Investor Presentaiton
RENEWABLES FINANCE
Different perceptions between IPPs and lenders of
problems with renewables financing
IPPS
Difficult to get finance, particularly for small scale (<10
MW) projects.
Interest rates are too high
Lenders
Finance is always available, bankable projects are not
No project finance, collaterals are too high
Tariffs are too low
IESR (Institute for Essential Services Reform) | www.iesr.or.id
Unreputable and inexperienced sponsor and poor FS increase
perceived risks, resulting high interest rates
Local banks have no experience and capacity in renewables
projects, cannot provide project finance
Tariff is important but not the primary factor defining the
bankability. The quality of project and project sponsor are the
most important factors.
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