Investor Presentaiton
RENEWABLES FINANCE
Perceived risks increase financing costs of renewables projects
The bankability issues together with uncertain regulatory framework have increased the perceived risks of renewables projects which naturally
increase the interest rates charged by lenders to IPPs.
Local banks currently do not provide project finance for renewables projects as they do not have the experience and capacity to assess the risks of
renewables projects. The banks do not see the urgency to build such capacity as the renewables industry is still considered small in the country. The
unfamiliarity with renewables projects also contributes to the low participation of local banks in renewables development in the country.
IESR (Institute for Essential Services Reform) | www.iesr.or.id
28View entire presentation