Financing clean power: a risk-based approach to choosing ownership models & policy/finance instruments

The paper argues that the cost of the energy transition can be reduced by allocating specific investment risks—such as construction, price, and curtailment—to the party best equipped to manage them, whether public entities, private investors, or consumers. It suggests that moving away from a binary choice between public and private finance toward a risk-based allocation approach can lead to significant cost efficiencies.

• A strategic approach to risk allocation between the private and public sectors can result in overall energy transition cost savings of 10-40%, based on two case studies analyzed in the report.
• Significant cost savings are specifically achievable by reallocating risks related to development, price, offtake, and curtailment.
• Assigning risks that private investors are unable to manage or understand, such as policy or curtailment risks, can lead to investments becoming unfinanceable or requiring a high cost of capital.

APA

Climate Policy Initiative (2017). Financing clean power: a risk-based approach to choosing ownership models & policy/finance instruments. https://www.climatepolicyinitiative.org/publication/financing-clean-power-risk-based-approach-choosing-ownership-models-policy-finance-instruments/

Chicago

Climate Policy Initiative. Financing clean power: a risk-based approach to choosing ownership models & policy/finance instruments. 2017. https://www.climatepolicyinitiative.org/publication/financing-clean-power-risk-based-approach-choosing-ownership-models-policy-finance-instruments/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Financing clean power: a risk-based approach to choosing ownership models & policy/finance instruments |date=3 September 2017 |url=https://www.climatepolicyinitiative.org/publication/financing-clean-power-risk-based-approach-choosing-ownership-models-policy-finance-instruments/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2017financing, author = {{Climate Policy Initiative}}, title = {{Financing clean power: a risk-based approach to choosing ownership models \& policy/finance instruments}}, institution = {Climate Policy Initiative}, year = {2017}, month = sep, url = {https://www.climatepolicyinitiative.org/publication/financing-clean-power-risk-based-approach-choosing-ownership-models-policy-finance-instruments/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }