chapters, in: Charles W Donovan (ed.), RENEWABLE ENERGY FINANCE Powering the Future, chapter 4, pages 77-101, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luiz de Mello, 2023. "Real Estate in a Post-Pandemic World: How Can Policies Make Housing More Enviromentally Sustainable and Affordable?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 244(1), pages 111-139, March.
    2. Chih-Chun Kung & Binbo Zheng & Tsung-Ju Lee & Nanping Wu, 2022. "Collections for Economic Growth, Social Development, and Technological Innovation Under Climate Change," SAGE Open, , vol. 12(2), pages 21582440221, June.
    3. Sirin, Selahattin Murat & Uz, Dilek & Sevindik, Irem, 2022. "How do macroeconomic dynamics affect small and medium-sized enterprises (SMEs) in the power sector in developing economies: Evidence from Turkey," Energy Policy, Elsevier, vol. 168(C).
    4. Hall, Stephen & Roelich, Katy E. & Davis, Mark E. & Holstenkamp, Lars, 2018. "Finance and justice in low-carbon energy transitions," Applied Energy, Elsevier, vol. 222(C), pages 772-780.
    5. Blazquez, Jorge & Galeotti, Marzio & Martin-Moreno, Jose M., 2021. "Green recovery packages for a post-Covid-19 world: A lesson from the collapse of Spanish wind farms in the past financial crisis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    6. Steffen, Bjarne, 2020. "Estimating the cost of capital for renewable energy projects," Energy Economics, Elsevier, vol. 88(C).
    7. Xiaohuan Lyu & Anna Shi, 2018. "Research on the Renewable Energy Industry Financing Efficiency Assessment and Mode Selection," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    8. Paolo Bertoldi & Marina Economidou & Valentina Palermo & Benigna Boza‐Kiss & Valeria Todeschi, 2021. "How to finance energy renovation of residential buildings: Review of current and emerging financing instruments in the EU," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 10(1), January.
    9. Kung, Chih-Chun & Lan, Xiaolong & Yang, Yunxia & Kung, Shan-Shan & Chang, Meng-Shiuh, 2022. "Effects of green bonds on Taiwan's bioenergy development," Energy, Elsevier, vol. 238(PA).
    10. Xu, Yingying, 2020. "Will energy transitions impact financial systems?," Energy, Elsevier, vol. 194(C).
    11. Ionel Jianu & Iulia Jianu, 2018. "The Share Price and Investment: Current Footprints for Future Oil and Gas Industry Performance," Energies, MDPI, vol. 11(2), pages 1-15, February.
    12. Lai, Chun Sing & Locatelli, Giorgio & Pimm, Andrew & Tao, Yingshan & Li, Xuecong & Lai, Loi Lei, 2019. "A financial model for lithium-ion storage in a photovoltaic and biogas energy system," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    13. Elie, Luc & Granier, Caroline & Rigot, Sandra, 2021. "The different types of renewable energy finance: A Bibliometric analysis," Energy Economics, Elsevier, vol. 93(C).
    14. Forrester, Sydney P. & Reames, Tony G., 2020. "Understanding the residential energy efficiency financing coverage gap and market potential," Applied Energy, Elsevier, vol. 260(C).
    15. Jonathan Doh & Pawan Budhwar & Geoffrey Wood, 2021. "Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 951-970, July.
    16. Egli, Florian & Orgland, Nikolai & Taylor, Michael & Schmidt, Tobias S. & Steffen, Bjarne, 2023. "Estimating the cost of capital for solar PV projects using auction results," Energy Policy, Elsevier, vol. 183(C).
    17. Hemrit, Wael & Benlagha, Noureddine, 2021. "Does renewable energy index respond to the pandemic uncertainty?," Renewable Energy, Elsevier, vol. 177(C), pages 336-347.
    18. Friedemann Polzin & Mark Sanders & Bjarne Steffen & Florian Egli & Tobias S. Schmidt & Panagiotis Karkatsoulis & Panagiotis Fragkos & Leonidas Paroussos, 2021. "The effect of differentiating costs of capital by country and technology on the European energy transition," Climatic Change, Springer, vol. 167(1), pages 1-21, July.
    19. Krupa, Joel & Poudineh, Rahmatallah & Harvey, L.D. Danny, 2019. "Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: A case study on the Gulf Cooperation Council," Energy, Elsevier, vol. 166(C), pages 1047-1062.
    20. La Monaca, Sarah & Assereto, Martina & Byrne, Julie, 2018. "Clean energy investing in public capital markets: Portfolio benefits of yieldcos," Energy Policy, Elsevier, vol. 121(C), pages 383-393.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krupa, Joel & Poudineh, Rahmatallah & Harvey, L.D. Danny, 2019. "Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: A case study on the Gulf Cooperation Council," Energy, Elsevier, vol. 166(C), pages 1047-1062.
    2. Best, Rohan & Burke, Paul J., 2018. "Adoption of solar and wind energy: The roles of carbon pricing and aggregate policy support," Energy Policy, Elsevier, vol. 118(C), pages 404-417.
    3. Egli, Florian, 2020. "Renewable energy investment risk: An investigation of changes over time and the underlying drivers," Energy Policy, Elsevier, vol. 140(C).
    4. Đukan, Mak & Kitzing, Lena, 2021. "The impact of auctions on financing conditions and cost of capital for wind energy projects," Energy Policy, Elsevier, vol. 152(C).
    5. Lai, Chun Sing & Locatelli, Giorgio & Pimm, Andrew & Tao, Yingshan & Li, Xuecong & Lai, Loi Lei, 2019. "A financial model for lithium-ion storage in a photovoltaic and biogas energy system," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    6. Kästel, Peter & Gilroy-Scott, Bryce, 2015. "Economics of pooling small local electricity prosumers—LCOE & self-consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 718-729.
    7. Danny Harvey, L.D., 2017. "Implications for the floor price of oil of aggressive climate policies," Energy Policy, Elsevier, vol. 108(C), pages 143-153.
    8. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst, 2018. "Barriers to investment in utility-scale variable renewable electricity (VRE) generation projects," Renewable Energy, Elsevier, vol. 121(C), pages 730-744.
    9. Tamer Khraisha & Keren Arthur, 2018. "Can we have a general theory of financial innovation processes? A conceptual review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 4(1), pages 1-27, December.
    10. Simshauser, Paul, 2024. "On static vs. dynamic line ratings in renewable energy zones," Energy Economics, Elsevier, vol. 129(C).
    11. Yoshino, Naoyuki & Taghizadeh–Hesary, Farhad & Nakahigashi, Masaki, 2019. "Modelling the social funding and spill-over tax for addressing the green energy financing gap," Economic Modelling, Elsevier, vol. 77(C), pages 34-41.
    12. Dinica, Valentina, 2009. "Biomass power: Exploring the diffusion challenges in Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1551-1559, August.
    13. Altayib, Khalid & Dincer, Ibrahim, 2022. "Development of an integrated hydropower system with hydrogen and methanol production," Energy, Elsevier, vol. 240(C).
    14. David Gattie & Michael Hewitt, 2023. "National Security as a Value-Added Proposition for Advanced Nuclear Reactors: A U.S. Focus," Energies, MDPI, vol. 16(17), pages 1-26, August.
    15. Ives, Matthew & Cesaro, Zac & Bramstoft, Rasmus & Bañares-Alcántara, René, 2023. "Facilitating deep decarbonization via sector coupling of green hydrogen and ammonia," INET Oxford Working Papers 2023-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    16. Singh, Anuraag & Triulzi, Giorgio & Magee, Christopher L., 2021. "Technological improvement rate predictions for all technologies: Use of patent data and an extended domain description," Research Policy, Elsevier, vol. 50(9).
    17. Javed, Muhammad Shahzad & Ma, Tao & Jurasz, Jakub & Canales, Fausto A. & Lin, Shaoquan & Ahmed, Salman & Zhang, Yijie, 2021. "Economic analysis and optimization of a renewable energy based power supply system with different energy storages for a remote island," Renewable Energy, Elsevier, vol. 164(C), pages 1376-1394.
    18. Lafond, François & Bailey, Aimee Gotway & Bakker, Jan David & Rebois, Dylan & Zadourian, Rubina & McSharry, Patrick & Farmer, J. Doyne, 2018. "How well do experience curves predict technological progress? A method for making distributional forecasts," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 104-117.
    19. Klein, Martin & Deissenroth, Marc, 2017. "When do households invest in solar photovoltaics? An application of prospect theory," Energy Policy, Elsevier, vol. 109(C), pages 270-278.
    20. Hötte, Kerstin & Pichler, Anton & Lafond, François, 2021. "The rise of science in low-carbon energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:135:y:2017:i:c:p:913-929. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.